104. Carmelita Inc., has the following information available:
Costs from
Costs from
Beginning Inventory
Current Period
Direct materials
$2,500
$22,252
Conversion Costs
6,200
150,536
At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to
direct materials costs. During the period 4,500 units were started and completed. Ending inventory contained 340 units that were 30 percent complete
as to conversion costs and 100 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method.)
The cost of completing a unit during the current period was
105. Carmelita Inc., has the following information available:
Costs from
Costs from
Beginning Inventory
Current Period
Direct materials
$2,500
$22,252
Conversion Costs
6,200
150,536
At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to
direct materials costs. During the period 4,500 units were started and completed. Ending inventory contained 340 units that were 30 percent complete
as to conversion costs and 100 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method. Round cost per
unit figures to two cents, i.e. $2.22 when calculating total costs.)
The total costs that will be transferred into Finished Goods for units started and completed were
106. Equivalent production units, usually are determined for
107. The portion of whole units that were completed with respect to either materials or conversion costs within
a given accounting period is the definition of
108. Which of the following is not included in conversion costs?
109. A form prepared periodically for each processing department summarizing (1) the units for which the
department is accountable and the units to be assigned costs and (2) the costs charged to the department and the
allocation of these costs is termed a:
110. Department W had 2,400 units, one-third completed at the beginning of the period, 16,000 units were
transferred to Department X from Department W during the period, and 1,800 units were one-half completed at
the end of the period. Assume the completion ratios apply to direct materials and conversion costs.
What are the total gross number of units to be assigned cost on the cost of production report for Department
W?
111. Department W had 2,400 units, one-third completed at the beginning of the period, 16,000 units were
transferred to Department X from Department W during the period, and 1,800 units were one-half completed at
the end of the period. Assume the completion ratios apply to direct materials and conversion costs.
What is the equivalent units of production used to compute unit conversion cost on the cost of production
report for Department W (Assuming the company uses FIFO)?
112. Department J had no work in process at the beginning of the period, 18,000 units were completed during
the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs
were debited to the departmental work in process account during the period (Assuming the company uses FIFO
and rounds average cost per unit to two decimal places):
Direct materials (20,000 at $5)
$ 100,000
Direct labor
142,300
Factory overhead
57,200
Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process
inventory at the end of the period?
113. Department J had no work in process at the beginning of the period, 18,000 units were completed during
the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs
were debited to the departmental work in process account during the period (Assuming the company uses FIFO
and rounds average cost per unit to two decimal places):
Direct materials (20,000 at $5)
$ 100,000
Direct labor
142,300
Factory overhead
57,200
Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during
the period?
114. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 1 during the period for direct materials is:
115. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for direct materials is:
116. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 1 during the period for direct labor is:
117. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for direct labor is:
118. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 1 during the period for applied overhead is:
119. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for applied overhead is:
120. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000,
respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and
work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs from Department 1 into Department 2 during the period is:
121. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. Work in process at the beginning of the
period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records
indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000,
$60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 2
totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the
flow of costs into Department 3 during the period is:
122. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000,
respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in
process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the
period totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is:
123. Mocha Company manufactures a single product by a continuous process, involving three production
departments. The records indicate that direct materials, direct labor, and applied factory overhead for
Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct
materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000,
respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and
work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into
Department 3 during the period for direct materials is:
124. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed
during the period, 2,000 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
$60,000
Costs added during period:
Direct materials (10,400 at $9.8365)
102,300
Direct labor
79,800
Factory overhead
25,200
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 equivalent units for materials and conversion costs, respectively.
125. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed
during the period, 2,000 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
$60,000
Costs added during period:
Direct materials (10,400 at $9.8365)
102,300
Direct labor
79,800
Factory overhead
25,200
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 material and conversion cost per unit (to the nearest penny), respectively.
126. Which of the following is not a use of the cost of production report?
127. Which of the following measures would not help managers to control and improve operations?
128. Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating
poor quality. This is accomplished in manufacturing and non-manufacturing processes by:
129. When a firm adopts a just-in-time operating environment,
130. Which of the following best describes the effect on direct labor when management adopts a just–in-time
environment?
131. According to the just-in-time philosophy,
132. Just-in-time operations attempt to significantly reduce
133. The debits to Work in Process—Assembly Department for April, together with data concerning production,
are as follows:
April 1, work in process:
Materials cost, 3,000 units
$ 7,500
Conversion costs, 3,000 units,
80% completed
6,000
Materials added during April, 10,000 units
29,000
Conversion costs during April
35,000
Goods finished during April, 11,500 units
—
April 30 work in process, 1,500 units,
60% completed
—
All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.
The materials cost per equivalent unit (to the nearest cent) for April is:
134. The debits to Work in Process—Assembly Department for April, together with data concerning production,
are as follows:
April 1, work in process:
Materials cost, 3,000 units
$ 7,500
Conversion costs, 3,000 units,
80% completed
6,000
Materials added during April, 10,000 units
29,000
Conversion costs during April
35,000
Goods finished during April, 11,500 units
—
April 30 work in process, 1,500 units,
60% completed
—
All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.
The conversion cost per equivalent unit (to the nearest cent) for April is:
135. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period
at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000
units were completed during the period, and 3,000 units were 75% completed at the end of the period. All
materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was
$18,710.
The number of equivalent units of production for the period for conversion if the average cost method is used
to cost inventories was:
136. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period
at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000
units were completed during the period, and 3,000 units were 75% completed at the end of the period. All
materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was
$18,710.
The number of equivalent units of production for the period for materials if the average cost method is used to
cost inventories was:
137. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period
at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units
of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the
period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of
the process. Direct labor was $32,450 and factory overhead was $18,710.
