Exam 3: The Accounting Information System

A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed.Costs transferred out of the Baking Department will be transferred to:

Production cost reports provide a basis for evaluating the productivity of a department.

The Wrapping Department's output during the period consists of 21,000 units completed and transferred out, and 900 units in ending work in process that were 75% complete as to materials and conversion costs.Beginning inventory was 1,200 units that were 30% complete as to materials and conversion costs.Under the FIFO method, what are the equivalent units of production for materials?

Companies using the weighted-average method do not complete units left over from the previous accounting periods, they start new units.

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete).Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Physical units accounted for are 160,000.Total conversion costs are $387,100.There are 4,000 units in ending inventory which are 50% complete as to conversion costs.How much is the conversion cost per unit?

It is necessary to calculate equivalent units of production in a department because

In Kapler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 25,000 units, and had an ending work in process of 4,000 units.How many units were started by Kapler during the month?

Which of the following is not a necessary step in preparing a production cost report?

In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete.These units had $60,000 of materials costs and $45,000 of conversion costs.Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process.During April, 10,000 units were completed and transferred to the finished goods inventory and there were 2,000 units that were 25% complete in the ending work in process inventory on April 30.During April, manufacturing costs charged to the department were: Materials $1,380,000; Conversion costs $1,530,000. The cost assigned to the units in the ending work in process inventory on April 30 was

Materials costs of $600,000 and conversion costs of $642,600 were charged to a processing department in the month of September.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process.There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

In a process cost system, units to be accounted for in a department are equal to the

Gantner Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1(60\%) 60,000 Completed and transferred out 180,000 Work in process, May 31(40\%) 50,000 If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

Price Company assigns overhead based on machine hours.The Milling Department logs 2,400 machine hours and Cutting Department shows 4,000 machine hours for the period.If the overhead rate is $5 per machine hour, the entry to assign overhead will show a

Charley Company's Assembly Department has materials cost at $2 per unit and conversion cost at $4 per unit.There are 20,000 units in ending work in process, all of which are 70% complete as to conversion costs and 100% complete as to materials.How much are total costs to be assigned to inventory?

Unit material cost is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period.

Byrd Company decided to analyze certain costs for June of the current year.Units started into production equaled 14,000 and ending work in process equaled 2,000 units.With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $52,500?

Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine.

Minor Company had the following department data: Physical Units Work in process, July 1 30,000 Completed and transferred out 165,000 Work in process. July 31 45,000 Materials are added at the beginning of the process.What is the total number of equivalent units for materials in July?

In a process cost system, a production cost report is prepared