Exam 3: Process Costing

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

In continuous process manufacturing, generally once the production begins, it continues until the finished product emerges.

There are no units in ending work in process at the end of the period under the FIFO method.

In the production cost report, the total

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

The total units accounted for equals units in

When there is no beginning work in process and materials are entered at the beginning of the process, equivalent units of materials are the same as the units started into production.

Solis Company uses the FIFO method to compute equivalent units. It has 4,000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 66,000 units started, and 6,000 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost. How much are the equivalent units for materials under the FIFO method?

Madison Industries has equivalent units of 8,000 for materials and for conversion costs. Total manufacturing costs are $128,000. Total materials costs are $96,000. How much is the conversion cost per unit?

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month?

Gloria Company had no beginning work in process. During the period, 16,000 units were completed, and there were 1,200 units of ending work in process. How many units were started into production?

Hanker Company had the following department data on physical units: Work in process, beginning 2,500 Completed and transferred out 18,000 Work in process, ending 2,000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials if the FIFO method is used?

In a production cost report, which one of the following sections is not shown under Costs?

Special Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1(60\%) 36,000 Completed and transferred out 85,000 Work in process, May 31(50\%) 30,000 Materials are added at the beginning of the production process. Conversion costs are added equally throughout production. What is the total number of equivalent units during May for conversion costs if the FIFO method is used?

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?

The FIFO method is easier to understand and use than the weighted-average method.

In a process cost system, total costs are determined at the end of a month or year.

The total manufacturing cost per unit is used in costing the units completed and transferred during the period.

Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for materials if the FIFO method is used?

In a process cost system, costs are tracked through a series of connected manufacturing processes or departments, rather than by individual jobs.