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Exam 3: The Accounting Information System

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Question 61

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In a process cost system, materials, labor and overhead are only added in the first production department.

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Question 62

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Maisley Company decided to analyze certain costs for June of the current year.Units started into production equaled 28,000 and ending work in process equaled 4,000.With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $105,000?

A) $3.30.
B) $3.75.
C) $4.20.
D) $2.10.

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Question 63

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In a process cost system, units to be accounted for in a department are equal to the

Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Conversion cost per unit equals $7.00.Total materials costs are $60,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?

Physical units are 40,000.Total conversion costs are $237,000.There are 1,000 units in ending inventory which are 50% complete as to conversion costs.How much are conversion costs per unit?

A process cost system would be used for all of the following products except

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete.During June, 80,000 units were transferred into production from another department.At the end of June there were 10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. -How many units were transferred out of the process in June?

In Kapler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 20,000 units, and had an ending work in process of 4,000 units.How many units were started by Kapler during the month?

Gantner Company had the following department information about physical units and percentage of completion: $\begin{array} { l c } & \text { Phvsical Units } \\\text { Work in process, May } 1(60 \%) & 60,000 \\\text { Completed and transferred out } & 150,000 \\\text { Work in process. May } 31(40 \%) & 50,000\end{array}$ If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete.The equivalent units of production for the period were:

Physical units accounted for are 160,000.Total conversion costs are $276,500.There are 4,000 units in ending inventory which are 50% complete as to conversion costs.How much is the conversion cost per unit?

Equivalent units of production are used to determine the cost per unit of completed products.

The total units to be accounted for is computed by adding

A characteristic of products that are mass-produced in a continuous fashion is that

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process.For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January.What were the equivalent units of production for conversion costs for the month of January?

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete.During June, 80,000 units were transferred into production from another department.At the end of June there were 10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. -The equivalent units of production for materials for June were

Production cost reports provide a basis for evaluating the productivity of a department.

There are no units in process at the beginning of the period, 1,500 units in process at the end of the period that are 40% complete, and 15,000 units transferred out during the period.Based on this information, there were 14,400 equivalent units of production during the period.

A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process.If 15,000 units were completed and transferred out of the process during the month, how many units were started into production during the month?