Exam 12: Job-Order, Process, and Hybrid Costing Systems

In April, the Assembly Department's beginning work in process was 10,000 units. During the month, 40,000 units were transferred to the Finishing Department. The Assembly Department had 20,000 units that were 60 percent complete in its ending work in process. The Assembly Department's total product costs for April were $260,000.Required: (A) Calculate the number of equivalent whole units for the Assembly Department.(B) Calculate the cost per equivalent whole unit.(C) Determine the cost of the goods transferred to the Finishing Department.(D) Determine the cost of the Assembly Departments ending work in process.

Job-order and process cost systems are used only in the United States.

O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During the current accounting period, O'Hare used $1,200 of direct raw materials for job #132. The recognition of this event would reflect an increase in which of the following accounts?

The costs of shipping a job to the buyer are recorded on the job's job cost sheet.

Which of the following statement(s) is (are) correct? I. It is easy to distinguish the balance sheet of a company that uses a process costing system from that of a company that uses job-order costing II) A process cost system requires a work in process account for each processing department, while a job order system uses a single work in process account III) Process cost systems use multiple Finished Goods Inventory accounts

Select the incorrect statement regarding cost flows through a process cost system.

Select the correct formula for computing the cost to be assigned to ending inventory in a process costing system.

All of the following transactions lead to an entry on the job cost sheet except:

O'Hare Company is a manufacturing firm that uses a job-order cost system to determine the costs of its products. O'Hare Company counted the production supplies on hand at year-end and determined that the amount used was $125. The recognition of this event on the financial statements would include an increase to which of the following accounts? Delete the "," Done JMF

The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

Equivalent units of production would best be defined as: I realize the bold word in text is "equivalent whole units" - However, given the wording of the LO, I have not inserted the word "whole" anywhere.

Gaither Company uses a process cost system and the weighted average method. The following data applies to January.The ending work in process inventory is 90% complete. The total number of equivalent whole units processed during January was: Units Beginning Work in Process 2,500 Started during the period 25,000 Ending Work in Process 1,000

The application of estimated manufacturing overhead to jobs is:

A process cost system would be appropriate for all of the following except:

Maynard Manufacturing Company uses a job order cost system in its two departments, Machining and Assembly. Overhead is allocated in the Machining Department on the basis of machine hours, while in the Assembly Department overhead is allocated on the basis of direct labor cost. The following budget data are provided: The following information is provided for a job (Job No. 510) recently completed by the company: Required: 1) Compute the two departmental overhead rates.2) Compute the cost of Job No. 510.3) Assume that the company decides to use a single overhead rate for the two departments, calculated by adding their overhead costs and using direct labor hours as the allocation base. What would the overhead rate be, and how much manufacturing overhead cost would be assigned to Job No. 510? (Do not round your intermediate calculation.) Machining Department Assembly Department Manufacturing overhead \ 500,000 \1 ,075,000 Direct labor cost 350,000 500,000 Machine hours 100,000 10,000 Direct labor hours 50,000 150,000 Machining Department Assembly Department Manufacturing overhead \ 25,000 \ 7,500 Direct labor cost 10,000 12,500 Machine hours 5,000 1,000 Direct labor hours 2,000 3,000 Rounding? Added.

The weighted average method of process costing does not account for the state of completion of units in beginning inventory.

Recognition of revenue from sale of finished goods is:

A materials requisition in a job-order cost system is used as a:

Both job-order and process costing require cost averaging procedures.