Exam 9: Recording and Evaluating Conversion Process Activities

Use the following to answer questions Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows: -The differences between standard and actual financial amounts of inputs are referred to as:

Explain how a favorable direct labor usage variance might indicate with the production process.

Which of the following is an activity of the conversion process?

Microsmart,Inc.'s ending balances for Work-in-Process and Finished Goods Inventory were $365,800 and $743,200,respectively.The unadjusted Cost of Goods Sold was $1,543,700,and underapplied manufacturing overhead amounted to $148,000,which was deemed significant.When Microsmart closed out the underapplied manufacturing overhead,the Cost of Goods Sold account would have been: (rounded to the nearest whole dollar)

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

The journal entry to record the sale of a product,assuming a perpetual inventory system,would include a:

Use the following to answer questions Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available: -The predetermined manufacturing overhead rate per move is:

Dynamic company has an unfavorable material price variances and a favorable usage variance.Explain what might have caused both variances.

The journal entry to record the purchase of direct materials on account would include a:

Describe the flow of costs through the conversion cycle.[This can also be stated as: Draw a picture showing the flow of costs through the conversion cycle.]

Crawford,Inc.,manufacturers lamps.Which of the following is a direct labor cost?

Which of the following is included in cost of work-in-process?

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 usage variance is:

Use the following to answer questions Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500. -The amount of over- underapplied manufacturing overhead was:

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 over/underapplied manufacturing overhead is:

Use the following to answer questions Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available: -The amount of manufacturing overhead applied to Work-in-Process Inventory is:

Use the following to answer questions Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500. -Assuming the over-underapplied manufacturing overhead was considered small and,therefore,closed out to Cost of Goods Sold,the cost of goods sold reported on the income statement for the period was:

The entry to close out a small amount of overapplied manufacturing overhead would: