Exam 3: Process Cost Systems

Conversion costs are usually incurred evenly throughout a process.

Department S had 500 units 60% completed in process at the beginning of the period; 9,000 units completed during the period; and 600 units 30% 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 inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: Total cost to be accounted for $880,400 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 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, i.e., $4.4444, 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

The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and

Equivalent production units are generally determined for

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?

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

If a department that applies FIFO process costing starts the reporting period with 50,000 physical units that were 25% complete with respect to direct materials and 40% complete with respect to conversion, it must add 12,500 equivalent units of direct materials and 20,000 equivalent units to direct labor to complete them.

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

Eagle Co.manufactures bentwood chairs and tables.Wood for both products is steam-bent in the same process, but different types of wood are used for each product.Thus, materials cost is identified separately to each product.One production cycle uses 20 board feet.Labor cost is identified to the process as a whole, as is overhead cost.Data for the month of July follow:

The Mountain Springs Water Company has two departments, Purifying and Bottling.The Bottling Department received 58,000 liters from the Purifying Department.During the period, the Bottling Department completed 56,000 liters, including 4,000 liters of work in process at the beginning of the period.The ending work in process was 6,000 liters.How many liters were started and completed during the 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

In a process costing system, indirect materials are charged to Work in Process.

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

Stevens Company's inventory on March 1 and the costs charged to Work in Process-Department B during March are as follows: During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed.Inventories are costed by the first-in, first-out method. Prepare a cost of production report for March.Round unit cost data to four decimal places and total cost to nearest cent.

Costs of ending work in process inventory are included in the cost per equivalent unit computation.

Equivalent units are the sum of direct materials used and direct labor incurred.

In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000.What is the total conversion cost?

Using the FIFO method, the cost per equivalent unit for materials used during July was

If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of production, the conversion cost per equivalent unit was $8.00.