Question 1

The Kirkland Department of Delta Company began the month of December with beginning work in process of 4000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10000 units. Ending work in process contains 8000 units that are 100% complete as to materials and 60% complete as to conversion costs.
Instructions
Compute the equivalent units of production for materials and conversion costs for the month of December.

Accepted Answer

The answer of The Kirkland Department of Delta Company began...

Question 2

Production costs chargeable to the Sanding Department in July for Joyful Art are $30000 for materials $26000 for labor and $10000 for manufacturing overhead. Equivalent units of production are 25000 for materials and 20000 for conversion costs.
Instructions
Compute the unit costs for materials and conversion costs.

Accepted Answer

The answer of Production costs chargeable to the Sanding Department...

Question 3

In the Camria Company materials are entered at the beginning of the process. If there is no beginning work in process but there is an ending work in process inventory the number of equivalent units as to materials costs will be

Accepted Answer

Since materials are added at the beginning of the process, all units started would have received materials, making the equivalent units for materials costs the same as the units started.

Question 4

Apoly Company has the following production data for January.  Instructions
Compute the physical units for January.

Accepted Answer

The answer of Apoly Company has the following production data...

Question 5

Lowman Painting Company has the following production data for March:
$\bullet$Beginning work in process 2000 units
$\bullet$Units transferred out 42000
$\bullet$Units in ending work in process 15000 which are 80% complete for conversion costs
Materials are added only at the beginning of the process.
Instructions
Compute equivalent units of production for both materials and conversion costs.

Accepted Answer

The answer of Lowman Painting Company has the following production...

Question 6

For the Assembly Department unit materials cost is $6 and unit conversion cost is $9. If there are 10000 units in ending work in process 75% complete as to conversion costs the costs to be assigned to the inventory are

Accepted Answer

The total cost assigned to the inventory is calculated by adding the full materials cost for all units (since materials are usually added at the beginning of the process) and the conversion costs only for the percentage of completion. For 10,000 units, the materials cost is $6/unit, totaling $60,000. The conversion cost is $9/unit, but since the units are only 75% complete, the conversion cost is 75% of $9/unit * 10,000 units = $67,500. Adding both gives $60,000 + $67,500 = $127,500.

Question 7

Benson Industries uses a process cost system. Products are processed first by Department A second by Department B and then they are transferred to the finished goods warehouse. Shown below is the cost information for Department B during the month of October: $$\begin{array} { l r r } 
\text { Costs of units transferred in } & & \$ 120,000 \
\text { Manufacturing costs added in Department B: } &  & \
\text { Direct materials } &\$ 50,000 & \
\text { Direct labor } &  12,000& \
\text { Manufacturing overhead } &19,000  & \$ 81,000 \
\text { Total costs charged to Department B in October } && \$ 201,0000 \

\end{array}$$  The cost of work in process in Department B at October 1 is $25000 and the cost of work in process at October 31 has been determined to be $30000.
Instructions
Prepare journal entries to record for the month of October:
(a) The transfer of production from Department A to B.
(b) The manufacturing costs incurred by Department B.
(c) The transfer of completed units from Department B to the finished goods warehouse.

Accepted Answer

The answer of Benson Industries uses a process cost system....

Question 8

The Pasta Factory manufactures spaghetti sauce through two production departments: Cooking and Packaging. For the month of February the work in process accounts show the following debits:
Instructions
Journalize the February transactions that involved the work in process accounts.

Accepted Answer

The answer of The Pasta Factory manufactures spaghetti sauce through...

Question 9

Hardy Company manufactures a single product by a continuous process involving two production departments. The records indicate that $140000 of direct materials were issued to and $200000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine hour; machine hours were 5000 in Department 1. Work in process in the department at the beginning of the period totaled $35000; and work in process at the end of the period was $25000.
Instructions
Prepare entries to record
(a) The flow of costs into Department 1 for
(1) direct materials
(2) direct labor
(3) overhead
(b) The transfer of production costs to Department 2.

Accepted Answer

The answer of Hardy Company manufactures a single product by...

Question 10

Dirt Cleaners Inc. has the following production data for January: $\begin{array}{cr}
\text { Transferred out } & 50,000 \text { units } \
\text { Ending work in process } & 6,000 \text { units }
\end{array}$ The units in ending work in process are 100% complete for materials and 60% complete for conversion costs. There is no beginning work in process. Materials cost is $4 per unit and conversion costs are $11 per unit.
Instructions
Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Accepted Answer

The answer of Dirt Cleaners Inc. has the following production...

Question 11

The total costs accounted for in a production cost report equal the

Accepted Answer

The total costs accounted for in a production cost report includes the cost of units completed and transferred out, as well as the cost of ending work-in-process inventory. This is because the total costs incurred in the production process must be accounted for, regardless of whether the units have been completed or are still in progress. Therefore, option C is the correct option, as it includes both the cost of completed units and the cost of ending work-in-process inventory.

