QUESTION 1
Larney Corporation uses process costing. A number of transactions that occurred in June are listed below.
(1) Raw materials that cost $39,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.
(2) Direct labor costs of $37,300 are incurred, but not yet paid, in the Mixing Department.
(3) Manufacturing overhead of $43,300 is applied in the Mixing Department using the department's predetermined overhead rate.
(4) Units with a carrying cost of $113,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.
(5) Units with a carrying cost of $144,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.
(6) Finished goods with a carrying cost of $139,300 are sold.
Required: Prepare journal entries for each of the transactions listed above. (Omit the "$" sign in your response.)
(6 total entries required)
QUESTION 2
The Assembly Department started the month with 16,000 units in its beginning work in process inventory. An additional 300,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 16,500 units in the ending work in process inventory of the Assembly Department.
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How many units were transferred to the next processing department during the month?
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333,000
316,500
301,000
300,000
QUESTION 3
The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 11,000 units, The ending work in process inventory is 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the costs per equivalent unit for the period $3.50 for the materials and $1.50 for labor and overhead, what is the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)
$38,000
$39,900
$48,400
$55,000
QUESTION 4
Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
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Beginning work in process inventory:
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Units in beginning work in process inventory
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550
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Materials costs
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$5,900
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Conversion costs
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$5,200
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Percent complete with respect to materials
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65%
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Percent complete with respect to conversion
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30%
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Units started into production during the month
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18,900
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Units transferred to the next department during the month
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17,500
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Materials costs added during the month
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$193,869
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Conversion costs added during the month
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$336,499
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Ending work in process inventory:
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|
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Units in ending work in process inventory
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1,950
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Percent complete with respect to materials
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60%
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Percent complete with respect to conversion
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20%
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Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.
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The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)
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$536,431
$560,610
$530,031
$521,500
QUESTION 5
Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
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Beginning work in process inventory:
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Units in beginning work in process inventory
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650
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Materials costs
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$4,000
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Conversion costs
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$2,500
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Percent complete with respect to materials
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65%
|
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Percent complete with respect to conversion
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30%
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Units started into production during the month
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14,300
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Units transferred to the next department during the month
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13,400
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Materials costs added during the month
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$160,795
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Conversion costs added during the month
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$241,538
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Ending work in process inventory:
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|
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Units in ending work in process inventory
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1,550
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Percent complete with respect to materials
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60%
|
|
Percent complete with respect to conversion
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20%
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Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.
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The cost of ending work in process inventory in the first processing department according to the company's cost system is closestto: (Round your cost per equivalent unit answers to 2 decimal places.)
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$16,213
$11,062
$24,750
$40,394