Exam 17: Process Cost Systems

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $27,225.The conversion cost for the period in the Bottling Department is $7,596.The total equivalent units for direct materials and conversion are 60,500 and 63,300,respectively.Determine the direct materials and conversion cost per equivalent unit.Round answers to nearest cent.

Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers.

What is the total number of units to be assigned cost on the cost of production report for Department W?

The amount journalized showing the cost added to finished goods is taken from the cost of production report.

In applying the first-in,first-out method of costing inventories,if 8,000 units which are 30% completed are in process at June 1,28,000 units are completed during June,and 4,000 units were 80% completed at June 30,the number of equivalent units of production for June was 28,600.

If the average cost method is used,the conversion cost per unit (to the nearest cent)would be

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500.During the period,14,000 units of direct materials were added at a cost of $28,700,and 15,000 units were completed.At the end of the period,3,000 units were 75% completed.All materials are added at the beginning of the process.Direct labor was $32,450 and factory overhead was $18,710.The number of equivalent units of production for the period for conversion if the first-in,first-out method is used to cost inventories was

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete.The equivalent units totaled 30,200.

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

Assuming that all direct materials are placed in process at the beginning of production,what is the total cost of the 18,000 units completed during the period?

In a process costing system,each process will have a work in process inventory account.

Which of the following would use a process costing system?

The portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period is the definition of

Eagle Co.manufactures bentwood chairs and tables.Wood for both products is steam-bent in the same process,but different types of wood are used for each product.Thus,materials cost is identified separately to each product.One production cycle uses 20 board feet.Labor cost is identified to the process as a whole,as is overhead cost.Data for the month of July follow: ​

Carolwood Company manufactures widgets and uses process costing.The status of the beginning and ending inventory is: ​ ​ Direct materials are added to the manufacturing process in stages.None are added when production begins.Approximately 1 / 2 of the materials are added when the product is 25% complete.The other half is added when the product is 50% complete. ​ What percentage complete are beginning inventory and ending inventory with respect to direct materials (DM)and conversion costs (CC)?

The Brass Works is in the process of determining manufacturing overhead.Journalize events (a)- (d)to Factory Overhead,Administrative Expenses,Selling expenses,or allocated between the three as appropriate.All items were paid in cash at the time of acquisition.Next calculate the overhead application rate and apply overhead to Work in Process. ​ Round overhead rate to four decimal places and total cost to nearest dollar.

The closer a company moves towards just-in-time processing,the differences in unit costs between average costing and FIFO will be reduced.

The number of equivalent units of production for the period for conversion if the average cost method is used to cost inventories was

Assuming that all direct materials are placed in process at the beginning of production and that the first-in,first-out method of inventory costing is used,what is the material and conversion cost per unit (to the nearest penny),respectively.