Answer the Following Questions Using the Information Below:
Emerging Dock $20 X 5$

question 75

Multiple Choice

Answer the following questions using the information below:
Emerging Dock Company manufactures 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.
Data for the Assembly Depatment for May $20 X 5$ are:
Work in process, beginuning inventory: $\quad\quad\quad70 \text { units }$
Direct materials (100\% complete)
Conversion costs ( $25 \%$ complete)

$\text { Units started during May }$$\quad\quad\quad40 \text { units }$

Work in process, ending inventory: $\quad\quad\quad40 \text { units }$
Direct materials ( $100 \%$ complete)
Conversion costs ( $50 \%$ complete)

Costs for May:
Standard costs for Assembly:
Direct materials $\quad\quad\quad\quad\quad\quad\quad\$ 8,000 \text { per unit }$
Conversion costs $\quad\quad\quad\quad\quad\quad\quad\$ 32,000 \text { per unit }$

Work in process, beginning inventory: $\quad\quad\quad \$280,000$
Direct materials Conversion costs $\quad\quad\quad\quad \$520,000$
-Which of the following journal entries records the Assembly Department's conversion costs at actual costs for the month,assuming conversion costs are 20% higher than expected?

• A) \(\begin{array} { l }
• \text {Assembly Department Conversion Cost Control } &3,360,000\\ \text {Various accounts } &3,360,000\\
• \end{array}\)
• B) \(\begin{array} { l }
• \text {Materials Inventory } &3,360,000\\ \text {Assembly Department Conversion Cost Control } &3,360,000\\
• \end{array}\)
• C) \(\begin{array} { l }
• \text {Assembly Department Conversion Cost Control } &2,800,000\\ \text { Materials Inventory} &2,800,000\\
• \end{array}\)
• D) \(\begin{array} { l }
• \text {Materials Inventory }& 3,360,000\\ \text { Work in Process - Assembly}&3,360,000 \\
• \end{array}\)

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A one-time payment for the total amount due, rather than breaking it down into multiple payments over time.

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The time individuals spend away from work or productive activities, often used for relaxation or recreational activities.

Wage Rate

The fixed amount of money or compensation paid to an employee by an employer in exchange for work performed.

Labor Income

Earnings derived from work or employment, including wages, salaries, and other compensation.