Describe characteristic of process costing

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Reference no: EM13863636

1. Which of the following does not describe a characteristic of process costing?

Work in process accounts are maintained for each production department.

Job cost sheets must pass from one production department to the next on a daily basis.

Once production begins, it continues until the finished product emerges.

2. All units of production receive precisely the same amount of material, labor, and overhead.

Given the following data, compute equivalent units of production for conversion costs:

Beginning Work in Process—4,000 units, 40% complete

Units Started into Production—40,000 units

Ending Work in Process—3,000 units, 20% complete.

41,600.

43,000.

39,000.

42,200.

3. Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Direct materials used is:

$410,000.

$390,000.

$400,000.

$430,000.

4. Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume direct materials is $400,000. Total manufacturing costs equal:

$780,000.

$600,000.

$700,000.

$900,000.

5. Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume manufacturing costs is $850,000. Cost of goods manufactured equals:

$850,000.

$847,000.

$854,000.

$853,000.

6. Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume goods manufactured is $870,000. The cost of goods sold is:

$867,000.

$866,000.

$870,000.

$874,000.

Reference no: EM13863636

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