Exam 3: Costing Systems- Process Costing

Nader, Inc., has the following information available: Costs firom Beginuing Inventory Costs finm Current Period Direct materials \ 2,300 \ 21,252 Conversion costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.) - The equivalent units of production for direct materials and conversion costs, respectively, were

Natasha Corporation's Shaping Department had no beginning inventory and completed and transferred to finished goods 920 units during May. Ending inventory for May contained 80 units that were 30 percent complete as to conversion costs and 100 percent complete as to direct materials costs. The charges to the Shaping Department during May were $3,776 for conversion costs and $2,500 for direct materials costs. Compute the cost of work transferred out if Natasha Corporation uses the FIFO costing method.

Use the following data from a company using a process costing system to answer the question(s) below. The FIFO process costing method is used by the company. - Units completed and transferred out of the department during the month totaled

Which of the following items most likely would be manufactured using a process costing system?

Which of the following entities probably would use a process costing system?

Which of the following cost flow assumptions most closely follows the logical product flow in a process costing environment?

A process costing system accounts for product costs

Fantastic Fabricating uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75 percent complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60 percent complete with respect to conversion costs. If 11,200 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be

The FIFO process costing method assumes that the items in ending work in process inventory were started and completed during the current period.

It is difficult to track costs to individual products in a continuous flow manufacturing process.

In process costing system, the average costing method assumes that cost flows do follow the logical physical flow of production.

Nader, Inc., has the following information available: Costs firom Beginuing Inventory Costs finm Current Period Direct materials \ 2,300 \ 21,252 Conversion costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.) - The cost of completing a unit during the current period was

When the FIFO costing method is used in process costing, the number of units in beginning inventory is multiplied by 100 percent to determine the equivalent units.

In a process costing system, unit cost is computed

In order to be classified as a process costing system, the product flow must represent a series of processes in which only one process has input into the next process.

Only one Work in Process Inventory account is used with the process costing system.

Conversion costs are defined as the combined total of direct materials costs and direct labor costs incurred by a production department.

The Bakersfield Company has the following information available: Costs from Begiuning Inventory Costs from Current Period Direct materials \ 3,650 \ 31,620 Conversion costs 9,120 143,100 At the beginning of the period, there were 800 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 5,800 units were started and completed. Ending inventory contained 400 units that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO process costing method.) - The cost of completing a unit during the current period was

Unit costs are determined by dividing the total costs of the period by the equivalent units.

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Units Beginning work in process 26,000 (70 percent complete for conversion costs) Units stated 180,000 Units transferred out 191,000 Ending work in process 15,000 (60 percent complete for conversion costs) - Equivalent units for conversion costs are