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Exam 17: Process Cost Systems

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Question 101

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The cost of production report reports the cost of goods sold.

A) True
B) False

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Question 102

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The last step in the preparation of a cost of production report is the computation of equivalent units of production.

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Question 103

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Carmelita Inc. has the following information available: ​ -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 cost of completing a unit during the current period was

The cost of production report for August shows conversion costs for 5,000 gallons, 70% complete, to be $2,450. The conversion cost per equivalent unit in July was $0.75. Which of the following best describes the change in the conversion costs between the two months?

In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. The total conversion cost is

The following production data were taken from the records of the Finishing Department for June: ​ -The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

The cost per equivalent unit of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.47 and $0.15, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory had a cost of $3,500. Determine the cost of completed and transferred-out production, and the ending work in process inventory.

Match each phrase that follows with the term (a-h) it describes. -Conversion costs A)Direct labor and factory overhead B)Direct labor and direct materials C)Transferred-in costs D)Equivalent units E)Process costing F)Job order costing G)First-in, first-out method H)Cost of production report

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

Match each business that follows to the type of costing system (a or b) it would typically use. -Paper manufacturer A)Job order costing B)Process costing

Conversion costs are seldom added evenly throughout the process.

Erin Company's inventory at December 1 and the costs charged to Work in Process-Department B during December are as follows: During December, all direct materials are transferred from Department A, the units in process at December 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units that were 70% completed as to conversion costs. Inventories are costed by the first-in, first-out method.Prepare a cost of production report for December.

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 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 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 1 for direct labor is

Match each business that follows to the type of costing system (a or b) it would typically use. -Gasoline refinery A)Job order costing B)Process costing

Both job order and process cost accounting use equivalent units of production to determine costs.

Department K had 3,000 units 45% completed in process at the beginning of the period, 17,000 units completed during the period, and 1,200 units 40% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.