Exam 16: Process Costing and Analysis

The Fabricating Department started the current month with a beginning Work 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 Work in Process Inventory account for the Fabricating Department is:

Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead.

Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

Refer to the following information about the Finishing Department in the Davidson Factory for the month of June.Davidson Factory uses the FIFO method of inventory costing. -Compute the total cost of all units that were completed and transferred to finished goods during June.Compute the total cost of the ending Work in Process inventory.

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 direct materials?

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75.A total of 250,000 units of product were completed and transferred out as finished goods during the month,and 36,000 of equivalent units remained unfinished at the end of the month.The amount that should be reported in Finished Goods Inventory is:

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 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 equivalent units with respect to both materials and conversion respectively for March using the FIFO method.

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

Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations for June. -The journal entry to record June production activities for direct material usage is:

An ________is the number of units that could have been started and completed given the costs incurred during the period.

Pitt Enterprises manufactures jeans.All materials are introduced at the beginning of the manufacturing process in the Cutting Department.Conversion costs are incurred uniformly throughout the manufacturing process.As the cutting of material is completed,the pieces are immediately transferred to the Sewing Department.Information for the Cutting Department for the month of May follows. Work in Process,May 1 (50,000 units,100% complete for direct materials,40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs). Work in Process,May 31 (75,000 units,100% complete for direct materials; 20% complete for conversion costs). If Pitt Enterprises uses the FIFO method of process costing. -Compute the equivalent units for direct materials and conversion respectively for May.

In a process costing system,the entry to record cost of materials assigned to a production department requires a debit to the Work in Process Inventory account for that department and a credit to the Raw Materials Inventory account.

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

In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

A ________ contains features of both process and job order costing systems.

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

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

The third step in accounting for production activity in a period,before assigning and reconciling costs,is to compute the ________.

When the final production department completes goods,the cost of the completed goods are transferred to ________.