1. (TCO F) Computing unit product costs involves averaging in: Job-Order Costing Process Costing A Yes No

B Yes Yes

C No Yes

D No No

(Points : 5) Choice A. Choice B. Choice C. Choice D.

2. (TCO F) Process costing would be appropriate for each of the following except: (Points : 5) custom furniture manufacturing. oil refining. grain milling. newsprint production.

3. (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:

Units Material Cost Beginning work in process 30,000 $22,000 Started during the month 80,000 $72,000 Units completed 85,000

Ending work in process 25,000

All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: (Points : 5) $0.86 $0.90 $1.10 $1.18

4. (TCO F) The journal entry to record the incurrence of indirect labor costs is: (Points : 5) a Wages Payable XXX Manufacturing Overhead XXX

b Work In Process XXX Wages Payable XXX

c Manufacturing Overhead XXX Wages Payable XXX

d Wages Payable XXX Work in Process XXX

5. (TCO F) Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during August. During the same period, the Manufacturing Overhead applied to Work in Process was $75,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: (Points : 5) debit to Manufacturing Overhead of $79,000. credit to