FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Process Cost Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

The two categories of cost comprising conversion costs are

A) direct labor and indirect labor
B) direct labor and factory overhead
C) factory overhead and direct materials
D) direct labor and direct materials

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

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

Companies that use the average costing method for process costing have unit costs that include costs from more than one accounting period.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

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

Everett Company's inventory at December 31, 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.Of the 10,000 units entering the department, all were completed except 1,200 units which were 25% completed as to conversion costs.Inventories are costed by the first-in, first-out method.

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $27,225.The conversion cost for the period in the Bottling Department is $7,596.The total equivalent units for direct materials and conversion are 60,500 and 63,300, respectively.Determine the direct materials and conversion cost per equivalent unit.Round answers to nearest cent.

The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X.

The journal entry to record the flow of costs into Department 2 during the period for direct materials is

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

In applying the first-in, first-out method of costing inventories, if 8,000 units which are 30% completed are in process at June 1, 28,000 units are completed during June, and 4,000 units were 75% completed at June 30, the number of equivalent units of production for June was 33,400.

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 which were 70% completed as to conversion costs.Inventories are costed by the first-in, first-out method.

Yield measures the ratio of the materials output quantity to the materials input quantity.

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

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period; 30,000 units of direct materials were added during the period; 32,000 units were completed during the period; and 3,000 units were 40% completed as to labor and overhead at the end of the period.All materials are added at the beginning of the process.The first-in, first-out method is used to cost inventories.The number of equivalent units of production for conversion costs for the period was

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.Assume that the company uses the FIFO process cost method.Round cost per unit figures to two cents, i.e., $2.22, when calculating total costs. The total costs that will be transferred into Finished Goods for units started and completed were

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

If 10,000 units that were 40% completed are in process at November 1, 80,000 units were completed during November, and 12,000 were 20% completed at November 30, the number of equivalent units of production for November was 75,600.Assume no loss of units in production and that inventories are costed by the first-in, first- out method.

If 16,000 units of materials enter production during the first year of operations, 12,000 of the units are finished, and 4,000 are 75% completed, the number of equivalent units of production would be 15,000.

The cost of energy consumed in producing good units in the Bottling Department of Mountain Springs Water Company was $36,850 and $39,060 for June and July, respectively.The number of equivalent units produced in June and July was 55,000 and 62,000 liters, respectively.Evaluate the change in the cost of energy between the two months.

Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals.

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