Acct 505 Mid Term Essay

1198 Words Apr 10th, 2013 5 Pages
1. | Question : | (TCO F) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: | Student Answer: The same as the number of units put into production. |

2. | Question : | (TCO F) Process costing would be appropriate for each of the following except: | Student Answer: custom furniture manufacturing. |

3. | Question : | (TCO F) Which of the following accounts is debited when direct labor is recorded? Student Answer: Work in process | |

4. | Question : | (TCO F) During December at Ingrim Corporation, $74,000 of
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A review of the company's inventory and cost records for the most recently completed year revealed the following information: | Units | Materials | Conversion | Work in process. Jan. 1 (80% complete with respect to conversion costs) | 100,000 | $100,000 | $157,500 | Units started into production | 500,000 | | | Costs added during the year: | | | | Materials | | $650,000 | | Conversion | | | $997,500 | Units completed during the year | 450,000 | | |

The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.

Required:

i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.

ii. Determine the cost transferred to finished goods.

iii. Determine the amount of cost that should be assigned to the ending work in process inventory. | | | Student Answer: | | 1. 100,000 + 500,000 = 600,000 x 80% = 480,000 equivalent units of production. 1b: Cost per equivalent units Materials = $1.56 1c: conversion cost= $2.41 2. Cost of transfered goods: $748,800 + $1156800.00 = $1,905,600.00 3. 100,000 x 80% = 80,000 units @ $1.56; 40,000 units @ $2.41 =96,400 =$221,200 | | Instructor Explanation: | | | | | Points Received: | 10 of 15 | | Comments: | | | |

4. | Question :

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