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Exam 21: Process Costing

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Question 71

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A process cost accounting system is most appropriate when

A) a variety of different products are produced each one requiring different types of materials labor and overhead.
B) the focus of attention is on a particular job or order.
C) similar products are mass-produced.
D) individual products are custom made to the specification of customers.

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Question 72

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A product requires processing in two departments the Baking Department and then the Packaging Department before it is completed. Costs transferred out of the Baking Department will be transferred to:

A) Finished Goods Inventory.
B) Cost of Goods Sold.
C) Work in Process-Packaging Department.
D) Manufacturing Overhead.

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Question 73

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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?

Honrad Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 30000 units in ending work in process all of which are 70% complete as to conversion costs. Materials are added at the beginning of the process. How much are total costs to be assigned to inventory?

In the production cost report the total

A process began the month with 3000 units in the beginning work in process inventory and ended the month with 2000 units in the ending work in process. If 22000 units were completed and transferred out of the process during the month how many units were started into production during the month?

Activity-based costing (ABC) can be used only with process cost systems.

Process cost systems are used to apply costs to similar products that are ____________ in a ____________ fashion.

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January there were no units in the beginning work in process inventory; 90000 units were started into production in January; and there were 20000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

Price Company assigns overhead based on machine hours. The Milling Department logs 2400 machine hours and Cutting Department shows 4000 machine hours for the period. If the overhead rate is $5 per machine hour the entry to assign overhead will show a

Gantner Company had the following department information about physical units and percentage of completion: $\begin{array} { l r } & \text { Physical Units } \\\text { Work in process, May } 1 ( 60 \% ) & 60,000 \\\text { Completed and transferred out } & 180,000 \\\text { Work in process, May } 31 ( 40 \% ) &50,000\end{array}$ If materials are added at the beginning of the production process what is the total number of equivalent units for materials during May?

The Kirkland Department of Delta Company began the month of December with beginning work in process of 4000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10000 units. Ending work in process contains 8000 units that are 100% complete as to materials and 60% complete as to conversion costs. Instructions Compute the equivalent units of production for materials and conversion costs for the month of December.

In a process cost system

Materials costs of $1200000 and conversion costs of $1530000 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 20000 units were started into production in September and there were 5000 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 those units that were completed and transferred out of the process in September?

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 40000 units and had 5000 units in ending work in process 20% complete. If all materials are added at the beginning of the process the total cost to be assigned to the ending work in process is

The flow of costs in a process costing system requires that materials be added in one department labor added in another department and manufacturing overhead in a third department.

The Molding Department of Boswell Company has the following production data: beginning work process 40000 units (60% complete) started into production 730000 units completed and transferred out 690000 units and ending work in process 80000 units (40% complete) . Assuming materials are entered at the beginning of the process equivalent units for materials are:

Long Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6000 and ending work in process equaled 400 units. Long had no beginning work in process inventory. Conversion costs are applied equally throughout production and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $18000?

Grey Building Supplies' total materials costs are $30000 and total conversion costs are $33000. Equivalent units of production for materials are 10000 and 5000 for conversion costs. Instructions Compute the unit costs for materials conversion costs and total manufacturing costs for the month.

An important assumption in using ABC is that