The cost of direct materials transferred into the Bottling

1) The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,165,500. The conversion cost for the period in the Bottling Department is $340,000. The total equivalent units for direct materials and conversion are 31,500 and 6,800 respectively. Determine the direct materials and conversion cost per equivalent unit

2) If Department H had 540 units, 74% completed, in process at the beginning of the period, 8,954 units were completed during the period, and 819 units were 44% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories?

3) The Cavy Company estimates that the factory overhead for the following year will be $2,257,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 31,800 hours. The machine hours for the month of April for all of the jobs was 5,120. What is the amount that will be applied to all of the jobs for the month of April

Selected accounts with some debits and credits omitted are presented as follows:

Work in Process

Apr.01 Balance $267,510 Apr.30 Goods finished X

Apr.30 Direct materials $553,660

Apr.30 Direct labor $350,900

Apr.30 Factory overhead $105,270

Finished Goods

Apr.01-30 Balance $14,630

Goods finished $1,059,880

What was the balance of Work in Process as of April 30?

Select the correct answer.

$105,270

$14,630

$217,460

$1,059,880

4)

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:

Direct Materials Direct Labor Machine Hours

Job 765 $5,880 $1,764 21

Job 766 $11,286 $3,564 66

Job 765 consisted of 126 units, and Job 766 consisted of 264 units.

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $112 per hour.

a. Determine the balance on the job cost sheets for each job.

b. Determine the cost per unit in each job. Round to the nearest cent

5) During the month of April, Cavy Company incurred factory overhead as follows:Indirect materials $11,000

Factory Supervision Labor 4,000

Utilities 470

Depreciation (factory) 680

Small tools 400

Equipment rental 720

Journalize the entry to record the factory overhead incurred during April. If an amount box does not require an entry

6) At the end of the year, overhead applied was $3,281,497. Actual overhead was $3,720,624. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by?

Select the correct answer.

Not effect net income.

Decrease net income by $160,049

Increase by $439,127

Decrease by $439,127

7) The Winston Company estimates that the factory overhead for the following year will be $566,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,300 hours. The total machine hours for the year was 54,700. The actual factory overhead for the year was $1,087,000.

a. Determine the total factory overhead amount applied. (Round to the nearest dollar.)

b. Calculate the over or under applied amount for the year. Enter the amount as a positive number.

c. Prepare the journal entry to close factory overhead into Cost of Goods Sold.

8) The Thomlin Company forecasts that total overhead for the current year will be $11,659,117 and that total machine hours will be 186,151 hours. Year to date, the actual overhead is $7,972,930 and the actual machine hours are 82,998 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?

Select the correct answer.

$2,774,551 under

$3,686,187 over

$3,686,187 under

$2,774,551 over

9) The Cavy Company estimates that the factory overhead for the following year will be $2,199,600. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,200 hours. The machine hours for the month of April for all of the jobs were 4,720. If the actual factory overhead totaled $361,165, determine the over or under applied amount for the month. Enter the amount as a positive number.

10) The debits to Work in Process – Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:

Materials cost, 3,000 units $7,141

Conversion costs, 3,000 units, 2/3 completed $6,000

Materials added during April, 10,000 units $25,137

Conversion costs during April $30,098

Goods finished during April, 11,500 units – – –

April 30 work in process, 1,500 units,

1/2 completed – – –

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. What is the conversion cost per equivalent unit (to the nearest cent) for April?

Select the correct answer.

$3.01

$2.19

$2.51

$2.95

10) The Bottling Department of Mountain Springs Water Company had 4,300 liters in beginning work in process inventory (25% complete). During the period, 57,800 liters were completed. The ending work in process inventory was 2,900 liters (60% complete). All inventories are costed by the first-in, first-out method. What are the equivalent units for conversion costs under the FIFO method?

