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Exam 18: Process Cost Systems

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Question 61

Multiple Choice

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The number of equivalent units produced with respect to conversion costs is

A) 50,200
B) 48,000
C) 53,000
D) 47,200

E) A) and B)
F) B) and C)

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Question 62

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If 10,000 units that were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. Assume no loss of units in production and that inventories are costed by the first-in, first- out method.)

A) True
B) False

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Question 63

Multiple Choice

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The following production data were taken from the records of the finishing department for June: Inventory in process, June 1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30, finishing department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is

Match each phrase that follows with the term a-h) it describes. -conversion costs

A process cost accounting system records all actual factory overhead costs directly in the Work in Process account.

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: -Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was

The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was

On March 1, Upton Company's Packaging Department had work in process inventory of 8,820 units, which had been transferred in from the Finishing Department. These units had accumulated costs of $315,000 in previous departments and $16,000 for conversion costs in the Packaging Department. During March, 30,000 units were transferred into the department. These units had accumulated costs of $770,000 in the previous departments. The Packaging Department incurred $54,000 in conversion costs during the month. On March 31, 700 units remained in ending inventory. These units were 80% complete with respect to conversion costs. Calculate the cost per equivalent unit for transferred-in costs and for conversion costs for the Packaging Department using the average cost method.

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period?

-At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were

Which of the following is not a characteristic of a process cost system?

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 3,600 units of beginning inventory which were completed during the period round unit cost calculations to four decimal places) ?

Alexandra Company's Molding Department opened on July 1. During July, 70.000 units were completed and transferred out to the next department. On July 31, the 10,000 units which remained in inventory were 40% complete with respect to conversion costs and 100% complete with respect to materials. How many equivalent units of work did the Molding Department complete during July for materials and conversion costs?

In process cost accounting, the costs of direct materials and direct labor are charged directly to

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is

Match each phrase that follows with the term a-e) it describes. -focuses on reducing time, cost, and poor quality within the process

If the average cost method is used, the materials cost per unit to the nearest cent) would be

Costs of ending work in process inventory are included in the cost per equivalent unit computation.

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?