Question 1. 1. When a job is completed and all costs have been accumulated on a job
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76,000 equivalent units 79,000 equivalent units 80,000 equivalent units |
by dividing physical units by the percentage of work done by multiplying the percentage of work done by the equivalent units of output by dividing equivalent units by the percentage of work done |
when the materials are received when the materials are put into production when the bill for the materials is paid |
Production is aimed at filling a specific customer order. Dissimilar products are involved. Costs are to be assigned to specific jobs. |
on production cost reports after each unit is produced when the products are sold |
$21,700 $25,550 $26,200 |
Raw Materials Inventory 65,000 Direct Materials 65,000 Indirect Materials 8,000 Work in Process Inventory 73,000 Manufacturing Overhead 73,000 Raw Materials Inventory 73,000 Work In Process Inventory 65,000 Manufacturing Overhead 8,000 Raw Materials Inventory 73,000 |
because it eliminates conversion costs because it can reduce the funds invested in inventories because it is a means of building up inventories |
$1.10 $1.18 $1.22 |
The flow of costs The accumulation of the costs of materials, labor, and overhead Documents used to track costs |
a credit to Work in Process-Cutting Department for $14,000. a debit to Work in Process for $14,000. a credit to Manufacturing Overhead for $22,400. |
$1,000 $52,500 $57,600 |
Factory Wages Payable Work in Process Factory Labor Raw Materials Inventory Factory Wages Payable Work in Process Manufacturing Overhead Raw Materials Inventory Factory Labor Raw Materials Inventory Accounts Payable Factory Wages Payable |
the same as the units completed less than the units started less than the units completed |
They are grouped in batches. They are produced at the time an order is received. Their costs are accumulated on job cost sheets. |
because some units worked on in the department are not fully complete because the physical units in the department are always 100% complete because at times a department may use a job order cost system and then switch to a process cost system |
$204,000 $216,000 $316,000 |
units transferred out units started into production equivalent units |
12,500 17,500 20,000 |
It indicates that an error has been made. It requires a retroactive adjustment to the cost of all jobs completed. It is written off as a bad estimate expense. |
It involves the determination of company profits. It requires GAAP to be applied. It requires cost minimizing principles. |
Cost of Goods Sold a Manufacturing Overhead account the Work in Process account |
Only one computation of equivalent units of production will be necessary. The units started into production will equal the number of units transferred out. The units to be accounted for will equal the units transferred out and the units in process at the end of the period. |
$278,000 $282,000 $293,000 |
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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