Exam 3: Process Cost Systems

Carolwood Company manufactures widgets and uses process costing.The status of the beginning and ending inventory is: Direct materials are added to the manufacturing process in stages.None are added when production begins.Approximately 1/2 of the materials are added when the product is 25% complete.The other half is added when the product is 50% complete. What percentage complete are beginning inventory and ending inventory with respect to direct materials DM and conversion costs CC?

The FIFO method separates work done on beginning inventory in the previous period from work done on it in the current period.

If the costs for 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 journal entry to record the flow of costs into Department 1 during the period for direct materials is

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is

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

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the material and conversion cost per unit to the nearest penny, respectively.

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

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the 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?

Companies recognizing the need to simultaneously produce products with high quality, low cost, and instant availability have adopted a just-in-time processing philosophy.

Match each phrase that follows with the term a-e it describes. -work centers for processing in a just-in-time system

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 number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was

The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250, respectively.During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000. a Determine the factory overhead rate based on machine hours. b Present the entry to apply factory overhead to production in Department 40 for January. c What is the balance of Factory Overhead-Department 40 at January 31? d Does the balance of Factory Overhead-Department 40 at January 31 represent over applied or under applied factory overhead? Round total cost to nearest dollar value.

Conversion costs include materials, direct labor, and factory overhead.

Which of the following is not included in conversion costs?

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 during the current period was

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

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