Exam 17: Process Costing

Emerging Dock Company manufactures boat docks on an assembly line.Its standard costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Finishing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production. Data for the Assembly Department for May 2017 are: Costs for May: Which of the following journal entries records the total conversion costs variances of the Assembly Department,assuming that conversion costs are 15% higher than expected?

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing. The following information is available for the month of March 2017 for the Assembly department. The cost details for the month of March are as follows: Work in process,beginning inventory: What is the total amount debited to the Work-in-Process account during the month of March?

Emerging Dock Company manufactures boat docks on an assembly line.Its standard costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Finishing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production. Data for the Assembly Department for May 2017 are: Costs for May: Which of the following journal entries records the standard costs of direct materials assigned to units worked on and total direct materials variances assuming that the Assembly Department used 15% less materials than expected?

Charlie Chairs Inc. ,manufactures plastic moldings for car seats.Its costing system utilizes two cost categories,direct materials and conversion costs.Each product must pass through Department A and Department B.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Costs for Department A for February 2017 are: How many units were completed and transferred out of Department A during February?

Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the direct materials are introduced at the beginning of the process.

FIFO Aluminum processes a single type of aluminum.During the current period the following information was given: All materials are added at the beginning of the production process.The beginning inventory was 35% complete as to conversion,while the ending inventory was 40% completed for conversion purposes. FIFO Aluminum uses the first-in,first-out system of process costing. What were the costs assigned to the units transferred out this period (Round intermediary calculations to the nearest cent)?

Transferred-in costs are treated as if they are 100 percent complete at the beginning of the process in the new department.

Which of the following is not true of the weighted-average process-costing method?

From an accounting standpoint,favorable cost variances are debit entries,while unfavorable ones are credits.

An operation-costing system is a hybrid-costing system applied to batches of similar,but NOT identical,products.

The Swivel Chair Company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 145,000 chairs.During the month,the firm completed 184,000 chairs and transferred them to the Finishing Department.The firm ended the month with 19,000 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle.Weighted-average costing is used by Swivel.What were the equivalent units for materials for February?

Underestimating the degree of completion of ending work in process leads to increase in operating income.

Managers find operation costing useful in cost management because it ________.

When calculating the costs to be transferred using the FIFO method,we should not include costs assigned in the previous period to units that were in process at the beginning of the current period but are now included in the units transferred.

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing. Data for the Assembly Department for June 2017 are: Costs for June 2017: What is the conversion cost per equivalent unit in June?

Bright Colors Company placed 315,000 gallons of direct materials into the mixing process.All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process.Bright Colors uses weighted-average costing.The initial forecast for the end of the month was to have 75,000 gallons still in process,15% converted as to labor and factory overhead. Required: a.Determine the total equivalent units (in process and transferred out)for direct materials and for conversion costs,assuming there was no beginning inventory. b.With the installation of a new paint processing filtration device,the forecast for the end of the month was to have 50,000 gallons still in process,70% converted as to labor and factory overhead.In this event,determine the equivalent units (in process and transferred out)for direct materials and for conversion costs,assuming there was no beginning inventory.

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

Comfort chair company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 73,100 chairs.During the month,the firm completed 78,000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10,800 chairs in ending inventory.There were 15,700 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Comfort.Beginning work in process was 30% complete as to conversion costs,while ending work in process was 75% complete as to conversion costs. Beginning inventory: Manufacturing costs added during the accounting period: What were the equivalent units for conversion costs during February?

Both,the standard-costing method and FIFO,assumes that the earliest equivalent units in beginning work in process are completed first.

When a Bakery transfers goods from the Mixing Department to the Baking Department,the accounting entry would be ________.