Exam 6: Process Costing

In a __________ costing system, production costs are accumulated by process.

FIFO follows the __________ principle. or

In a process-costing system, work-in-process inventory, materials are added uniformly so that multiple calculations of equivalent units are needed for each type of input.

Triton Manufacturing Company began June 2014 with 10,000 units of inventory in process, 20 percent completed. During the period, 50,000 units were completed and transferred to the finished goods warehouse. Ending inventory consisted of 5,000 units, 70 percent completed. Materials were added at the beginning of the process. Required: Calculate the equivalent units for:

The documents used to collect production costs for each batch in operation costing are called __________ .

When conversion costs are uniform,

Beginning inventory consisted of 1,000 units with costs of $31,000. All materials and 60 percent of labor and overhead were added in the prior period. In addition, another 8,000 units were started and completed. Unit costs are materials, $8.00; labor, $20.00; overhead, $9.00. What is the total cost of goods transferred out using FIFO?

Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.

Figure 6-2 Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: There were no work in process inventories and 1,000 podiums were produced. Refer to Figure 6-2. Record the journal entries to record the transfer of goods from process to process.

In firms with ending work-in-process inventories, output is measured using equivalent units.

Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Figure 6-16 Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during October: Refer to Figure 6-16. The number of units started in the second department during April is

When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good units.

JIT manufacturing emphasizes

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called:

The two methods used to determine equivalent units of production are

The costing system that uses job-order procedures to assign direct material costs to batches and process procedures to assign conversion costs is called __________ costing.

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Refer to Figure 6-19. Rounded to two decimal places, Mountainside's costs transferred out using weighted average would be

That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:

Phantom Enterprises adds materials to production at the beginning of the process in the Production Department. It uses a single-step process. Data on material for this department for July 2014 are as follows: The company uses the FIFO inventory method. The materials cost in Work in Process on July 31 is