Exam 21: Process Costing

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

A process with no beginning work in process, completed and transferred out 75,000 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:

Which would be an appropriate cost driver for the ordering activity?

A company that produces motion pictures would likely use a process cost system.

Honrad Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 15,000 units in ending work in process, all of which are 70% complete as to conversion costs. How much are total costs to be assigned to inventory?

Which of the following is not considered a benefit of JIT processing?

Super-Tech Industries had the following department information about physical units and percentage of completion: If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?

Which of the following manufacturing cost elements occurs in a process cost system?

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

Activity-based costing (ABC) eliminates arbitrary assignments of overhead.

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

In a process cost system,

The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Materials costs of $600,000 and conversion costs of $765,000 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?

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

In the Camria Company, materials are entered at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, the number of equivalent units as to materials costs will be

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

Gantner Company had the following department information about physical units and percentage of completion: If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

In the Shaping Department of Jenkins Company the unit materials cost is $2.50 and the unit conversion cost is $1.50. The department transferred out 8,000 units and had 1,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is