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ACCT 203 > Ch 3 > Flashcards

Ch 3 Flashcards

1
Q

The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.

A

job; process or department

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2
Q

Each department in a process costing system, will use (one, two, none) …….
Work in Process account.

A

one

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3
Q

After determining the physical flow of units, the next step in process costing is:

A

compute equivalent units of production

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4
Q

Process operations is defined as a manufacturing process that includes: (Check all that apply.)

A

large volumes of similar products.

series of sequential processes.

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5
Q

Department X started 550 units during the accounting period, completed and transferred out 500 units and had an ending balance of 200 units. …………… units were in beginning goods in process inventory for the department.

A

150
(550 - 500 = 50
200 - 50 = 150units )

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6
Q

In process operations, where there is a series of repetitive processes, each …………. is a separate production department.

A

process

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7
Q

Equivalent units of production refers to the number of units that could have been:

A

started and completed

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8
Q

Process and job order operations are similar in that both:

A

are used to determine the cost per unit of product or service.

combine materials, labor, and overhead in producing products.

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9
Q

In a process costing system, which of the following is correct regarding the Work in Process Inventory account:

A

there will be a separate Work In Process account for each process or department

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10
Q

Department A completed and transferred out 2,100 units and had ending work in process inventory of 120 units. The ending inventory is 10% complete for materials and 70% complete for labor and overhead. The equivalent units of production for materials is ………..
units.

A

2112

(Reason: 2,100+120×10% )

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11
Q

List the four steps involving analysis when accounting for a department’s activity, with the first step listed on top.

A
  1. Physical flow
  2. Equivalent units
  3. Cody per equivalent units
  4. Assign and reconcile
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12
Q

A company using process operations started and processed 400 units in its first department. The units are 40% complete with respect to materials and 25% complete with respect to labor and overhead. The EUP for labor and overhead is ……..
units.

A

100 units
(Reason: 400×25% )

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13
Q

Department B had a beginning inventory balance of 150 units. During the accounting period, the department started an additional 950 units, and 975 units were completed and transfered out. Department B had an ending balance of ………. units.

A

125 units
(Reason 150+950−975 )

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14
Q

Department D had materials costs of $10,000 in beginning work in process inventory and added an additional $50,000 in materials costs this period. If the department had 20,000 EUP for materials, the cost per equivalent unit of production is $
……..

A

$3
(Reason (10,000+50,000)÷20,000 )

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15
Q

Understanding the cost of partially completed goods allows the manufacturer to:

A

measure production activity for the period

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16
Q

The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.

A

job; process or department

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17
Q

A department completed and transferred to finished goods 75,000 units. The cost per EUP for direct materials is $8.00 and the cost per EUP for conversion cost is $6.00. The costs transferred to Finished Goods Inventory is $

A

$1,050,000

(Reason (75,000×8.00)+(75,000
×6.00) )

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18
Q

Department A completed and transferred out 2,100 units and had ending work in process inventory of 120 units. The ending inventory is 10% complete for materials and 70% complete for labor and overhead. The equivalent units of production for labor and overhead is …….
units.

A

2184
(Reason 2,100+120×70% )

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19
Q

A manufacturer has a process where materials are added all at the beginning of the process and conversion costs are added evenly throughout the manufacturing process. If 400 are 30% completed during the period, the EUP for conversion is

A

120
(Reason 400×30% )

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20
Q

A department begins the month with 100 units at a cost of $7,500 in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. The ending balance in Work in Process Inventory is $…
.

A

20,000
(Reason 7,500+12,500 )

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21
Q

True or false: Using the weighted-average method, the computation of EUP separates units into direct materials and conversion.

A

True

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22
Q

A manufacturing department has 50,000 EUP for units completed and transferred out and 4,500 EUP for units in ending inventory. Materials cost is $2.50 per EUP and labor/overhead cost is $3.75 per EUP. The total amount transferred out is $

A

312,500
(Reason (50,000×2.50)+(50,000
×3.75) )

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23
Q

Equivalent units of production refers to the number of units that could have been:

A

started and completed

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24
Q

Managers use the process cost summary for all of the following except:

A

evaluate company as a whole

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25
Q

A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 40% complete. Direct materials cost per EUP is $5.00 and Conversion cost per EUP is $1.50. The cost transferred to Finished Goods Inventory is $

A

: 136500. FINISH

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26
Q

The parts of the process cost report include:

A

equivalent units of production.

physical flow of units.

cost assignment and reconciliation.

