Question

10-Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:

Direct materials used	$	90,000
Direct labor used		163,000
Predetermined overhead rate (based on direct labor)		155	%
Goods transferred to finished goods		435,000
Cost of goods sold		447,000
Credit sales		813,000

Multiple Choice

Debit Work in Process Inventory $90,000; credit Raw Materials Inventory $90,000.

Debit Work in Process Inventory $90,000; credit Cost of Goods Sold $90,000.

Debit Cost of Goods Sold $90,000; credit Finished Goods Inventory $90,000.

Debit Raw Materials Inventory $90,000; credit Finished Goods Inventory $90,000.

Debit Raw Materials Inventory $90,000; credit Accounts Payable $90,000.

11- Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,600 of direct materials and used $4,100 of direct labor. The job was not finished by the end of the month, but needed an additional $3,100 of direct materials in October and additional direct labor of $6,600 to finish the job. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

$23,700

$32,450

$16,400

$29,400

12-During November, the production department of a process operations system completed and transferred to finished goods 23,000 units that were in process at the beginning of November and 130,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to conversion. At the end of November, 31,000 additional units were in process in the production department and were 100% complete with respect to materials and 55% complete with respect to conversion. Compute the number of equivalent units with respect to materials for November using the weighted-average method.

31,000.

147,050.

122,000.

184,000.

153,000.

Answer 1

Solution 10:

The journal entry to record June production activities for direct material usage is:

Work in Process Inventory Dr $90,000

To Raw Materials Inventory $90,000

Hence, first option is correct..

Solution 11:

Amount of job costs added to Work in Process Inventory during October

= $3100 + $6600 + ($6600*150%) = $3100 +$6600 + $9900

= $19,600

Hence $19600 is the correct answer. (However, It is not available in question's options)

Solution 12:

Equivalent units with respect to materials (Weighted Average method)

= (Total Units Completed and Transferred *100%) + Ending units in process *% completed with respect to material

= (23000 +130000)*100% + 31000*100%

= 153000 + 31000

= 184,000 units

Hence 4th option is correct.