21 which of the following is an attribute of traditional costing systems a raw mater 4306482

21 which of the following is an attribute of traditional costing systems a raw mater 4306482

21) Which of the following is an attribute of traditional costing systems?

A) raw materials are ordered in large quantities

B) production is completed in self-contained work cells

C) suppliers make frequent deliveries of small quantities of raw materials

D) management works with suppliers to ensure defect-free raw materials

22) Under the just-in-time costing system, a credit purchase of raw materials is recorded by ________.

A) debiting the Raw Materials Inventory account

B) crediting the Conversion Costs account

C) debiting the Raw and In-Process Inventory account

D) crediting the Cash account

23) Agostino Inc. uses a just-in-time costing system. During the month, Agostino Inc. incurred $300,000 as direct labor and $9,000 as overhead. Which of the following is the correct journal entry to record the conversion costs?

A)

Conversion Costs

309,000

       Wages Payable, Accumulated Depreciation, etc.

309,000

B)

Conversion Costs

309,000

       Wages Payable

309,000

C)

Manufacturing Overhead

309,000

       Conversion Costs

309,000

D)

Conversion Costs

309,000

       Accounts payable

309,000

24) Under a just-in-time costing system, the journal entry that is recorded when the goods are completed and moved to Finished Goods Inventory is ________.

A)

Finished Goods Inventory

        Raw and In-Process Inventory

B)

Finished Goods Inventory

        Raw and In-Process Inventory

        Conversion Costs

C)

Finished Goods Inventory

        Conversion Costs

D)

Raw and In-Process Inventory

        Conversion Costs

        Finished Goods Inventory

25) Adriano Corp. sold 2,500 cell phones on account for $700 each. The standard direct material and conversion costs of each unit are $173.85 and $57.95, respectively. Record the journal entries for this transaction under the just-in-time costing system.

Answer: 

26) Musings Inc. completed the production of 500 units with standard costs of $520 for direct materials and $75 for conversion costs. During the current year, it incurred $260,000 for direct materials and $31,000 for conversion costs. Record the adjusting entry for the amount of underallocated or overallocated overhead.

Answer: 

27) Musings Inc. completed the production of 500 units with standard costs of $520 for direct materials and $75 for conversion costs. During the current year, it incurred $260,000 for direct materials and $44,000 for conversion costs. Record the adjusting entry for the amount of underallocated or overallocated overhead.

Answer: 

28) Caprice Inc. has adopted a JIT management system and has the following transactions in December:

Dec 3Purchased raw materials on account, $80,000

Dec 8Incurred labor and overhead costs, $105,000

Dec 15Completed 750 units with standard costs of $106 for direct materials and $165 for conversion costs

Dec 23Sold 650 units for $395 each

Record the journal entries for Caprice Inc. for December.

29) Alfeo Corp. has adopted a JIT management system and has the following transactions in February:

Feb 2Incurred labor and overhead costs, $89,000

Feb 18Completed 750 units with standard costs of $93 for direct materials and $146 for conversion costs

Open a T-account for Conversion Costs. Post appropriate entries to determine the amount of underallocated or overallocated overhead. Record the adjusting entry.

30) Alfeo Corp. has adopted a JIT management system and has the following transactions in March:

Mar 5Incurred labor and overhead costs, $95,000

Mar 31Completed 650 units with standard costs of $94 for direct materials and $128 for conversion costs

Open a T-account for Conversion Costs. Post appropriate entries to determine the amount of underallocated or overallocated overhead. Record the adjusting entry.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts