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Exam 3: The Accounting Information System

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Question 1

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Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.

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Question 2

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In a process cost system,

A) a Work in Process account is maintained for each product.
B) a materials requisition must identify the job on which the materials will be used.
C) a Work in Process account is maintained for each process.
D) one Work in Process account is maintained for all the processes, similar to a job order cost system.

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Question 3

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Minor Company had the following department data: $\begin{array} { l c } & \text { Phvsical Units } \\\text { Work in process, July } 1 & 30,000 \\\text { Completed and transferred out } & 135,000 \\\text { Work in process, July } 31 & 45,000\end{array}$ Materials are added at the beginning of the process.What is the total number of equivalent units for materials in July?

Crawford Company has the following equivalent units for July: materials 20,000 and conversion costs 18,000.Production cost data are: $\begin{array}{lrr}&\text { Materials }&\text { Conversion }\\\text { Work in process, July } 1 & \$ 3,200 & \$ 1,500 \\\text { Costs added in July } & 25,200 & 21,000\end{array}$ $\text { The unit production costs for July are: }$ $\quad$ Materials $\quad$ Conversion Costs a. $\quad$ $ 1.26 $\quad$ $ 1.25 b. $\quad$ 1.42 $\quad$$\quad$ 1.17 c. $\quad$ 1.26 $\quad$$\quad$ 1.17 d. $\quad$ 1.42 $\quad$$\quad$ 1.25

The Assembly Department shows the following information: $\begin{array}{ll}&\text { Units }\\\text { Beginning Work in Process } & 20,000 \\\text { Ending Work in Process } & 50,000 \\\text { Units Transferred Out } & 31,000\end{array}$ How many total units are to be accounted for by the Assembly Department?

Equivalent units for materials total 30,000.There were 24,000 units completed and transferred out.Equivalent units for conversion costs equal 27,000.How much are the physical units for conversion costs if ending work in process is 50% complete?

Fewer materials requisitions are generally required in a process cost system than in a job order cost system.

If there are no units in process at the beginning of the period, then

In a process cost system, total costs are determined at the end of a month or year.

In order to compute the physical unit flow, a company must first compute unit production costs.

In continuous process manufacturing, generally once the production begins, it continues until the finished product emerges.

Materials costs of $500,000 and conversion costs of $535,500 were charged to a processing department in the month of September.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process.There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September. -What was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process?

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00.The department transferred out 20,000 units and had 2,500 units in ending work in process 20% complete.If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Madison Industries has equivalent units of 8,000 for materials and for conversion costs.Total manufacturing costs are $160,000.Total materials costs are $120,000.How much is the conversion cost per unit?

A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed.Costs transferred out of the Baking Department will be transferred to:

A primary driver of overhead costs in continuous manufacturing operations is:

A process with no beginning work in process, completed and transferred out 28,000 units during a period and had 14,000 units in the ending work in process that were 50% complete.How much is equivalent units of production for the period for conversion costs?

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 16,000 units, and had an ending work in process of 3,000 units.How many units were started by Moyer during the month?

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

Price Company assigns overhead based on machine hours.The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period.If the overhead rate is $5 per machine hour, the entry to assign overhead will show a