Notes Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing department. Conversion costs are applied uniformly throughout the process. The weighted- average method of product costing is used. Data for the Printing department for the month of June follow: \[\begin{array}{l} \text { Work- in- process inventory, June } 1\\ \begin{array} { l r } \text { Units } & 15,000 \text { units } \\ \text { Direct materials (100\% complete) } & \$ 34,000 \\ \text { Conversioncosts( } 30 \% \text { complete) } & \$ 14,000 \\ & \\ \text { Units started in June } & 65,000 \text { units } \\ \text { Units completed in June } & 62,000 \\ \text { units Work-in-process inventory,June 30 } & 18,000 \\ \text { units } & \\ \quad ( 100 \% \text { complete as to materials } & \\ \text { and } 60 \% \text { complete as to conversioncosts) } \\ & \\ \text { Direct materials added in June } & \$ 285,000\\ \text { Conversioncostsadded in June } & \$ 210,000 \end{array} \end{array}\] The equivalent units for conversion costs are:

A) 62,000 B) 72,800 C) 80,000 D) 68,300 A) 62,000 B) 72,800 C) 80,000 D) 68,300

British Bulldog Company produces calendars in a one- department process. The following information is available: $\begin{array}{ll} \text { Direct materials added } & \$ 30,000 \\ \text { Direct labor } & \$ 20,700 \\ \text { Factory overhead } & \$ 10,350\\ \text { Work-in- process inventory, b eginning }&-0-\\ \text { Units started } & 15,000 \\ \text { Units completed and transferred out } & 12,000 \\ \text { Work-in-process inventory, ending } & 3,000 \end{array}$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for conversion costs are:

A) 3,000 B) 15,000 C) 13,800 D) 12,000 A) 3,000 B) 15,000 C) 13,800 D) 12,000

Spritzer Company has two departments: X and Y. Overhead is applied based on direct- labor cost in Department X and machine hours in Department Y. The following additional information is available: $\begin{array}{lll} \text { Budgeted Items } & \text { Department } X & \text { Department } Y \\ \text { Direct-labor cost } & \$ 180,000 & \$ 165,000 \\ \text { Machine hours } & 51,000 & 40,000 \\ \text { Factory overhead } & \$ 225,000 & \$ 180,000 \end{array}$ Actual data for Job #10 are as follows: $\begin{array}{lll}& \text { Department } X & \text { Department } Y \\ \text { Direct materials } & & \\ \text { Requisitioned } & \$ 10,000 & \$ 16,000 \\ \text { Direct-labor cost } & \$ 11,000 & \$ 14,000 \\ \text { M achine hours } & 5,000 & 3,000 \end{array}$ Required: a. Compute the budgeted factory- overhead rate for Department X. b. Compute the budgeted factory- overhead rate for Department Y. c. What is the total overhead cost of Job 10? d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

a. $225,000 / $180,000 = 125% b. $180,00

Exam 14: Process-Costing Systems

Notes Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing department. Conversion costs are applied uniformly throughout the process. The weighted- average method of product costing is used. Data for the Printing department for the month of June follow: Work- in- process inventory, June 1 Units 15,000 units Direct materials (100\% complete) \ 34,000 Conversioncosts( 30\% complete) \ 14,000 Units started in June 65,000 units Units completed in June 62,000 units Work-in-process inventory,June 30 18,000 units (100\% complete as to materials and 60\% complete as to conversioncosts) Direct materials added in June \ 285,000 Conversioncostsadded in June \ 210,000 The equivalent units for conversion costs are:

(Multiple Choice)

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Question 161

The method of allocating costs to products that are readily identified by individual units or batches, each of which requires varying degrees of attention and skill

(Short Answer)

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Question 162

British Bulldog Company produces calendars in a one- department process. The following information is available: Direct materials added \ 30,000 Direct labor \ 20,700 Factory overhead \ 10,350 Work-in- process inventory, b eginning -0- Units started 15,000 Units completed and transferred out 12,000 Work-in-process inventory, ending 3,000 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for conversion costs are:

(Multiple Choice)

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Question 163

Spritzer Company has two departments: X and Y. Overhead is applied based on direct- labor cost in Department X and machine hours in Department Y. The following additional information is available: Budgeted Items Department X Department Y Direct-labor cost \ 180,000 \ 165,000 Machine hours 51,000 40,000 Factory overhead \ 225,000 \ 180,000 Actual data for Job #10 are as follows: Department X Department Y Direct materials Requisitioned \ 10,000 \ 16,000 Direct-labor cost \ 11,000 \ 14,000 M achine hours 5,000 3,000 Required: a. Compute the budgeted factory- overhead rate for Department X. b. Compute the budgeted factory- overhead rate for Department Y. c. What is the total overhead cost of Job 10? d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

(Essay)

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Question 164

Measures in equivalent units are found only in manufacturing situations.

(True/False)

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Question 165

Each job has its own job- cost record in a job- costing system.

(True/False)

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Question 166

The method of allocating costs to products that are readily identified by individual units or batches, each of which requires varying degrees of attention and skill

Measures in equivalent units are found only in manufacturing situations.

Each job has its own job- cost record in a job- costing system.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

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