If the average cost method is used the material cost per unit (to the nearest cent) would be:
138. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period
at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units
of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the
period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of
the process. Direct labor was $32,450 and factory overhead was $18,710.
If the average cost method is used the conversion cost per unit (to the nearest cent) would be:
139. Carolwood Company manufactures widgets and uses process costing. The status of their beginning and
ending inventory is as follows:
Beginning Inventory
Ending Inventory
Direct materials are added to the manufacturing process in stages. None are added when production begins. Approximately 1/2 of the materials are
added when the product is 25% complete. The other half is added when the product is 50% complete.
What percentage complete are Beginning Inventory and Ending Inventory with respect to Direct materials(DM) and Conversion Costs(CC)?
140. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process.
Here is information about July’s activities:
On July 1:
Beginning inventories
850 units, 60% complete
Direct materials cost
$5,000
Conversion costs
$4,000
During July:
Number of units started
15,000
Direct materials added
$155,000
Conversion costs added
$83,520
On July 31:
Ending inventories
1,600 units, 40% complete
Using the FIFO method, the number of units started and completed in July was
141. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process.
Here is information about July’s activities:
On July 1:
Beginning inventories
850 units, 60% complete
Direct materials cost
$5,000
Conversion costs
$4,000
During July:
Number of units started
15,000
Direct materials added
$155,000
Conversion costs added
$83,520
On July 31:
Ending inventories
1,600 units, 40% complete
Using the FIFO method, the number of equivalent units of conversion costs was
142. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process.
Here is information about July’s activities:
On July 1:
Beginning inventories
850 units, 60% complete
Direct materials cost
$5,000
Conversion costs
$4,000
During July:
Number of units started
15,000
Direct materials added
$155,000
Conversion costs added
$83,520
On July 31:
Ending inventories
1,600 units, 40% complete
Using the FIFO method, the cost per equivalent unit for materials used during July was
143. Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost
per unit rounded to four decimal places in computations)
144. The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling
Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department
completed 65,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending
work in process was 5,000 liters. How many liters were started and completed during the period?
145. Which of the following industries would normally use job order costing systems and which would
normally use process costing systems?
Business consulting
Chemicals
Food
Movie
Soap and cosmetics
Web designing
146. The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling
Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department
completed 65,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending
work in process was 5,000 liters. How many liters were started and completed during the period?
147. The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling
Department received 58,000 liters from the Purifying Department. During the period, the Bottling Department
completed 56,000 liters, including 4,000 liters of work in process at the beginning of the period. The ending
work in process was 6,000 liters. How many liters were started and completed during the period?
148. The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling
Department had 3,000 liters in beginning work in process inventory (30% complete). During the period 71,000
liters were completed. The ending work in process was 5,000 liters (70% completed). What are the total
equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the
process?
149. The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling
Department had 8,000 liters in beginning work in process inventory (60% complete). During the period 70,000
liters were completed. The ending work in process was 3,000 liters (60% completed). What are the total
equivalent units for direct materials under the FIFO method if materials were added at the beginning of the
process?
150. The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in
process inventory (20% complete). During the period, 58,000 liters were completed. The ending work in
process inventory was 3,000 liters (90% complete). What are the equivalent units for conversion costs under the
FIFO method?
151. The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in
process inventory (40% complete). During the period, 66,000 liters were completed. The ending work in
process inventory was 3,000 liters (70% complete). What are the equivalent units for conversion costs, using the
FIFO method?
152. The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water
Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total
equivalent units for direct materials and conversion are 60,500 and 63,300 respectively. Determine the direct
materials and conversion cost per equivalent unit.
Round answers to nearest cent.
153. The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water
Company is $28,072. The conversion cost for the period in the Bottling Department is $10,275. The total
equivalent units for direct materials and conversion are 63,800 and 68,500 respectively. Determine the direct
materials and conversion cost per equivalent unit.
Round answers to nearest cent.
154. The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain
Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.
Direct Materials
Conversion
Inventory in process, beginning of period
0
3,500
Started and completed during the period
57,000
57,000
Transferred out of Bottling (completed)
57,000
60,500
Inventory in process, end of period
3,500
1,800
Total units to be assigned costs
60,500
62,300
The beginning work in process inventory had a cost of $2,200. Determine the cost of completed and transferred out production, and the ending work
in process inventory.
Direct Materials
Conversion
Total
Inventory in process, balance
$2,200
Inventory in process, beginning of period
0
+ 3,500 ´ $0.12
Started and completed during the period
57,000 ´ $.45
+ 57,000 ´ $0.12
32,490
Transferred out of Bottling (completed)
$35,110
Inventory in process, end of period
3,500 ´ $.45
+ 1,800 ´ $0.12
1,791
Total units to be assigned costs
$36,901
Completed and transferred out production:
$35,110
Inventory in process, ending
$1,791
155. The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages
on Jolt Company is $.47 and $.15, respectively. The equivalent units to be assigned costs are as follows.
Direct Materials
Conversion
Inventory in process, beginning of period
0
3,000
Started and completed during the period
52,000
52,000
Transferred out of Bottling (completed)
52,000
55,000
Inventory in process, end of period
3,500
2,100
Total units to be assigned costs
55,500
57,100
The beginning work in process inventory had a cost of $3,500. Determine the cost of completed and transferred out production, and the ending work
in process inventory.
Direct Materials
Conversion
Total
Inventory in process, balance
$3,500
Inventory in process, beginning of period
0
+ 3,000 ´ $0.15
Started and completed during the period
52,000 ´ $.47
+ 52,000 ´ $0.15
32,240
Transferred out of Bottling (completed)
$36,190
Inventory in process, end of period
3,500 ´ $.47
+ 2,100 ´ $0.15
1,960
Total units to be assigned costs
$38,150
Completed and transferred out production:
$36,190
Inventory in process, ending
$1,960