Question 12

Tomlinson Company has the following production data for May:
$\bullet$Beginning work in process 0 units
$\bullet$Units started 62000
$\bullet$Ending work in process 5000 units that are 100% complete for materials and 60% complete for conversion costs
$\bullet$Unit materials cost $5
$\bullet$Unit conversion cost $8
Instructions
Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Accepted Answer

The answer of Tomlinson Company has the following production data...

Question 13

In a production cost report which one of the following sections is not shown under Costs?

Accepted Answer

"Units accounted for" is not a section shown under Costs in a production cost report. Instead, it relates to the quantity of units being tracked through the production process, not the costs associated with them.

Question 14

Sandusky Widget Company has the following production data for March.  Instructions
Compute the physical units for March.

Accepted Answer

The answer of Sandusky Widget Company has the following production...

Question 15

White Supplies' total material costs are $30000 and total conversion costs are $20000. Equivalent units of production for materials are 10000 and 5000 for conversion costs.
Instructions
Compute the unit costs for materials conversion costs and total manufacturing costs for the month.

Accepted Answer

The answer of White Supplies' total material costs are $30000...

Question 16

Sequal Company has the following production data for June: units transferred out 50000 and ending work in process 6000 units that are 100% complete for materials and 30% complete for conversion costs. Unit materials cost is $5 and unit conversion cost is $7.
Instructions
Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Accepted Answer

The answer of Sequal Company has the following production data...

Question 17

Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system.
(a) Purchased raw materials for $50000 on account. (b) Raw materials requisitioned for production were:
$\begin{array}{llr}
  \text {  Direct materials} &\
 \text {Mixing department  } &\$20,000\
 \text {Finishing department  } &14,000
\end{array}$

(c) Incurred labor costs of $\$ 74,000$.

(d) Factory labor used:
$\begin{array}{lr}
\text { Mixing department } & \$ 44,000 \
\text { Finishing department } & 30,000
\end{array}$  (e) Manufacturing overhead is applied to the product based on machine hours used in each department:
Mixing department-400 machine hours at $30 per machine hour.
Finishing department-500 machine hours at $20 per machine hour.
(f) Units costing $56000 were completed in the Mixing Department and were transferred to the Finishing Department.
(g) Units costing $70000 were completed in the Finishing Department and were transferred to finished goods.
(h) Finished goods costing $40000 were sold on account for $55000.
Instructions
Prepare the journal entries to record the preceding transactions for Lutz Company.

Accepted Answer

The answer of Lutz Company produces a product in two...

Question 18

Sanders Company has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process-Fabricating $6030; Work in Process-Finishing $4100; and Finished Goods $5600. During the month the following transactions occurred:
1. Purchased $40000 of raw materials on account.
2. Incurred $75000 of factory labor. Wages are unpaid.
3. Incurred $50000 of manufacturing overhead; $40000 was paid and the remainder is unpaid.
4. Requisitioned materials for Fabricating $10000 and Finishing $8000.
5. Used factory labor for Finishing $60000 and Fabricating $15000.
6. Applied $45000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating.
Instructions
Journalize the transactions for the month.

Accepted Answer

The answer of Sanders Company has two production departments: Fabricating...

Question 19

Muffy Painting Company has the following production data for March.  Instructions
Compute equivalent units of production for March for both materials and conversion costs. Materials are entered at the beginning of the process.

Accepted Answer

The answer of Muffy Painting Company has the following production...

Question 20

Tip Top Painting Company has the following production data for January:
$\bullet$Beginning work in process 0 units
$\bullet$Units transferred out 35000
$\bullet$Units in ending work in process 10000 which are 30% complete for conversion costs
Materials are added only at the beginning of the process.
Instructions
Compute equivalent units of production for both materials and conversion costs.

Accepted Answer

The answer of Tip Top Painting Company has the following...

Quiz 21: Process Costing

In the Camria Company materials are entered at the beginning of the process. If there is no beginning work in process but there is an ending work in process inventory the number of equivalent units as to materials costs will be

Apoly Company has the following production data for January. Instructions Compute the physical units for January.

For the Assembly Department unit materials cost is $6 and unit conversion cost is $9. If there are 10000 units in ending work in process 75% complete as to conversion costs the costs to be assigned to the inventory are

The Pasta Factory manufactures spaghetti sauce through two production departments: Cooking and Packaging. For the month of February the work in process accounts show the following debits: Instructions Journalize the February transactions that involved the work in process accounts.

The total costs accounted for in a production cost report equal the

In a production cost report which one of the following sections is not shown under Costs?

Sandusky Widget Company has the following production data for March. Instructions Compute the physical units for March.

White Supplies' total material costs are $30000 and total conversion costs are $20000. Equivalent units of production for materials are 10000 and 5000 for conversion costs. Instructions Compute the unit costs for materials conversion costs and total manufacturing costs for the month.

Muffy Painting Company has the following production data for March. Instructions Compute equivalent units of production for March for both materials and conversion costs. Materials are entered at the beginning of the process.