Question

10- Which of the following characteristics does not apply to job order cost accounting?

Multiple Choice

• Aims to compute the cost per unit of product.

• Identifiable units of production.

• Equivalent units of production.

• Use of job cost sheets.

• Use of a single Work in Process Inventory account.

  14- Wilturner Company incurs $82,000 of labor related directly to the product in the Assembly Department, $31,000 of labor related to the Assembly Department as a whole, and $18,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor for the Assembly Department would include:

  Multiple Choice

• Debit Work in Process Inventory $82,000; debit Factory Overhead $49,000.

• Debit Work in Process Inventory $82,000; debit Wages Expense $49,000.

• Debit Work in Process Inventory $113,000; debit Wages Expense $18,000.

• Debit Work in Process Inventory $131,000.

• Debit Work in Process Inventory $113,000; debit Factory Overhead $18,000.

  15- A company uses the weighted-average method for inventory costing. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 100% complete for materials and 75% complete for conversion. The equivalent costs per unit are materials, $2.65 and conversion $5.35. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

  Multiple Choice

• $146,575.

• $176,000.

• $87,725.

• $93,775.

• $132,000.

Answer 1

Ans reason for each MCQ is highlighted in bold

10 The correct option for the answer is option C i.e. Equivalent cost of production

Its because it is applied only in process costing method. equivalent units will calculate based on completion of process.

14. The correct option for the answer is option E i.e. Debit Work in Process Inventory $113,000; debit Factory Overhead $18,000.

reason is that $82,000 of direct labor related is associated with assembly department.

and $ 31,000 of labor not directly related to the product but related to the Assembly Department as a whole . therefore its a indirect cost means overhead

for $18,000 of labor services this cost is not associated with the product, but indirectly incurred in making material to the final product. hence this cost is also part of indirect cost.

15 The correct option for the answer is Option A i.e. $146,575

Equivalent units in ending inventory :

For Material = 22000 Units * 100% = 22000

For conversion: 22000 Units * 75% = 16500

Hence , Cost of ending inventory = (22000*2.65) +(16500*5.35)

= $146575