Question 1

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?

Accepted Answer

The answer of The Bottling Department of Mountain Springs Water...

Question 2

Kramer Company started its production operations on August 1. During August, the Printing Department completed 17,600 units. There were 4,400 units in ending inventory that were 80% complete with respect to materials and 10% complete with respect to conversion costs. During August, the department had accumulated materials costs of $45,408 and conversion costs of $76,670.?Required:
(a) Calculate the cost of the goods transferred out.
(b) What is the value of the ending inventory?

Accepted Answer

The answer of Kramer Company started its production operations on...

Question 3

The cost per equivalent unit of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $0.45 and $0.12, respectively. The equivalent units to be assigned costs are as follows:​  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.

Accepted Answer

The answer of The cost per equivalent unit of direct...

Question 4

Alexandra Company's Molding Department opened on July 1. During July, 70,000 units were completed and transferred out to the next department. On July 31, the 10,000 units that remained in inventory were 40% complete with respect to conversion costs and 100% complete with respect to materials.?

How many equivalent units of work did the Molding Department complete during July for materials and conversion costs?

Accepted Answer

The answer of Alexandra Company's Molding Department opened on July...

Question 5

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?

Accepted Answer

The answer of Mountain Springs Water Company has two departments,...

Question 6

Explain the concept of equivalent units. Give an example to validate your explanation.

Accepted Answer

The answer of Explain the concept of equivalent units. Give...

Question 7

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process 
(Department A) for the month of December follow:​  Prepare Austin's Department A cost of production report for December.

Accepted Answer

The answer of Austin Co. manufactures a product called Aster...

Question 8

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). Using the FIFO method, what are the equivalent units for conversion costs?

Accepted Answer

The answer of The Bottling Department of Mountain Springs Water...

Question 9

The cost of direct materials transferred into the Bottling Department of 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.

Accepted Answer

The answer of The cost of direct materials transferred into...

Question 10

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?

Accepted Answer

The answer of Mountain Springs Water Company has two departments,...

Question 11

The cost per equivalent unit of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.47 and $0.15, respectively. The equivalent units to be assigned costs are as follows:?  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.

Accepted Answer

The answer of The cost per equivalent unit of direct...

Question 12

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Accepted Answer

The answer of Job order manufacturing and process manufacturing are...

Question 13

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 is the total equivalent units for direct materials 
(using the FIFO method) if materials were added at the beginning of the process?

Accepted Answer

The answer of Mountain Springs Water Company has two departments,...

Question 14

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?

Accepted Answer

The answer of Mountain Springs Water Company has two departments,...

Question 15

Match each phrase that follows with the term (a-e) it describes.
-The portion of whole units that are complete with respect to materials or conversion costs

Accepted Answer

Equivalent units of production refers to the portion of whole units that are complete with respect to materials or conversion costs. This calculation is important in process costing to determine the cost per unit of production.

Question 16

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows:​  During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 85% completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.Determine the following 
(round unit cost data to four decimal places to minimize rounding differences):
(a)Equivalent units of production for conversion cost
(b)Conversion cost per equivalent unit
(c)Total and unit cost of finished goods started in prior period and completed in the current period
(d)Total and unit cost of finished goods started and completed in the current period
(e)Total cost of work in process inventory, June 30

Accepted Answer

The answer of The inventory at June 1 and costs...

Question 17

Which of the following businesses would normally use job order costing systems, and which would normally use process costing systems?​Tax consultantPaint manufacturerNail manufacturerVideographerLotions and cosmetics manufacturerWeb design

Accepted Answer

The answer of Which of the following businesses would normally...

Question 18

Stevens Company's inventory on March 1 and the costs charged to Work in Process-Department B during March are as follows:​  During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units that were 70% completed. Inventories are costed by the first-in, first-out method.​Prepare a cost of production report for March. Round unit cost data to four decimal places and total cost to nearest cent.

Accepted Answer

The answer of Stevens Company's inventory on March 1 and...

Question 19

Match each phrase that follows with the term (a-e) it describes.
-Work centers for processing in a lean production process

Accepted Answer

Manufacturing cells are work centers designed for processing in a lean production process, focusing on minimizing waste and improving efficiency by grouping similar production processes together.

Question 20

The cost of direct materials transferred into the Bottling Department of 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.

Accepted Answer

The answer of The cost of direct materials transferred into...

Quiz 20: Process Cost Systems

Explain the concept of equivalent units. Give an example to validate your explanation.

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Match each phrase that follows with the term (a-e) it describes. -The portion of whole units that are complete with respect to materials or conversion costs

Which of the following businesses would normally use job order costing systems, and which would normally use process costing systems?Tax consultantPaint manufacturerNail manufacturerVideographerLotions and cosmetics manufacturerWeb design

Match each phrase that follows with the term (a-e) it describes. -Work centers for processing in a lean production process

Quiz 20: Process Cost Systems

Explain the concept of equivalent units. Give an example to validate your explanation.

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Match each phrase that follows with the term (a-e) it describes. -The portion of whole units that are complete with respect to materials or conversion costs

Which of the following businesses would normally use job order costing systems, and which would normally use process costing systems?​Tax consultantPaint manufacturerNail manufacturerVideographerLotions and cosmetics manufacturerWeb design

Match each phrase that follows with the term (a-e) it describes. -Work centers for processing in a lean production process

Which of the following businesses would normally use job order costing systems, and which would normally use process costing systems?Tax consultantPaint manufacturerNail manufacturerVideographerLotions and cosmetics manufacturerWeb design