Managerial Accounting Chapter 17
a form prepared periodically for each processing department summarizing the units for which the department is accountable and the units to be assigned costs and the costs charged to the department and the allocation of these costs is termed a a. factory overhead production report b. manufacturing cost report c. process cost report d. cost of production report
d. cost of production report
A process cost accounting system records all actual factory overhead costs directly in the Work in Process account. True False
False
Department K had 3,000 units 45% completed in process at the beginning of the period; 17,000 units completed during the period; and 1,200 units 40% completed at the end of the period. What was the number of equivalent units of production for the period for direct materials if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost. a. 18,350 b. 16,310 c. 15,650 d. 16,130
d. 16,130
Equivalent production units are usually determined for a. Direct materials and conversion costs b. Direct materials only c. Conversion costs only d. Direct materials and direct labor costs only
a. Direct materials and conversion costs
In a process cost system, the amount of work in process inventory is valued by a. finding the sum of all open job costs b. allocating departmental costs between completed and partially completed units c. multiplying units in ending inventory by the direct materials cost per unit d. finding the sum of all completed jobs
a. finding the sum of all open job costs
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method, the number of equivalent units of conversion costs was a.14,380 b.15,850 c.14,400 d.14,550
a.14,380
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials $2,000 $ 22,252 Conversion costs $6,200 $150,536 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 a. 5,340 for direct materials and 4,902 for conversion costs b. 4,840 for direct materials and 4,802 for conversion costs c. 4,602 for direct materials and 4,802 for conversion costs d. 4,902 for direct materials and 4,802 for conversion costs
b. 4,840 for direct materials and 4,802 for conversion costs
Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows: Beginning Inventory 30% of the manufacturing process is complete. Ending Inventory 55% of the manufacturing process is complete. 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)? a. Beg.Inventory DM-50% CC-30% End.Inventory DM-100% CC-55% b. Beg.Inventory DM-50% CC-30% End.Inventory DM-55% CC-55% c. Beg.Inventory DM-50% CC-70% End.Inventory DM-100% CC-45% d. Beg.Inventory DM-30% CC-30% End.Inventory DM-55% CC-55%
c. Beg.Inventory DM-50% CC-70% End.Inventory DM-100% CC-45%