Exam 17: Process Cost Systems

In process cost accounting, the costs of direct materials and direct labor are charged directly to

For which of the following businesses would a process cost system be appropriate?

Match each business that follows with the job cost system (a or b) it would most likely utilize. -Lotions and cosmetic manufacturer A)Job order cost system B)Process cost system

Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, the number of equivalent units of production for conversion costs for the period is

In a process cost system, product costs are accumulated by processing department rather than by job.

Match each phrase that follows with the term (a-e) it describes. -The number of units in production during a period, whether completed or not A)Cost of production report B)Equivalent units of production C)First-in, first-out (FIFO) method D)Last-in, first-out (LIFO) method E)Whole units F)Yield

The following production data were taken from the records of the Finishing Department for June: ​ -The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is

Yield measures the ratio of the materials output quantity to the materials input quantity.

Which of the following costs incurred by a tool manufacturer would not be included in conversion costs?

Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 units at $8)83,200 Direct labor 63,000 Factory overhead 25,000 -All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places is

Explain the concept of equivalent units. Give an example to validate your explanation.

Direct materials, direct labor, and factory overhead are assigned to each manufacturing process in a process costing system.

Equivalent units should be computed separately for direct materials and conversion costs.

In a process cost system, the amount of work in process inventory is valued by

A process cost system would be appropriate for a

Describe the flow of costs in a process cost accounting system.

Carmelita Inc. has the following information available: ​ -Equivalent production units are generally determined for

Match each business that follows with the job cost system (a or b) it would most likely utilize. -Videographer A)Job order cost system B)Process cost system

Match each phrase that follows with the term (a-h) it describes. -Summary of the activity in a processing department for a specific period A)Direct labor and factory overhead B)Direct labor and direct materials C)Transferred-in costs D)Equivalent units E)Process costing F)Job order costing G)First-in, first-out method H)Cost of production report

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: All direct materials are placed in process at the beginning of the process, and the weighted average method is used to cost inventories.​ -The materials cost per equivalent unit (to the nearest cent) for April is