Chapter 3 Quiz

School: Eastern Gateway Community College - Course: ACCOUNTING ACC121 - Subject: Accounting

Chapter 3 Quiz 1.Shine Company uses a process cost system to account for the costs incurred in making its single product, a hair conditioner. This product is processed in Department A and then in Department B. Materials are added in both departments. Production for May in Department A was as follows: Units started or transferred in 200,000 Units completed and transferred out 160,000 Stage of completion of May 31 inventory: Materials 100% Conversion 50% Costs incurred this month: Direct Material costs $250,000 Conversion costs $540,000 There was no May 1 inventory in either department. Prepare a production cost report for Department A. DO NOT PUT COMMAS and make sure to put decimals. a.160000 b.200000 c.40000 d.40000 e.20000 f.200000 g.180000 h.200000 i.180000 j.1.25 k.3.00 2.Conversion costs can include: a.Both Direct labor & factory overhead 3.____ units represents the number of partially completed units as a portion of fully completed units when accounting for the flow of costs and movement of materials/inventory through production. a.equivalent 4.____ costs are the costs incurred to convert raw materials into the final product. a.conversion 5.A ___ costing system accumulates costs incurred in production according to the processes, or departments, a product goes through on its journey to completion. a.Process 6.How are job costing and processing costing systems different? a.Can be applied to the same types of products 7.Which two cash flow assumptions are most commonly used when determining equivalent unit costs? a.Weighted Average and FIFO 8.How are job costing and process costing systems the same? a.They have the same cost flows 9.Conversion costs are/can be: a.All of the above 10. Pure Aqua Company is a producer of flavored mineral water. These data are for its March production: Work in process inventory, March 1, (3,000 units): Direct Materials $12,600 Direct Labor 6,000 Manufacturing over head (1,500 machine-hours at $6 per machine hour) $9,000 Units started in March 9,000 Costs incurred in March: Direct Materials $36,360 Direct Labor 55,200 Manufacturing overhead applied (13,800 machine-hours) $6 POHR The ending inventory consisted of 4,500 units (100% complete as to materials, 60% complete as to conversion) Compute the following: Number of units completed and transferred to finished goods inventory. The equivalent units of production for materials and conversion costs using the weighted average method. Cost per equivalent unit for materials and conversion costs. Cost of units completed and transferred. Cost of ending inventory. Please enter all answer with numbers only. DO NOT enter answers with spaces, decimals, $ signs, etc. or it will be counted wrong. All blanks must be correct to receive points for this question.