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Hudson Dock Company manufactures boat docks on an assembly l…

Posted byAnonymous July 26, 2021December 17, 2023

Questions

Hudsоn Dоck Cоmpаny mаnufаctures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000 Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances, assuming that the Assembly Department used 10% less materials than expected? A. Work in Process — Assembly                                         160,000                            Assembly Department Materials Cost Control                               160,000 B. Work in Process — Assembly                                         160,000                            Direct Materials Variance                                                                 16,000                            Assembly Department Materials Cost Control                               144,000 C. Work in Process — Assembly                                         144,000                            Assembly Department Materials Cost Control                               144,000 D. Work in Process — Assembly                                         144,000                            Direct Materials Variances                                                               16,000                            Assembly Department Materials Cost Control                             160,000’

Hudsоn Dоck Cоmpаny mаnufаctures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000 Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances, assuming that the Assembly Department used 10% less materials than expected? A. Work in Process — Assembly                                         160,000                            Assembly Department Materials Cost Control                               160,000 B. Work in Process — Assembly                                         160,000                            Direct Materials Variance                                                                 16,000                            Assembly Department Materials Cost Control                               144,000 C. Work in Process — Assembly                                         144,000                            Assembly Department Materials Cost Control                               144,000 D. Work in Process — Assembly                                         144,000                            Direct Materials Variances                                                               16,000                            Assembly Department Materials Cost Control                             160,000’

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