Question 1. Eccles Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $383,000 and credited for $329,900. The ending balance in the Finished Goods inventory account was $70,200. At the end of the year, manufacturing overhead was underapplied by $3,800.
The balance in the Finished Goods inventory account at the beginning of the year was:
a. $3,800
b. $70,200
c. $17,100
d. $53,100
Question 2. Yimron Corporation uses the weighted-average method in its process costing system. Information for the month of March concerning Department A, the first stage of the company's production process, follows:
|
|
Materials
|
Conversion Cost
|
|
Work in process, beginning
|
$3,900
|
$2,800
|
|
Costs added during March
|
$19,500
|
$16,600
|
|
Cost per equivalent unit
|
$0.29
|
$0.11
|
|
Units completed and transferred to the next department
|
83,000 units
|
|
|
Work in process, ending
|
10,400 units
|
|
Materials are added at the beginning of the process. The ending work in process is 60% complete with respect to conversion costs. What cost would be recorded for the ending work in process inventory?
a. $3,702.4
b. $1,851
c. $5,202.4
d. $4,160
Question 3. Raulot Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.
|
|
Units
|
Percent Complete with Respect to Conversion
|
|
Beginning work in process inventory
|
5,500
|
76%
|
|
Transferred in from the prior department during January
|
78,900
|
|
|
Completed and transferred to the next department during January
|
76,800
|
|
|
Ending work in process inventory
|
7,600
|
65%
|
The Molding Department's cost per equivalent unit for conversion cost for January was $1.71.
How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
a. $8,447.4
b. $8,947.4
c. $3,119.04
d. $12,996