1. Azucar, Inc. has six processing departments for refining sugar—Affination, Ca
ID: 2576602 • Letter: 1
Question
1. Azucar, Inc. has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows:
The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for direct materials and conversion costs. (Round any intermediate calculations and your final answer to two decimal places.)
$81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs
$200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs
$222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs
$222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs
2. Martinez Manufacturing incurred $4000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used.
debit Manufacturing Overhead, $4000; credit Wages Payable, $4000
debit Wages Payable, $4000; credit Manufacturing Overhead, $4000
debit Accounts Payable, $4000; credit Manufacturing Overhead, $4000
debit Manufacturing Overhead, $4000; credit Accounts Payable, $4000
3. The managerial role that involves the day-to-day running of the business is the ________.
A strategic planning function
B directing function
C planning function
D controlling function
4. Manufacturing costs flow from Work-in-Process Inventory to Cost of Goods Sold to Finished Goods Inventory.
A True
B False
5. Payton Corporation provided the following information for the year:
What was the amount of the cost of goods manufactured for the year?
$1,363,000
$1,164,000
$1,193,000
$1,135,000
Metric Tons Beginning Work-in-Process Inventory 0 Transferred in 13,500 Completed and transferred out to Boiling in August 5500 Ending Work-in-Process Inventory 8000Explanation / Answer
Equivalent units 1) Metric Tons Materials Conversion Beginning Work-in-Process Inventory 0 0 0 Transferred in 13,500 0 0 Completed and transferred out to Boiling in August 5500 5500 5500 Ending Work-in-Process Inventory 8000 8000 6000 Total 13500 11500 Costs Beginning Work-in-Process Inventory $0 Costs added during August Direct materials 3,000,000 Direct labor 1,100,000 Manufacturing overhead 625,000 Total costs added during August $4,725,000 Total costs added during August 3000000 1725000 Equivalent units of production 13500 11500 Cost per EUP $ 222.22 $ 150.00 ANSWER: OPTION [C] 2) ANSWER: OPTION [A] 3) ANSWER: OPTION [B] 4) FALSE It should be WIP, FG and COGS 5) STATEMENT OF COST OF GOODS MANUFACTURED Beginning Balance—Work-in-Process Inventory $26,000 Beginning Balance— Direct Materials 81,000 Purchases — Direct Materials 360,000 Total materials available for use= 441,000 Ending Balance— Direct Materials 59,000 Direct material cost 382,000 Direct Labor 471,000 Manufacturing overhead: Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 Total manufacturing overhead 311,000 Total manufacturing cost 1,190,000 Ending Balance—Work-in-Process Inventory 55,000 Cost of goods manufactured 1,135,000 ANSWER: OPTION [D]
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