In a process costing system, overhead costs are traced to units of product as th

Question

In a process costing system, overhead costs are traced to units of product as they are incurred. A) True B) False 2. A process cost system would be used to account for the cost of manufacturing an oil tanker. A) True B) False 3. Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,100 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. How many units are in ending work in process inventory in the first processing department at the end of the month? A) 1,100 B) 900 C) 600 D) 7,600 4. The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system. All materials are added at the beginning of the process. The equivalent units for labor and overhead for the month of May were: A) 60,000 units B) 69,800 units C) 65,800 units D) 73,800 units 5. In February, one of the processing departments at Carpentier Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $29,000. During the month, $148,000 of costs were added to production and the cost of units transferred out from the department was $133,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be: A) $310,000 B) $162,000 C) $324,000 D) $43,000 6. A company should use process costing, rather than job order costing, if: A) production is only partially completed during the accounting period. B) the product is manufactured in batches only as orders are received. C) the product is composed of mass-produced homogeneous units. D) the product goes through several steps of production. 7. The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? A) 293,000 B) 310,000 C) 324,000 D) 296,000 8. In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production. In the department's cost reconciliation report for August, the total cost to be accounted for would be: A) $30,000 B) $390,000 C) $195,000 D) $373,000 9. The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system. All materials are added at the beginning of the process. The equivalent units for materials for the month of May were: A) 60,000 units B) 74,000 units C) 64,000 units D) 69,800 units 10. Ravalt Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $7.90. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? A) $27,729 B) $30,810 C) $3,081 D) $5,056

Explanation / Answer

In a process costing system, overhead costs are traced to units of product as they are incurred. A) True

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