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27
Q

A company completes 21,000 units this month and has ending work in process inventory of 3,000 units which are estimated to be 40% complete. Total production costs are $666,000. The cost of ending Work in Process Inventory is $

A

: 36000 FINISH

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28
Q

The total beginning balance in Work in Process Inventory is $60,000, which included direct materials and conversion. During the period, the department incurred the following costs: direct materials $22,000 and conversion costs $142,000. The total costs to account for is $

A

224000
(Reason 60,000+22,000+142,000 )

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29
Q

The journal entry to record the purchase of materials on account in process cost accounting is a(n):

A

increase in assets and an increase in liabilities

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30
Q

Process cost information is prepared for the following reasons. (Check all that apply.)

A

To help factory managers evaluate department managers’ performances

To provide cost information for financial statements

To help department managers control costs

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31
Q

The journal entry to record the use of direct materials in process costing is a(n):

A

increase in one asset and a decrease in another asset.

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32
Q

A process cost report summarizes the following process costing steps: (Check all that apply).

A

physical flow of units

costs per equivalent unit of production

equivalent units of production

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33
Q

A department begins the month with 100 units at a cost of $7,500 in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. The ending balance in Work in Process Inventory is $

A

2,000

( Reason:
1. Calculate total cost (beg wpi costs + addintional costs): 7x500+12,500 =20,000

 2. Calc equivalent units ((beg units +units started - end units) + (end units × % complete)): (100+1,000-200) +(200×50%) =1,000

 3. Cost per equivalent units (total costs÷1,000): 20,000÷1,000 = 20

 4. End balance WPI (cost per unit ×(end units × % complete): 20 × (200 × 50%) = 2,000 dollars
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34
Q

The journal entry to record the purchase of materials on account in process cost accounting is:

A

debit Raw Materials Inventory and credit Accounts Payable

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35
Q

The journal entry to record the use of indirect materials in process costing is to:

A

debit Factory Overhead and credit Raw Materials Inventory.

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36
Q

The journal entry to record the use of direct materials in process costing is to:

A

debit Work in Process Inventory and credit Raw Materials Inventory.

37
Q

The journal entry to record direct labor used in process costing is a(n):

A

increase in assets and an increase in liabilities.

38
Q

The parts of the process cost report include:

A

cost assignment and reconciliation.

equivalent units of production.

physical flow of units.

39
Q

True or false: A production department in a process operation has a manager that works for two departments. Since the manager is in a supervisory position, the labor is considered indirect labor and the cost is charged to Factory Overhead.

A

True

40
Q

A company completes 21,000 units this month and has ending work in process inventory of 3,000 units which are estimated to be 40% complete. Total production costs are $666,000. The cost of ending Work in Process Inventory is $

A

FIGURE OUT :36000 is answer

41
Q

The journal entry to record the accrual of factory utilities is to:

A

debit Factory Overhead and credit Utilities Payable

42
Q

Common overhead allocation methods for companies with process operations includes ______ hours or _____ hours to allocate overhead.

A

Direct labor
Machine hours

43
Q

When indirect materials are used in process costing, the effect on the Raw Materials Inventory account is:

A

a decrease.

44
Q

The journal entry to record the applied factory overhead is to:

A

debit Work in Process Inventory and credit Factory Overhead

45
Q

The journal entry to record the use of direct labor in process costing is to:

A

debit Work in Process Inventory and credit Factory Wages Payable.

46
Q

The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n):

A

decrease in one asset and an increase in another asset

47
Q

The journal entry to record the use of indirect labor in process costing is to:

A

debit Factory Overhead and credit Factory Wages Payable.

48
Q

The journal entry to record the insurance on the factory equipment is to:

A

debit Factory Overhead and credit Prepaid Insurance

49
Q

The journal entry to record the transfer of completed work in process to finished goods in process costing is a(n):

A

decrease in one asset and an increase in another asset

50
Q

The journal entry to apply Factory Overhead includes:

A

a credit to Factory Overhead

51
Q

The journal entry to record the transfer of units from one department to the next is to:

A

debit Work in Process Inventory - Dept. 2 and credit Work in Process Inventory - Dept. 1

52
Q

The journal entry to record the factory overhead applied includes:

A

a debit to Work in Process Inventory and a credit to Factory Overhead

53
Q

The journal entry to record the cost of goods sold in process costing is a(n):

A

decrease in an asset and an increase in an expense

54
Q

The journal entry to record the transfer of units from Process 1 to the Process 2 in process costing is:

A

debit Work in Process Inventory - 2 and credit Work in Process Inventory - 1

55
Q

Match the following trends in process operations to their definition or characteristics.

