1. Hammett has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hammett should make a journal entry on December 31 that includes:
a. a debit to Cost of Goods Sold for $432,000
b. a debit to Finished-Goods Inventory for $432,000
c. a debit to Work-in-Process Inventory for $432,000
d. a debit to Finished-Goods Inventory for $86,000
e. a credit to Work-in-Process Inventory for $86,000
2. Unit costs in a process-costing system are derived by using:
a. in-process units
b. completed units
c. physical units
d. equivalent units
e. a measure of activity other than those listed above
3. Barrett Corporation had 6,500 units of work in process on April 1. During April, 19,100 units were completed and as of April 30, 5,100 units remained in production. How many units were started during April?
a. 11,600
b. 17,700
c. 20,500
d. 30,700
e. None of these
4. Lester Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November?
a. 16,100
b. 26,500.
c. 27,100
d. 42,800.
e. None of these
5. Xin Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 10,000 units were completed and as of April 30, 4,000 units that were 40% complete remained in production. How many units were started during April?
a. 8,600
b. 9,800
c. 11,000.
d. 12,200
e. None of these