Exam 9: Recording and Evaluating Conversion Process Activities

A large U.S.manufacturer recently announced that it was "in the dark" about the costs of producing more than half its products.Why might this situation have adverse effects on the firm?

Prepare journal entries to record the following transactions: Purchased $38,500 of raw materials on account. Transferred $22,400 of direct materials and $6,350 of indirect materials into production. Recorded $5,800 of direct labor and $7,630 of indirect labor. Paid $3,200 for factory utilities. Received and paid an advertising bill for $8,000. Recorded $1,860 of depreciation on the factory equipment. Manufacturing overhead of $18,500 was applied to production. Completed product with a total cost of $39,750 and transferred it to the finished goods warehouse. Closed the under- overapplied manufacturing overhead.The amount was deemed immaterial. Sold product costing $17,240 for $26,500 on account.

Which of the following is not one of the activities of the conversion process?

Use the following to answer questions J & C Electronics, Inc. gathered the following direct materials cost information for the month of March: -The direct materials inventory variance is:

The direct materials inventory variance is calculated as:

The direct materials usage variance is calculated as:

The costing system that reflects the amount of raw materials purchased,direct labor used,and manufacturing overhead applied in the Cost of Goods Sold account is the:

Ozark Industries gathered the following direct labor and direct materials cost information for the month of April: Calculate the following ratios: ( A)direct labor price variance (b)direct labor usage variance (c)direct materials price variance (d)direct materials usage variance (e)direct materials inventory variance

The cost of the wages of assembly line workers is:

The journal entry to record the requisition of indirect materials from the raw materials storeroom and the transfer of the materials to the factory would include a:

Overapplied manufacturing overhead exists when:

The journal entry to record the application of manufacturing overhead to work in process includes a:

Use the following to answer questions Hurricane, Inc. manufactures hurricane lamps. Selected data regarding standard costs follow: Selected actual results for the month of August are shown below: -The direct labor price variance is:

Which of the following is an example of a manufacturing overhead cost?

Use the following to answer questions BAK Systems, Inc. gathered the following direct labor cost information for the month of July: -The direct labor usage variance is:

Use the following to answer questions Hurricane, Inc. manufactures hurricane lamps. Selected data regarding standard costs follow: Selected actual results for the month of August are shown below: -The direct materials price variance is:

The direct labor price variance is calculated as:

Use the following to answer questions Hurricane, Inc. manufactures hurricane lamps. Selected data regarding standard costs follow: Selected actual results for the month of August are shown below: -The direct materials usage variance is:

Use the following to answer questions Sarasota Copy Company applies batch-related manufacturing overhead on the basis of the number of production runs. The following information is available: -The amount of manufacturing overhead applied to Work-in-Process Inventory is:

Ultimate Products Company manufactures three types of hair conditioner,Dry Formula,Normal Formula,and Oily Formula.Ultimate applies product-sustaining manufacturing overhead to each product based on the number of hours of development time.The company estimated that 1,400 hours of development time would be used during the current year and that product-sustaining manufacturing overhead costs would be $156,800.At year end it was found that the Dry Formula,Normal Formula,and Oily Formula used 650,475,and 550 hours of development time,respectively.Actual product-sustaining manufacturing overhead was $182,400.Determine the ( A)predetermined manufacturing overhead rate for product-sustaining manufacturing overhead,(b)the amount of manufacturing overhead applied to each product,and (c)the total amount of over- underapplied manufacturing overhead for the year.Assuming the amount of over- underapplied overhead is deemed immaterial,prepare the journal entry to close it out.