Process design

Process design drop zone empty.
Just-in-time production

Just-in-time production drop zone empty.
Continuous Processing

Continuous Processing drop zone empty.
Services

Services drop zone empty.
Customer Orientation

Charas:
Continuous movement of materials through the manufacturing process.

Non-manufacturing businesses.

Reorganize production processes to improve efficiency.

Raw Materials Inventory and Finished Goods Inventory accounts are not needed.

Focus on the customer.

A

Process design = Reorganize production processes to improve efficiency.

Just-in-time production = Materials Inventory and Finished Goods Inventory accounts are not needed.

Continuous Processing = Continuous movement of materials through the manufacturing process.

Services = Non-manufacturing businesses.

Customer Orientation = Focus on the customer.

56
Q

The journal entry to record the transfer of completed work in process to finished goods in process costing is to:

A

debit Finished Goods Inventory and credit Work in Process Inventory

57
Q

Match the trend to its definition.

Process design

Process design drop zone empty.
Just-in-time production

Just-in-time production drop zone empty.
Robotics and automation

Robotics and automation drop zone empty.
Continuous processing

Continuous processing drop zone empty.
Customer orientation

Definitions:
uses minimal inventory levels

reorganizes production processes to make them more efficient

use results in reduced labor costs and increased efficiency

movement of materials continuously through the manufacturing process

focuses on customer orientation

A

Process design = reorganizes production processes to make them more efficient

Just-in-time production = uses minimal inventory levels

Robotics and automation = use results in reduced labor costs and increased efficiency

Continuous processing = movement of materials continuously through the manufacturing process

Customer orientation = focuses on customer orientation

58
Q

The journal entry to record the transfer of units to the next department in process accounting is a(n):

A

decrease in one asset and an increase in another asset

59
Q

A system which uses both a process costing system and a job order system will most likely use which type system?

A

Hybrid

60
Q

The journal entry to record the cost of goods sold in process costing is to:

A

debit Cost of Goods Sold and credit Finished Goods Inventory

61
Q

Beginning work in process are 25,000 units and units started this period are 75,000 units. The total units to account for using the FIFO method are

A

100,000
(Reason 25,000+75,000 )

62
Q

All of the following are recent trends in process operations except:

A

singular processing

63
Q

A focus on customer orientation leads to improved
_.

A

Processes

64
Q

Department A had a beginning inventory balance of 25 units which were 40% complete. During the accounting period, the department started an additional 275 units and had an ending balance of 50 units which were 20% complete. Using FIFO, the equivalent units of production is …….
units.

A

FIGURE OUT answer 250

65
Q

A system that contains features of both process and job order operations is called a(n) …….
costing system.

A

Hybrid

66
Q

Beginning work in process inventory related to conversion was 75% complete for 25,000 units. 50,000 units were started and completed and ending inventory consisted of 10,000 units that were 10% complete. Calculate the equivalent units of production for the conversion costs using the FIFO method.

A

57,250
(Reason: (25,000 x .25) + (50,000 x 1) + (10,000 x .10) = 57,250 EUP.)

67
Q

At the beginning of the month, Department A had 100 units which were 25% complete with respect to direct materials. Direct materials costs at the beginning of the period were $7,500. During the month, an additional 1,000 units were started. At the end of the month, 200 units were still in process and were 50% complete with respect to direct materials. The direct materials costs incurred during the current period were $12,500. Using FIFO, the ending Work in Process inventory with respect to direct materials is $………….
. Do not round intermediate calculations. Round final answer to the nearest dollar.

