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Exam 17: Process Cost Systems

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Question 91

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Department M had 2,000 units 40% completed in process at the beginning of June,12,000 units completed during June,and 1,200 units 25% completed at the end of June.What was the number of equivalent units of production for conversion costs for June if the first-in,first-out method is used to cost inventories?

A) 11,500 units
B) 11,200 units
C) 15,200 units
D) 10,000 units

E) A) and B)
F) None of the above

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Question 92

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A firm produces its products by a continuous process involving three production departments,1 through 3.Present entries to record the following selected transactions related to production during August:

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Question 93

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Which of the following measures would not help managers to control and improve operations?

The Mountain Springs Water Company has two departments,Purifying and Bottling.The Bottling Department had 8,000 liters in beginning work in process inventory (60% complete).During the period 70,000 liters were completed.The ending work in process was 3,000 liters (60% completed).What are the total equivalent units for direct materials under the FIFO method if materials were added at the beginning of the process?

The cost of energy consumed in producing good units in the Bottling Department of Mountain Springs Water Company was $36,850 and $39,060 for June and July,respectively.The number of equivalent units produced in June and July was 55,000 and 62,000 liters,respectively.Evaluate the change in the cost of energy between the two months.

The journal entry to record the flow of costs into Department 1 during the period for applied overhead is

Industries that typically use process cost systems include chemicals,oil,metals,food,paper,and pharmaceuticals.

If 10,000 units that were 40% completed are in process at November 1,80,000 units were completed during November,and 12,000 were 20% completed at November 30,the number of equivalent units of production for November was 75,600.(Assume no loss of units in production and that inventories are costed by the first-in,first-out method.)

Using the FIFO method,the number of equivalent units of conversion costs was

The last step in the preparation of a cost of production report is the calculation of equivalent units of production.

What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W? Assume the company uses FIFO.

What is the number of material 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?

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 uses the average cost method to cost its inventories. ​ (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.

In the manufacture of 10,000 units of a product,direct materials cost incurred was $165,000,direct labor cost incurred was $105,000,and applied factory overhead was $53,000.What is the total conversion cost?

Process and job order cost systems are similar in all of the following ways except

Which of the following is not included in conversion costs?

The number of equivalent units produced with respect to direct materials costs is

Erin Company's inventory at December 1,and the costs charged to Work in Process-Department B during December are as follows: ​ During December,all direct materials are transferred from Department A,the units in process at December 1 were completed,and of the 26,000 units entering the department,all were completed except 1,000 units which were 70% completed as to conversion costs.Inventories are costed by the first-in,first-out method. Prepare a cost of production report for December.

A form prepared periodically for each processing department summarizing the units for which the department is accountable and the units to be assigned costs and the costs charged to the department and the allocation of these costs is termed a

All direct materials are placed in process at the beginning of production and the first-in,first-out method of inventory costing is used.What is the total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places) ?