BUS1B Managerial Accounting Chapter 5

What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? $16,000 $50,000 $103,000 $120,000

$103,000

Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units were in ending inventory? $1,000 $13,000 $130,000 $20,000

$130,000

Beginning inventory and direct material cost added during the month total $55,000. What is the value of the ending work in process inventory if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units were in ending inventory? $1,000 $5,000 $50,000 $55,000

$5,000

What is the cost of direct labor if the conversion costs are $330,000 and manufacturing overhead is $275,000? $55,000 $275,000 $330,000 $605,000

$55,000

Which of the following production characteristics is better suited for process costing and not job order costing? Each product batch is distinguishable from the prior batch. The costs are easily traced to a specific product. Costs are accumulated by department. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

Costs are accumulated by department.

A process costing system is most likely used by which of the following? airplane manufacturing a paper manufacturing company an accounting firm specializing in tax returns a hospital

a paper manufacturing company

Assigning indirect costs to departments is completed by ________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory

applying the costs to manufacturing overhead

The costs to be accounted for consist of which of the following? costs of the units added during the period costs of the units in ending inventory costs of the units started and transferred during the period costs of the units in the beginning inventory and costs added during the period

costs in the beginning inventory and costs added during the period

Which of the following is the step in which materials, labor, and overhead are detailed? determining the units to which costs are assigned determining the equivalent units of production determining the cost per equivalent units allocating the costs to the units transferred out and the units partially completed

determining the cost per equivalent units

Which of the following is a conversion cost? raw materials direct labor sales commissions direct material used

direct labor

Which of the following is a prime cost? direct labor work in process inventory administrative labor factory maintenance expenses

direct labor

Which of the following lists contains only conversion costs for an inflatable raft manufacturing corporation? vinyl for raft, machine operator, electricity, insurance machine operator, electricity, depreciation, plastic for air valves machine operator, electricity, depreciation, insurance vinyl for raft, electricity, insurance, plastic for air valves

machine operator, electricity, depreciation, insurance

In a process cost system, factory depreciation expense incurred is debited to ________. finished goods inventory work in process inventory manufacturing overhead cost of goods sold

manufacturing overhead

Which is not needed to compute equivalent units of production? the percentage of completion for inventory still in process the number of units transferred out the number of units started and completed the material cost per unit

the material cost per unit

During production, how are the costs in process costing accumulated? to cost of goods sold to each individual product to manufacturing overhead to each individual department

to each individual department

In a process costing system, which account shows the overhead assigned to the department? cost of goods sold finished goods inventory raw material inventory work in process inventory

work in process inventory