ccounting 4B Chapters 14&15 11. If one unit of Product X used $2 50 of direct ma
ID: 2328981 • Letter: C
Question
ccounting 4B Chapters 14&15 11. If one unit of Product X used $2 50 of direct materials and $3.00 of direct labor sold for S8 00, and was assigned overhead at the rate of 30% ofdied labor costs, how much gross profit was realized from this sale? a) $8.00. b) $5.50 c) $2.50 d) $1.60 e) $0.90 12. The recognition of cost of goods sold may include which of the following: a) Credit to Cost of Goods Sold b) Debit Factory Overhead c) Credit Finished Goods d) Debit Raw Materials e) None of the above The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applicable to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was named in producing these units? a) $3,750.00 b) $2,000.00 13. ) $4,000.00 d) $6,000.00 e) $9,000.00 14 Which of the following statements is not true regarding product and period costs? a) Sales commission is a period cost and factory rent is a product cost. b) Factory wages is a period cost and direct material is a product cost. Factory maintenance is a product cost and sales commission is a period cost. Sales commission is a period cost and depreciation on factory equipment is a product cost c) a) 15. The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: a) Jobs Overhead Expense. b) Cost of Goods Sold. c) Finished Goods Inventory. d) Indirect Labor. e) Goods in Process Inventory. 16. A job order cost accounting system would most likely be used in each of the following cases except a) Custom-designed home. b) Concrete swimming pools c) Grand piano d) Door hinges e) It would be used for all of the above.Explanation / Answer
11. Option D, $ 1.60
GP = Sales - DM - DL - Overhead = 8 -2-3-0.90 = 1.60
12. Option E, none of the above
Entet includes Debit to COGS and credit to inventroy
13. Option B, $ 2000
DM = Total Cost - DL - Overhead, here DL = 3000/75% = 4000. Thus,
DM = 9000 - 4000 - 3000 = $ 2000
14. Option B, factory wages is a product cost
15. Option A, job overhead expenses
16. Option E
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