11) The Winston Company estimates that the factory overhead for the following year will be $562,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,800 hours. The total machine hours for the year was 54,200. The actual factory overhead for the year was $1,154,000. Enter the amount as a positive number.

a. Determine the total factory overhead amount applied.

b. Calculate the over or under applied amount for the year.

c. Prepare the journal entry to close factory overhead into Cost of Goods Sold.

12) The debits to Work in Process – Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:

Materials cost, 3,000 units $8,875

Conversion costs, 3,000 units,

2/3 completed $5,782

Materials added during April, 10,000 units $26,883

Conversion costs during April $31,118

Goods finished during April, 11,500 units – – –

April 30 work in process, 1,500 units,

1/2 completed – – –

All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. What is the materials cost per equivalent unit for April?

Select the correct answer.

$2.75

$3.11

$2.69

$2.34

13) Department A had 4,059 units in work in process that were 62% completed as to labor and overhead at the beginning of the period, 38,926 units of direct materials were added during the period, 40,043 units were completed during the period, and 2,942 units were 32% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process at a cost of $13,988. Direct labor was $25,922 and factory overhead was $4,543. What was the number of equivalent units of production for material costs for the period?

Select the correct answer.

40,043

38,926

38,468

941.

14) The Cavy Company estimates that the factory overhead for the following year will be $972,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,900 hours. Calculate the predetermined overhead rate to apply factory overhead.

15) Compute conversion costs given the following data: Direct Materials, $368,252; Direct Labor, $252,225; Factory Overhead, $177,707.

Select the correct answer.

$798,184

$429,932

$368,252

$545,959

15) Cavy Company completed 14,200 units during the year at a cost of $979,800. The beginning finished goods inventory was 3,120 units at $196,560. Determine the cost of goods sold for 12,820 units, assuming a FIFO cost flow.

16) Department R had 4,620 units in work in process that were 60% completed as to labor and overhead at the beginning of the period, 30,657 units of direct materials were added during the period, 32,780 units were completed during the period, and 2,497 units were 39% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. What was the number of equivalent units of production for conversion costs for the period?

Select the correct answer.

35,602

39,897

32,780

30,982

16) Department W had 2,803 units, one-third completed at the beginning of the period, 13,521 units were transferred to Department X from Department W during the period, and 581 units were one-half completed at the end of the period.

What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W (Assuming the company uses FIFO)?

Select the correct answer.

11,299 units

10,718 units

13,521 units

12,877 units

17) The debits to Work in Process – Assembly Department for April, together with data concerning production, are as follows:April 1, work in process:

Materials cost, 3,000 units $8,500

Conversion costs, 3,000 units,

2/3 completed $5,668

Materials added during April, 10,000 units $26,115

Conversion costs during April $34,870

Goods finished during April, 11,500 units – – –

April 30 work in process, 1,500 units,

1/2 completed – – –

All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. What is the conversion cost per equivalent unit for April?

Select the correct answer.

$2.61

$2.27

$3.40

$3.49

18) The Zoe Corporation has the following information for the month March.Cost of materials placed in production $16,911

Direct labor 29,123

Factory overhead 31,841

Work in process, March 1 16,046

Work in process, March 31 20,578

Finished goods inventory, March 1 20,323

Finished goods inventory, March 31 22,565

a. Determine the cost of goods manufactured.

b. Determine the cost of goods sold.

19) The following production data were taken from the records of the Finishing Department for June:Inventory in process, 6-1,

1/3 completed 304 units

Transferred to finished goods

during June 4,561 units

Equivalent units of production

during June 5,040 units

Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories.

Select the correct answer.

145

580

304

4,561

20) When job 711 was completed, direct materials totaled $6,877; direct labor, $8,167; and factory overhead, $6,448, respectively. Units produced totaled 1,194. What are unit costs?

Select the correct answer.

$18

$21,492

$1,194

$15,044

21) When job 711 was completed, direct materials totaled $6,877; direct labor, $8,167; and factory overhead, $6,448, respectively. Units produced totaled 1,194. What are unit costs?

Select the correct answer.

