Exam 3: Process Cost Systems

The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.47 and $0.15, respectively.The equivalent units to be assigned costs are as follows. The beginning work in process inventory had a cost of $3,500.Determine the cost of completed and transferred out production, and the ending work in process inventory.

Match each phrase that follows with the term a-e it describes. -measures the quantity of output of production relative to the inputs

Zang Co.manufacturers its products in a continuous process involving two departments, Machining and Assembly.Prepare journal entries to record the following transactions related to production during June:

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: 3,800 units, 80% completed $25,000 materials, $35,400 conversion $ 60,400 Direct materials, 32,000 units 368,000 Direct labor 244,000 Factory overhead 188,000 Total cost to be accounted for $860,400 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 40% completed.Inventories are costed by the average cost method and all materials are added at the beginning of the process. Determine the following, presenting your computations: a Equivalent units of production for conversion cost b Conversion cost per equivalent unit and material cost per equivalent unit. c Total and unit cost of finished goods completed in the current period d Total cost of work in process inventory at June 30

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

The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from the Purifying Department, plus additional $6,400 from the materials storeroom.The conversion cost for the period in the Bottling Department is $8,750 $3,750 factory applied and $5,000 direct labor.The total costs transferred to finished goods for the period was $31,980.The Bottling Department had a beginning inventory of $1,860. a.Journalize the cost of transferred-in materials, conversion costs, and the cost transferred out to finished goods. b.Determine the balance of Work in Process-bottling at the end of the period.

Which of the following costs incurred by a tool manufacturer would not be included in conversion costs?

A process cost system be appropriate for a

Conversion and direct materials are generally both added at the end of the production process.

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: 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

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

Match each phrase that follows with the term a-h it describes. -costing system used by a company producing custom window treatments

The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.

A form prepared periodically for each processing department summarizing the units for which the department is accountable and the units to be assigned costs and the costs charged to the department and the allocation of these costs is termed a

Information for the Nichols Manufacturing Company for the month of May is as follows:

The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process.

If the costs for 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.

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories.The materials cost per equivalent unit for April is