Question

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of production—direct materials		116,000	EUP
Equivalent units of production—conversion		100,100	EUP
Costs in beginning Work in Process—direct materials	$	57,400
Costs in beginning Work in Process—conversion	$	42,200
Costs incurred in February—direct materials	$	485,300
Costs incurred in February—conversion	$	609,600

The cost per equivalent unit of production for direct materials is:

Multiple Choice

$4.18

$4.68

$9.44

$5.26

$5.42

Luker Corporation uses a process costing system. The company had $179,500 of beginning Finished Goods Inventory on October 1. It transferred in$856,000. of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $177,200. The entry to account for the cost of goods sold in October is:

Multiple Choice

Debit Cost of Goods Sold $856,000; credit Finished Goods Inventory $856,000.

Debit Cost of Goods Sold $858,300; credit Work in Process Inventory $858,300.

Debit Finished Goods Inventory $856,000; credit Work in Process Inventory $856,000.

Debit Finished Goods Inventory $177,200; credit Cost of Goods Sold $177,200.

Debit Cost of Goods Sold $858,300; credit Finished Goods Inventory $858,300.

Wilturner Company incurs $85,000 of labor related directly to the product in the Assembly Department, $34,000 of labor related to the Assembly Department as a whole, and $$21,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor for the Assembly Department would include:

rev: 02_28_2017_QC_CS-80037

Multiple Choice

Debit Work in Process Inventory $85,000; debit Factory Overhead $55,000.

Debit Work in Process Inventory $85,000; debit Wages Expense $55,000.

Debit Work in Process Inventory $119,000; debit Wages Expense $21,000.

Debit Work in Process Inventory $140,000.

Debit Work in Process Inventory $119,000; debit Factory Overhead $21,000.

Answer 1

1
Costs in beginning Work in Process—direct materials	57400
Costs incurred in February—direct materials	485300
Total costs	542700
Divided by Equivalent units of production—direct materials	116000
Cost per equivalent unit of production for direct materials	4.68
Option 2 is correct
2
Cost of goods sold = 179500+856000-177200= $858300
Debit Cost of Goods Sold $858,300; credit Finished Goods Inventory $858,300.
Option 5 is correct
3
Debit Work in Process Inventory $119,000; debit Factory Overhead $21,000.
Option 5 is correct