$18

$21,492

$1,194

$15,044

22) Cavy Company estimates that total factory overhead costs will be $826,658 for the year. Direct labor hours are estimated to be 95,900.

a. Determine the predetermined factory overhead rate. Round your answer to the nearest cent.

b. Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,000 and Job 999 if the amount of direct labor hours is 3,300.

23) The Cavy Company accumulated 570 hours of direct labor on Job 567 and 840 hours on Job 888. The direct labor was incurred at a rate of $18 per direct labor hour for Job 567 and $22 per direct labor for Job 888. Journalize the entry to record the flow of labor costs into production.

24) The Thomlin Company forecasts that total overhead for the current year will be $11,899,062 and that total machine hours will be 150,152 hours. Year to date, the actual overhead is $7,956,250 and the actual machine hours are 82,773 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?

Select the correct answer.

$96 per machine hour

$53 per machine hour

$79 per machine hour

$144 per machine hour

25) The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,400 liters in beginning work in process inventory (30% complete). During the period 57,010 liters were completed. The ending work in process was 5,510 liters (70% completed). All inventories are costed by the first-in, first-out method. What are the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process?

26) Department G had 3,430 units, one-third completed at the beginning of the period, 13,658 units were completed during the period, 1,733 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:Work in process, beginning of period $34,567

Costs added during period:

Direct materials $111,933

Direct labor $74,622

Factory overhead $24,874

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period?

Select the correct answer.

$18,899

$12,861

$111,933

$24,874

27) Department S had no work in process at the beginning of the period. 14,277 units of direct materials were added during the period at a cost of $99,939. 10,708 units were completed during the period, and 3,569 units were 22% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Costs added during the period included direct labor of $51,392 and factory overhead of $8,298.

What were the total conversion costs for the period?

Select the correct answer.

$59,690

$99,939

$8,298

$51,392

28) The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.80 and $0.10, respectively. The equivalent units to be assigned costs are as follows. Direct Materials Conversion

Inventory in process, beginning of period 0 2,980

Started and completed during the period 52,580 52,580

Transferred out of Bottling (completed) 52,580 55,560

Inventory in process, end of period 3,190 2,400

Total units to be assigned costs 55,770 57,960

The beginning work in process inventory had a cost of $3,050. Determine the cost of completed and transferred out production and the ending work in process inventory.

29) Department G had 3,065 units, one-third completed at the beginning of the period, 12,202 units were completed during the period, 1,937 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:Work in process, beginning of period $32,743

Costs added during period:

Direct materials $121,014

Direct labor $80,676

Factory overhead $26,892

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of 3,065 units of beginning inventory which were completed during the period?

Select the correct answer.

$32,743

$51,744

$26,892

$24,769

30) The cost of energy consumed in producing good units in the Bottling Department of Mountain Springs Water Company was $869 and $1,848 for June and July, respectively. The number of equivalent units produced in June and July was 7,900 and 8,800 liters respectively. Evaluate the cost of energy between the two months. Energy cost per unit in June (to the nearest cent)? Energy cost per unit in July (to the nearest cent)

31) Department G had 3,826 units, one-third completed at the beginning of the period, 13,597 units were completed during the period, 1,936 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:Work in process, beginning of period $28,852

Costs added during period:

Direct materials $131,409

Direct labor $87,606

Factory overhead $29,202

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the units “started and completed” during the period?

Select the correct answer.

$199,484

$131,409

$52,295

$25,290

32) The following production data were taken from the records of the Finishing Department for June: Inventory in process, 6-1 ( 61% completed) 4,057 units

Completed units during June 58,613 units

Ending inventory (62% complete) 3,203 units

Determine the number of conversion equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories.

Select the correct answer.

58,124 units

3,203 units

57,759 units

58,613 units

33) The Cavy Company estimates that the factory overhead for the following year will be $1,347,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,500 hours. The machine hours for the month of April for all of the jobs was 5,000.

Prepare the journal entry to apply factory overhead in April.

