Exam 18: Process Cost Systems

The portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period is the definition of

Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete. The equivalent units totaled 30,200.

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period; 30,000 units of direct materials were added during the period; 32,000 units were completed during the period; and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

The amount journalized showing the cost added to finished goods is taken from the cost of production report.

If the average cost method is used, the conversion cost per unit to the nearest cent) would be

The journal entry to record the flow of costs into Department 1 for direct labor is

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 first­in, first­out method is used to cost inventories. The materials cost per equivalent unit for May is

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total equivalent units for direct materials and conversion are 60,500 and 63,300, respectively. Determine the direct materials and conversion cost per equivalent unit. Round answers to nearest cent.

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

Which of the following businesses would normally use job order costing systems and which would normally use process costing systems? Tax consultant Paint manufacturer Nail manufacturer Videographer Lotions and cosmetics manufacturer Web design

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

In a process costing system, each process will have a work in process inventory account.

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

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, what is the equivalent units for materials and conversion costs, respectively?

Kramer Company started its production operations on August 1. During August, the Printing Department completed 17,600 units. There were 4,400 units in ending inventory which were 80% complete with respect to materials and 10% complete with respect to conversion costs. During August, the department accumulated materials costs of $45,408 and conversion costs of $76,670. Required: a) Calculate the cost of the goods transferred out. b) What is the value of the ending inventory?

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the departmental work in process inventory at the end of the period round unit cost calculations to four decimal places)?

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is

Tough Hardware purchases raw materials and processes those purchases through a receiving/inspection process prior to stocking for production. Tough places 3 purchase orders for materials for production and receives the goods that day. The first PO is for 2,500 1/2" × 96" milling blanks at $2.75 each. The second is for 4,000 pieces of 48" × 96" × 1" sheet steel at $15.55 each. The third PO is for five 5 gallon drums of milling lubrication oil at $475.00 per barrel. The receiving/inspection process is completed and the goods are transferred from Receiving Inventory to Raw Materials. The Receiving/Inspection Department assigns manufacturing overhead of $55.00 per purchase order as well as $2.75 per piece on metal goods and $35.00 per container on fluids. All labor is allocated through overhead. a) Write the journal entry to purchase and receive these items to Receiving Inventory on account. b) Assign overhead to the metal goods. c) Assign overhead to the fluid goods. d) Transfer all goods to Raw Materials Inventory.