Exam 14: Job-Costing and Process-Costing Systems

Process costing can be used for _____.

Tide Company manufactures generic greeting cards.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of September follow: Work-in-process inventory, September 1 Units 22,500 units Direct materials 100\% complete) \ 51,000 Conversion costs 30\% complete) \ 20,472 Units started in September 127,500 units Units completed in September 125,000 units Work-in-process inventory, September 30 27,000 units 100\% complete with regard to materials and 60\% complete with regard to conversion costs) Direct materials added in September \4 27,500 Conversion costs added in September \3 15,000 The unit cost for materials is _____.

Identify which one of the following statements regarding backflush costing is false.

Flimsy Company produces plastic cups in a one-department process.The following information is available: Work-in-process inventory, beginning $\quad-0$ - Units started $\quad 60,000$ Units completed and transferred out $\quad 48,000$ Work-in-process inventory, ending $\quad 12,000$ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for conversion costs are _____.

Backflush systems assume that conversion-costs account balances should be approximately zero at all times.

Seymour Company manufactures generic greeting cards.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of September follow: Work-in-process inventory, September 1 Units 22,500 units Direct materials 100\% complete) \ 51,000 Conversion costs 30\% complete) \ 20,472 Units started in September 127,500 units Units completed in September 125,000 units Work-in-process inventory, September 30 27,000 units 100\% complete with regard to materials and 60\% complete with regard to conversion costs) Direct materials added in September \4 27,500 Conversion costs added in September \3 15,000 The equivalent units for materials are _____.

Bones Hospital uses a job-cost system for all patients who have surgery.In January, the pre-operating room PRE-OP) and operating room OR) had budgeted alloca?tion bases of 4,000 nursing hours and 1,000 nursing hours, respectively.The budgeted nursing overhead-charges for each department for the month were $84,000 and $66,000, respective?ly.The hospital floor for surgery patients had budgeted overhead costs of $600,000 and 7,500 nursing hours for the month.For patient Jack Jones, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms.Jack Jones was in the hospital for 4 days 96 hours).Other costs related to Jack Jones were: PRE-OP OR In-room Patient medicine \ 100 \ 250 \ 1,200 Direct nursing time 2,400 3,500 5,400 The hospital uses a budgeted overhead rate for applying overhead to patient stays.The budgeted-nursing overhead rate for PRE-OP cost is _____.

Units that are started but not completed by the end of the accounting period are known as _____.

Wally Company manufactures generic greeting cards.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of September follow: Work-in-process inventory, September 1 Units 22,500 units Direct materials 100\% complete) \ 51,000 Conversion costs 30\% complete) \ 20,472 Units started in September 127,500 units Units completed in September 125,000 units Work-in-process inventory, September 30 27,000 units 100\% complete with regard to materials and 60\% complete with regard to conversion costs) Direct materials added in September \4 27,500 Conversion costs added in September \3 15,000 The unit cost for conversion is _____.

Hulkster Company produces plastic cups in a one-department process.The following information is available: Work-in-process inventory, beginning 0 Units started 60,000 Units complete and transferred out 48,000 Work-in-process inventory, ending 12,000 Direct materials added \ 240,000 Direct labor \ 165,000 Factory overhead \ 82,000 The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The unit cost of conversion costs is _____.

Ralph Company uses a job-order-cost system and had the following data available: Beginning direct-materials inventory \ 26,000 Beginning WIP inventory 64,000 Beginning finished-goods inventory 58,000 Direct materials purchased on account 148,000 Direct materials requisitioned 90,000 Direct-labor cost incurred 130,000 Factory overhead incurred 146,000 Cost of goods completed 292,000 Cost of goods sold 256,000 Overhead applicati on rate 125\% as a percent of direct-labor cost) The ending inventory of direct materials is _____.

Joint Hospital uses a job-cost system for all patients who have surgery.In January, the pre-operating room PRE-OP) and operating room OR) had budgeted alloca?tion bases of 2,000 nursing hours and 1,000 nursing hours, respectively.The budgeted nursing-overhead charges for each department for the month were $84,000 and $66,000, respective?ly.The hospital floor for surgery patients had budgeted overhead costs of $562,500 and 7,500 nursing hours for the month.For patient Bridget Fonda, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms.Bridget Fonda was in the hospital for 4 days 96 hours).Other costs related to Bridget Fonda were: PRE-OP Cost OR Cost In-room Cost Patient medicine \ 100 \ 250 \ 1,200 Direct nursing time 2,400 3,500 5,400 The hospital uses a budgeted overhead rate for applying overhead to patient stays.The budgeted overhead rate for the hospital floor for surgery is:

Happy Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$ Started and in process 10,000 These units had all materials added but were only 60% complete as far as conversion costs.Direct materials costs were $560,000; conversion costs were $240,000.The unit cost of direct materials is _____.

Companies that use job-order costing normally have uniform production steps.

Ligament Hospital uses a job-cost system for all patients who have surgery.In January, the pre-operating room PRE-OP) and operating room OR) had budgeted alloca?tion bases of 3,000 nursing hours and 2,000 nursing hours, respectively.The budgeted nursing-overhead charges for each department for the month were $84,000 and $66,000, respective?ly.The hospital floor for surgery patients had budgeted overhead costs of $600,000 and 7,500 nursing hours for the month.For patient Jenny Jones, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms.Jenny Jones was in the hospital for 4 days 96 hours).Other costs related to Jenny Jones were: PRE-OP Cost OR Cost In-room Cost Patient medicine \ 100 \ 250 \ 1,200 Direct nursing time 2,400 3,500 5,400 The hospital uses a budgeted overhead rate for applying overhead to patient stays.The budgeted nursing-overhead rate for OR cost is:

Process costing accumulates costs for a period and divides them by quantities produced during the period to get average costs.

The central product-costing problem is how each department computes the cost of _____.

Masters Clothing had 40,000 shirts in process at May 31 50% converted).All materials are added at the beginning of the production process.During the month, 140,000 shirts were transferred to Finished Goods Inventory.There was no beginning inventory.The equivalent units for materials costs for May using the weighted-average method are _____shirts.

The weighted-average method is the most popular inventory system.

Conversion costs include all manufacturing costs other than direct materials.