Exam 21: Process Costing

Sequal Company has the following production data for June: units transferred out 50,000, and ending work in process 6,000 units that are 100% complete for materials and 30% complete for conversion costs. Unit materials cost is $5 and unit conversion cost is $11. Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Rework costs typically increase in just-in-time processing.

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

Tomlinson Company has the following production data for May: $\bullet$ Beginning work in process, 0 units $\bullet$ Units started, 62,000 $\bullet$ Ending work in process, 7,000 units that are 100% complete for materials and 60% complete for conversion costs $\bullet$ Unit materials cost, $5 $\bullet$ Unit conversion cost, $10 Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

If 100,000 units are started into production and 40,000 units are in process at the end of the period, how many units were completed and transferred out?

Gloria Company had no beginning work in process. During the period, 8,000 units were completed, and there were 800 units of ending work in process. How many units were started into production?

Unit production costs are expressed in terms of _____________ units of production.

Differences between a job order cost system and a process cost system include all of the following except the

Equivalent units of production are used to determine the cost per unit of completed products.

In Kapler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 18,000 units, and had an ending work in process of 4,000 units. How many units were started by Kapler during the month?

Corsi Company had the following department data: Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

The total costs accounted for in a production cost report equal the

The physical units in a department are another name for the equivalent units of production.

The Cutting Department of Sanderson Manufacturing has the following production and cost data for July. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Instructions (a) Determine the equivalent units of production for (1) materials and (2) conversion costs. (b) Compute unit costs and prepare a cost reconciliation schedule.

Which of the following is considered a difference between a job order cost and a process cost system?

In the production cost report, the total

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

Which of the following is not a benefit of activity-based costing?

In a JIT cost accounting system:

Mayer Manufacturing has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 9,000 and ending work in process equaled 600 units. Mayer had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $90,000?