Ch 3

Question 1

The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.

Answer 1

job; process or department

Question 2

Each department in a process costing system, will use (one, two, none) …….
Work in Process account.

Answer 2

one

Question 3

After determining the physical flow of units, the next step in process costing is:

Answer 3

compute equivalent units of production

Question 4

Process operations is defined as a manufacturing process that includes: (Check all that apply.)

Answer 4

large volumes of similar products.

series of sequential processes.

Question 5

Department X started 550 units during the accounting period, completed and transferred out 500 units and had an ending balance of 200 units. …………… units were in beginning goods in process inventory for the department.

Answer 5

150
(550 - 500 = 50
200 - 50 = 150units )

Question 6

In process operations, where there is a series of repetitive processes, each …………. is a separate production department.

Answer 6

process

Question 7

Equivalent units of production refers to the number of units that could have been:

Answer 7

started and completed

Question 8

Process and job order operations are similar in that both:

Answer 8

are used to determine the cost per unit of product or service.

combine materials, labor, and overhead in producing products.

Question 9

In a process costing system, which of the following is correct regarding the Work in Process Inventory account:

Answer 9

there will be a separate Work In Process account for each process or department

Question 10

Department A completed and transferred out 2,100 units and had ending work in process inventory of 120 units. The ending inventory is 10% complete for materials and 70% complete for labor and overhead. The equivalent units of production for materials is ………..
units.

Answer 10

2112

(Reason: 2,100+120×10% )

Question 11

List the four steps involving analysis when accounting for a department’s activity, with the first step listed on top.

Answer 11

1. Physical flow
2. Equivalent units
3. Cody per equivalent units
4. Assign and reconcile

Question 12

A company using process operations started and processed 400 units in its first department. The units are 40% complete with respect to materials and 25% complete with respect to labor and overhead. The EUP for labor and overhead is ……..
units.

Answer 12

100 units
(Reason: 400×25% )

Question 13

Department B had a beginning inventory balance of 150 units. During the accounting period, the department started an additional 950 units, and 975 units were completed and transfered out. Department B had an ending balance of ………. units.

Answer 13

125 units
(Reason 150+950−975 )

Question 14

Department D had materials costs of $10,000 in beginning work in process inventory and added an additional $50,000 in materials costs this period. If the department had 20,000 EUP for materials, the cost per equivalent unit of production is $
……..

Answer 14

$3
(Reason (10,000+50,000)÷20,000 )

Question 15

Understanding the cost of partially completed goods allows the manufacturer to:

Answer 15

measure production activity for the period

Question 16

The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.

Answer 16

job; process or department

Question 17

A department completed and transferred to finished goods 75,000 units. The cost per EUP for direct materials is $8.00 and the cost per EUP for conversion cost is $6.00. The costs transferred to Finished Goods Inventory is $

Answer 17

$1,050,000

(Reason (75,000×8.00)+(75,000
×6.00) )

Question 18

Department A completed and transferred out 2,100 units and had ending work in process inventory of 120 units. The ending inventory is 10% complete for materials and 70% complete for labor and overhead. The equivalent units of production for labor and overhead is …….
units.

Answer 18

2184
(Reason 2,100+120×70% )

Question 19

A manufacturer has a process where materials are added all at the beginning of the process and conversion costs are added evenly throughout the manufacturing process. If 400 are 30% completed during the period, the EUP for conversion is

Answer 19

120
(Reason 400×30% )

Question 20

A department begins the month with 100 units at a cost of $7,500 in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. The ending balance in Work in Process Inventory is $…
.

Answer 20

20,000
(Reason 7,500+12,500 )

Question 21

True or false: Using the weighted-average method, the computation of EUP separates units into direct materials and conversion.

Answer 21

True

Question 22

A manufacturing department has 50,000 EUP for units completed and transferred out and 4,500 EUP for units in ending inventory. Materials cost is $2.50 per EUP and labor/overhead cost is $3.75 per EUP. The total amount transferred out is $

Answer 22

312,500
(Reason (50,000×2.50)+(50,000
×3.75) )

Question 23

Equivalent units of production refers to the number of units that could have been:

Answer 23

started and completed

Question 24

Managers use the process cost summary for all of the following except:

Answer 24

evaluate company as a whole

Question 25

A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 40% complete. Direct materials cost per EUP is $5.00 and Conversion cost per EUP is $1.50. The cost transferred to Finished Goods Inventory is $

Answer 25

: 136500. FINISH

Question 26

The parts of the process cost report include:

Answer 26

equivalent units of production. physical flow of units. cost assignment and reconciliation.

