FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Process Cost Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

Custom-made goods would be accounted for using a process costing system.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

The FIFO method of process costing is simpler than the Average cost method.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

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 equivalent units of production for direct materials and conversion costs, respectively, were

The closer a company moves towards just-in-time processing, the differences in unit costs between average costing and FIFO will be reduced.

When a firm adopts a just-in-time operating environment,

In a process costing system, the cost per equivalent unit is computed before computing equivalent units.

Both job order and process cost accounting use equivalent units of production to determine costs.

The cost of production report summarizes 1 the units for which the department is accountable and the units to be assigned costs and 2 the costs charged to the department and the allocation of those costs.

A firm produces its products by a continuous process involving three production departments, 1 through 3.Present entries to record the following selected transactions related to production during August: a Materials purchased on account, $120,000 b Material requisitioned for use in Department 1, $125,700, of which $124,200 entered directly into the product c Labor cost incurred in Department 1, $195,400, of which $174,000 was used directly in the manufacture of the product d Factory overhead costs for Department 1 incurred on account, $54,700 e Depreciation on machinery in Department 1, $29,200 f Expiration of prepaid insurance chargeable to Department 1, $7,000 g Factory overhead applied to production in Department 1, $106,300 h Output of Department 1 transferred to Department 2, $362,700

What is the number of material equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process?

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

The conversion cost per equivalent unit to the nearest cent for April is

Explain the concept of equivalent units.Give an example to validate your explanation.

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $28,072.The conversion cost for the period in the Bottling Department is $10,275.The total equivalent units for direct materials and conversion are 63,800 and 68,500, respectively.Determine the direct materials and conversion cost per equivalent unit.Round answers to nearest cent.

The total cost of units completed during the period were

The number of equivalent units of production for the period for materials, if the first-in, first-out method is used to cost inventories was

Match each phrase that follows with the term a-h it describes. -prime costs

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing.Briefly contrast the characteristics of these two systems.

If a company uses a process costing system to account for the costs in its five production departments, how many work in process accounts will it use?

Using the FIFO method, the number of equivalent units of conversion costs was