Ch 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?

$103,000

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

$55,000

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?

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?

5,000

Which of the following production characteristics is better suited for process costing and not job order costing?

Costs are accumulated by department.

Which of the following is a conversion cost?

Direct labor

A process costing system is most likely used by which of the following?

a paper manufacturing company

Assigning indirect costs to departments is completed by _____.

applying the costs to manufacturing overhead

The costs to be accounted for consist of which of the following?

costs in the beginning inventory and costs added during the period

Which of the following is the step in which materials, labor, and overhead costs are combined and divided by the equivalent units?

determining the cost per equivalent units

Which of the following is a prime cost?

direct labor

Which of the following lists contains only conversion costs for an inflatable raft manufacturing corporation?

machine operator, electricity, depreciation, insurance

In a process cost system, factory depreciation expense incurred is debited to

manufacturing overhead

Which is not needed to compute equivalent units of production?

the material cost per unit

During production, how are the costs in process costing accumulated?

to each individual department

In a process costing system, which account shows the overhead assigned to the department?

work in process inventory