Acc 2020 - Chapter 16
Conversion cost per unit equals $7.00. Total materials costs are $80,000. Equivalent units are 20,000. What is the total manufacturing cost per unit?
$11.00
In the Shaping Department of Rollins Company, the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 40,000 units and had 5,000 units in ending work in process that were 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is
$28,000
Last month, Laroche Manufacturing's Fabrication Department had total manufacturing costs of $381,900 and 38,000 equivalent units for both materials costs and conversion costs. If the department's total conversion costs were $180,500, then what was the department's materials cost
$5.30
Last month, a firm's Fabrication Department started 82,000 units into production. The department had no beginning work in process and 18,100 units of ending work in process that were 50% complete. The department applies conversion costs uniformly throughout the process and materials costs at the beginning of the process. If the department's total materials cost for the month was $504,300, what was the materials cost per unit?
$6.15
If there are no units in process at the beginning of the period, then
total units to be accounted for are equal to total units transferred out plus total units in process at the end of the period.
In a process cost system, you can determine a department's _______ by subtracting the total units started or transferred into production from its total units to be accounted for.
units in beginning inventory
Total units to be accounted for less units in beginning work in process equals
units started into production.
The total units accounted for equals units in
ending work in process + units transferred out.
Production Cost Report
key document that management uses to understand the activities in a department; shows qty. and cost data related to dept
Job Order Cost Flow
DM, DL, MOH --> WIP --> Finished Goods Inv --> COGS
Process cost flow
DM, DL, MOH --> WIP Dept A --> WIP Dept B -->Finished Goods Inv --> COGS
In Kepler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 25,000 units, and had an ending work in process of 4,000 units. How many units were started by Kepler during the month?
21,000
Minor Company had the following department data: Physical Units Work in process, July 1 - 30,000 Completed and transferred out - 165,000 Work in process, July 31 - 45,000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials in July?
210,000
If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?
25%
Similarities of Job Order Cost & Process Cost
- Both track the 3 manfact cost (DL,DM, MOH) - Debit Raw material to "Raw Mat Inv", Factory labor to "Factory Labor", MOH to "MOH"
Pinnacle Industries' fabrication department had the following data for September: Physical Units Work in process, September 1 - 110,000 Units completed and transferred out - 250,000 Work in process, September 30 - 100,000 If Pinnacle adds materials at the beginning of the fabrication process, what is the department's total number of equivalent units for materials in September?
350,000 equivalent units
In order to complete a production cost report, the company must
1) Compute the physical unit flow 2) Compute the equivalent units of production 3) Compute unit production costs 4) Prepare cost reconciliation schedule
If beginning work in process is 4,000 units, ending work in process is 2,000 units, and the units accounted for equal 15,000 units, how many units were started into production?
11,000
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 materials for June were
110,000 equivalent units
A department adds raw 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 equivalent units
Entry to Transfer finished goods to COGS
COGS Finished goods inventory
Unit production costs
Costs expressed in terms of equivalent units of production.
Entry to send product to finished goods
Finished goods inventory WIP - Assembly
On July 1, Premiere Paints' Mixing Department had 80,000 units in beginning work in process that were 80% complete. Between July 1 and July 31, the Mixing Department transferred 150,000 units to the Packaging Department. At the end of the month, on July 31, the Mixing Department had 40,000 units in work in process that were 80% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. Based on this information, which of the following statements is accurate?
In July, the Mixing Department had 190,000 equivalent units of production for materials
Service companies that perform individualized nonroutine services will probably benefit using a ___________ system
Job Costing
Conversion Costs
The sum of labor costs and overhead costs.
How to calculate "Unit Material Costs"
Total Material Costs / Equivalent units of material
How to calculate "Unit Conversion Costs"
Total conversion costs / equivalent units of conversion costs
How to calculate "Total Manufacturing Cost per Unit"
Unit material costs + Unit Conversion Costs
Formula to calculate the Equivalent Units of Production
Units completed and transferred out + Equivalent units of ending WIP
How to calculate the "Total Units to be Accounted for"
Units started (transferred) into production + units in process in beg.
Process Cost system
Used to apply costs to similar products that are mass produced in a continuous fashion
The entry to assign labor costs to machining & Assembly
WIP - Machining WIP - Assembly Factory Labor
The entry to assign Manufacturing Overhead
WIP - Machining WIP - Assembly Manufacturing Overhead
When a company adds materials at the beginning of each process, the entry would be
WIP - Machining WIP - Assembly Raw Materials Inventory
Entry to transfer good from machining to assembly different department
WIP- Assembly WIP - Machining