Exam 3: Process Costing and Analysis

The Machining Department started the current month with beginning goods in process inventory of $10,000.During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost.Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process.The ending balance of the Goods in Process Inventory account for the Machining Department is:

The use of process costing is of little benefit to a service type of operation.

If Department N incurred direct labor cost of $22,000 and Department O incurred direct labor cost of $43,000, the following journal entry would be recorded by the process cost accounting system:

Equivalent units of production refer to the number of units that would be completed if all effort during a period had been applied only to those units that were started and completed in a period.

When a process cost accounting system assigns the cost of materials to a production department, the journal entry debits the Raw Materials Inventory account and credits the Goods in Process Inventory account for that department.

Refer to the following information about the Painting Department in the Richardson Factory for the month of June: -Assume that the Painting Department of the Richardson Factory uses the weighted-average method.What is the cost of all units that were completed and transferred to finished goods in June? What is the total cost of ending goods in process?

A company's January 1 goods in process inventory contained 30,000 units that were one-fourth complete with respect to direct labor.The beginning inventory was completed this year and another 120,000 units were started.Of those started, 80,000 were finished and the remaining 40,000 were left one-fifth complete.Using weighted average, calculate the equivalent units of production for the year.

What was the cost of the direct materials used in the Grating Department?

Medina Corp. had the following information available for the year: -If the weighted-average inventory method were used, the equivalent units for the year would be:

A process cost summary involves computations and analysis at four sequential steps.These are (1)_________ (2)_____________, (3)_______________, and (4)______________.

Based on the table of cost information below, prepare the general journal entry required to record the: A.Transfer of goods from the molding department to the finished goods inventory. B.Cost of goods sold for November. The following table of cost information is available for the Messier Company for the month of November:

If a department that applies process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, it must add 80,000 equivalent units of labor to complete them.

The three distinct groups of units that must be considered in determining the equivalent units of production under the FIFO method of process costing are: (a)_______________, (b)_______________, and (c)_____________________.

Process cost accounting systems consider direct costs to include those costs that can be readily identified with a particular process.

The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

A company uses a process cost accounting system and the weighted-averaage inventory valuation method.Its Assembly Department's beginning inventory consisted of 50,000 units, three-fourths complete with respect to direct labor and overhead.The department started and finished 127,500 units this period.The ending inventory consists of 40,000 units that are one-fourth complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.Goods in Process included direct labor costs of $30,000 and overhead costs of $40,000 for the period.The overhead cost per equivalent unit is:

The following data are available for a company's manufacturing activities: Assume the company uses FIFO inventory.If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively?

What is a hybrid costing system? When is a hybrid costing system appropriate for a manufacturer?

A process cost summary shows the cost of a particular job manufactured in the reporting period.

Refer to the following incomplete table of cost information: -What was the cost of the beginning inventory of finished goods?