ExamName___________________________________MULTIPLE CHOICE 1)Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs duringSeptember. During the same period, the Manufacturing Overhead applied to Work inProcess was $89,000. The journal entry to record the incurrence of the actualManufacturing Overhead costs would include a: 1) A) debit to Work in Process of $89,000 B) credit to Manufacturing Overhead of $87,000 C) debit to Manufacturing Overhead of $87,000 D) credit to Work in Process of $89,000 2)Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overheadcost incurred $8,000 Manufacturing overhead cost applied to Work in Process $56,000The direct materials cost for August is: 2) A) $73,000 B) $69,000 C) $81,000 D) $57,000 13)Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Dataconcerning the expected production of each product and the expected total directlabor-hours (DLHs) required to produce that output appear below:ExpectedProductionDirect Labor-HoursPer Unit Total DirectLabor-HoursProduct J9 300 9.0 2,700Product R6 900 7.0 6,300Total directlabor-hours 9,000The company is considering adopting an activity-based costing system with thefollowing activity cost pools, activity measures, and expected activity:Estimated Expected ActivityActivity CostPoolsActivityMeasuresOverheadCostProductJ9ProductR6 TotalLabor-related DLHs $302,490 2,700 6,300 9,000Machine setups setups 60,088 400 300 700General factory MHs 95,282 3,700 3,400 7,100$457,860If the company allocates all of its overhead based on direct labor-hours using itstraditional costing method, the overhead assigned to each unit of Product J9 would beclosest to: 3) A) $120.78 per unit B) $302.49 per unit C) $457.83 per unit D) $772.56 per unit 24)Guo Corporation uses the weighted-average method in its process costing system. Thismonth, the beginning inventory in the first processing department consisted of 500units. The costs and percentage completion of these units in beginning inventory were:Cost Percent Complete Materials costs $7,300 55% Conversion costs $2,100 10%A total of 9,700 units were started and 9,100 units were transferred to the secondprocessing department during the month. The following costs were incurred in thefirst processing department during the month: Materials costs $237,800 Conversion costs $376,400The ending inventory was 85% complete with respect to materials and 75% completewith respect to conversion costs.Note: Your answers may differ from those offered below due to rounding error. In allcases, select the answer that is the closest to the answer you computed. To reducerounding error, carry out all computations to three decimal places.The cost per equivalent unit for conversion costs for the first department for themonth is closest to: 4) A) $37.11 B) $38.14 C) $40.05 D) $37.92 35)The following information relates to the Assembly Department of Jataca Corporationfor the month of November. Jataca uses a weighted-average process costing system.All materials at Jataca are added at the beginning of the production process.Units Percent Complete Conversion CostsWork in process, November 1 4,000 40%Units started into production 317,000Work in process, November 30 10,000 90%On November 1, the work in process inventory account contained $6,400 of materialcost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50for materials and $2.80 for conversion costs.What total amount of cost should be assigned to the units in work in process onNovember 30? 5) A) $17,800 B) $38,700 C) $40,200 D) $43,000 4
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