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Exam 3: Process Costing

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Question 31

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Equivalent units

A) are used in calculating actual physical units completed in a process costing system.
B) are partially completed units that have been converted to a comparable number of completed units.
C) represent the cost of producing one unit of product.
D) All of these answer choices are correct.

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Question 32

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Which one of the following components of Work in Process is always 100% complete at the beginning of the processing in a department?

A) Direct labor
B) Manufacturing overhead
C) Transferred-in costs
D) Direct material

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Question 33

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Department Alpha had no beginning inventory.The department added direct materials costing $55,040 and conversion costs of $88,660 during the month of July.Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department.During the month, 40,000 units were completed.At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs.Which one of the following is the correct cost per equivalent unit for materials for July?

When computing the cost of the ending Work in Process Inventory, the number of equivalent units in Work in Process inventory is multiplied by the cost per equivalent unit separately for material, and separately for conversion costs.

The Molding Department's Work in Process inventory on May 1 consists of 1,400 units and its Work in Process inventory on May 31 consists of 1,100 units.If 22,000 units were completed during the period, how many units were started in the Molding Department during the month of May?

Jeffery Ltd uses a process costing system.Its Spackling Department had no beginning Work in Process inventory.The department added direct materials of $200,000 and conversion costs of $321,300 during the period.Materials are added at the beginning of the process and conversion costs are added evenly throughout the process.During the period 75,000 units were completed, and at the end of the period, 5,000 units remained which were 30% complete.How much is transferred to the Finished Goods inventory account during the period?

A cost incurred by the Baking Department that is transferred to the Packaging Department is called a

Rally Gifts uses process costing.In its Forming Department, all the materials are added at the beginning of processing.At the end of the year, 6,000 units remain in Work in Process inventory in the department.During the year, 54,000 units were completed and transferred out and 55,000 units were started.How many equivalent units will be used in the cost per equivalent unit calculation for material costs in the Forming Department?

The Cooking Department uses process costing and is the third department at Winslow Rice Production.During February, there were 8,000 units of beginning inventory in the Cooking Department, and 50,000 units were transferred in from the prior process.There were 4,000 units in ending inventory.The transferred-in cost in the beginning inventory was $80,000, with $900,200 of additional cost for units transferred in during the month.What is the cost per equivalent unit for transferred-in costs?

Keystone Snow Boards Manufacturing Company produces entry-level snowboards and uses process costing.In the Forming Department, all materials are added at the start of the process.The following information on units is available for September production for the company's Cutting Department: $\begin{array}{lr}\text { Beginning Work in Process, 30\% complete for conversion costs } &14,000 \\\text { Units started } & 125,000 \\\text { Ending Work in Process, 60\% complete for conversion costs } & 15,000 \\\text { Units completed } & 124,000\end{array}$ $\text { The following costs are available for September: }$ $\begin{array}{lrrr}&\text { Direct Material }&\text { Conversion }&\text { Total }\\\text { Beginning Work in Process } & \$ 8,200 & \$ 1,350 & \$ 9,550 \\\text { Current cost } & {70,600} & \$ 47,120 & \$ 117,720 \\\text { Total cost } & {\$ 78,800}&\$ 48,470 & \$ 127270\end{array}$ Assume equivalent units for materials are 157,600 units.How much is the cost per unit for materials?

In the Assembly Department, all the direct materials are added at the beginning of processing.Beginning Work in Process Inventory consists of 2,000 units with a direct materials cost of $31,860.During the period, 15,000 units are started and direct materials costing $250,000 are charged to the department.If there are 1,000 units in ending inventory, what is the cost per equivalent unit for materials during the period, assuming the company uses a process costing system?

The cost per equivalent unit calculation is

Heinz Bottling Company produces various glass and plastic containers and uses a process costing system.The following information relates to production in the Formulating Department during January for the company's 2-quart size glass jars: -Beginning Work in Process inventory: 4,500 units, 85% complete as to conversion costs -Beginning Work in Process inventory-cost of direct materials, $18,000 -Beginning Work in Process inventory-costs of conversion, $14,000 -Number of jars started in January: 270,000 units -Ending Work in Process Inventory: 2,000 units, 35% complete as to conversion -Direct materials added during January: $78,075 -Conversion costs incurred during January: $40,700 Direct materials are added at the beginning of the Formulating process, and conversion costs are incurred uniformly throughout production.How many glass jars were completed during January in the Forming Department?

A company that uses process costing has 1,000 units in ending Work in Process Inventory that Are 100% complete with respect to materials and 80% complete with respect to conversion costs.The cost per unit for inventory is $2.15 for materials and $1.65 for conversion costs.What is the cost assigned to the ending Work in Process inventory?

After the cost per equivalent unit is calculated, costs can be assigned to

If beginning inventory consisted of 400 units, ending inventory was 600 units, and 7,700 units were started during the period, the number of units completed during the period was 8,700.

The denominator in the formula for determining the cost per equivalent unit is determined by adding the number of units completed to the equivalent units in the ending Work in Process inventory.

Materials are always added at the beginning of every process.

In a process costing system, when raw materials are put into process, the cost of the materials is moved from

Which of the following will never be a component of the cost of Work in Process in a company's initial production department?