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A ________ contains features of both process and job order costing systems.

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hybrid cos...

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What are the four steps in accounting for production activity in a period?

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Accounting for a department's activity f...

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Hybrid systems contain features of both process and job order operations.

A) True
B) False

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The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

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Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs) . Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs) . Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs) . If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May. A) 225,000 materials; 195,000 conversion. B) 275,000 materials; 215,000 conversion. C) 150,000 materials; 150,000 conversion. D) 195,000 materials; 225,000 conversion. E) 195,000 materials; 195,000 conversion. Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs) . Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs) . Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs) . If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May. A) 225,000 materials; 195,000 conversion. B) 275,000 materials; 215,000 conversion. C) 150,000 materials; 150,000 conversion. D) 195,000 materials; 225,000 conversion. E) 195,000 materials; 195,000 conversion. If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May.


A) 225,000 materials; 195,000 conversion.
B) 275,000 materials; 215,000 conversion.
C) 150,000 materials; 150,000 conversion.
D) 195,000 materials; 225,000 conversion.
E) 195,000 materials; 195,000 conversion.

F) A) and E)
G) C) and D)

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Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150. Calculate the cost per equivalent unit of materials.


A) $2.00
B) $2.05
C) $1.74
D) $2.36
E) $2.61

F) A) and D)
G) D) and E)

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Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is: Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is: A) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. B) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. C) Debit Cost of Goods Sold $444,000; credit Sales $444,000. D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. E) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.


A) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
B) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
C) Debit Cost of Goods Sold $444,000; credit Sales $444,000.
D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
E) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

F) A) and E)
G) None of the above

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A company uses a process costing system and the weighted average method for inventory costs. The following information is available regarding direct labor for the current year: Ending Work in Process 5,300 units, 50% complete Units completed and transferred to finished goods 28,700 units Direct labor costs during the year $199,300 Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

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Which of the following products is least likely to be produced in a process operation?


A) Smartphones
B) Slacks for casual wear
C) Baseball caps
D) Calculators
E) Custom cabinets

F) A) and C)
G) A) and B)

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Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150. Calculate the cost per equivalent unit of conversion.


A) $4.60
B) $4.50
C) $4.16
D) $4.98
E) $5.45

F) C) and E)
G) A) and B)

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Which of the following characteristics does not usually apply to process operations?


A) Each unit of product is separately identifiable.
B) Partially completed products are transferred between processes.
C) Each process is a separate department.
D) A separate Work in Process Inventory is used for each process.
E) Costs are computed using equivalent units.

F) None of the above
G) A) and D)

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The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. A) 758,000 B) 800,000 C) 620,000 D) 746,000 E) 884,000


A) 758,000
B) 800,000
C) 620,000
D) 746,000
E) 884,000

F) None of the above
G) A) and E)

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An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:


A) Production department.
B) Service department.
C) Primary department.
D) Responsibility department.
E) Control department.

F) A) and C)
G) C) and D)

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Wang Company provides the following data for the current year: Estimated Factory Overhead $7,800 Factory Overhead Incurred $11,400 Factory Overhead Applied ? Estimated Direct Labor Cost $12,000 Direct Labor Cost Incurred $11,800 Required: a. Calculate the predetermined overhead allocation rate based on direct labor. b. Determine the amount of overhead applied to production. c. Prepare the journal entry to apply factory overhead to Work in Process.

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(a) $7,800/$12,000 = 65% of Di...

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The following is an account for a production department, showing its costs for one month: The following is an account for a production department, showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory? A) $12,150. B) $2,160. C) $7,560. D) $54,000. E) $37,260. Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?


A) $12,150.
B) $2,160.
C) $7,560.
D) $54,000.
E) $37,260.

F) B) and C)
G) A) and B)

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Which of the following characteristics does not apply to job order cost accounting?


A) Aims to compute the cost per unit of product.
B) Identifiable units of production.
C) Equivalent units of production.
D) Use of job cost sheets.
E) Use of a single Work in Process Inventory account.

F) A) and E)
G) A) and C)

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In process costing, indirect materials are clearly linked with a specific production process or department.

A) True
B) False

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A production department is an organizational unit that has the responsibility for the complete processing of one particular product.

A) True
B) False

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Process costing is applied to operations with customized products.

A) True
B) False

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Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

A) True
B) False

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