Part 1

The four steps necessary to complete a cost of production report in a process cost system are

1. allocate costs to transferred and partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. calculate equivalent units of production

The correct ordering of the steps is 4, 2, 3, 1 2, 3, 4, 1 2, 3, 1, 4 2, 4, 3, 1

Part 2

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.

The journal entry to record the flow of costs into Department 1 during the period for direct materials is a. Work in ProcessDepartment 1 55,000 Materials 55,000 b. Materials 100,000 Work in ProcessDepartment 1 100,000 c. Work in ProcessDepartment 1 100,000 Materials 100,000 d. Materials 55,000 Work in ProcessDepartment 1 55,000

Part 3

The two categories of cost comprising conversion costs are direct labor and indirect labor direct labor and factory overhead factory overhead and direct materials direct labor and direct materials