FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: The Accounting Information System

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

When finished goods are sold, the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

There are no units in ending work in process at the end of the period under the FIFO method.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

Madison Industries has equivalent units of 8,000 for materials and for conversion costs.Total manufacturing costs are $200,000.Total materials costs are $150,000.How much is the conversion cost per unit?

Gloria Company had no beginning work in process.During the period, 16,000 units were completed, and there were 1,200 units of ending work in process.How many units were started into production?

In a process cost system, total costs are determined at the end of a month or year.

In a process cost system, materials, labor and overhead are only added in the first production department.

Physical units are 40,000.Total conversion costs are $158,000.There are 1,000 units in ending inventory which are 50% complete as to conversion costs.How much are conversion costs per unit?

Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs.The beginning and ending inventory is fully complete as to materials costs.How much are equivalent units for conversion costs if the FIFO method is used?

A process cost system would be used by all of the following except a(n)

Solis Company uses the FIFO method to compute equivalent units.It has 4,000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 66,000 units started, and 6,000 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost.How much are the equivalent units for materials under the FIFO method?

Equivalent units are calculated by

In continuous process manufacturing, generally once the production begins, it continues until the finished product emerges.

For the Assembly Department, unit materials cost is $6 and unit conversion cost is $9.If there are 10,000 units in ending work in process 75% complete as to conversion costs, the costs to be assigned to the inventory are

Equivalent units of production must be calculated before the unit production costs can be computed.

In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete.These units had $60,000 of materials costs and $45,000 of conversion costs.Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process.During April, 10,000 units were completed and transferred to the finished goods inventory and there were 2,000 units that were 25% complete in the ending work in process inventory on April 30.During April, manufacturing costs charged to the department were: Materials $1,380,000; Conversion costs $1, 530,000. The cost assigned to the units transferred to finished goods during April was

Differences between a job order cost system and a process cost system include all of the following except the

Materials costs of $1,200,000 and conversion costs of $1,530,000 were charged to a processing department in the month of September.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process.There were no units in beginning work in process, 20,000 units were started into production in September, and there were 5,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to the 5,000 units in the ending work in process?

One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job.

The weighted-average method of computing equivalent units is the most widely used method in practice.