Question 27

A company completes 21,000 units this month and has ending work in process inventory of 3,000 units which are estimated to be 40% complete. Total production costs are $666,000. The cost of ending Work in Process Inventory is $

Answer 27

: 36000 FINISH

Question 28

The total beginning balance in Work in Process Inventory is $60,000, which included direct materials and conversion. During the period, the department incurred the following costs: direct materials $22,000 and conversion costs $142,000. The total costs to account for is $

Answer 28

224000 (Reason 60,000+22,000+142,000 )

Question 29

The journal entry to record the purchase of materials on account in process cost accounting is a(n):

Answer 29

increase in assets and an increase in liabilities

Question 30

Process cost information is prepared for the following reasons. (Check all that apply.)

Answer 30

To help factory managers evaluate department managers' performances To provide cost information for financial statements To help department managers control costs

Question 31

The journal entry to record the use of direct materials in process costing is a(n):

Answer 31

increase in one asset and a decrease in another asset.

Question 32

A process cost report summarizes the following process costing steps: (Check all that apply).

Answer 32

physical flow of units costs per equivalent unit of production equivalent units of production

Question 33

A department begins the month with 100 units at a cost of $7,500 in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. The ending balance in Work in Process Inventory is $

Answer 33

2,000 ( Reason: 1. Calculate total cost (beg wpi costs + addintional costs): 7x500+12,500 =20,000 2. Calc equivalent units ((beg units +units started - end units) + (end units × % complete)): (100+1,000-200) +(200×50%) =1,000 3. Cost per equivalent units (total costs÷1,000): 20,000÷1,000 = 20 4. End balance WPI (cost per unit ×(end units × % complete): 20 × (200 × 50%) = 2,000 dollars

Question 34

The journal entry to record the purchase of materials on account in process cost accounting is:

Answer 34

debit Raw Materials Inventory and credit Accounts Payable

Question 35

The journal entry to record the use of indirect materials in process costing is to:

Answer 35

debit Factory Overhead and credit Raw Materials Inventory.

Question 36

The journal entry to record the use of direct materials in process costing is to:

Answer 36

debit Work in Process Inventory and credit Raw Materials Inventory.

Question 37

The journal entry to record direct labor used in process costing is a(n):

Answer 37

increase in assets and an increase in liabilities.

Question 38

The parts of the process cost report include:

Answer 38

cost assignment and reconciliation. equivalent units of production. physical flow of units.

Question 39

True or false: A production department in a process operation has a manager that works for two departments. Since the manager is in a supervisory position, the labor is considered indirect labor and the cost is charged to Factory Overhead.

Answer 39

True

Question 40

A company completes 21,000 units this month and has ending work in process inventory of 3,000 units which are estimated to be 40% complete. Total production costs are $666,000. The cost of ending Work in Process Inventory is $

Answer 40

FIGURE OUT : 36000 is answer

Question 41

The journal entry to record the accrual of factory utilities is to:

Answer 41

debit Factory Overhead and credit Utilities Payable

Question 42

Common overhead allocation methods for companies with process operations includes ______ hours or _____ hours to allocate overhead.

Answer 42

Direct labor Machine hours

Question 43

When indirect materials are used in process costing, the effect on the Raw Materials Inventory account is:

Answer 43

a decrease.

Question 44

The journal entry to record the applied factory overhead is to:

Answer 44

debit Work in Process Inventory and credit Factory Overhead

Question 45

The journal entry to record the use of direct labor in process costing is to:

Answer 45

debit Work in Process Inventory and credit Factory Wages Payable.

Question 46

The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n):

Answer 46

decrease in one asset and an increase in another asset

Question 47

The journal entry to record the use of indirect labor in process costing is to:

Answer 47

debit Factory Overhead and credit Factory Wages Payable.

