Exam 3: Process Costing

A primary driver of overhead costs in continuous manufacturing operations is:

Madison Industries has equivalent units of 8,000 for materials and for conversion costs. Total manufacturing costs are $200,000. Total materials costs are $150,000. How much is the conversion cost per unit?

A primary driver of overhead costs in continuous manufacturing operations is machine time used.

The first step performed in preparing a production cost report is computing the equivalent units of production.

The total units to be accounted for is computed by adding

One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job.

Equivalent units of production must be calculated before the unit production costs can be computed.

A process with no beginning work in process, completed and transferred out 85,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:

Materials costs of $1,200,000 and conversion costs of $1,530,000 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, 20,000 units were started into production in September, and there were 5,000 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 the 5,000 units in the ending work in process?

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

Fewer materials requisitions are generally required in a process cost system than in a job order cost system.

Companies often use a combination of a process cost and a job order cost system, called operations costing.

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?

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

A process cost system would be used for all of the following products except

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

The FIFO method is conceptually superior to the weighted-average method.

Physical units are 40,000. Total conversion costs are $158,000. There are 1,000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?