Ac 505 Quiz and Solution

1022 Words Jan 24th, 2012 5 Pages
AC505 Practice Quiz #1
1. For which of the businesses would the job order cost system be appropriate?
a. Auto repair shop
b. Crude Oil refinery.
c. Drug Manufacturer.
d. Root beer producer.
2. Which of the following companies would most likely use job costing?
a. Paper manufacturer.
b. Paint Producer.
c. Breakfast cereal maker.
d. Advertising agency.
3. An equivalent unit of conversion costs is equal to the amount of conversion costs required to:
a. Start a unit.
b. Start and complete a unit.
c. Transfer a unit in.
d. Transfer a unit out.
4. Job 655 was recently completed. The following data has been recorded on its job cost sheet:
Direct materials $ 78,000
Direct labor costs
…show more content…
Required:

a. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.
b. Determine the cost transferred to finished goods..
c. Determine the amount of cost that should be assigned to the ending work-in-process inventory.

AC505 Solution to Practice Quiz #1

1. A
2. D
3. B

4. Cost Summary:

Direct Materials $ 78,000
Direct Labor 45,000
Manufacturing Overhead 33,750 ( $45,000 X 75%) ----------

Total Cost $ 156,750/Units Completed 4,000
= Unit Product Cost = $ 39.19

5. a. Raw Materials Inventory 45,000 Accounts Payable 45,000
b. Work In Process 23,000 Manufacturing Overhead 12,000 Raw Materials Inventory 35,000
c. Work in Process 47,000 Manufacturing Overhead 15,000 Salaries and Wages Payable 62,000
d. Manufacturing Overhead 12,000 Accumulated Depreciation 12,000
e. Depreciation

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