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Exam 17: Process Cost Systems

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Question 61

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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 20% 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, the equivalent units for materials and conversion costs, respectively, are

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

E) A) and B)
F) A) and C)

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Question 62

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Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period. Assume the company uses FIFO and rounds cost per unit to two decimal places.Direct materials (20,000 at $5) $100,000 Direct labor 142,300 Factory overhead 57,200 -In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following journal entries?

A) debit Work in Process-Department B and credit Work in Process-Department A
B) debit Work in Process-Department B and credit Finished Goods-Department A
C) debit Work in Process-Department B and credit Cost of Goods Sold-Department A
D) debit Finished Goods-Department A and credit Work in Process-Department B

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

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Question 63

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The cost of energy consumed in producing 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 following production data were taken from the records of the Finishing Department for June: ​ -The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: 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

The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process.

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 following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and 5,000 are 50% completed, the number of equivalent units of production would be 28,500.

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about July's activities is as follows: ​ -Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was

Match each phrase that follows with the term (a-e) it describes. -An assumed flow of costs that most often resembles the physical flow of units A)Cost of production report B)Equivalent units of production C)First-in, first-out (FIFO) method D)Last-in, first-out (LIFO) method E)Whole units F)Yield

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

If 10,000 units that were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500, 13,700 units of direct materials were added during the period at a cost of $28,700, 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. 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

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 paper manufacturer would be included in the group of costs referred to as conversion costs?

Computing the yield of a process will identify the level of materials losses from waste.

Match each phrase that follows with the term (a-h) it describes. -Costing system used by a company producing computer chips A)Direct labor and factory overhead B)Direct labor and direct materials C)Transferred-in costs D)Equivalent units E)Process costing F)Job order costing G)First-in, first-out method H)Cost of production report

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 85% completed. Inventories are costed by the first-in, first-out method, and all materials are added at the beginning of the process.Determine the following (round unit cost data to four decimal places, i.e., $4.4444, to minimize rounding differences): a.Equivalent units of production for conversion cost b.Conversion cost per equivalent unit c.Total and unit cost of finished goods started in prior period and completed in the current period d.Total and unit cost of finished goods started and completed in the current period e.Total cost of work in process inventory, June 30

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 debits to Work in Process-Assembly Department for May, 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 May is

Match each business that follows with the job cost system (a or b) it would most likely utilize. -Nail manufacturer A)Job order cost system B)Process cost system

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: a.Compute July's predetermined rate for the steam-bending process. b.Compute July's direct material costs for chairs and tables. c.Compute conversion costs to be applied to chairs and tables in July. d.Journalize the following entries: 1.Assignment of direct materials to chairs and tables 2.Application of conversion costs to chairs and tables 3.The transfer of completed chairs and tables to the Finishing Department. All of July's production was completed in July. a.Compute July's predetermined rate for the steam-bending process. b.Compute July's direct material costs for chairs and tables. c.Compute conversion costs to be applied to chairs and tables in July. d.Journalize the following entries: