FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Process Cost Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

The total conversion costs for the period were

A) $59,400
B) $49,500
C) $143,400
D) $9,900

E) B) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, what was the number of equivalent units of production for conversion costs for the period?

A) 7,300 units
B) 5,640 units
C) 6,700 units
D) 5,850 units

E) A) and B)
F) None of the above

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

The number of equivalent units of production for conversion costs for the period was

Conversion costs include materials, direct labor, and factory overhead.

Which of the following is not a use of the cost of production report?

If the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system.

The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in process inventory 40% complete). During the period, 66,000 liters were completed. The ending work in process inventory was 3,000 liters 70% complete). Using the FIFO method, what are the equivalent units for conversion costs?

In a process costing system, the cost per equivalent unit is computed before computing equivalent units.

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $28,072. The conversion cost for the period in the Bottling Department is $10,275. The total equivalent units for direct materials and conversion are 63,800 and 68,500, respectively. Determine the direct materials and conversion cost per equivalent unit. Round answers to nearest cent.

A form prepared periodically for each processing department summarizing the units for which the department is accountable and the units to be assigned costs and the costs charged to the department and the allocation of these costs is termed a

Stevens Company's inventory on March 1 and the costs charged to Work in Process-Department B during March are as follows: During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method. Prepare a cost of production report for March. Round unit cost data to four decimal places and total cost to nearest cent.

The two categories of cost comprising conversion costs are

Custom-made goods would be accounted for using a process costing system.

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200, and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

Which of the following best describes the effect on direct labor when management adopts a just-in-time environment?

Match each phrase that follows with the term a-h) it describes. -measure of the work done during a production period, expressed in terms of fully complete units of output

Match each phrase that follows with the term a-e) it describes. -provides information for controlling and improving operations

In a process cost system, product costs are accumulated by processing department rather than by job.

Match each phrase that follows with the term a-e) it describes. -the portion of whole units that are complete with respect to materials or conversion costs

Discuss how equivalent units are computed under the average cost method.