Question 1

Total physical units to be accounted for are equal to the units

Accepted Answer

Total physical units to be accounted for are the units that are in the beginning work in process as well as the ones that are started or transferred into production. Therefore, the correct option is (B) started (or transferred) into production plus the units in beginning work in process.

Question 2

Tip Top Painting Company has the following production data for January:
$\bullet$Beginning work in process, 0 units
$\bullet$Units transferred out, 35,000
$\bullet$Units in ending work in process, 10,000, 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...

Question 3

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 4

Sequal Company has the following production data for June: units transferred out 50,000, and ending work in process 6,000 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 5

Which of the following is considered a difference between a job order cost and a process cost system?

Accepted Answer

The answer of Which of the following is considered a...

Question 6

In Saint-Simon, Inc., the Assembly Department started 60,000 units and completed 70,000 units. If beginning work in process was 30,000 units, how many units are in ending work in process?

Accepted Answer

Units started = Beginning work in process + Units started - Units completed + Ending work in process
60,000 = 30,000 + 60,000 - 70,000 + Ending work in process
Ending work in process = 20,000 units.

Question 7

Dirt Cleaners, Inc. has the following production data for January:
Transferred out 50,000 units
Ending work in process 6,000 units
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 8

In computing equivalent units, ___________ is not part of the equivalent units of production formula.

Accepted Answer

Beginning work in process is not included in the equivalent units of production formula because it is the starting point of the production process and is not a result of the current period's production activity. The equivalent units of production formula only takes into account the units started and completed during the period and the units that are still in progress at the end of the period (ending work in process). Units transferred out are also included in the formula as they represent the completion of units started during the period.

Question 9

Lowman Painting Company has the following production data for March:
$\bullet$Beginning work in process, 2,000 units
$\bullet$Units transferred out, 42,000
$\bullet$Units in ending work in process, 15,000, 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 10

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

Accepted Answer

The production cost report is a document that summarizes the costs incurred during a production process. It includes the cost of units completed and transferred out, as well as the cost of ending work in process. Therefore, the total costs accounted for in a production cost report equal the cost of units completed and transferred out plus the cost of ending work in process.

Question 11

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 12

White Supplies' total material costs are $30,000 and total conversion costs are $20,000. Equivalent units of production for materials are 10,000, and 5,000 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 $30,000...

Question 13

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 14

The Kirkland Department of Delta Company began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 8,000 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 15

The basic similarities between job order cost and process cost systems include all of the following except the

Accepted Answer

The answer of The basic similarities between job order cost...

Question 16

Tomlinson Company has the following production data for May:
$\bullet$Beginning work in process, 0 units
$\bullet$Units started, 62,000
$\bullet$Ending work in process, 5,000 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 17

The total units to be accounted for is computed by adding

Accepted Answer

The total units to be accounted for include units that were already in process at the beginning of the period and units that were started into production during the period. Therefore, the correct choice is C, which adds beginning units in process to units started into production.

Question 18

For the Assembly Department, unit materials cost is $6 and unit conversion cost is $9. If there are 10,000 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 19

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 20

Production costs chargeable to the Sanding Department in July for Joyful Art are $30,000 for materials, $26,000 for labor, and $10,000 for manufacturing overhead. Equivalent units of production are 25,000 for materials and 20,000 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...

Quiz 16: Process Costing