XYZ Company manufactures cookies in two departments: Mixing and Packaging. The company uses a process cost accounting
Question:
XYZ Company manufactures cookies in two departments: Mixing and Packaging. The company uses a process cost accounting system. During November 2021, the following transactions were completed:
Assigned raw materials of $50,000 and $30,000 to Work in Process Mixing and Packaging respectively, the entry to record this transaction would include: *
A Debit to WIP Mixing $50,000, a Debit to WIP Packaging $30,000, and a Credit to Accounts Payable $80,000
A Debit to WIP Mixing $50,000, a credit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $20,000
A Debit to WIP Mixing $50,000, a Debit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $80,000
None of the above
Factory labor costs of $45,000 and $20,000 were assigned to Work in Process Mixing and Packaging respectively, the entry to record this transaction would include: *
A Debit to WIP Mixing $45,000, a Debit to WIP Packaging $20,000, and a Credit to Accounts Payable $65,000
A Debit to WIP Mixing $45,000, a credit to WIP Packaging $20,000, and a Credit to Factory Labor $25,000
A Debit to WIP Mixing $45,000, a Debit to WIP Packaging $20,000, and a Credit to Factory Labor $65,000
None of the above
The company applied manufacturing overhead on the basis of $20 per machine hour. Machine hours used were 5,000 in Mixing and 3,000 in Packaging, the entry to record this transaction would include: *
A Debit to WIP Mixing $100,000, a Debit to WIP Packaging $60,000, and a Credit to Manufacturing Overhead $160,000
A Debit to WIP Mixing $60,000, a Debit to WIP Packaging $100,000, and a Credit to Manufacturing Overhead $160,000
A Debit to WIP Mixing $100,000, a Credit to WIP Packaging $60,000, and a Credit to Manufacturing Overhead $40,000
None of the above
During November, the company transferred units costing $250,000 from Mixing to Packaging, the entry to record this transaction would include: *
A Debit to WIP Mixing $250,000 and a Credit to WIP Packaging $250,000
A Debit to WIP Packaging $250,000 and a Credit to WIP Mixing $250,000
A Debit to WIP Mixing $250,000 and a Credit to Finished Goods $250,000
None of the above
The company transferred units costing $80,000 from Packaging to Finished Goods, the entry to record this transaction would include: *
A Debit to WIP Packaging $80,000 and a Credit to Finished Goods $80,000
A Debit to WIP Mixing $80,000 and a Credit to WIP Packaging $80,000
A Debit to Finished Goods $80,000 and a Credit to WIP Packaging $80,000
None of the above
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren