Exam 18: Process Cost Systems

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

What is the number of conversion 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 total cost of units completed during the period were

Match each phrase that follows with the term a-h) it describes. -summary of the activity in a processing department for a specific period

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. During the period, 14,000 units of direct materials were added at a cost of $28,700, and 15,000 units were completed. At the end of the period, 3,000 units were 75% completed. 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

Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.

The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department completed 65,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. How many liters were started and completed during the period?

Match each phrase that follows with the term a-h) it describes. -prime costs

Describe the flow of materials in a process cost accounting system.

Equivalent units should be computed separately for direct materials and conversion costs.

The closer a company moves towards just-in-time processing, the differences in unit costs between average costing and FIFO will be reduced.

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?

In a just-in-time system, processing functions are combined into work centers, sometimes called departments.

Department K had 3,000 units 45% completed in process at the beginning of the period; 17,000 units completed during the period; and 1,200 units 40% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

The number of equivalent units of production for the period for materials, if the first-in, first-out method is used to cost inventories was

The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $0.45 and $0.12, respectively. The equivalent units to be assigned costs are as follows. The beginning work in process inventory had a cost of $2,200. Determine the cost of completed and transferred out production, and the ending work in process inventory.

Match each business that follows to the type of costing system a or b) it would typically use. -Movie studio

Companies that use the average costing method for process costing have unit costs that include costs from more than one accounting period.

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

Conversion costs are usually incurred evenly throughout a process.