ACCT CH. 5 comprehension questions
Simply Natural has 3,500 gallons of chocolate milk in WIP Inventory, with 76% of materials already added. The chocolate milk is 52% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?
ANSWER= 1820 SOLUTION= 3500*0.52
Lemony Lemonade has 3,100 gallons of lemonade in WIP Inventory, with 79% of materials already added. What are equivalent units in ending WIP Inventory for materials if the lemonade is 50% through the process?
ANSWER= 2449 Solution: 3100*0.79
Lemony Lemonade has 3,100 gallons of lemonade in WIP Inventory, with 78% of materials already added. The lemonade is 50% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?
ANSWER=1550 SOLUTION= 3100*0.50
For which of the following do we prepare calculations for equivalent units?
Both direct materials and conversion costs
Process costing is most likely used in which of the following industries?
Chemicals
What does direct labor costs plus Manufacturing Overhead equal?
Conversion costs
Process costing would likely be used by which of the following?
PepsiCo
A system for assigning costs for products made in a continuous process is
Process costing
Which of the following product costing systems is normally used to assign costs to goods that are mass−produced goods?
Process costing
Which of the following is the first step of the 5−step process costing procedure?
Summarize the flow of physical units
Which of the following is the third step of the 5−step process costing procedure?
Summarize total costs to account for
The only difference between the weighted average method of process costing and the FIFO method is
The method for calculating beginning inventory
The costing system used by a company making computer chips would be
process costing.
In Step 1 of the process costing procedure, the "total units to account for" is the sum of
the units in beginning WIP plus the units started in production during the month.