Exam 5: Product Costing: Job and Process Operations

Robert Corporation has the following information for October, November, and December of the current year: Production costs per unit (based on 5,000 units) are as follows: There were no beginning inventories for October, and all units were sold for $25. Costs are stable over the three months. Calculate Robert's December ending inventory using the variable costing method.

Aston Corporation produces a product that passes through two departments. For October, the following equivalent unit schedule was prepared for the first department: Required: a. Compute the unit cost for October using the weighted average method. b. Determine the cost of goods transferred out. c. Determine the cost of ending work-in-process.

Which of the following is not a period cost?

When production is less than sales volume, net income under absorption costing will be greater than net income using variable costing procedures.

Winston Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 1,000 units. Calculate the cost per unit using variable costing.

One of the reasons for using a predetermined manufacturing overhead rate is that it smooths out seasonal costs over the entire accounting period.

Process costing is best suited for production environments where identical units of product are produced on a continuous basis.

The Matthew Company has the following information December of this year: The overhead rate is 150 percent of direct labor costs. The Matthew Company uses a job costing system. Prepare the journal entry to record the cost of goods completed and transferred to Finished Goods Inventory.

In process costing, each accounting period is actually equivalent to a unique job in a job costing system.

Fixed manufacturing overhead is recorded initially as an asset (inventory) under ______________ costing but as an operating expense under ______________ costing.

All of the following costs are included in inventory under absorption costing except:

When finished goods are sold, there is an increase in which of the following accounts?

Which of the following is not a record required for operating a job cost system?

Robert Corporation has the following information for October, November, and December of the current year: Production costs per unit (based on 5,000 units) are as follows: There were no beginning inventories for October, and all units were sold for $25. Costs are stable over the three months. Calculate the difference between Robert's December income under absorption and variable costing.

Beginning inventory in April consisted of 10,000 units (60 percent converted) and ending inventory consisted of 20,000 units (30 percent converted). In addition, 50,000 units were started during the period. How many equivalent units for conversion costs were in process in April using the weighted average method?

Which of the following accounts increases when raw materials are used?

Compare and contrast absorption and variable costing.

The variable costing income statement for Holt Company for this quarter is as follows: Selected data for the quarter concerning the operations of the company are as follows: Required: Prepare an absorption costing income statement for the quarter.

The following information pertains to Jason Company: Calculate the difference between absorption costing net income and variable costing net income.

Wrigley Corp. obtained the following information from the Raw Materials Inventory account and purchasing records for the first quarter of the current year: Calculate the amount of Raw Materials used for this quarter.