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Exam 15: Process Costing

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Question 31

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Materials costs of $1,200,000 and conversion costs of $1,530,000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 20,000 units were started into production in September, and there were 5,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to the 5,000 units in the ending work in process?

A) $682,500.
B) $750,000.
C) $480,000.
D) $300,000.

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Question 32

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In a process cost system,

A) a Work in Process account is maintained for each product.
B) a materials requisition must identify the job on which the materials will be used.
C) a Work in Process account is maintained for each process.
D) one Work in Process account is maintained for all the processes, similar to a job order cost system.

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Question 33

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In a process cost system, labor costs incurred may be captured on time tickets.

In a process cost system, product costs are summarized:

The first step performed in preparing a production cost report is computing the equivalent units of production.

Madison Industries has equivalent units of 8,000 for materials and for conversion costs. Total manufacturing costs are $200,000. Total materials costs are $150,000. How much is the conversion cost per unit?

A production cost report

In the Camria Company, materials are entered at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, the number of equivalent units as to materials costs will be

Unit material cost is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period.

Byrd Company decided to analyze certain costs for June of the current year. Units started into production equaled 14,000 and ending work in process equaled 2,000 units. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $52,500?

Cohen Company is trying to determine the equivalent units for conversion costs with 5,000 units of ending work in process at 80% completion and 45,000 units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. What is the equivalent units of production for conversion costs for the current period?

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are: $\begin{array}{lrr}&\text { Materials }&\text { Conversion }\\\text { Work in process, July } 1 & \$ 8,000 & \$ 3,750 \\\text { Costs added in July } & 63,000 & 52,500\end{array}$ $\text { The unit production costs for July are: }$ $\begin{array}{rrr}&\text { Materials }&\text { Conversion Costs }\\\text { a. } & \$ 3.15 & \$ 3.13 \\\text { b. } & 3.55 & 2.92 \\\text { c. } & 3.15 & 2.92 \\\text { d. } & 3.55 & 3.13\end{array}$

Which of the following is not a necessary step in preparing a production cost report?

Equivalent units of production must be calculated before the unit production costs can be computed.

Physical units are 40,000. Total conversion costs are $158,000. There are 1,000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?

Materials requisitions are:

The following department data are available: $\begin{array}{lr}\text { Total materials costs } & \$ 180,000 \\\text { Equivalent units of materials } & 60,000 \\\text { Total conversion costs } & \$ 105,000 \\\text { Equivalent units of conversion costs } & 30,000\end{array}$ What is the total manufacturing cost per unit?

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month?

In Saint-Simon, Inc., the Assembly Department started 60,000 units and completed 70,000 units. If beginning work in process was 30,000 units, how many units are in ending work in process?