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Exam 17: Process Cost Systems

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Question 41

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Austin Co.manufactures a product called Aster in a three-process series.All materials are introduced at the beginning of the first process.Austin uses the first-in,first-out method of inventory costing.Unit and cost data for the first process (Department A)for the month of December follow: ​ Prepare Austin's Department A cost of production report for December.

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Question 42

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The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400,with $26,000 from the Purifying Department,plus additional $6,400 from the materials storeroom.The conversion cost for the period in the Bottling Department is $8,750 ($3,750 factory applied and $5,000 direct labor).The total costs transferred to finished goods for the period was $31,980.The Bottling Department had a beginning inventory of $1,860.

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Question 43

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At the beginning of the period,there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs.During the period,4,500 units were started and completed.Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs.The company uses the FIFO process cost method. ​ The cost of completing a unit during the current period was

If the products of a manufacturing process are produced to customer specifications,a process cost system is more appropriate than a job order cost system.

Which of the following is not a use of the cost of production report?

The debits to Work in Process-Assembly Department for May,together with data concerning production,are as follows: ​ ​All direct materials are placed in process at the beginning of the process and the first-in,first-out method is used to cost inventories.The materials cost per equivalent unit for May is

Equivalent units are the sum of direct materials used and direct labor incurred.

The number of equivalent units produced with respect to conversion costs is

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is

Equivalent units of production are always the same as the total number of physical units finished during the period.

Using the FIFO method,the cost per equivalent unit for materials used during July was

Zang Co.manufacturers its products in a continuous process involving two departments,Machining and Assembly.Prepare journal entries to record the following transactions related to production during June:

The four steps necessary to complete a cost of production report 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

In applying the first-in,first-out method of costing inventories,if 8,000 units which are 30% completed are in process at June 1,28,000 units are completed during June,and 4,000 units were 75% completed at June 30,the number of equivalent units of production for June was 33,400.

A process cost accounting system records all actual factory overhead costs directly in the Work in Process account.

When a firm adopts a lean manufacturing operating environment,

Which of the following businesses would normally use job order costing systems and which would normally use process costing systems? ​ Tax consultant Paint manufacturer Nail manufacturer Videographer Lotions and cosmetics manufacturer Web design

Kamin Company's Mixing Department had a beginning inventory of 4,000 units which had accumulated conversion costs of $55,000.During the period,the Mixing Department accumulated conversion costs of $92,000 and started 8,000 new units.Ending inventory was 2,500 units which were 40% complete with respect to conversion costs.Kamin uses the average cost method to cost inventories. ​ Calculate the cost per equivalent unit for conversion costs in the Mixing Department.

All direct materials are placed in process at the beginning of production and the first-in,first-out method of inventory costing is used.What is the total cost of the units started and completed during the period (round unit cost calculations to four decimal places) ?

The Mountain Springs Water Company has two departments,Purifying and Bottling.The Bottling Department had 3,000 liters in beginning work in process inventory (30% complete).During the period 71,000 liters were completed.The ending work in process was 5,000 liters (70% completed).What is the total equivalent units for direct materials (using the FIFO method)if materials were added at the beginning of the process?