QUESTION 12 Which of the following costs would not be classified as factory over

Question

QUESTION 12 Which of the following costs would not be classified as factory overhead? Small tools used in production. Wages of the factory janitor. O Rubber for the soles of shoes produced. O Insurance on factory building Property taxes on maintenance machinery QUESTION 13 Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,000 to jobs completed but not sold, and $120,000 to jobs finished and sold. At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end? O Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000 No entry is needed O Debit Factory Overhead $5,000; credit Work in Process Inventory $5,000 Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000 Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000 QUESTION 14 At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department. 112,000 materials; 117,500 conversion. 126,000 materials117,500 conversion. 112,000 materials; 121,500 conversion. 121,500 materials; 126,000 conversion. 126,000 materials; 121,500 conversion.

Explanation / Answer

Q12. Answer is Rubber of soles of shoes produced. Explanation: Rubber used in soles of shoes is a direct material attributable to product. Q13. Answer is Debit factory Overheads Dr. 5000 Credit to cost of goods sold $5000. Explanation: Journal entry: Factory Overheads Dr. 5000      Cost of Goods sold 5000 Note: When the factory overheads balane is not material enough, then such balances shall be closed by transferring it to cost of goods sold. Q14. Answer is 126000 Material units; 121500 conversion units Explanation: UNITS TO ACCOUNT FOR: Beginning Work in Process units 20,000 Add: Units Started in Process 115,000 Total Units to account for: 135,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 120,000 Ending Work in Process 15,000 Total Units to be accounted for: 135,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 120,000 100% 120,000 Ending Work in Process 40% 6,000 10% 1,500 Total Equivalent units 126,000 121,500

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