You are in browse mode. You must login to use MEMORY

level: Level 1

Questions and Answers List

level questions: Level 1

Question	Answer
Direct labor and manufacturing overhead are normally...	...Incurred evenly throughout the process.
The entry to record the use of direct materials in production would include a...	...Debit to Work in Process inventory.
The entry to record a $24,000 transfer from the assembly department to the finish department would include a...	...Credit to work in process inventory-assembly.
The entry to record actual manufacturing overhead incurred in a processing department would include a...	...Debit to manufacturing overhead.
Under the weighted-average method, total direct material cost should be spread over 98,400 equivalent units.	FERRELL GLASS COMPANY uses a process costing system.
...the weighted-average method would be $52,700.	If the ending work in process inventory was 75% complete as to direct materials and 25% complete as to conversion costs...
The equivalent units for conversion costs... $14,400.	The MARTIN RUBBER COMPANY produces tires.
The total costs to account for are $61,075.	The BLUE TIDE COMPANY manufactures lightbulbs in a single process.
The cost for conversion per equivalent unit...$16.87.	The MARTIN RUBBER COMPANY produces tires.
The total cost of units... $183,660.	The USA COMPANY manufactures flags in a single process.
An accounting system that accumulates costs by process. Used by companies that manufacture identical items through a series of uniform production steps or processes.	Process Costing System
Determined by dividing the cost of goods available for sale by the number of units available.	Weighted-Average Method
The cost to convert raw materials into finished goods. (direct labor + manufacturing overhead)	Conversion Costs