71. Which of the following entities would probably use a process costing system? A. A custom boat builderB. A custom furniture manufacturerC. A one of a kind jewelry creatorD. An oil refinery
72. Which of the following is not a characteristic of a process cost system? A. Manufacturing costs are grouped by departments.B. The system may use several Work-in-Process accounts.C. The system measures costs for each completed job.D. The system allocates costs between completed and partially completed units within a department.
73. If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process accounts will it use? A. 3B. 4C. 1D. 2
74. The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are:
75. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? A. Advertising costsB. Raw lumber (direct materials)C. Machine operator's wages (direct labor)D. Sales salaries
76. Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs? A. Factory supervisor's salaryB. Machine operator's wages (direct labor)C. Raw lumber (direct materials)D. Factory maintenance personnel supplies
77. In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $95,000, and applied factory overhead was $53,500. What is the total conversion cost? A. $260,000B. $148,500C. $313,500D. $53,500
78. If Department H had 500 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 600 units were 30% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories? A. 7,100B. 5,980C. 6,380D. 5,880
79. If Department K had 2,000 units, 45% completed, in process at the beginning of the period, 12,000 units were completed during the period, and 1,200 units were 40% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories? A. 11,580B. 11,280C. 13,680D. 10,000
80. Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:
Work in process, beginning of period
$40,000
Costs added during period:
Direct materials (10,400 at $8)
83,200
Direct labor
63,000
Factory overhead
25,000
Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places)? A. $16,163B. $21,432C. $35,670D. $28,935