34) Cost from Beginning Inventory Cost from Current Period

Direct materials $5,650 $26,327

Conversion Costs $5,191 $154,892

At the beginning of the period, there were 518 units in process that were 56 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the period 5,290 units were started and completed. Ending inventory contained 318 units that were 29 percent complete as to conversion costs and 100 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method.)

What were the total costs that will be transferred into Finished Goods for units completed during the period?

Select the correct answer.

$4,039

$10,273

$154,892

$188,021

35) A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $325,062 and direct labor hours would be 44,061. Actual manufacturing overhead costs incurred were $321,736, and actual direct labor hours were 50,103. What is the predetermined overhead rate per direct labor hour?

Select the correct answer.

$7.38

$6.42

$7.30

$6.49

37) Department S had no work in process at the beginning of the period. 13,668 units of direct materials were added during the period at a cost of $95,676, 10,251 units were completed during the period, and 3,417 units were 36% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $52,360 and factory overhead was $9,772.

What were the total cost of units completed during the period?

Select the correct answer.

$127,232

$157,808

$95,676

$30,576

38) Poobah Manufacturers Inc. has estimated total factory overhead costs of $83,683 and 10,173 direct labor hours for the current fiscal year. The company uses direct labor hours to apply overhead. If job number 117 incurred 1,390 direct labor hours, the work in process account will be debited and factory overhead will be credited for:

Select the correct answer.

$1,390

$10,173

$60

$11,434

39) The debits to Work in Process – Assembly Department for April, together with data concerning production, are as follows:April 1, work in process:

Materials cost, 3,000 units $7,832

Conversion costs, 3,000 units,

2/3 completed $5,016

Materials added during April, 10,000 units $25,238

Conversion costs during April $31,662

Goods finished during April, 11,500 units – – –

April 30 work in process, 1,500 units,

1/2 completed – – –

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. What is the materials cost per equivalent unit (to the nearest cent) for April?

Select the correct answer.

$2.54

$2.19

$2.52

$3.17

40) If Department H had 486 units, 55% completed, in process at the beginning of the period, 6,055 units were completed during the period, and 532 units were 27% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories?

Select the correct answer.

6,055

6,199

5,931

5,569

41) In the manufacture of 9,218 units of a product, direct materials cost incurred was $178,063, direct labor cost incurred was $82,568, and applied factory overhead was $59,203. What is the total conversion cost?

Select the correct answer.

$178,063

$141,771

$59,203

$319,834

42) Record in good journal entry format the following transactions:

April 10, 300 units of raw materials were purchased at $5.50.

April 15, 200 units of raw materials were requisitioned at $6.00 for production, Job 345.

April 25, 100 units of raw materials were requisitioned at $5.50 for production, Job 555.

43) A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $336,769 and direct labor hours would be 43,236. Actual manufacturing overhead costs incurred were $313,212, and actual direct labor hours were 52,485. Which of the following would be included in the entry to apply the factory overhead costs for the year?

Select the correct answer.

credit to factory overhead for $408,810

debit to factory overhead for $408,810

credit to factory overhead for $336,769

debit to factory overhead for $313,212

44) The Cavy Company estimates that the factory overhead for the following year will be $2,257,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 31,800 hours. The machine hours for the month of April for all of the jobs was 5,120. What is the amount that will be applied to all of the jobs for the month of April?

45) Selected accounts with some debits and credits omitted are presented as follows:

Work in Process

Aug.01 Balance $252,970 Aug.31 Goods finished $168,830

Aug.31 Direct materials X

Aug.31 Direct labor $34,000

Aug.31 Factory overhead X

Factory Overhead

Aug.01-31 Costs incurred $97,960 Aug.01 Balance $15,590

Aug.31 Applied

(30% of direct labor cost) X

If the balance of Work in Process at August 31 is $215,850, what was the amount debited to Work in Process for direct materials in August?

Select the correct answer.

$87,510

$71,120

$502,820

$333,99