Author: Anonymous

Process costing would be appropriate for a

Penny Inc. uses process costing. All direct materials are added at the beginning of the process. Information about July’s activities is as follows: ​ On July 1:   Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000     During July:   Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520     On July 31:   Ending inventories 1,600 units, 40% complete ​Using the FIFO method, the number of units started and completed in July was

Department A had 1,000 units in work in process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200, and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700, and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. The jobs for the quarter are as follows: ​   Balance Job 356 $  450 Job 357 1,235 Job 358 378 Job 359 689 Job 360 456 ​ Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.What is the balance of Sales for Adams Company at the end of the first quarter?

The inventory accounts generally maintained by a manufacturing firm are only Finished Goods and Materials.

The long-distance telephone bill for calls made by salespersons would be classified as a

Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000; 9,000 units were completed during the period; and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900. ​The total conversion costs for the period were

Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department are called

Which of the following is typically used by companies whose products are indistinguishable from each other?

If 10,000 units that were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)