25. Products that are in the process of being manufactured but are not yet compl
ID: 2345234 • Letter: 2
Question
25.Products that are in the process of being manufactured but are not yet complete are called:
A) Raw materials inventory.
B) Conversion costs.
C) Cost of goods sold.
D) Goods in process inventory.
E) Finished goods inventory.
21.
Cycle efficiency:
A) Is the ratio of value-added time to total cycle time.
B) Is the ratio of value-added time to non-value-added time.
C) Is the ratio of process time to total cycle time.
D) Cannot be used in conjunction with other analytical tools.
E) Is the same as the cycle time.
18.
In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production.
In the department's cost reconciliation report for August, the cost of units transferred out of the department would be:
A) $182,000
B) $195,000
C) $169,000
D) $165,000
19.
In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $410,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be:
A) $46,000
B) $807,000
C) $842,000
D) $421,000
16.
A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:
A) Materiality statement.
B) Managerial statement.
C) Manufacturing statement.
D) Merchandise statement.
E) Monetary statement.
7.
In a process costing system, manufacturing overhead applied is usually recorded as a debit to:
A) Finished goods.
B) Work in process.
C) Manufacturing overhead.
D) Cost of goods sold.
Estimated overhead and direct labor costs for the year were $250,000 and $125,000, respectively. During the year, actual overhead was $248,000 and actual direct labor cost was $123,000. The entry to close the over- or under-applied overhead at year-end, assuming an immaterial amount, would include:
A) A debit to Cost of Goods Sold for $2,000.
B) A debit to Factory Overhead for $2,000.
C) A credit to Finished Goods Inventory for $2,000.
D) A debit to Goods in Process Inventory for $2,000.
E) A credit to Cost of Goods Sold for $2,000.
Explanation / Answer
25. Option D is the correct answer.
Since, products that are in the process of being manufactured but are not yet completed, so this type of goods are called as the goods in process inventory.
21. Option A is the correct answer.
Cycle efficiency is the ratio of value added time to total cycle time.
Cycle time is that the process time plus inspection time plus move time plus wait time.
18) Option A is the correct answer.
$17,000 + $178,000 - $13,000= $182,000.
19. Option D is the correct answer.
Cost of units transferred out + Ending inventory = Total cost accounted for
This is equal to total cost to be accounted for.
$11,000 + $410,000 = $421,000
16. Option C is the correct answer.
Manufacturing account contains the costs that were incurred in the manufacturing process.
7. Option B is the correct answer.
In a process costing system manufacturing overhead applied is usually recorded as a debit to Work in process account.
The journal entry is as follows:
Work in Process
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