INSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column.

	Answers
0. The cost system (process or job order) best suited to industries that manufacture homogeneous units of products on a continuous basis is	process	0. ____
1-4. Identify whether the process cost or job order cost system would be more appropriate for each of the following businesses:
1. accounting firm ................................................................................................		1. ____
2. breakfast cereal manufacturer.......................................................................		2. ____
3. ship construction...............................................................................................		3. ____
4. pharmaceuticals company ............................................................................		4. ____
5. computer chip manufacturer .........................................................................		5. ____
6. The number of units that could have been completed within a given accounting period with respect to direct materials and conversion costs is the ...................................................................................................................		6. ____
7. Direct labor and factory overhead are referred to as ................................		7. ____
89. Oslo Manufacturing incurred $72,000 of direct materials costs, direct labor costs of $24,500, and factory overhead of $20,500. If 1,000 direct materials equivalent units and 900 conversion equivalent units were manufactured, then:
8. The equivalent unit cost for direct materials is ...........................................	$	8. ____
9. The equivalent unit cost for conversion is ...................................................	$	9. ____
10. The periodic report prepared for each processing department, summarizing (1) the units for which the department is responsible and their disposition and (2) the costs charged the department and their allocation, is termed the .................................................................................		10. ____
11. The method of inventory costing that assumes the unit product costs should be determined separately for each period in the order in which the costs were incurred is ...............................................................................		11. ____
1215... In a process cost system, the cost of goods completed and the ending inventory valuation are determined by using the following four steps:
12. .............................................................................................................................		14. ____
13. ..............................................................................................................................		15. ____
14. ..............................................................................................................................		16. ____
15. ..............................................................................................................................		17. ____
1617... The transferred costs of completed production in Department A using a process cost system include:
16. .............................................................................................................................		12. ____
17. .............................................................................................................................		13. ____
	continued

	Answers
1820... The three categories of units to be assigned cost for an accounting period in a process cost system are:
18. ..............................................................................................................................		18. ____
19. ..............................................................................................................................		19. ____
20. ..............................................................................................................................		20. ____
2124... Department W had 8,000 units in work in process that were 30% converted at the beginning of the period at a cost of $16,400. During the period, 15,000 units of direct materials were added at a cost of $48,000, 16,000 units were completed, and 7,000 units were 40% completed. The first-in, first-out cost method is used and all materials are added at the beginning of the process. Direct labor was $30,000, and factory overhead was $54,000 during the period.
21. The number of equivalent units of conversion for the period was .........		21. ____
22. The total conversion costs for the period were ..........................................	$	22. ____
23. The conversion cost of the units started and completed during the period was .........................................................................................................	$	23. ____
24. The conversion cost of the 7,000 units in process at the end of the period was .........................................................................................................	$	24. ____

INSTRUCTIONS: Indicate the titles of the accounts to be debited and credited in recording the selected transactions given below by inserting the letter or letters of the account titles listed in the appropriate columns. (Do not record the amounts.)

ACCOUNTS

A. Accounts Payable E. Factory OverheadDepartment A I. Sales

B. Accounts Receivable F. Factory OverheadDepartment B J. Wages Payable

C. Cash G. Finished Goods K. Work in ProcessDepartment A

D. Cost of Goods Sold H. Materials L. Work in ProcessDepartment B

TRANSACTIONS	Debit		Credit
0. Paid cash for wages owed, $47,000 .............................................................	J	0. ____	C	0. ____
1-2. Materials requisitioned for use in Department A, $36,000, of which $31,500 entered directly into the product .....................................................		1. ____		2. ____
3-4. Labor in Department A, $13,000, was used directly in the manufacture of the product .....................................................................................................		3. ____		4. ____
5-6. Factory overhead applied to production in Department A, $6 per machine hour .....................................................................................................		5. ____		6. ____
7-8. Goods finished in Department A and transferred to Department B, $79,000 ...............................................................................................................		7. ____		8. ____
9-10. Goods finished in Department B and transferred to finished goods, $114,000 .............................................................................................................		9. ____		10. ____
11-12. Cost of finished goods sold, $126,374 .........................................................		11. ____		12. ____