Reference no: EM131705531

Q1) Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the  same period, the Manufacturing Overhead applied to Work in   Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

A) debit to Work in Process of $89,000

B) credit to Manufacturing Overhead of $87,000

C) debit to Manufacturing Overhead of $87,000

D) credit to Work in Process of $89,000

Q2) Messana Corporation reported the following data for  the month of August:

Inventories:	Beginning	Ending
Raw materials	$36,000	$24,000
Work in process	$23,000	$17,000
Finished goods	$37,000	$55,000
Additional information:
Raw materials purchases	$69,000
Direct labor cost	$94,000
Manufacturing overhead cost incurred	$54,000
Indirect materials included in manufacturing overhead cost incurred	$8,000
Manufacturing overhead cost applied to Work in Process	$56,000

The direct materials cost for August is:

A) $73,000

B) $69,000

C) $81,000

D) $57,000

3) Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product J9	300	9.0	2,700
Product R6	900	7.0	6,300
Total direct labor-hours			9,000

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product J9	Product R6	Total
Labor-related	DLHs	$302,490	2,700	6,300	9,000
Machine setups	setups	60,088	400	300	700
General factory	MHs	95,282	3,700	3,400	7,100
		$457,860

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product J9 would be closest to:

A) $120.78 per unit

B) $302.49 per unit

C) $457.83 per unit

D) $772.56 per unit

4) Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:

	Cost	Percent Complete
Materials costs	$7,300	55%
Conversion costs	$2,100	10%

A total of 9,700 units were started and 9,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs	$237,800
Conversion costs	$376,400

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to three decimal places.

The cost per equivalent unit for conversion costs for the first department for the month is closest to:

A) $37.11

B) $38.14

C) $40.05

D) $37.92

Q5) The following information relates to the Assembly Department of Jataca Corporation for the month of November. Jataca uses a weighted-average process costing system. All materials at Jataca are added at the beginning of the production process.

	Units	Percent Complete Conversion Costs
Work in process, November 1	4,000	40%
Units started into production	317,000
Work in process, November 30	10,000	90%

On November 1, the work in process inventory account contained $6,400 of material cost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for materials and $2.80 for conversion costs.

What total amount of cost should be assigned to the units in work in process on November 30?

A) $17,800

B) $38,700

C) $40,200

D) $43,000