Exam 12: Job-Order, Process, and Hybrid Costing Systems

Which of the following is not a component of process cost systems?

Payment of cash for production department employee wages is an asset exchange transaction.

Pepperdine Company paid factory rent of $10,000. At the time this transaction occurred, it did not affect total assets or net income.

A job's budgeted costs for materials, labor, and overhead are inserted on the job cost sheet when production is completed.

In a process cost system, costs are accumulated by department.

The purchase of raw materials on account is:

The purchase of raw materials for cash is:

A process cost system is used when:

Frank Company experienced an event that affected its financial statements as indicated below: Which of the following transactions caused the indicated effects? Assets = Liab. + Equity Rev. - Exp. = Net Inc. 5,000 = / + 5,000 5,000 - / = 5,000

O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During the current accounting period, O'Hare applied estimated manufacturing overhead costs of $1,550 to job #132. Which of the following statements regarding this transaction is correct?

Bruce Company experienced an event that affected its financial statements as indicated below: What type of product costing system is being used by this company? Assets = Liab. + Equity Rev. - Exp. = Net Inc. WIP Mixing + WIP Packing (10,500) + 10,500 = NA + NA NA - NA = NA

A process cost system uses just two inventory accounts, Raw Materials Inventory and Work in Process Inventory.

Jiminez Company engaged in the following transactions during May: 1. Purchased raw materials for cash, $400 2. Used raw materials to begin jobs, $284 3. Paid wages of production employees, $180 4. Applied overhead at rate of $1.25 per direct labor dollar 5. Completed job that had cost $320 6. Sold for $440 cash, goods that had cost $295 to complete Required: Use the horizontal statements model provided to indicate how each of these events affected Juarez's financial statements. Show dollar amounts of increases and decreases. If an item is not affected by a transaction, indicate by writing NA.

Indicate whether each of the following statements is true or false.The purchase of raw materials for cash is an asset use transaction.Using raw materials in a job costing system increases work in process inventory.Wages paid to production workers are recorded as wages expense.When a company has finished making a product, it applies estimated manufacturing overhead costs to the product.A company might use machine hours to assign overhead costs to products if it has identified a cause-and-effect relationship between machine time and overhead costs.

Which of the following accounts is reported on the balance sheet?

A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.

Indicate whether each of the following statements is true or false.A process cost system does not use the same inventory accounts as a job-order cost system.A process cost system accumulates product costs by jobs or batches of products.A company using a process cost system would keep a work in process account for each production department.In a process cost system, the cost of raw materials used is debited to work in process.A company using job-order costing must maintain a separate work in process account for each department.

Cameron Company uses a process cost system and the weighted average method to account for its production. The following information was available for August: During the month, 800 units were started into production, and $5,000 in costs were incurred. Ending inventory was 50% complete. The cost of the units transferred out would be (Do not round your intermediate calculations. Round your final answer to the nearest dollar): Units Costs Work in Process, August 1 100 \ 2,990 Work in Process, August 31 200 ()

Preston Manufacturing is working on two housing projects. Overhead is applied on the basis of direct labor hours. At the beginning of the year, the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.(b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours).(c) Project II was sold during the period for $120,000.The amount of estimated overhead applied to Work in Process Inventory for the period equals: (Do not round your intermediate calculation.)

Ling Company has two departments, assembly and finishing. Consider the following data for the Assembly Department: Required: 1) Compute the number of total equivalent units for the Assembly Department.2) Calculate the cost per equivalent unit. (Round your answer to four decimal places.)3) Compute the amount of costs that should be transferred to the Finishing Department. (Round your answer to the nearest cent.)4) Compute the amount of costs that should be assigned to the 2,500 units in ending inventory. (Round your answer to the nearest cent.) Do you want to use "whole"? See wording change. JMF