Managerial 3

All of the following are characteristics of a process cost system except A. The system may use several work in process inventory accounts B. Manufacturing costs are grouped by department rather than by jobs C. The system accumulates costs per job D. The system emphasizes time periods rather than the time it takes to complete a job

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is A. process B. departmental C. first-in, first-out D. job order

In a process cost system, the amount of work in process inventory is valued by A. finding the sum of all open job costs B. allocating departmental costs between completed and partially completed units C. multiplying units in ending inventory by the direct materials cost per unit D. finding the sum of all completed jobs

In process cost accounting, the costs of direct materials and direct labor are charged directly to A. service departments B. processing departments C. customer accounts receivable D. job orders

The two categories of cost comprising conversion costs are A. direct labor and indirect labor B. direct labor and factory overhead C. factory overhead and direct materials D. direct labor and direct materials

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries? A. debit Work in Process—Dept. B; credit Work in Process—Dept. A B. debit Work in Process—Dept. B; credit Finished Goods—Dept. A C. debit Work in Process—Dept. B; credit Cost of Goods Sold—Dept. A D. debit Finished Goods—Dept. A; credit Work in Process—Dept. B

The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and A. selling expenses B. direct expenses C. accounting salaries expense D. factory overhead

A process cost system be appropriate for a A. natural gas refinery B. jet airplane builder C. catering business D. custom cabinet builder

The four steps necessary to complete a cost of production report in a process cost system are 1. allocate costs to transferred and partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. calculate equivalent units of production The correct ordering of the steps is A. 2, 4, 3, 1 B. 4, 2, 3, 1 C. 2, 3, 4, 1 D. 2, 3, 1, 4

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? A. $218,000 B. $158,000 C. $323,000 D. $53,000

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, what was the number of equivalent units of production for conversion costs for the period? A. 7,300 units B. 5,640 units C. 6,700 units D. 5,850 units

Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000. 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900. The total conversion costs for the period were A. $59,400 B. $49,500 C. $143,400 D. $9,900

Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000. 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900. The total cost of units completed during the period was A. $117,000 B. $143,400 C. $121,000 D. $127,450

The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows: May 1, work in process: Materials cost, 3,000 units $ 8,000 Conversion costs, 3,000 units, 66.7% completed 6,000 Materials added during May, 10,000 units 30,000 Conversion costs during May 31,000 Goods finished during May, 11,500 units 0 May 31 work in process, 1,500 units, 50% completed 0 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 May is A. $3.00 B. $3.80 C. $2.92 D. $2.31

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200 and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700, and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was A. $3,240 B. $5,175 C. $2,569 D. $2,645

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (30% completed) 4,000 units Completed units during June 65,000 units Ending inventory (60% complete) 7,000 units 16. What is the number of conversion equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories? A. 68,000 units B. 70,400 units C. 66,200 units D. 4,200 units

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? A. 7,000 units B. 68,000 units C. 72,000 units D. 76,000 units

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,200 Conversion costs, 3,000 units, 60% completed 6,000 Materials added during April, 10,000 units 25,000 Conversion costs during April 35,750 Goods finished during April, 12,000 units 0 April 30 work in process, 1,000 units, 40% completed 0 All direct materials are added 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 A. $2.48 B. $2.08 C. $2.50 D. $5.25

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,200 Conversion costs, 3,000 units, 40% completed 6,000 Materials added during April, 10,000 units 25,000 Conversion costs during April 30,800 Goods finished during April, 12,000 units 0 April 30 work in process, 1,000 units, 40% completed 0 All direct materials are added 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 A. $2.48 B. $2.75 C. $2.50 D. $5.25

At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were A. 5,340 for direct materials and 4,902 for conversion costs B. 4,840 for direct materials and 4,802 for conversion costs C. 4,602 for direct materials and 4,802 for conversion costs D. 4,902 for direct materials and 4,802 for conversion costs