The direct labor and overhead costs of providing services to clients are accumul
ID: 2554171 • Letter: T
Question
The direct labor and overhead costs of providing services to clients are accumulated in:
Select one:
a. finished services expense
b. work in process
c. administrative salaries expense
d. overhead
Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 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
$60,000
Costs added during period:
Direct materials (10,400 at $9.8365)
102,300
Direct labor
79,800
Factory overhead
25,200
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 material and conversion cost per unit (to the nearest penny), respectively.
Select one:
Select one:
a. $5.94 and $5.86
b. $5.94 and $6.38
c. $8.00 and $8.68
d. $9.84 and $9.58
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 1 during the period for direct materials is:
Select one:
Select one:
a. Work in Process--Department 1 100,000
Materials 100,000
b. Work in Process--Department 1 55,000
Materials 55,000
c. Materials 100,000
Work in Process--Department 1 100,000
d. Materials 55,000
Work in Process--Department 1 55,000
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities:
On July 1:
Beginning inventories
850 units, 60% complete
Direct materials cost
$5,000
Conversion costs
$4,000
During July:
Number of units started
15,000
Direct materials added
$155,000
Conversion costs added
$83,520
On July 31:
Ending inventories
1,600 units, 40% complete
Using the FIFO method, the number of equivalent units of conversion costs was
Select one:
a. 14,400
b. 14,380
c. 14,550
d. 15,850
Work in process, beginning of period
$60,000
Costs added during period:
Direct materials (10,400 at $9.8365)
102,300
Direct labor
79,800
Factory overhead
25,200
Explanation / Answer
The direct labor and overhead costs of providing services to clients are accumulated in:
Select one:
b. work in process
Part-2
Part-3
a. Work in Process--Department 1 100,000
Materials 100,000
Part-4
Material Conversion % Eq Units % Eq Units Beginning 3600 100% 3600 40% 1440 Completed 12000 100% 12000 100% 12000 Closing 2000 100% 2000 20% 400 Total Equivalent Units 10400 10400 10960 Conversion Cost 79800+25200 105000 Conversion Cost per unit 105000/10960 9.58 Material cost per unit (Given in que) 9.84