Exam 14: Job-Order Costing and Process-Costing Systems

Perch Company manufactures greeting cards.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing Department for the month of September follow: Work-in-process inventory,September 1: With regard to the work-in-process inventory on September 30,materials are 100 percent complete and conversion costs are 60 percent complete.The total cost of goods transferred out of the Printing Department is ________.

Direct materials of $10,000 are requisitioned by the production supervisor for the production area.Job-order costing is used.The journal entry to record this transaction is:

Backflush costing provides reasonably accurate product costs if materials inventories are ________.

Helen Company uses a job-order costing system and has the following data available: The journal entry to record the cost of goods completed would include a ________.

St.Luke's Hospital uses a job-order costing system for all patients who have surgery.The following information is available: The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the pre-operating room is ________.

The weighted-average method of process costing adds the cost of all work done in the current period to ________.

In job-order costing,a debit to Work-in-Process Inventory is used to record ________.

Clumber Company produces plastic cups in a one-department process.The following data is available for the past month: The units in process at the end of the month are 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs.What are the equivalent units for conversion costs for the month?

Which of the following is NOT a step in carrying out process costing?

Joel Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing Department for the month of June follow: Work-in-process inventory,June 1: With regard to the work-in-process inventory on June 30,materials are 100 percent complete and conversion costs are 60 percent complete.What are the equivalent units for materials for June?

Binding Company prints calendars.All direct materials are added at the inception of the printing process.There were 20,000 units in beginning inventory with a direct material cost of $1,000 and conversion costs of $3,760. During the month of April,160,000 calendars were started and 144,000 calendars were completed.Direct materials cost $26,000 for the month of April.Conversion costs for the month of April were $20,000. Ending work-in-process units are 100% complete with regard to direct materials and 40% complete with regard to conversion costs.The weighted-average method of process costing is used by Binding Company. Required: A)Compute the equivalent units for materials and conversion costs. B)Compute the unit costs for materials and conversion costs. C)Compute the cost of units transferred. D)Compute the cost of ending work-in-process inventory.

In job-order costing,time cards record the materials used in particular jobs.

Matthew Company manufactures phones in a two-department process that involve Assembly and Finishing.The Assembly Department reported the follow data for the past month: The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

Organizations using JIT production systems always have no inventories.

Two extremes of product-costing are job-order costing and normal costing.

Fish Company manufactures phones in a two-department process that includes Assembly and Finishing.Information about the Assembly Department follows: There was no beginning inventory and 80,000 units were started in the Assembly Department.By the end of the month,67,200 units were completed and transferred to the Finishing Department and 12,800 units were still in process.The partially complete units were 100 percent complete with regard to direct materials but 80 percent complete with regard to conversion costs.The equivalent units for conversion costs for the month for the Assembly Department are ________.

Assume a company uses process costing.When factory overhead is applied,Finished Goods Inventory is the debit part of the journal entry.

Python Company manufactures plastic cups in one department.The following information is available: The units in the ending work-in-process inventory are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.The unit cost of direct materials is ________.

The construction and printing industries normally use job-order costing.

Source documents used in job-order costing include ________.