Exam 20: Process Cost Systems

Match each phrase that follows with the term (a-h) it describes. -Costs incurred in a previous process that are carried forward as part of the product's cost when it moves to the next department

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows:​ During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 85% completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.Determine the following (round unit cost data to four decimal places to minimize rounding differences): (a)Equivalent units of production for conversion cost (b)Conversion cost per equivalent unit (c)Total and unit cost of finished goods started in prior period and completed in the current period (d)Total and unit cost of finished goods started and completed in the current period (e)Total cost of work in process inventory, June 30

Use this information about Carmelita Inc. to answer the questions that follow. ​ Carmelita Inc. has the following information available: ​ ​ Costs from Beginning Inventory Costs from Current Period Direct materials \ 2,000 \ 22,252 Conversion costs 6,200 150,536 ​ -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

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 3,600 units of beginning inventory that were completed during the period (round unit cost calculations to whole dollars)?

When a process cost accounting system records the purchase of materials, the materials account is credited.

The number of equivalent units of production for conversion costs for the period was

Use this information about the Assembly Department to answer the questions that follow. ? The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: ? All direct materials are placed in process at the beginning of the process, and the average cost method is used to cost inventories. ? -The materials cost per equivalent unit (rounded to the nearest cent) for April is

If the costs of 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.

The two categories of cost comprising conversion costs are

If the costs of direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.

When a firm adopts lean manufacturing,

Both job order and process cost accounting use equivalent units of production to determine costs.

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

Use this information about Carmelita Inc. to answer the questions that follow. ​ Carmelita Inc. has the following information available: ​ ​ Costs from Beginning Inventory Costs from Current Period Direct materials \ 2,000 \ 22,252 Conversion costs 6,200 150,536 ​ -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 cost of completing a unit (rounded to the nearest cent) during the current period was

Which of the following is not a use of the cost of production report?

Match each phrase that follows with the term (a-h) it describes. -A process costing method that costs each period's equivalent units of work with that period's costs per equivalent unit

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow:​ Prepare Austin's Department A cost of production report for December.

The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X.

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows:​ All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

Process manufacturing usually reflects a manufacturer that produces small quantities of unique items.