ACCT505 Solution to Practice Quiz #1

1. A 2. D 3. B

4. Cost Summary:

Direct Materials $ 78,000

Direct Labor 45,000

Manufacturing Overhead 33,750

( $45,000 X 75%) ----------

Total Cost $ 156,750/Units Completed 4,000

= Unit Product Cost = $ 39.19

5. a. Raw Materials Inventory 45,000

Accounts Payable 45,000

b. Work In Process 23,000

Manufacturing Overhead 12,000

Raw Materials Inventory 35,000

c. Work in Process 47,000

Manufacturing Overhead 15,000

Salaries and Wages Payable 62,000

d. Manufacturing Overhead 12,000

Accumulated Depreciation 12,000

e. Depreciation Expense 5,000

Accumulated Depreciation 5,000

f. Work in Process 37,600

Manufacturing Overhead 37,600

g. Finished Goods 75,000

Work in Process 75,000

h. Accounts Receivable 48,000

Sales Revenue