Question 1

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

Accepted Answer

A)  units started and completed. 
B)  equivalent units. 
C)  conversion costs. 
D)  ending work in process. 
A)  units started and completed. 
B)  equivalent units. 
C)  conversion costs. 
D)  ending work in process.

Question 2

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.

Accepted Answer

A) True 
 B)False

Question 3

Kramer Company started its production operations on August 1. During August, the printing department completed 17,600 units. There were 4,400 units in ending inventory which were 80% complete with respect to materials and 10% complete with respect to conversion costs. During August, the department accumulated materials costs of $45,408 and conversion costs of $76,670.
Required:
a. Calculate the cost of the goods transferred out.
b. What is the value of the ending inventory?
Round intermediate computation to nearest cent.
Cost per equivalent unit for materials = $45,408 / (17,600 + (.80)*(4,400)) = $2.15
Cost per equivalent unit for conversion costs = $76,670 / (17,600 + (.10)*(4,400))= $4.25

Accepted Answer

a. ($2.15 + $4.25) *

Question 4

On August 1, Jones Corporation's packaging department had Work in Process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of these units was $99,525 ($62,000 transferred-in from previous departments, $28,775 in materials, and $8,750 in labor and overhead). During August, 125,000 units were transferred into the department. These units had accumulated costs in previous departments of $1,418,560. The packaging department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs. Jones Corporation uses the average cost method to cost its inventories.
Required
a. Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs.
b. Calculate the cost of the units transferred out of the department.
c. Calculate the cost of the ending inventory.

Accepted Answer

a. Cost per equivalent unit:
Transferred

Question 5

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 average cost method is used to cost inventories.
The conversion cost per equivalent unit (to the nearest cent) for April is:

Accepted Answer

A)  $2.70 
B)  $2.53 
C)  $3.31 
D)  $5.60 
A)  $2.70 
B)  $2.53 
C)  $3.31 
D)  $5.60

Question 6

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

Accepted Answer

A) True 
 B)False

Question 7

The two categories of cost comprising conversion costs are:

Accepted Answer

A)  direct labor and indirect labor 
B)  direct labor and factory overhead 
C)  factory overhead and direct materials 
D)  direct labor and direct materials 
A)  direct labor and indirect labor 
B)  direct labor and factory overhead 
C)  factory overhead and direct materials 
D)  direct labor and direct materials

Question 8

Which of the following industries would normally use job order costing systems and which would normally use process costing systems?
Business consulting
Chemicals
Food
Movie
Soap and cosmetics
Web designing

Accepted Answer

The answer of Which of the following industries would normally...

Question 9

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

Accepted Answer

A)  3 
B)  4 
C)  1 
D)  2 
A)  3 
B)  4 
C)  1 
D)  2

Question 10

Carmelita Inc., has the following information available:   At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the period 4,500 units were started and completed. Ending inventory contained 340 units that were 30 percent complete as to conversion costs and 100 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method.)
The cost of completing a unit during the current period was

Accepted Answer

A)  $36.19 
B)  $34.88 
C)  $35.95 
D)  $35.89 
A)  $36.19 
B)  $34.88 
C)  $35.95 
D)  $35.89

Question 11

Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO and rounds average cost per unit to two decimal places):   Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?

Accepted Answer

A)  $90,000 
B)  $283,140 
C)  $199,500 
D)  $16,438 
A)  $90,000 
B)  $283,140 
C)  $199,500 
D)  $16,438

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:

Accepted Answer

A)  $3.00 
B)  $3.80 
C)  $2.92 
D)  $2.31 
A)  $3.00 
B)  $3.80 
C)  $2.92 
D)  $2.31

Question 14

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:   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 equivalent units for materials and conversion costs, respectively.

Accepted Answer

A)  14,000 and 12,160 
B) 10,400 and 10,960 
C) 14,000 and 13,600 
D) 10,400 and 10,240 
A)  14,000 and 12,160 
B) 10,400 and 10,960 
C) 14,000 and 13,600 
D) 10,400 and 10,240

Question 15

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 first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is:

Accepted Answer

A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25 
A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25

Question 16

Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs?

Accepted Answer

A)  Factory supervisor's salary 
B)  Machine operator's wages (direct labor) 
C)  Raw lumber (direct materials) 
D)  Factory maintenance personnel supplies 
A)  Factory supervisor's salary 
B)  Machine operator's wages (direct labor) 
C)  Raw lumber (direct materials) 
D)  Factory maintenance personnel supplies

Question 17

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

Accepted Answer

When raw materials are purchased they ar

Question 18

Equivalent units of production are always the same as the total number of physical units finished during the period.

Accepted Answer

A) True 
 B)False

Question 19

Zither Co. manufactures a product called Zens in a three-process series. All materials are introduced at the beginning of the first process. Zither uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of October 2012 follow:
   Prepare Zither's Department A cost of production report for October.

Accepted Answer

The answer of Zither Co. manufactures a product called Zens...

Question 20

Which of the following is not a use of the cost of production report?

Accepted Answer

A)  To help managers control operations. 
B)  To help managers isolate problems. 
C)  To project production. 
D)  To help managers improve operations. 
A)  To help managers control operations. 
B)  To help managers isolate problems. 
C)  To project production. 
D)  To help managers improve operations.

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

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

The two categories of cost comprising conversion costs are:

Which of the following industries would normally use job order costing systems and which would normally use process costing systems? Business consulting Chemicals Food Movie Soap and cosmetics Web designing

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

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

Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs?

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

Equivalent units of production are always the same as the total number of physical units finished during the period.

Which of the following is not a use of the cost of production report?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters

Exam 20: Process Cost Systems

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

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

The two categories of cost comprising conversion costs are:

Which of the following industries would normally use job order costing systems and which would normally use process costing systems? Business consulting Chemicals Food Movie Soap and cosmetics Web designing

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

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

Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs?

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

Equivalent units of production are always the same as the total number of physical units finished during the period.

Which of the following is not a use of the cost of production report?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters