Lehman Pottery Company
Not what you're looking for?
Lehman Pottery Company manufactures clay molded pottery 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.
Data for the Assembly Department for August 2008 are:
Work in process, beginning inventory: 800 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during August 450 units
Work in process, ending inventory: 300 units
Direct materials (100% complete)
Conversion costs (60% complete)
Costs for August:
Standard costs for Assembly:
Direct materials $30 per unit
Conversion costs $55 per unit
Work in process, beginning inventory:
Direct materials $22,000
Conversion costs $16,500
11) Which of the following journal entries records the Assembly Department's conversion costs for the month, assuming conversion costs are 10% higher than expected?
A) Assembly Department Conversion Cost Control 39,325
Various accounts 39,325
B) Materials Inventory 39,325
Assembly Department Conversion Cost Control 39,325
C) Assembly Department Conversion Cost Control 49,005
Various accounts 49,005
D) Materials Inventory 49,005
Work in Process Assembly 49,005
24) The Lancaster Corporation has an annual cash inflow from operations from its investment in a capital asset of $11,000 each year for five years. The corporation's income tax rate is 25%. Calculate the five years' total after-tax cash inflow from operations.
A) $5,000
B) $41,250
C) $44,000
D) $55,000
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer which of the following journal entries records the Assembly Department's conversion costs for the month, assuming conversion costs are 10% higher than expected.
Solution Preview
Lehman Pottery Company manufactures clay molded pottery 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.
Data for the Assembly Department for August 2008 are:
Work in process, beginning inventory: 800 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Introduction to Finance
This quiz test introductory finance topics.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.