Quiz #2

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------------------------------------------------- Top of Form Grade Details | Page: | 1 2 | 1. | Question : | (TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below: i. Custom boat builder ii. Frozen cranberry juice processor iii. Concrete block manufacturer iv. Winery that produces a number of varietal wines v. Aluminum refiner that makes aluminum ingots from bauxite ore Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. | | | Student Answer: | | i process costing ii process costing iii job order costing…show more content…
iii. The following employee costs were incurred: direct labor, $229,000; indirect labor, $54,000; and administrative salaries, $117,000. iv. Selling costs, $119,000. v. Factory utility costs, $21,000. vi. Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. vii. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 38,000 machine-hours. viii. The cost of goods manufactured for the year was $910,000. xiv. Sales for the year totaled $1,173,000 and the costs on the job cost sheets of the goods that were sold totaled $895,000. xv. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: Prepare the appropriate journal entry for each of the items above (a. through j.). You can assume that all transactions with employees, customers, and suppliers were conducted in cash. | | | Student Answer: | | i RM 443000 AP 443000 ii wip 435000 moh 15000 rm 380000 iii wip 229000 moh 54000 Amin Sal 117000 S & W pay 400000 iv moh 119000 ap 119000 v. mfo 121000 deo exp 121000 vi moh ap vii moh 910000 ap 910000 xiv fg 895000 wip278000 cash 1173000 | | Instructor Explanation: | | | | | Points Received: | 6 of 15 | | Comments: | refer to the problem we did on class d selling expense e ? F 7000 depreciation Exp vii applied oh, wip, oh I & J? | | |

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