1. A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:
a. debit Goods in Process Inventory, credit Cost of Goods Sold.
b. debit Goods in Process Inventory, credit Raw Materials Inventory.
c. debit Goods in Process Inventory, credit Factory Overhead.
d. debit Factory Overhead, credit Raw Materials Inventory.
e. debit Finished Goods Inventory, credit Raw Materials Inventory.
2. A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. The department started and finished 127,500 units this period. The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:
a. $0.14.
b. $0.16.
c. $0.17.
d. $0.30.
e. $0.37.
3.A company uses a process cost accounting system. Its Sewing Department completed and transferred out 120,000 units during the current period. The ending inventory in the Sewing Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to direct labor). Overhead is applied on the basis of direct labor.
Determine the equivalent units of production for the Sewing Department for direct materials, direct labor and overhead assuming the weighted average method.
a. 120,000; 120,000; 120,000
b. 120,000; 160,000; 120,000
c. 128,000; 120,000; 120,000
d. 128,000; 144,000; 144,000
e. 128,000; 184,000; 160,000