chapter 16

Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

$55,000.

Fortner Company has no beginning work in process; 9,000 units are transferred out and 3,000 units in ending work in process are one-third finished as to conversion costs and fully complete as to materials cost. If total materials cost is $60,000, the unit materials cost is:

$5.00.

Indicate which of the following statements is not correct.

Manufacturing costs are assigned the same way in a job order and in a process cost system.

The Mixing Department's output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production are:

23,000.

Hollins Company uses the FIFO method to compute equivalent units. It has 2,000 units in beginning work in process, 20% complete as to conversion costs, 25,000 units started and completed, and 3,000 units in ending work in process, 30% complete as to conversion costs. All units are 100% complete as to materials. Equivalent units for materials and conversion costs are, respectively:

28,000 and 27,500.

In RYZ Company, there are zero units in beginning work in process, 7,000 units started into production, and 500 units in ending work in process 20% completed. The physical units to be accounted for are:

7,000.

Which of the following items is not characteristic of a process cost system?

The products produced are heterogeneous in nature.

In a production cost report, units to be accounted for are calculated as:

Units started into production+ Units in beginning work in process

In a process cost system, manufacturing overhead:

is assigned to a work in process account for each production department on the basis of a predetermined overhead rate.

Conversion costs are the sum of:

labor costs and overhead costs.

n making journal entries to assign raw materials costs, a company using process costing:

often debits two or more work in process accounts.

A production cost report:

shows both the production quantity and cost data related to a department.

In a process cost system, the flow of costs is:

work in process, finished goods, cost of goods sold.