233 product cost reports are done only for the final department in process costing 2 4308097

233 product cost reports are done only for the final department in process costing 2 4308097

233) Product cost reports are done only for the final department in process costing.

234) When calculating equivalent units in a second or later processing department, all physical units should be considered 100% complete with respect to transferred-in work and costs.

235) When calculating equivalent units in a second or later processing department, all physical units should be considered 50% complete with respect to transferred-in work and costs.

236) The document many process costing companies use to summarize the entire five-step process on one schedule is called the

A) conversion report.

B) income costing statement.

C) bill of materials.

D) production cost report.

237) In a process costing system, the number of WIP inventories

A) equal the number of production departments.

B) equal the number of products produced.

C) equal the number used in a job cost system.

D) cannot equal the number of parts used in the product.

238) In a process system with multiple processes, the cost of units completed in Department One is transferred to

A) Finished Goods Inventory.

B) WIP in Department Two.

C) Cost of Goods Sold.

D) overhead.

239) Which of the following is unique to a process costing system?

A) Work is not started on a product until an order is received.

B) Direct materials, direct labor and Manufacturing Overhead are assigned to the first department only.

C) Costs for each process stay with that process until the goods are moved to Finished Goods Inventory.

D) Each process has its own WIP account.

240) At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly.

Work in process, beginning:

 

Number of units

9,000

Transferred-in costs

$94,000

Direct materials (100%)

$22,500

Conversion costs (75%)

$25,400

Units transferred-in:

 

Number of units

47,500

Transferred-in costs

$640,500

Units completed

43,000

Costs during the period:

 

Direct materials

$155,475

Conversion costs

$213,225

Work in process, ending:

 

Number of units

13,500

(100% complete for materials and 35% complete for conversion)

The total cost of units remaining in ending WIP Inventory is closest to

A) $285,525.

B) $241,650.

C) $66,150.

D) $257,884.

241) At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly.

Work in process, beginning:

 

Number of units

9,000

Transferred-in costs

$94,000

Direct materials (100%)

$22,500

Conversion costs (75%)

$25,400

Units transferred-in:

 

Number of units

47,500

Transferred-in costs

$640,500

Units completed

43,000

Costs during the period:

 

Direct materials

$155,475

Conversion costs

$213,225

Work in process, ending:

 

Number of units

13,500

(100% complete for materials and 35% complete for conversion)

The total cost of units transferred out to Finished Goods Inventory is closest to

A) $909,450.

B) $1,004,625.

C) $350,450.

D) $1,151,100.

$559,000$135,450$215,000 = $909,450

242) The managerial accountant at Pembroke Manufacturing reported the following data:

Units:

Beginning WIP

54,500

75% for materials

45% for conversion

Transferred-in

225,000

Completed

232,000

Ending WIP

60% for materials

20% for conversion

47,500

Costs:

Beginning WIP

Direct materials

$67,500

Conversion

145,400

Transferred-in

99,000

Transferred-in from department 1

$1,550,050

Direct materials added

909,375

Conversion added

542,875

Costs of units transferred to Finished Goods Inventory would be closest to

A) $3,002,300.

B) $1,531,200.

C) $2,900,000.

D) $3,314,200.

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