Question :
Objective 17.2
1) In a process-costing system average unit costs calculated : 1211893
Objective 17.2
1) In a process-costing system average unit costs are calculated ________.
A) by dividing total costs in a given accounting period by total units produced in that period
B) by multiplying total costs in a given accounting period by total units produced in that period
C) by dividing total costs in a given accounting period by units started in that period
D) by multiplying total costs in a given accounting period by units started in that period
2) Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor?
A) $100
B) $90
C) $70
D) $30
3) Serile Pharma places 900 units in production during the month of January. All 900 units are completed during the month. It had no opening inventory. Direct material costs added during January was $81,000 and conversion costs added during January was $9,000.What is the total cost per unit of the product produced during January?
A) $100
B) $90
C) $80
D) $10
4) When a company has no opening or ending inventory during the month, the cost per unit is calculated by dividing the total costs incurred in the period by the total units produced during the period.
Objective 17.3
1) The purpose of the equivalent-unit computation is to ________.
A) convert completed units into the amount of partially completed output units that could be made with that quantity of input
B) assist the business in determining the cost assigned to ending inventory and work-in-process inventory
C) predict the future production capabilities of the organization
D) satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units
2) In a process-costing system, the calculation of equivalent units is used for calculating ________.
A) the dollar amount of sales affected during the period
B) the dollar amount of the cost of goods sold for the accounting period
C) the dollar price earned for a particular job
D) the dollar amount of revenue for the period including the revenue estimated to be received from the sale of equivalent units
3) When a Bakery transfers goods from the Mixing Department to the Baking Department, the accounting entry is ________.
A) Work in Process — Mixing Department
Work in Process — Baking Department
B) Work in Process — Baking Department
Accounts Payable
C) Work in Process — Baking Department
Work in Process — Mixing Department
D) Work in Process — Mixing Department
Accounts Payable
Answer the following questions using the information below:
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2015 are:
Work in process, beginning inventory, 40% converted200 units
Units started during February800 units
Work in process, ending inventory100 units
Costs for Department A for February 2015 are:
Work in process, beginning inventory:
Direct materials$150,000
Conversion costs$200,000
Direct materials costs added during February$600,000
Conversion costs added during February$425,000
4) What is the unit cost per equivalent unit of beginning inventory in Department A?
A) $750
B) $1,750
C) $2,800
D) $3,250
5) How many units were completed and transferred out of Department A during February?
A) 300 units
B) 800 units
C) 900 units
D) 1,000 units
Answer the following questions using the information below:
Dessa Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other applications within the home. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through the rough cut department and the finish department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Finishing Department for March 2015 are:
Work in process, beginning inventory, 25% converted1,000 units
Units started during February1,200 units
Work in process, ending inventory500 units
Costs for Finishing department for March 2015 are:
Work in process, beginning inventory:
Direct materials$200,000
Conversion costs$200,000
Direct materials costs added during February$420,000
Conversion costs added during February$1,400,000
6) What is the unit cost per equivalent unit of the beginning inventory in the Finishing Department?
A) $200
B) $400
C) $800
D) $1,000
