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Exam 17: Process Cost Systems

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Question 21

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If the costs for direct materials,direct labor,and factory overhead were $277,300,$52,600,and $61,000,respectively,for 14,000 equivalent units of production,the total conversion cost was $390,900.

A) True
B) False

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Question 22

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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

E) C) and D)
F) All of the above

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Question 23

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The journal entry to record the flow of costs into Department 2 for applied overhead is

In a process costing system,a separate work in process inventory account is maintained for each customer's job.

Alexandra Company's Molding Department opened on July 1.During July,70.000 units were completed and transferred out to the next department.On July 31,the 10,000 units which remained in inventory were 40% complete with respect to conversion costs and 100% complete with respect to materials. ​ How many equivalent units of work did the Molding Department complete during July for materials and conversion costs?

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

In a process cost system,the cost of completed production in Department A is transferred to Department B by which of the following entries?

The journal entry to record the flow of costs from Department 1 into Department 2 is

Direct materials,direct labor,and factory overhead are assigned to each manufacturing process in a process costing system.

The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in process inventory (40% complete).During the period,66,000 liters were completed.The ending work in process inventory was 3,000 liters (70% complete).Using the FIFO method,what are the equivalent units for conversion costs?

Yield measures the ratio of the materials output quantity to the materials input quantity.

Using the FIFO method and rounding cost per unit to four decimal places,the cost of goods completed and transferred out during July was

For which of the following businesses would a process cost system be appropriate?

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?

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

In a process costing system,costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250,respectively.During January,the first month of the current year,actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000. ​ Round total cost to nearest dollar value.

Explain the concept of equivalent units.Give an example to validate your explanation.

Mocha Company manufactures a single product by a continuous process,involving three production departments.The records indicate that direct materials,direct labor,and applied factory overhead for Department 1 were $100,000,$125,000,and $150,000,respectively.The records further indicate that direct materials,direct labor,and applied factory overhead for Department 2 were $50,000,$60,000,and $70,000,respectively.Department 2 has transferred-in costs of $390,000 for the current period.In addition,work in process at the beginning of the period for Department 2 totaled $75,000,and work in process at the end of the period totaled $90,000.The journal entry to record the flow of costs into Department 3 during the period is