Question

13. Wasson Company reported the following year-end information:

Beginning work in process inventory                             $ 35,000

Beginning raw materials inventory                                    18,000

Ending work in process inventory                                     38,000

Ending raw materials inventory                                         15,000

Raw materials purchased                                                560,000

Direct labor                                                                      180,000

Manufacturing overhead                                                 120,000

How much is Wasson’s total cost of work in process for the year?

Select one:

a. $898,000

b. $608,000

c. $863,000

d. $860,000

14. When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

Select one:

a. Finished Goods Inventory
            Direct Materials
            Direct Labor
            Manufacturing Overhead

b. Finished Goods Inventory
                        Work In Process Inventory

c. Raw Materials Inventory
                        Work In Process Inventory

d. Work In Process Inventory
            Direct Materials
            Direct Labor
            Manufacturing Overhead

15. The entry to record the acquisition of raw materials on account is

Select one:

a. Accounts Payable
            Raw Materials Inventory

b. Manufacturing Overhead
            Raw Materials Inventory
            Accounts Payable

c. Raw Materials Inventory
            Accounts Payable

d. Work in Process Inventory
            Accounts Payable

16. Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2013 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 20 machines. How much is the cost per machine?

Select one:

a. $1,350

b. $1,650

c. $1,950

d. $2,400

Answer 1

13) calculate total cost of work in process :

Beginning work in process	35000
Direct material used	563000
Direct labour	180000
Overhead	120000
Total cost of work in process	898000

So answer is a) $898000

14) Journal entry :

Date	account and explanation	debit	credit
	Finished goods
	Work in process

So answer is b)

15) Journal entry :

Date	account and explanation	debit	credit
	Raw material
	Account payable

So answer is c)

16)

Beginning work in process	15000
Direct material	18000
Direct labour	9000
Overhead	6000
Less: ending work in process	-9000
Cost of goods manufactured	39000
Machine	20
Cost per machine	1950

So answer is c) $1950