CHAPTER 20 PROCESS COST SYSTEMS Study 0 Progress0 Previous0

CHAPTER 20- PROCESS COST SYSTEMS Study 0 Progress0 Previous0 Page 3 of 8 0 Next o0 Submit Quiz The following production data were taken from the records of the Finishing Department for July Inventory in process, July 1,40% completed Transferred to finished goods during July Ending work in process during July, 20% completed 4,000 units 37,500 units 3,500 units Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in process at the beginning of production. a. 41,000 units b. 36,600 units c, 37,000 units d. 39,400 units CHAPTER 20- PROCESS COST SYSTEMS O Previous 0 Page 2 of 80 Next0 Conversion costs are comprised of Study 0 Progress0 Submit Quiz a. direct labor and selling expenses. b. direct labor and factory overhead. c. direct labor and direct materials d. factory overhead and direct materials. CHAPTER 20-PROCESS COST SYSTEMS O Previous 0 Page 1 of 8l0 Next 0 For which of the following businesses would a process cost system be appropriate? Study 0 Progress 0 Submit Quiz a. Auto repair service b. Beverage producer c. Custom furniture manufacturer d. Specialty printer

Solution

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Beginning inventory	4,000
Units started and completed	33,500
Closing WIP for materials	3,500
Equivalent units for materials	41,000