Chapter 20 Quiz

process

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is: process departmental first-in, first-out job order

$2,645

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. 4,000 units of direct materials were added during the period at a cost of $8,200. 4,500 units were completed during the period, and 500 units were 40% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was: You Answered $3,240 $5,175 $2,569 $2,645

13,700

Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was: 16,700 12,000 1,700 13,700

18,000

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was: You Answered 15,650 18,000 17,250 17,700

$2.04

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. If the average cost method is used the material cost per unit (to the nearest cent) would be: $2.04 $1.59 $1.91 $2.00

$62,206

Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 at $8) 83,200 Direct labor 63,000 Factory overhead 25,000 Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)? $62,206 $16,163 $40,000 $19,275

$28,935

Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 at $8) 83,200 Direct labor 63,000 Factory overhead 25,000 Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places)? $16,163 $21,432 $35,670 $28,935

$9.84 and $9.58

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $60,000 Costs added during period: Direct materials (10,400 at $9.8365) 102,300 Direct labor 79,800 Factory overhead 25,200 Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the material and conversion cost per unit (to the nearest penny), respectively. $5.94 and $5.86 $5.94 and $6.38 $8.00 and $8.68 $9.84 and $9.58

$117,000

Department S had no work in process at the beginning of the period. 12,000 units of direct materials were added during the period at a cost of $84,000, 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900. The total cost of units completed during the period were: $117,000 $143,400 $121,000 $127,450

16,100 units

Department W had 2,400 units, one-third completed at the beginning of the period, 16,000 units were transferred to Department X from Department W during the period, and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs. What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W (Assuming the company uses FIFO)? 16,100 units 13,600 units 15,000 units 18,500 units

5,850

If Department H had 600 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 700 units were 30% completed at the end of the period, what was the number of equivalent units of production for conversion costs for the period, if the first-in, first-out method is used to cost inventories? 7,300 5,640 6,700 5,850

Work in Process--Department 2 390,000 Work in Process--Department 1 390,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs from Department 1 into Department 2 during the period is: Work in Process--Department 2 390,000 Work in Process--Department 1 390,000 Work in Process--Department 2 330,000 Work in Process--Department 1 330,000 Work in Process--Department 2 215,000 Work in Process--Department 1 215,000 Work in Process--Department 2 375,000 Work in Process--Department 1 375,000

Work in Process--Department 1 150,000 Factory Overhead--Department 1 150,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 1 during the period for applied overhead is: Factory Overhead--Department 1 150,000 Work in Process--Department 1 150,000 Work in Process--Department 1 125,000 Factory Overhead--Department 1 125,000 Work in Process--Department 1 80,000 Factory Overhead--Department 1 80,000 Work in Process--Department 1 150,000 Factory Overhead--Department 1 150,000

Work in Process--Department 1 125,000 Wages Payable 125,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 1 during the period for direct labor is: Work in Process--Department 1 65,000 Wages Payable 65,000 Wages Payable 125,000 Work in Process--Department 1 125,000 Work in Process--Department 1 125,000 Wages Payable 125,000 Wages Payable 65,000 Work in Process--Department 1 65,000

Work in Process--Department 1 100,000 Materials 100,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 1 during the period for direct materials is: Work in Process--Department 1 100,000 Materials 100,000 Work in Process--Department 1 55,000 Materials 55,000 Materials 100,000 Work in Process--Department 1 100,000 Materials 55,000 Work in Process--Department 1 55,000

Work in Process--Department 2 65,000 Wages Payable 65,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 2 during the period for direct labor is: Work in Process--Department 2 65,000 Wages Payable 65,000 Wages Payable 65,000 Work in Process--Department 2 65,000 Work in Process--Department 2 125,000 Wages Payable 125,000 Work in Process--Department 2 185,000 Wages Payable 185,000

Work in Process--Department 3 585,000 Work in Process--Department 2 585,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period is: Work in Process--Department 3 585,000 Work in Process--Department 2 585,000 Work in Process--Department 3 570,000 Work in Process--Department 2 570,000 Work in Process--Department 3 555,000 Work in Process--Department 2 555,000 Work in Process--Department 3 165,000 Work in Process--Department 2 165,000

Work in Process--Department 3 50,000 Materials 50,000

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is: Work in Process--Department 3 100,000 Materials 100,000 Work in Process--Department 3 125,000 Materials 125,000 Work in Process--Department 3 50,000 Materials 50,000 Work in Process--Department 3 70,000 Materials 70,000

$10.33

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July was $10.78 $10.33 $9.78 $10.65

$2.81

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,500 Conversion costs, 3,000 units, 80% completed 6,000 Materials added during April, 10,000 units 29,000 Conversion costs during April 35,000 Goods finished during April, 11,500 units --- April 30 work in process, 1,500 units, 60% completed --- All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The materials cost per equivalent unit (to the nearest cent) for April is: $2.60 $2.81 $3.02 $2.26

2, 4, 3, 1

The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are: 1. allocate costs to transferred and partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. calculate equivalent units of production The correct ordering of the steps is: 2, 4, 3, 1 4, 2, 3, 1 2, 3, 4, 1 2, 3, 1, 4

Raw lumber (direct materials)

Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs? Factory supervisor's salary Machine operator's wages (direct labor) Raw lumber (direct materials) Factory maintenance personnel supplies

Machine operator's wages (direct labor)

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? Advertising costs Raw lumber (direct materials) Machine operator's wages (direct labor) Sales salaries

Both use job order cost cards

Which of the following is NOT a way in which process and job order cost systems are similar? Both accumulate product costs--direct materials, direct labor, and factory overhead Both allocate product cost to units produced Both maintain perpetual inventories Both use job order cost cards

To project production.

Which of the following is not a use of the cost of production report? To help managers control operations. To help managers isolate problems. To project production. To help managers improve operations.