Module 5

Cinder Company had the following department information for the month: Total materials costs $60000 Equivalent units of production for materials 10000 Total conversion costs 90000 Equivalent units of production for conversion costs 20000 What is the total manufacturing cost per unit? $10.50. $12.00. $4.50. $6.00.

10.50

Physical units to be accounted for are 40000. Total conversion costs are $158000. There are 1000 units in ending work in process inventory which are 50% complete as to conversion costs. What is the conversion cost per unit? $4.00. $3.95. $4.05. $3.90.

$4.00

Madison Industries has equivalent units of production of 8000 for materials and for conversion costs. Total manufacturing costs are $200000. Total materials costs are $150000. What is the conversion cost per unit? $2.50. $6.25. $25.00. $5.00.

($200000 - $150000) ÷ 8000 = $6.25 (Total manufacturing cost - Total materials cost) ÷ Equivalent units = Unit cost, conversion

Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10000 units of ending work in process inventory at 80% completion and 32000 physical units. There was no beginning work in process inventory in the department. Conversion costs are incurred evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period? 1. 42000. 2. 40000. 3. 8000. 4. 30000.

(10000 units x 80%) + (32000 - 10000) = 30000 (Ending WIP units x % complete) + (Physical units - Ending WIP units) = Equivalent units for conversion cost]

In the Shaping Department of Jenkins Company the unit materials cost is $3.00 and the unit conversion cost is $1.80. The department completed and transferred out 8000 units and had 2000 units in ending work in process inventory that were 20% complete as to conversion. If all materials are added at the beginning of the process, the cost to be assigned to ending work in process inventory is $1920. $6000. $6720. $9600.

(2000 units x 100% x $3.00) + (2000 units x 20% x $1.80) = $6720 (Ending WIP units x % complete x Unit cost, material) + (Ending WIP units x % complete x Unit cost, conversion) = Total cost of ending WIP

Byrd Company decided to analyze certain costs for June of the current year. Units started into production equaled 14000 and ending work in process inventory equaled 2000 units. There was no beginning work in process inventory. What is the conversion cost per unit if ending work in process inventory was 25% complete as to conversion costs and total conversion costs equaled $52500? $3.28. $4.38. $4.20. $3.62.

(2000 units x 25%) + 12000 = 12500; $52500 ÷ 12500 = $4.20 (Ending WIP units x % complete) + Units completed and transferred out = Equivalent units; Total conversion cost ÷ Equivalent units = Unit cost, conversion

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; 90000 units were started into production in January; and there were 20000 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? 70000 equivalent units. 82000 equivalent units. 78000 equivalent units. 90000 equivalent units.

(20000 units x 40%) + ((90000 - 20000) x 100%) = 78000 (Ending WIP units x % complete) + ((Units started into production - Ending WIP units) x % complete) = Equivalent units

Minor Company had the following department data: Physical Units Work in process inventory, July 1: 30000 Completed and transferred out 165000 Work in process inventory, July 31: 45000 Materials are added at the beginning of the process. What are the equivalent units of production for materials in July? 165000 180000 240000 210000

(45000 units x 100%) + 165000 = 210000 (Ending WIP units x % complete) + Units completed and transferred = Equivalent units

A process with no beginning work in process inventory completed and transferred out 85000 units during a period and had 50000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were 1. 85000 equivalent units. 2. 135000 equivalent units. 3. 100000 equivalent units. 4. 70000 equivalent units.

(50000 units x 30%) + 85000 = 100000 (Ending WIP units x % complete) + Units completed and transferred out = Equivalent units

Which of these best reflects a distinguishing factor between a job order cost system and a process cost system? 1 The detail at which costs are calculated. 2 The time period each covers. 3 The number of work in process inventory accounts. 4 The manufacturing cost components included.

3 The number of work in process inventory accounts.

A primary driver of overhead costs in continuous manufacturing operations is: 1 direct labor dollars. 2 direct labor hours. 3 machine hours. 4 machine maintenance dollars.

3 machine hours.

20000 units in process that are 70% complete are referred to as: 1. 20000 equivalent units of production. 2. 6000 equivalent units of production. 3. 14000 equivalent units of production. 4. 26000 equivalent units of production.

3. 14000 equivalent units of production.

Equivalent units of production are calculated by 1. multiplying the percentage of work done by the equivalent units of output. 2. dividing physical units by the percentage of work done. 3. multiplying the percentage of work done by the physical units. 4. dividing equivalent units by the percentage of work done.

3. multiplying the percentage of work done by the physical units.

A process cost accounting system is most appropriate when 1.a variety of different products are produced, each one requiring different types of materials, labor, and overhead. 2. the focus of attention is on a particular job or order. 3. similar products are mass-produced. 4. individual products are custom made to the specification of customers.

3. similar products are mass-produced.

Long Company has recently tried to improve its cost analysis for its manufacturing process. Units started into production equaled 6000 and ending work in process inventory equaled 400 units. Long had no beginning work in process inventory. Conversion costs are applied equally throughout production and materials are applied at the beginning of the process. What is the materials cost per unit if ending work in process inventory was 25% complete as to conversion costs and total materials costs equaled $18000? $3.00. $2.95. $3.05. $2.81.

3.00

Which of the following manufacturing cost components are incurred in a process cost system? 1 Direct materials. 2 Direct labor. 3 Manufacturing overhead. 4 All of these.

4 All of these.

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to 1 the Finished Goods Inventory account. 2 Cost of Goods Sold. 3 a Manufacturing Overhead account. 4 a Work in Process Inventory account.

4 a Work in Process Inventory account.

Equivalent units of production are a measure of 1. units completed and transferred out. 2. units transferred out. 3. units in ending work in process inventory. 4. the work done in a period expressed in fully completed units.

4. the work done in a period expressed in fully completed units.