62.5 per machine hour .016 per machine hour 32 per machine hour 6.25 per machine

Question

62.5 per machine hour

.016 per machine hour

32 per machine hour

6.25 per machine hour

3. In job order costing, the journal entry to issue indirect materials to production should include which of the following?

Credit to Finished GOods inventory

Credit to Materials Inventory

Credit to Manufacturing Overhead

Credit to Work in Process Inventory

6.Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed timesheets distributed by client number. Office and administrative costs total $754,000 a year. What is the cost allocation rate that Bilkins will use for direct labor i.e. the cost of the professional staff?

75/hr

36

72

76

7. Which of the following is an industry that would use a process costing system rather than a job order costing system?

Custom furniture manufacturer

Music production studio

Paint manufacturer

Home remodeling contractor

8. LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.

At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to direct materials costs, how many equivalent units were calculated for the product that was completed, and how many equivalent units were calculated for the ending balance?

32,000 e.u and 4800 e.u

32,00 and 8000

19200 and 4800

40,000 and 8000

Direct labor cost: $840

Direct materials cost: $1,100

Machine hours for milling machinery: 7

Direct labor hours: 22

Predetermined manufacturing overhead allocation rate: $90 per machine hour

What was the total job cost?

                $2,570

                $1,940

                $1,947

                $3.920

Explanation / Answer

1Ans:36/hr

2Ans:32 per machine hour

3Ans:Credit to Finished GOods inventory

4Ans:72800

5Ans:Debit to work in process inventory

6Ans:75/hr

7Ans:Paint manufacturer

8Ans:32,00 and 8000

9Ans:$1,940

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