Question

In: Accounting

6. The balance in the Finished Goods Inventory account on July 1, 2007, was $34,000 and...

6. The balance in the Finished Goods Inventory account on July 1, 2007, was

$34,000 and the June 30, 2008, balance in the Finished Goods Inventory account was $41,000. If the cost of goods manufactured was $200,000, what was the cost of goods sold?

A. $285,000 B. $193,000 C. $207,000 D. $278,000

7. Which of the following describes the differences between job-order and process costing?
A. Job-order costing is used in financial accounting while process costing is used in managerial accounting. B. Job-order costing can only be used by manufacturers; service enterprises must use process costing. 'C Job-order costing is voluntary while process costing is mandatory. D. Job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the period.

8. Which of the following costs is not added to the Work in Process account in a process
costing system? A. manufacturing overhead B direct materials C direct labor D advertising

The equivalent units are calculated by:

A. taking the units needed to complete the beginning inventory, adding the units started and taking the equivalent units in ending inventory.

B. taking the units completed plus the equivalent units in ending inventory.

C. taking the total units to account for and subtracting the equivalent units in beginning inventory.

D. taking the units started plus the equivalent units in ending inventory.

10. Department A began the period with 45,000 units. During the period the department received another 30,000 units from the prior department and completed 60,000 units during the period. The remaining units were 75% complete. The amount of equivalent units in Department A’s work-in-process inventory at the end of the period is:

A. 30,000.

B. 22,500.

C. 15,000.

D. 11,250.

Solutions

Expert Solution

Q6) Given,

July 1, 2017 Opening Stock: $34000

Cost of Goods Manufacture: $200000

Closing Stock: $41000

Cost of Goods Sold = Opening Stock + Cost Goods Manufacture - Closing Stock

= $(34000 + 200000 - 41000)

= $193000

Hence, the answer for the above question is option B i.e. 193000

Q7) The difference between the job and process costing in the above option is " Job order costing is traces costs to job while process costing traces cost to departments and average the cost among the units worked on during the period'' i.e. Option D will the answer.

Option A will not be the answer because both Job and Process costing are managerial costing methods.

Option B will not be the answer because both Job and Process Costing is use in manufacturing.

Option C will not be the answer because both Job and Process Costing Depends on the situation it's not mandatory or voluntary.

Q8) Option D will be the answer because Advertisement is selling expenses and it will be not added in Process Costing System, other than advertisement material cost, overhead cost and direct labour cost will be added in process costing system.

Q9) Option A will be the answer to Question 9 i.e. taking the units needed to complete the beginning inventory, adding the units started and taking the equivalent units in ending inventory.

Q10) Option D will be the answer to Question 10 i.e. 11250

Opening Inventory: 30000

Receive from Prior Department: 45000

Completed Units: 60000

The percentage for completion of Closing Inventory: 75%

Therefore, Number of Completed units at end of process

=( Opening Units + Recieve units - Completed Units) * 75%

= (30000 + 45000 - 60000) * 75%

= 11250

ekkarill92 answered 1 year ago

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