51. If the factory labor cost for a month was $123,000 (paid in cash), the following journal entry would be recorded by the process cost accounting system:
|
Factory Payroll
|
123,000
|
|
|
Cash
|
|
123,000
|
52. If Department N incurred direct labor cost of $22,000 and Department O incurred direct labor cost of $43,000, the following journal entry would be recorded by the process cost accounting system:
|
Factory Payroll
|
65,000
|
|
|
Goods in Process Inventory, Department N
|
|
22,000
|
|
Goods in Process Inventory, Department O
|
|
43,000
|
53. If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:
|
Goods in Process Inventory, Department T
|
89,000
|
|
|
Goods in Process Inventory, Department V
|
11,000
|
|
|
Factory Overhead
|
|
100,000
|
54. If Department G uses $53,000 of direct labor and Department H uses $21,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:
|
Goods in Process Inventory, Department G
|
53,000
|
|
|
Goods in Process Inventory, Department H
|
21,000
|
|
|
Factory Payroll
|
|
74,000
|
55. In process cost accounting, direct labor includes only the labor that is applied directly to the products.
56. In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.
57. In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.
58. The following journal entry would be made to record the use of direct labor in the reporting period covered by the information:
|
Factory Payroll
|
6,100
|
|
|
Goods in Process Inventory, Pickling Dept
|
|
4,000
|
|
Goods in Process Inventory, Canning Dept
|
|
2,100
|
59. Factory overhead costs can be allocated by a process cost accounting system to the output of production departments by using a predetermined overhead allocation rate.
60. If the indirect materials cost for a reporting period was $37,500, the following journal entry would be recorded by the process cost accounting system:
|
Factory Overhead
|
37,500
|
|
|
Raw Materials Inventory
|
|
37,500
|