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Exam 3: Process Costing

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Question 51

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Conversion costs consist of

A) all costs of production.
B) raw materials and direct labor.
C) direct labor and manufacturing overhead.
D) raw materials and manufacturing overheaD.Direct labor and manufacturing overhead costs can be lumped together in a single category called conversion cost.

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Question 52

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If 1,800 units were started and there were 200 units in beginning inventory and 400 units in ending inventory,then the number of units completed is 1,600.The number of beginning units in process (200)plus the number of units started (1,800)should equal the number of units completed (1,600)plus the number of ending units in process (400).

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Question 53

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Every unit that passes through the production process must have been counted in which category of physical units at some point?

The journal entry to record the application of overhead costs to production includes

For units that are completed and transferred out in a firm that uses the weighted average method of process costing,

For a process costing firm,one could calculate the cost of beginning inventory in which of the following ways?

Equivalent units are kept separate for what two categories?

Heathcoat Co.uses process costing to account for the production of canned vegetables.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.On April 1,there were 2,000 units in beginning inventory (80% complete) .During April 10,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,40% for conversion) .The cost per equivalent unit for materials using the FIFO method would be

For a firm using the weighted average method of process costing,it would not be necessary to translate physical units into equivalent units if

Hager Co.uses process costing to account for the production of bottled energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The value of units completed and transferred out using the weighted average method would be closest to:

Stangol Co.uses process costing to account for the production of highlighter pens.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Cost per equivalent unit has been calculated to be $8.80 for conversion costs and $7.1667 for materials.12,000 units were worked on during the period.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The value of units completed and transferred out using the weighted average method would be closest to:

A process costing production report prepared using the weighted-average method is more accurate but generally more costly to prepare than one prepared using the FIFO method.A process costing production report prepared using the weighted-average method is simpler and less costly to prepare.But,a process costing production report prepared using the FIFO method is generally more accurate.

Nettle Co.uses process costing to account for the production of rubber balls.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The total cost per unit using the FIFO method would be closest to

TryFit Co.uses process costing to account for the production of energy food bars.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.During April 8,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The value of units completed and transferred out using the weighted average method would be closest to:

Which of the following accounts will be treated differently by a process costing system than by a job order costing system?

Livingston Co.uses process costing to account for the production of elastic bands.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.During April 8,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The cost per equivalent unit for conversion costs using the weighted average method would be

Under the FIFO method,cost per equivalent unit is calculated by dividing current period costs by equivalent units.This is the formula for cost per equivalent unit under the FIFO method.

The journal entry to record the completion of goods includes

Selling,general,and administrative costs are included on the production cost report and included as part of cost of goods manufactured.Selling,general,and administrative costs are treated as period costs and expensed during the period incurred.

Heathcoat Co.uses process costing to account for the production of canned vegetables.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.On April 1,there were 2,000 units in beginning inventory (80% complete) .During April 10,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,40% for conversion) .The cost per equivalent unit for conversion costs using the FIFO method would be