Question

Hi, this Quiz is from my Cost Accounting class. Please solve it ASAP and also do not forget to provide explanation for your answers.

18) Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May 2010, the following transactions occurred:

Olson purchased $3,750 of lumber on account.

Olson used $4,500 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.

Depreciation of $1,500 on equipment used to build new houses was recorded.

A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.

The journal entry to record the requisition of lumber for Olson would include a:

a. debit to Work-in-Process of $4500.

b. debit to materials inventory of $3,750.

c. credit to Finished Goods of $3,750.

d. debit to Work-in-Process of $3,750.

19) For a manufacturer, the 3 inventory accounts on the balance sheets are:

a) Materials, work-in-process and finished goods

b) Materials, cost of goods sold and finished goods

c) Materials, cost of goods sold and overhead

d) Materials, direct labor, and overhead

20) Process costing would be most applicable for

a) Custom matching

b) high rise building construction

c) CPA audits

d) an electronics producer

21) Maynard Inc. manufactures desks. The following data was given for production in February:

units, beginning work in process	0
units started	200
units completed	?
units, ending work in process (30% complete)	50

If a total of $10,050 in production costs were incurred, what is the unit cost in February?

a) $65

b) $60.90

c) $55.25

d) $221

..............................................

5) Rina’s company has a sales budget for next month of $150,000. Cost of goods sold is expected to be 40% of sales. All goods are purchases in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $6,000 and an ending inventory of $5,000 is desired. Beginning accounts payable is $38,000

How much inventory will Rina’s company need to purchase next month:

a) $61K

b) $60K

c) $59K

d) $65K

6) A corporation had the following information available for December 2010:

Work in Process, Dec. 1= $20,000

Materials Placed into Production, December= $27,500

Direct Labor, December=$37,500

Factory overhead rate is 150% of direct labor cost.

Job cost has the following balance sheets:

Job Z1 $32,500, Job Z2 $55,000, Job Z3 $35,000, Job Z4 $18,750

Note: Job Z3 and Z4 were not completed at the end of Dec.

So, what is the balance in Work-in-Process for this company at the end of Dec.?

a) 87,500

b) 56,250

c) 85,000

d) 53,750

7) Using the same information from Question 6, what is the cost of goods finished during December for this company?

a) 87,500

b) 56,250

c) 85,000

d) 53,750

8) Bodacious corporation produced 100 units of product XY. The total standard and actual cost for the materials and direct labor for 100 units of the product XY are as follows:

Materials:	Standard	Actual
Standard: 200 pounds at $3.00 per period	$600	-----
Actual: 220 pounds$2.85 per pound	--------	$627
Direct Labor:
Standard: 368 hours @ $15 per hour	$6000	--------
Actual: 400 hours @ 16.50 per hour	--------	$6072

So, what is the labor efficiency variance for this company?

a) $480 (U)

b) $552 (U)

c) $480 (F)

d) $552 (F)

9) Triple H company manufactures potato chips in a two-department process, Cutting and Frying. In the Cutting department, 10,000 pounds were started in production and 8,400 pounds were completed and transferred to the frying department while 1,600 pounds were still in process. These pounds were only 60% complete as far as conversion costs. The weighted average equivalent units for the conversion costs are ___

a) 10,000

b) 8,400

c) 9,680

d) 9,360

13) If the static budget variance for materials is $250 F and the budgeted cost for materials is $52,000, then the actual cost of material is:

a) $51,950

b) $51,150

c) $51,750

d) $52,150

15) Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2018:

Materials placed into production $150,000

Beginning Inventory Materials $140,000

Indirect labor 40,000

Direct labor (10,000 hours) 160,000

Depreciation of factory building 60,000

Other factory overhead 100,000

Increase in work-in-process inventory 30,000

So, what is the total amount credited to Materials Inventory for Lanyard in 2018?

a) $150K

b) $170K

c) $140K

d) $480K

16) Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May 2010, the following transactions occurred:

Olson purchased $4,500 of lumber on account.

Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $20 per hour.

Depreciation of $1,500 on equipment used to build new houses was recorded.

A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.

So, pick your answer:

a. debit to Work-in-Process of $800.

b. debit to wages payable of $800.

c. credit to Finished Goods of $750.

d. debit to Work-in-Process of $750.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 18

a. debit to Work-in-Process of $4500.

As Olson used $4,500 of lumber in production so work in process would be debited by $ 4,500 and materials inventory will be credited by $ 4,500.

Answer 19

a) Materials, work-in-process and finished goods

These are three inventory accounts you will find in a manufacturing company’s balance sheet.

Answer 20

b) high rise building construction

Because this is the most appropriate option among all three.

Answer 21
Maynard Inc.
Calculation of units completed and transferred out in the month:
Opening units	-
Add: Units started	200.00
Less: Closing units	50.00
Units completed and transferred out in the month	150.00

Calculation of equivalent units	Whole units	EUP %	Equivalent units
Units completed and transferred out in the month	150.00	100%	150.00
Add: Closing units	50.00	30%	15.00
Total equivalent units	100.00		165.00
Total production costs			10,050.00
Unit cost			60.9
Answer is option b.

Answer 5
Rina’s company	Amount $
Sales budget	150,000.00
Cost of goods sold @ 40%	60,000.00
Add: Closing inventory	5,000.00
Less: Opening inventory	6,000.00
Purchase required	59,000.00
Answer is option c.
Answer 6	Amount $
Job Z3	35,000.00
Job Z4	18,750.00
Work-in-Process	53,750.00
Answer is option d.
Answer 7	Amount $
Job Z1	32,500.00
Job Z2	55,000.00
The cost of goods finished	87,500.00
Answer is option a.

Answer 8
Bodacious corporation
	A	B	C=A*B
Direct Labor Variance	Input required	Rate per unit	Amount
Standard Hours allowed for Actual Output at Standard Rate	368.00	15.00	5,520.00	D
Actual Hours of Input, at Standard Rate	400.00	15.00	6,000.00	E
Efficiency Variance (E-D)			480.00	Unfavorable
Answer is option a.

Answer 9
Triple H.
Calculation of equivalent units	Whole units	EUP %	Equivalent units
Units completed and transferred out in the month	8,400.00	100%	8,400.00
Add: Closing units	1,600.00	60%	960.00
Total equivalent units	6,800.00		9,360.00
Answer is option d.

Answer 13	Amount $
Budgeted cost for materials	52,000.00
Less: Favorable Static budget	250.00
Actual cost of material	51,750.00
Answer is option c.

Answer 15

Answer is option a.

Because Materials placed into production is $150,000.

Answer 16

This question is unclear. I think you mixed up two different questions.