Azucar,Inc.has six processing departments for refining sugar-Affination,Carbonation,Decolorization,Boiling,Recovery,and Packaging.Conversion costs are added evenly throughout each process.Data from August for the Decolorization Department are as follows: \[\begin{array} { | l | r | } \hline & \text { Metric Tons } \\ \hline \text { Beginning Work-in-Process Inventory } & 0 \\ \hline \text { Transferred in } & 13,500 \\ \hline \text { Completed and transferred out to Boiling in } & \\ \text { August } & 5500 \\ \hline \text { Ending Work-in-Process Inventory } & \mathbf { 8 0 0 0 } \\ \hline \end{array}\] \[\begin{array} { | l | r | } \hline & { \text { Costs } } \\ \hline \text { Beginning Work-in-Process Inventory } & \$ 0 \\ \hline \text { Costs added during August } & \\ \hline \text { Direct materials } & 3,000,000 \\ \hline \text { Direct labor } & 1,100,000 \\ \hline \text { Manufacturing overhead } & \underline { 625,000 } \\ \hline \text { Total costs added during August } & \$ 4,725,000 \\ \hline \end{array}\] The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs,respectively.The weighted-average method is used.Compute the cost per equivalent unit for direct materials and conversion costs.(Round any intermediate calculations and your final answer to two decimal places.)

A) $222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs B) $81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs C) $200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs D) $222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs A) $222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs B) $81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs C) $200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs D) $222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs

Eco-Eliminator Manufacturing produces a chemical pesticide and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,41,000 fl.oz.of chemicals were started in production.Of these,32,000 fl.oz.were completed,and 9000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly throughout the process.The weighted-average method is used. At the end of January,the equivalent unit data for the Mixing Department were as follows: \[\begin{array} { | l | r | r | r | } \hline \text { UNITS } & & { \text { Equivalent Units } } &{ \text { Equivalent Units } } \\ \hline \text { Units accounted for } & & \text { Direct Materials Costs } & \text { Conversion Costs } \\ \hline \text { Completed and transferred } & 32,000 & 32,000 & 32,000 \\ \hline \text { Ending work-in-process* } & \underline { 9000 } & \underline { 9000 } & \underline { 3600 } \\ \hline & \underline { 41,000 } & \underline { 41,000 } & \underline { 35,600 } \\ \hline \end{array}\] * Percent complete for conversion costs: 40% In addition to the above,the cost per equivalent unit were $1.80 for direct materials and $5.25 for conversion costs.Using this data,calculate the cost of the units that were transferred out of the Mixing Department and into the Refining Department.

A) $168,000 B) $110,400 C) $225,600 D) $57,600 A) $168,000 B) $110,400 C) $225,600 D) $57,600

Exam 20: Process Costing

The production cost report for Department 2 shows that $457,000 was assigned to the 51,000 units transferred to Finished Goods Inventory.Cost of goods sold equals $457,000.Process costing is used.

(True/False)

4.9/5

(71)

Question 161

When indirect materials are used in production,the Manufacturing Overhead account is credited.Process costing is used.

(True/False)

4.8/5

(78)

Question 162

Azucar,Inc.has six processing departments for refining sugar-Affination,Carbonation,Decolorization,Boiling,Recovery,and Packaging.Conversion costs are added evenly throughout each process.Data from August for the Decolorization Department are as follows: Metric Tons Beginning Work-in-Process Inventory 0 Transferred in 13,500 Completed and transferred out to Boiling in August 5500 Ending Work-in-Process Inventory Costs Beginning Work-in-Process Inventory \ 0 Costs added during August Direct materials 3,000,000 Direct labor 1,100,000 Manufacturing overhead Total costs added during August \ 4,725,000 The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs,respectively.The weighted-average method is used.Compute the cost per equivalent unit for direct materials and conversion costs.(Round any intermediate calculations and your final answer to two decimal places.)

(Multiple Choice)

4.9/5

(70)

Question 163

What does the concept of equivalent units of production allow businesses to measure?

(Essay)

4.8/5

(84)

Question 164

Under process costing,a single Work-in-Process Inventory account is maintained for all processes,with a subsidiary ledger containing individual production cost reports for each process.

(True/False)

4.9/5

(63)

Question 165

In process costing,factory rent and utilities are debited to the ________.

(Multiple Choice)

4.8/5

(83)

Question 166

Under a process costing system,direct labor costs are assigned to the Work-in-Process Inventory account of the department for which they are incurred.

(True/False)

4.8/5

(94)

Question 167

If a business operates in an industry that does not experience significant cost changes,should the business prepare its production cost report using the FIFO method or the weighted-average method? Explain your answer.

(Essay)

4.8/5

(83)

Question 168

Martinez Manufacturing incurred $4000 for indirect labor in Department III.The journal entry to record indirect labor utilized,but not paid is ________.Process costing is used.

(Multiple Choice)

4.8/5

(78)

Question 169

Conversion costs include ________.

(Multiple Choice)

4.9/5

(82)

Question 170

Under process costing,the costs incurred by each department are reported in ________.The perpetual inventory system is used.

(Multiple Choice)

4.8/5

(73)

Question 171

Eco-Eliminator Manufacturing produces a chemical pesticide and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,41,000 fl.oz.of chemicals were started in production.Of these,32,000 fl.oz.were completed,and 9000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly throughout the process.The weighted-average method is used. At the end of January,the equivalent unit data for the Mixing Department were as follows: UNITS Equivalent Units Equivalent Units Units accounted for Direct Materials Costs Conversion Costs Completed and transferred 32,000 32,000 32,000 Ending work-in-process* * Percent complete for conversion costs: 40% In addition to the above,the cost per equivalent unit were $1.80 for direct materials and $5.25 for conversion costs.Using this data,calculate the cost of the units that were transferred out of the Mixing Department and into the Refining Department.

(Multiple Choice)

4.9/5

(70)

Question 172

In a process costing system,production costs are ________.

(Multiple Choice)

4.8/5

(71)

Question 173

Showing 161 - 173 of 173

The production cost report for Department 2 shows that $457,000 was assigned to the 51,000 units transferred to Finished Goods Inventory.Cost of goods sold equals $457,000.Process costing is used.

When indirect materials are used in production,the Manufacturing Overhead account is credited.Process costing is used.

What does the concept of equivalent units of production allow businesses to measure?

Under process costing,a single Work-in-Process Inventory account is maintained for all processes,with a subsidiary ledger containing individual production cost reports for each process.

In process costing,factory rent and utilities are debited to the ________.

Under a process costing system,direct labor costs are assigned to the Work-in-Process Inventory account of the department for which they are incurred.

If a business operates in an industry that does not experience significant cost changes,should the business prepare its production cost report using the FIFO method or the weighted-average method? Explain your answer.

Martinez Manufacturing incurred $4000 for indirect labor in Department III.The journal entry to record indirect labor utilized,but not paid is ________.Process costing is used.

Conversion costs include ________.

Under process costing,the costs incurred by each department are reported in ________.The perpetual inventory system is used.

In a process costing system,production costs are ________.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters