QUIZ CHAPTER 8

Indicate which of the following statements is not correct.

• (a)Both a job order and a process cost system track the same three manufacturing cost elements—direct materials, direct labor, and manufacturing overhead.

• (b)A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process accounts.

• (c)Manufacturing costs are accumulated the same way in a job order and in a process cost system.

• (d)Manufacturing costs are assigned the same way in a job order and in a process cost system.

In a process cost system, the flow of costs is:

• (a)work in process, cost of goods sold, finished goods.

• (b)finished goods, work in process, cost of goods sold.

• (c)finished goods, cost of goods sold, work in process.

• (d)work in process, finished goods, cost of goods sold.

Conversion costs are the sum of:

• (a)fixed and variable overhead costs.

• (b)direct labor costs and overhead costs.

• (c)direct material costs and overhead costs.

• (d)direct labor and indirect labor costs.

The Mixing Department's output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production are:

• (a)22,600

• (b)23,000

• (c)24,000

• (d)25,000

In RYZ Company, there are zero units in beginning work in process, 7,000 units started into production, and 500 units in ending work in process 20% completed. The physical units to be accounted for are:

• (a)7,000.

• (b)7,360.

• (c)7,500.

• (d)7,340.

Mora Company has 2,000 units in beginning work in process, 20% complete as to conversion costs, 23,000 units transferred out to finished goods, and 3,000 units in ending work in process 3313%

complete as to conversion costs.

The beginning and ending inventory is fully complete as to materials costs. Equivalent units for materials and conversion costs are, respectively:

• (a)22,000, 24,000.

• (b)24,000, 26,000.

• (c)26,000, 24,000.

• (d)26,000, 26,000.

Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

• (a)$45,000.

• (b)$55,000.

• (c)$75,000.

• (d)$100,000.

A production cost report:

• (a)is an external report.

• (b)shows both the production quantity and cost data related to a department.

• (c)shows equivalent units of production but not physical units.

• (d)contains six sections.

In a production cost report, units to be accounted for are calculated as:

• (a)Units started into production + Units in ending work in process.

• (b)Units started into production − Units in beginning work in process.

• (c)Units transferred out + Units in beginning work in process.

• (d)Units started into production + Units in beginning work in process.

Fortner Company has no beginning work in process; 9,000 units are transferred out and 3,000 units in ending work in process are one-third finished as to conversion costs and fully complete as to materials cost. If total materials cost is $60,000, the unit materials cost is:

• (a)$5.00.

• (b)$5.45 rounded.

• (c)$6.00.

• (d)No correct answer is given.