FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Process Cost Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

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

A) $3,240
B) $5,175
C) $2,569
D) $2,645

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

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

The journal entry to record the flow of costs into Department 1 for direct labor is

A) Work in Process-Department 1 65,000
Wages Payable 65,000
B) Wages Payable 125,000
Work in Process-Department 1 125,000
C) Work in Process-Department 1 125,000
Wages Payable 125,000
D) Wages Payable 65,000
Work in Process-Department 1 65,000

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

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

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

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

The FIFO method of process costing is simpler than the Average cost method.

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.

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

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

Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.

All of the following are characteristics of a process cost system except

The total cost of units completed during the period were

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

Once equivalent units are calculated for materials,this number will also be used for direct labor and factory overhead.

According to the lean manufacturing philosophy,

The materials cost per equivalent unit (to the nearest cent) for April is

Process manufacturers typically use large machines to process a continuous flow of raw materials into a finished state.

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: ​ During June,32,000 units were placed into production and 31,200 units were completed,including those in inventory on June 1.On June 30,the inventory of work in process consisted of 4,600 units which were 40% completed.Inventories are costed by the average cost method and all materials are added at the beginning of the process. Determine the following,presenting your computations:

The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process.

The cost of production report summarizes (1)the units for which the department is accountable and the units to be assigned costs and (2)the costs charged to the department and the allocation of those costs.

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.