A

ANSWER FIGURE OUT :1282

68
Q

Beginning work in process are 40,000 units and units started this period are 20,000 units. The total units to account for using the FIFO method are

A

60,000. (40000+20000)

69
Q

Cost of beginning work in process inventory is $250,000; costs incurred this period include an additional $500,000 and cost of ending work in process inventory is $100,000. The total costs to account for under the FIFO process costing system is

A

$750,000, 750000, or 750,000

(Bc 250,000+500,000 )

70
Q

A company using the FIFO method had beginning work in process inventory of 10,000 units and completed 75,000 units. They also had 5,000 units in ending work in process inventory. The number of units started and completed equals

A

65000
(Reason 75,000−10,000 )

71
Q

If beginning work in process inventory for conversion was 25% complete and these units were fully completed during the current period, what additional percentage was applied to these units during the current period?

A

75%

Reason: To complete these units, 75% of additional conversion were added during the current period.

72
Q

A department using the FIFO method for process costing begins the month with 10,000 units which were 70% complete at the end of the previous month. They started and completed 50,000 units and their ending work in process inventory consisted of 5,000 units which were 10% complete. The costs incurred were $200,000. The cost per equivalent unit of production, using the FIFO method is $….

A

: 3.74. HOW FUCKING HOW

73
Q

A department begins the month with 100 units at a cost of $7,500 and 25% complete in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. Using FIFO, the ending balance in Work in Process Inventory is $……..
(rounded to nearest dollar).

A

1282 IDK HOW MAN

74
Q

CH 3 CONCEPT VID START:

A

Continue

75
Q

The mass production of similar products in a continuous flow of sequential processes is referred to as _______blank operations.

A

Process

76
Q

Direct materials, direct labor, and overhead costs are commonly associated with which production system?

A

Both job order and process systems

77
Q

The total number of physical units to account for equals the:

A

total number of units accounted for. Correct

78
Q

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. Costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. The equivalent units of production (EUP) for the period were 9,000 for direct materials and 6,000 for conversion. The costs per EUP were:

A

$2.00 per EUP for direct materials and $20.00 per EUP for conversion

(BC: Cost per EUP for direct materials = (Direct materials cost in beginning work in process inventory of $3,000 + Direct materials cost incurred of $15,000) ÷ 9,000 EUP = $2.00 per EUP.

Cost per EUP for conversion = (Direct labor cost in beginning work in process inventory of $10,000 + Factory overhead cost in beginning work in process inventory of $10,000 + Conversion cost incurred of $100,000) ÷ 6,000 EUP = $20.00 per EUP. )

79
Q

The journal entry to assign costs of direct labor used in production includes which two of the following?

A

Credit to Factory Wages Payable
Debit to Work in Process Inventory

80
Q

The journal entry to record the use of utilities in a factory includes which of the following:

A

Debit to Factory Overhead
Credit to Factory Utilities Payable

81
Q

The journal entry to purchase materials on credit for factory use includes which of the following?

A

Debit to Raw Materials Inventory
Credit to Accounts Payable

82
Q

Raw materials which will be used as direct materials are initially included in

A

raw materials inventory.

83
Q

The process cost report summary summarizes:

A

Physical flow of units.

Equivalent units of production.

Costs per equivalent unit of production.

Assignment of total costs to units worked on in the period.

84
Q

The journal entry to transfer completed products from production to finished goods inventory includes which two of the following?

A

Debit to Finished Goods Inventory
Credit to Work in Process Inventory

85
Q

A trend where inventory levels can be minimal and raw materials are not ordered or received until needed is called:

A

Just-in-time Production

86
Q

CH 3 HW BEGIN:

A

Continue

87
Q

A production department reports the following conversion costs. Equivalent units of production for conversion total 488,000 units this period. Calculate the cost per equivalent unit of production for conversion. The company uses the weighted average method.

Costs of beginning work in process $ 937,500
Costs added this period 900,000

A

Cost per equivalent unit of production—Weighted average Conversion
Costs of beginning work in processselected answer correct $937,500selected answer correct
Costs added this periodselected answer correct 900,000selected answer correct
Total costs $1,837,500
÷ Equivalent units of production 488,000selected answer correct EUP
Cost per equivalent unit of production $3.77 per EUP

(937,500+900,000)
÷488,000 = 3.77 per EUP

88
Q

An ice cream maker reports the following.

Units Conversion

Percent Complete
Beginning work in process inventory 324,000 30%
Units started this period 628,000
Units completed and transferred out 688,000
Ending work in process inventory 264,000 65%

A

On phone

ACCT 203 (14 decks)

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