Exam 5: Cost Behavior: Analysis and Use

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

In order to use process costing,the output of a processing department must be homogeneous.

In process costing,a separate Work in Process account is maintained for each processing department.

The "Cost to account for" section of the production report for October will show a total amount equal to? (Do not round intermediate calculations)

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for conversion costs for the month in the Blending Department ? (Round your answers to the nearest cent)

The equivalent units of production for material for the month,using the weighted-average method,are?

In a process cost system,the cost of completed production in Department 1 is transferred to Department 2 by which of the following entries?

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

If a business has substantial amounts of manufactured inventory,both the first-in-first-out (FIFO)method and the weighted-average method will be very useful in assessing cost control.

Department 2 is the second of three sequential processes.All materials are added at the beginning of processing in Department 2.During October,Department 2 reported the following data: The company uses the weighted-average method in its process costing system.The cost per equivalent unit on the production report for conversion costs would have been? (Round your answer to the nearest cent)

If the weighted-average method is used,both the material cost and conversion cost per equivalent unit will always be the same.

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:

In a sequential manufacturing system (all units produced flow in the same direction through all departments),the production report of the final department will include all manufacturing costs of units produced.

Jawson Company uses the weighted-average method in its process costing system.Operating data for the Painting Department for the month of April appear below: What were the equivalent units of production for conversion costs in the Painting Department for April?

Black Company uses the weighted-average method in its process costing system.The company's ending work in process inventory consists of 5,000 units,80% complete with respect to materials and 50% complete with respect to labour and overhead.If the total dollar value of the inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00,the cost per equivalent unit for materials must be?

Ogden Company uses the weighted-average method in its process costing system.Information for the month of January concerning Department A,the first stage of the company's production process,follows: Materials are added at the beginning of the process.The ending work in process is 50% complete with respect to conversion costs.What cost would be recorded for the ending work in process inventory?

Instead of using a job cost sheet,production reports are prepared for each department (or process)to accumulate costs of production and to account for units worked on.

The equivalent units of production for material for the month are?

Fabian Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs.An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department.There were 12,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?