Exam 3: Process Cost Systems

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

Process and job order cost systems are similar in all of the following ways except

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

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

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

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.

Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June.What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?

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?

The total conversion costs for the period were

One of the primary uses of a cost of production report is to assist management in controlling production costs.

What is the total number of units to be assigned cost on the cost of production report for Department W?

The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in process inventory 40% complete.During the period, 66,000 liters were completed.The ending work in process inventory was 3,000 liters 70% complete.Using the FIFO method, what are the equivalent units for conversion costs?

One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to transfer goods from one department to the next comes from the cost of production report instead of job cost cards.

The number of equivalent units produced with respect to direct materials costs is

If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and 5,000 are 50% completed, the number of equivalent units of production would be 28,500.

On March 1, Upton Company's Packaging Department had work in process inventory of 8,820 units, which had been transferred in from the Finishing Department.These units had accumulated costs of $315,000 in previous departments and $16,000 for conversion costs in the Packaging Department. During March, 30,000 units were transferred into the department.These units had accumulated costs of $770,000 in the previous departments.The Packaging Department incurred $54,000 in conversion costs during the month.On March 31, 700 units remained in ending inventory.These units were 80% complete with respect to conversion costs. Calculate the cost per equivalent unit for transferred-in costs and for conversion costs for the Packaging Department using the average cost method.

The journal entry to record the flow of costs into Department 2 for direct labor is

The journal entry to record the flow of costs into Department 1 during the period for applied overhead is

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

Using the FIFO method, the number of units started and completed in July was