Question 48

The journal entry to record the insurance on the factory equipment is to:

Answer 48

debit Factory Overhead and credit Prepaid Insurance

Question 49

The journal entry to record the transfer of completed work in process to finished goods in process costing is a(n):

Answer 49

decrease in one asset and an increase in another asset

Question 50

The journal entry to apply Factory Overhead includes:

Answer 50

a credit to Factory Overhead

Question 51

The journal entry to record the transfer of units from one department to the next is to:

Answer 51

debit Work in Process Inventory - Dept. 2 and credit Work in Process Inventory - Dept. 1

Question 52

The journal entry to record the factory overhead applied includes:

Answer 52

a debit to Work in Process Inventory and a credit to Factory Overhead

Question 53

The journal entry to record the cost of goods sold in process costing is a(n):

Answer 53

decrease in an asset and an increase in an expense

Question 54

The journal entry to record the transfer of units from Process 1 to the Process 2 in process costing is:

Answer 54

debit Work in Process Inventory - 2 and credit Work in Process Inventory - 1

Question 55

Match the following trends in process operations to their definition or characteristics. Process design Process design drop zone empty. Just-in-time production Just-in-time production drop zone empty. Continuous Processing Continuous Processing drop zone empty. Services Services drop zone empty. Customer Orientation Charas: Continuous movement of materials through the manufacturing process. Non-manufacturing businesses. Reorganize production processes to improve efficiency. Raw Materials Inventory and Finished Goods Inventory accounts are not needed. Focus on the customer.

Answer 55

Process design = Reorganize production processes to improve efficiency. Just-in-time production = Materials Inventory and Finished Goods Inventory accounts are not needed. Continuous Processing = Continuous movement of materials through the manufacturing process. Services = Non-manufacturing businesses. Customer Orientation = Focus on the customer.

Question 56

The journal entry to record the transfer of completed work in process to finished goods in process costing is to:

Answer 56

debit Finished Goods Inventory and credit Work in Process Inventory

Question 57

Match the trend to its definition. Process design Process design drop zone empty. Just-in-time production Just-in-time production drop zone empty. Robotics and automation Robotics and automation drop zone empty. Continuous processing Continuous processing drop zone empty. Customer orientation Definitions: uses minimal inventory levels reorganizes production processes to make them more efficient use results in reduced labor costs and increased efficiency movement of materials continuously through the manufacturing process focuses on customer orientation

Answer 57

Process design = reorganizes production processes to make them more efficient Just-in-time production = uses minimal inventory levels Robotics and automation = use results in reduced labor costs and increased efficiency Continuous processing = movement of materials continuously through the manufacturing process Customer orientation = focuses on customer orientation

Question 58

The journal entry to record the transfer of units to the next department in process accounting is a(n):

Answer 58

decrease in one asset and an increase in another asset

Question 59

A system which uses both a process costing system and a job order system will most likely use which type system?

Answer 59

Hybrid

Question 60

The journal entry to record the cost of goods sold in process costing is to:

Answer 60

debit Cost of Goods Sold and credit Finished Goods Inventory

Question 61

Beginning work in process are 25,000 units and units started this period are 75,000 units. The total units to account for using the FIFO method are

Answer 61

100,000 (Reason 25,000+75,000 )

Question 62

All of the following are recent trends in process operations except:

Answer 62

singular processing

Question 63

A focus on customer orientation leads to improved _.

Answer 63

Processes

Question 64

Department A had a beginning inventory balance of 25 units which were 40% complete. During the accounting period, the department started an additional 275 units and had an ending balance of 50 units which were 20% complete. Using FIFO, the equivalent units of production is ....... units.

Answer 64

FIGURE OUT answer 250

Question 65

A system that contains features of both process and job order operations is called a(n) ....... costing system.

Answer 65

Hybrid

Question 66

Beginning work in process inventory related to conversion was 75% complete for 25,000 units. 50,000 units were started and completed and ending inventory consisted of 10,000 units that were 10% complete. Calculate the equivalent units of production for the conversion costs using the FIFO method.

Answer 66

57,250 (Reason: (25,000 x .25) + (50,000 x 1) + (10,000 x .10) = 57,250 EUP.)

Question 67

At the beginning of the month, Department A had 100 units which were 25% complete with respect to direct materials. Direct materials costs at the beginning of the period were $7,500. During the month, an additional 1,000 units were started. At the end of the month, 200 units were still in process and were 50% complete with respect to direct materials. The direct materials costs incurred during the current period were $12,500. Using FIFO, the ending Work in Process inventory with respect to direct materials is $............. . *Do not round intermediate calculations. Round final answer to the nearest dollar.*

Answer 67

ANSWER FIGURE OUT : 1282

Question 68

Beginning work in process are 40,000 units and units started this period are 20,000 units. The total units to account for using the FIFO method are

Answer 68

60,000. (40000+20000)

Question 69

Cost of beginning work in process inventory is $250,000; costs incurred this period include an additional $500,000 and cost of ending work in process inventory is $100,000. The total costs to account for under the FIFO process costing system is

Answer 69

$750,000, 750000, or 750,000 (Bc 250,000+500,000 )

Question 70

A company using the FIFO method had beginning work in process inventory of 10,000 units and completed 75,000 units. They also had 5,000 units in ending work in process inventory. The number of units started and completed equals

Answer 70

65000 (Reason 75,000−10,000 )

Question 71

If beginning work in process inventory for conversion was 25% complete and these units were fully completed during the current period, what additional percentage was applied to these units during the current period?

