Exam 16: Process Costing and Analysis

A process cost summary is an accounting report that describes the costs charged to each department,the equivalent units of production by each department,and determining the costs assigned to each department's output.

In process costing,the classification of materials as direct or indirect depends on whether or not they are clearly linked with a specific process or department.

At the beginning of the recent period,there were 900 units of product in a department,35% 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,25% completed.Using the weighted average method,the equivalent units produced by the department were:

A hybrid costing system would be most appropriate when:

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. -If the units completed were transferred to the Labeling Department,what is the appropriate journal entry to transfer the conversion costs?

Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system?

The following data are available for a company's manufacturing activities: If materials are added when the production process begins and conversion costs are applied uniformly throughout the process,what are the equivalent units for direct materials and for conversion,respectively using the FIFO method of process costing?

Describe the flow of materials in a process costing system,including accounts used.

In a process costing system,factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate.

What is meant by equivalent units of production,and why are they important when a process costing system is used?

During November,the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 units that were started and completed in November.November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of November,40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to materials for November using the weighted-average method.

Yamada Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department,Yamada had $125,000 of direct labor cost,and in the Finishing Department,Yamada had $35,000 of direct labor cost.The entry to apply overhead to these production departments is:

If the indirect labor cost in August for clerical and maintenance that help production in all departments was $123,000,the following journal entry would be recorded in a process costing system:

The cost object in a process costing system is the specific job.

During March,the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of physical units transferred to finished goods.

At the beginning of the month,the Forming Department of Martin Manufacturing had 10,000 units in inventory,30% complete as to materials,and 10% complete as to conversion.During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department.At the end of the month,the department had 8,000 units in inventory,80% complete as to materials and 60% complete as to conversion.If Martin Manufacturing uses the weighted average method of process costing,compute the equivalent units for materials and conversion respectively for the Forming Department.

Richards Corporation uses the weighted-average method of process costing.The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units,60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units,40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. -Calculate the cost per equivalent unit of materials.

In process costing,indirect materials are clearly linked with a specific production process or department.

In a process costing accounting system,factory wages are debited to ________,when direct labor is used.When indirect labor is used,the ________ account is debited.In both cases the ________ is credited.

Richards Corporation uses the FIFO method of process costing.The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units,60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units,40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. -Calculate the equivalent units of materials.