48.
The number of equivalent units of production:
49.
Equivalent units of production represent units of:
50.
Companies that compute equivalent units of production do so to:
51.
The computation of equivalent units is generally
not
necessary when:
52.
The Finishing Department of Berle Industries works on only one product, and all costs are
incurred uniformly while these units remain in the department. On March 1, 6,000 units
were in process that were 45% completed. An additional 60,000 units were transferred into
the Finishing Department during March. At March 31, there were 25,000 units in process
that were 75% completed. Compute the equivalent units of production for the Finishing
Department during March.
53.
Department X of a manufacturing company works on only one product, and all costs are
incurred uniformly as the product goes along the assembly line. The 8,000 units in process
on December 1 were 60% completed. An additional 50,000 units were placed in production
during December. At December 31, the 10,000 units in process were 60% completed. The
equivalent units of production during December amounted to:
Aves Treats, Inc. produces bird seeds. All direct materials used in the production process
are added at the beginning of the manufacturing process. Labor and overhead are added
evenly thereafter, as each unit is mixed and packaged. Aves Treats uses process costing
and had the following unit production information available for the months of June and July:
The units remaining in work in process at the end of June were 30% complete. During the
month of July, all of the beginning work in process units was completed and the units
remaining in work in process at the end of the month were 60% complete.
54.
Refer to the information above. For the month of June, the number of equivalent units of
direct materials produced was:
55.
Refer to the information above. For the month of June, the number of equivalent units of
labor and overhead produced was:
56.
Refer to the information above. For the month of July, the number of equivalent units of
direct materials produced was:
57.
Refer to the information above. For the month of July, the number of equivalent units of
labor and overhead produced was:
58.
During August, Department Z started and completed 90,000 units and also finished 18,000
units that were 75% completed on July 31. On August 31, Department Z’s ending inventory
consisted of 26,000 units that were 45% completed. All manufacturing costs are incurred at
a uniform rate throughout Department Z’s production process. The number of equivalent
units of production for Department Z during August is:
59.
If beginning inventory in Work in Process is zero and 2,000 units are started during the
period, assuming that 300 units remain in ending inventory, how many equivalent units
were completed and transferred out?
60.
If beginning inventory in Work in Process is zero and 2,000 units are started during the
period, assuming that 1,700 units were completed and transferred out, how many units
remain in ending inventory?
61.
During July, the equivalent units of direct materials added to the product worked on by
Department A amounted to a total of 90,000 applied as follows: beginning inventory, 20,000
units; units started and completed in July, 60,000 units; and ending inventory, 10,000 units.
Assuming that the cost of direct materials requisitioned by the department in July was
$135,000; the amount of the materials cost to be assigned to the ending inventory would
be: (Do not round intermediate calculations)
62.
Refer to the information above. How many units were started in June?
63.
Refer to the information above. What are the equivalent units for materials?
64.
Refer to the information above. What are the equivalent units for direct labor and
overhead?
65.
Refer to information above. If direct labor and overhead costs totaled $172,000, what would
be the unit cost?
66.
Refer to the information above. Assuming that the cost of direct materials used by
Department Q in May was $440,000, the materials cost assigned to unfinished units at May
31 would be: Do not round intermediate calculations
67.
Refer to the information above. On the basis of this information, which of the following
statements is true?
68.
A summary of work completed with related unit and total costs in a process costing system
is called a(n):
69.
A typical production cost report will contain all of the following
except
:
70.
During the month of June, $352,150 of costs were transferred from Department A to
Department B. The journal entry to summarize the transfer of these costs includes:
71.
During the month of August, $582,000 of costs were transferred from the Mixing
Department to the Baking Department. The journal entry to summarize the transfer of
these costs includes:
72.
For the month of December, its first month of operations, the Radcliffe Corporation
completed and transferred 800 units of product costing $80,000 to produce to Finished
Goods Inventory. If Radcliffe sold 650 units during the same month, how much was cost of
goods sold for the same period?
73.
In evaluating the efficiency of a production department, management should:
18–35
74.
To identify the cause of a change in a product total unit cost, management may:
Essay Questions
75.
Selecting an appropriate cost accounting system
Listed below are seven businesses. In the spaces provided, identify whether a job order
costing system or a process costing system would most likely be appropriate.
(a) _____ Nancy’s Paper Plate Company
(b) _____ Two Leg Pants Manufacturers, Inc.
(c) _____ Solid Residential Contractors
(d) _____ Float’s Boats
(e) _____ Big Heart Hospital
(f) _____ Fizz Soda, Inc.
(g) _____ Sugarmore Candies, Inc.