TCO 1) On December 31, 2015, ABC Inc. has a balance in the Finished Goods

TCO 1) On December 31, 2015, ABC Inc. has a balance in the Finished Goods Inventory account of $20,000. On January 1, 2015, the balance in the Finished Goods Inventory account was $45,000. On December 31, 2015, the balance in the Work-in-Process inventory account is $5,000. On January 1, 2015, the balance in the Work-in-Process inventory account is $12,000. Cost of goods manufactured is $290,000. How much is cost of goods sold? (Points : 7) $265,000

$315,000

Check your essay before you submit. See exactly what your professor sees.

See your AI and plagiarism results before your instructor does.Get the exact same report your professor uses. Trusted by 50,000+ students worldwide.

Get Plagiarism Report Humanize My Essay

$283,000

$297,000

(TCO 2) Which of the companies below would be most likely to use job-order costing? (Points : 7) A potato chip manufacturer

A custom aircraft manufacturer

A pharmaceutical manufacturer

A dairy farm
(TCO 2) Cindy Company applies manufacturing overhead based on labor hours. Information concerning manufacturing overhead cost and hours for August follows.

Estimated Actual

Overhead cost $300,000 $200,000

Direct labor hours 25,000 30,000

Machine hours 15,000 20,000

How much is the predetermined overhead rate? (Points : 7) $12.00

$6.66

$20.00

$10.00
(TCO 2) During 2015, Kim Company applied overhead using a job-order costing system at a rate of $12 per direct labor hour. Estimated direct labor hours for the year were 125,000, and estimated overhead for the year was $1,500,000. Actual direct labor hours for 2015 were 130,000, and actual overhead was $1,650,000. What is the amount of under- or over-applied overhead for the year? (Points : 7) $90,000 over-applied

$90,000 under-applied

$150,000 over-applied

$150,000 under-applied
2. (TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department:

Forming Department

Month Ended June 30

Unit information

Beginning work in process, June 1 — 4,000

Started into production during June — 22,000

Completed and transferred to Finished Department during June — 20,000

Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) — 6,000

Cost information:

Beginning work in process as of June 1 (consists of $1,000 of direct materials costs and $4,500 of conversion costs) — $5,500

Direct materials used in June — $7,268

Conversion costs incurred in June — $32,990

Required:

(a) Calculate the equivalent units for conversion costs. (Show your work)

(b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 30)

(TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department:

Forming Department

Month Ended June 30

Unit information

Beginning work in process, June 1 — 4,000

Started into production during June — 22,000

Completed and transferred to Finished Department during June — 20,000

Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) — 6,000

Cost information:

Beginning work in process as of June 1 (consists of $1,000 of direct materials costs and $4,500 of conversion costs) — $5,500

Direct materials used in June — $7,268

Conversion costs incurred in June — $32,990

Required:

(a) Calculate the equivalent units for conversion costs. (Show your work)

(b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 30)
(TCO 6) Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level.

(a) Cost to inspect each product as it is finished

(b) Factory depreciation

(c) Machine setup

(d) Costs to hire human resource personnel

(e) Salary for a product-line manager

(f) Receiving raw materials from vendors (Points : 30)
(TCO 2) Drake Company incurred costs of $77,000 for direct materials (raw) purchased. Direct labor was $45,000 and factory overhead was $22,000 for March.

Inventories were as follows:

Raw materials beginning $10,000; raw materials ending $14,000

Work-in-process beginning $36,000; work-in-process ending $24,000

Finished goods beginning $5,000; finished goods ending $10,000

Required: Calculate the cost of goods manufactured for March for Drake Company. Show your work. (Points : 30)