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  3. Liberty ACCT 212 Exam 2 Answers Complete Solutions

Contents

  • 1 Liberty ACCT 212 Exam 2 Answers Complete Solutions
      • 1.0.1 Question 5
      • 1.0.2 Question 6
      • 1.0.3 Question 10
    • 1.1 STATUS
      • 1.1.1 Question 11
      • 1.1.2 Question 12
      • 1.1.3 Question 14
      • 1.1.4 Question 16
      • 1.1.5 Question 17

Liberty ACCT 212 Exam 2 Answers Complete Solutions

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Question 5

During March, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of March and 160,000 units that were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 60% complete with respect to conversion. At the end of March, 35,000 additional units were in process in the production department and were 100% complete with respect to materials and 23% complete with respect to conversion. Compute the number of physical units transferred to finished goods.

Question 6

A company uses the weighted-average method for inventory costing. At the end of the period, 28,000 units were in the ending Work in Process inventory and are 100% complete for materials and 81% complete for conversion. The equivalent costs per unit are materials, $2.71, and conversion $2.35. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Question 10

A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs).

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Question 11

If a department that applies process costing starts the reporting period with 50,000 physical units that were 25% complete with respect to direct materials and 40% complete with respect to direct labor, it must add 12,500 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

Question 12

During January, the production department of a process operations system completed and transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units were in process in the production department and were 65% complete with respect to labor. The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Question 14

Wilturner Company incurs $97,000 of labor related directly to the product in the Assembly Department, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:

Question 16

Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods sold in October is:

Question 17

K Company estimates that overhead costs for the next year will be $3,648,000 for indirect labor and $960,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 96,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 5 direct labor hours?

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