Accounting 202 Fengyun Wu

In a process cost system, the flow of costs is

work in process, finished goods, cost of goods sold

Differences between a job order cost system and a process cost system include all of the following except the

flow of costs

Conversion costs are the sum of

labor costs and overhead cost

In Making journal entries to assign raw materials costs, a company using process costing

often debits two or more work in process accounts

which of the following is not a necessary step in preparing a production cost report

prepare the job order cost sheet

A Process Cost accounting system is most appropriate when

similar products are mass produced

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 90,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

104,000 equivalent units (Units transferred out = 20,000 + 90,000 - 10,000 =. 100,000) EU of ending WIP = 10,000 * 40% = 4,000

A department adds materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 90,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

78,000

In computing equivalent units, _________ is not part of the equivalent units of production formula

Beginning work in process

A process cost system would be used for all the following except

Motion Pictures