Answer 71

75% Reason: To complete these units, 75% of additional conversion were added during the current period.

Question 72

A department using the FIFO method for process costing begins the month with 10,000 units which were 70% complete at the end of the previous month. They started and completed 50,000 units and their ending work in process inventory consisted of 5,000 units which were 10% complete. The costs incurred were $200,000. The cost per equivalent unit of production, using the FIFO method is $....

Answer 72

: 3.74. HOW FUCKING HOW

Question 73

A department begins the month with 100 units at a cost of $7,500 and 25% complete in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. Using FIFO, the ending balance in Work in Process Inventory is $........ (rounded to nearest dollar).

Answer 73

1282 IDK HOW MAN

Question 74

CH 3 CONCEPT VID START:

Answer 74

Continue

Question 75

The mass production of similar products in a continuous flow of sequential processes is referred to as _______blank operations.

Answer 75

Process

Question 76

Direct materials, direct labor, and overhead costs are commonly associated with which production system?

Answer 76

Both job order and process systems

Question 77

The total number of physical units to account for equals the:

Answer 77

total number of units accounted for. Correct

Question 78

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. Costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. The equivalent units of production (EUP) for the period were 9,000 for direct materials and 6,000 for conversion. The costs per EUP were:

Answer 78

$2.00 per EUP for direct materials and $20.00 per EUP for conversion (BC: Cost per EUP for direct materials = (Direct materials cost in beginning work in process inventory of $3,000 + Direct materials cost incurred of $15,000) ÷ 9,000 EUP = $2.00 per EUP. Cost per EUP for conversion = (Direct labor cost in beginning work in process inventory of $10,000 + Factory overhead cost in beginning work in process inventory of $10,000 + Conversion cost incurred of $100,000) ÷ 6,000 EUP = $20.00 per EUP. )

Question 79

The journal entry to assign costs of direct labor used in production includes which two of the following?

Answer 79

Credit to Factory Wages Payable Debit to Work in Process Inventory

Question 80

The journal entry to record the use of utilities in a factory includes which of the following:

Answer 80

Debit to Factory Overhead Credit to Factory Utilities Payable

Question 81

The journal entry to purchase materials on credit for factory use includes which of the following?

Answer 81

Debit to Raw Materials Inventory Credit to Accounts Payable

Question 82

Raw materials which will be used as direct materials are initially included in

Answer 82

raw materials inventory.

Question 83

The process cost report summary summarizes:

Answer 83

Physical flow of units. Equivalent units of production. Costs per equivalent unit of production. Assignment of total costs to units worked on in the period.

Question 84

The journal entry to transfer completed products from production to finished goods inventory includes which two of the following?

Answer 84

Debit to Finished Goods Inventory Credit to Work in Process Inventory

Question 85

A trend where inventory levels can be minimal and raw materials are not ordered or received until needed is called:

Answer 85

Just-in-time Production

Question 86

CH 3 HW BEGIN:

Answer 86

Continue

Question 87

A production department reports the following conversion costs. Equivalent units of production for conversion total 488,000 units this period. Calculate the cost per equivalent unit of production for conversion. The company uses the weighted average method. Costs of beginning work in process $ 937,500 Costs added this period 900,000

Answer 87

Cost per equivalent unit of production—Weighted average Conversion Costs of beginning work in processselected answer correct $937,500selected answer correct Costs added this periodselected answer correct 900,000selected answer correct Total costs $1,837,500 ÷ Equivalent units of production 488,000selected answer correct EUP Cost per equivalent unit of production $3.77 per EUP (937,500+900,000) ÷488,000 = 3.77 per EUP

Question 88

An ice cream maker reports the following. Units Conversion Percent Complete Beginning work in process inventory 324,000 30% Units started this period 628,000 Units completed and transferred out 688,000 Ending work in process inventory 264,000 65%

Answer 88

On phone