Question

The direct labor and overhead costs of providing services to clients are accumulated in:

Select one:

a. finished services expense

b. work in process

c. administrative salaries expense

d. overhead

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$60,000
Costs added during period:
Direct materials (10,400 at $9.8365)	102,300
Direct labor	79,800
Factory overhead	25,200

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the material and conversion cost per unit (to the nearest penny), respectively.

Select one:

Select one:

a. $5.94 and $5.86

b. $5.94 and $6.38

c. $8.00 and $8.68

d. $9.84 and $9.58

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.

The journal entry to record the flow of costs into Department 1 during the period for direct materials is:

Select one:

Select one:

a. Work in Process--Department 1               100,000
  Materials                                                                           100,000

b. Work in Process--Department 1                 55,000
  Materials                                                                             55,000

c. Materials                                                  100,000
  Work in Process--Department 1                                        100,000

d. Materials                                                    55,000
  Work in Process--Department 1                                          55,000

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities:

On July 1:
Beginning inventories	850 units, 60% complete
Direct materials cost	$5,000
Conversion costs	$4,000
During July:
Number of units started	15,000
Direct materials added	$155,000
Conversion costs added	$83,520
On July 31:
Ending inventories	1,600 units, 40% complete

Using the FIFO method, the number of equivalent units of conversion costs was

Select one:

a. 14,400

b. 14,380

c. 14,550

d. 15,850

Answer 1

The direct labor and overhead costs of providing services to clients are accumulated in:

Select one:

b. work in process

Part-2

		Material		Conversion
		%	Eq Units	%	Eq Units
Beginning	3600	100%	3600	40%	1440
Completed	12000	100%	12000	100%	12000
Closing	2000	100%	2000	20%	400
Total Equivalent Units	10400		10400		10960
Conversion Cost	79800+25200				105000
Conversion Cost per unit	105000/10960				9.58
Material cost per unit	(Given in que)				9.84

Part-3

a. Work in Process--Department 1               100,000
  Materials                                                                           100,000

Part-4

		Material		Conversion
		%	Eq Units	%	Eq Units
Beginning	850	100%	850	40%	340
Started During month	15000-1600=13400	100%	13400	100%	13400
Ending WIP	1600	100%	1600	40%	640
					14380