Exam 3: Process Costing and Analysis

A company uses a process cost accounting system.Its Sewing Department's beginning inventory consisted of 50,000 units (1/4 complete with respect to direct labor and overhead).The Sewing Department started and finished 120,000 units this period.Its ending inventory consists of 40,000 units (1/4 complete with respect to direct labor and overhead).All direct materials are added at the beginning of the process.Under the weighted-average inventory valuation method, what are the equivalent units of production for the Sewing Department for direct materials and for direct labor and overhead, respectively?

Direct material costs are recorded:

What total cost should be assigned to the units that were in the beginning goods in process inventory and completed during August?

A department had 600 units which were 40% complete in beginning Goods in Process Inventory.During the current period, 7,000 units were transferred out.Ending Goods in Process Inventory was 800 units which were 40% complete.Using the weighted-average method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

One section of the process cost summary describes the equivalent units of production for the department during the reporting period and presents the calculations of the costs per equivalent unit.

A ____________________ system contains features of both process and job order operations.

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

A department had 65 units which were 20% complete in beginning Goods in Process Inventory.During the current period, 77 units were transferred out.Ending Goods in Process Inventory was 30 units which were 20% complete.Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

Hybrid systems contain aspects of both process and job order operations.

At the beginning of the recent period, there were 900 units of product in a department, one-third completed.These units were finished and an additional 5,000 units were started and completed during the period.800 units were still in process at the end of the period, one-fourth completed.Using the weighted-average valuation method, the equivalent units produced by the department were:

Bimrose Manufacturing uses process cost accounting and FIFO for its three-department operation.Direct materials are added at the beginning of the Department 1 process, at the halfway point of the Department 2 process, and at the beginning of the Department 3 process.Direct labor and overhead are incurred evenly throughout all departments' processes.The following information is available for September: (a)Determine the number of units started and completed in Department 1, and the number of units transferred into and completed in Departments 2 and 3. (b)Determine the equivalent units of production for direct materials, direct labor, and overhead for each department.

The third step in accounting for production activity in a period is to compute the ______________________.

A materials consumption report is a source document that summarizes the materials used during a reporting period.

Assume that the Hood River Juice Company applies factory overhead to its production departments on the basis of 65% of direct labor costs.Direct labor in the Squeezing Department was $80,000 and direct labor in the Filtering Department was $12,000.The entry to apply overhead to these production departments is:

After all process cost accounting journal entries are recorded and posted for a reporting period, the Factory Payroll account should have a zero balance.

Which of the following pair of journal entries correctly records the current month's activity where $250,000 of raw material was purchased for cash and $150,000 of direct material and $60,000 of indirect materials were used in the production process?

In process cost accounting, all labor that is applied exclusively in a single production department is considered to be direct labor.

A process cost summary includes the amounts of equivalent finished units of production for the period.

The following data are available for Osman Corp.for the current year: Using weighted average, calculate the equivalent units of production for the year.

The first step in accounting for production activity in a period, ________________, is a reconciliation of the physical units started in a period with the physical units completed in that period.