# Accounting Misc. problems

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16-1 Robert Mallory has prepared the following list the statements about process cost accounting.
1- Process cost systems are used to apply cost to similar products that are mass-produced in a continuous fashion.
2- A process cost system is used when each finished unit is indistinguishable from another.
3- Company that produce soft drinks, motion picture, and chips would all use process cost in
4- In a process cost system, costs are tracked by individual jobs.
5- Job order costing and process costing track different manufacturing cost elements
7- Cost flow through the accounts in the same basic way for both job order costing and process costing.
8- In a process cost system, only one work in process account is used.
9- In a process cost system, costs are summarized in a job cost sheet.
10- IN a process cost system, the unit cost is total manufacturing cost for the period divided by the units produced during the period.
Instruction
Identify each statement as true or false. If false indicate how to correct the statement
Exercise16-2
Harrelson Company manufactures pizza sauce through two production department:
Cooking and Canning In each process, material and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts shows the following debits
Cooking Canning
Beginning work in process \$ 0 \$ 4,000
Materials 21,000 9,000
Labor 8,800 7,000
Cost transferred in 53,000
Instruction
Journalize the April transactions
Exercise 16-3
The ledger of Custer Company has the following work in process account

Work in process- Painting
5/1 Balance 3,590
5/31 Materials 5,160
5/31 Labor 2,740
5/31 Transferred out
5/31 Balance ?
Production records show that there were 400 units in the beginning inventory, 30 % complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of 2,040 and conversion cost of \$1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
Instructions
1-how many units are in process at Mai 31?
2- What is the unit Materials cost for May?
3- What is the unit conversion cost for May?
4-What is the total cost of the unit transferred out of May?
5- What is the cost of the May 31 inventory?

Exercise 16-4
Schrager manufacturer Company has two production departments:
Cutting and Assembly, July 1 inventories are Raw Materials \$2,400, work in progress- Cutting\$2,900 work in progress- Assembly \$ 10,600 and finished Goods 31,000. During July the following transaction occurred.
1- Purchased \$ 62,500 of raw Materials on account
2- Incurred \$60,000 of factory labor(Credit wages Payable)
3- Incurred \$ 70,000 of manufacturing overhead; 40, was paid and the remainder is unpaid
4- Requisitioned materials for cutting \$ 15,700 and assembly \$8,900
5- Used factory labor for Cutting \$33, 000 and Assembly \$27,000
6- Apply overhead at the rate of \$18 per machine hour. Machine hour were Cutting 1,680 and Assembly 1,720
7- Transferred goods costing 67, 700 from the Cutting department to the Assembly department
8- Transferred good costing \$134,900from Assembly to Finish Goods.
9- Sold goods costing \$150,000 for 200,000 on account.
Journalize the transaction(Omit explanations)

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