Exam 6: Process Costing

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. -As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in

When job-order costing is used to assign material costs and process costing is used to assign conversion costs, it is called

Figure 6-21 Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. -Refer to Figure 6-21. What is Golden Ring Company's journal entry to apply conversion costs in the Mixing Department for Work Order 10?

Spoilage in a process costing process means

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. a. Work in Process - Assembly 14,000 Work in Process - Cutting 14,000 Work in Process - Finishing 43,000 Work in Process - Assembly 43,000 Finished Goods 54,000 Work in Process - Finishing 54,000 b. Work in Process - Assembly 29,000 Work in Process - Cutting 29,000 Work in Process - Finishing 11,000 Work in Process - Assembly 11,000 Finished Goods 54,000 Work in Process - Finishing 54,000 c. Work in Process - Cutting 14,000 Raw Materials 14,000 Work in Process - Assembly 29,000 Raw materials 29,000 Work in Process - Finishing 11,000 Raw Materials 11,000 d. none of the above

Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. -Refer to Figure 6-15. What is the cost per unit for materials?

Figure 6-11 Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: -Refer to Figure 6-11. There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. Total cost per equivalent unit of production using the FIFO method is

Operation costing uses a blend of job-order and process-costing procedures whenever batches of dissimilar products are produced.

Figure 6-11 Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: -Refer to Figure 6-11. There were 2,500 units that were 80 percent complete remaining in Mixing at January 31. The amount of total costs to account for is

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000 -The cost assigned to goods from a prior process is termed:

Figure 6-8 Thunder Roads Enterprises makes the following information available: Units in process at the beginning of the month 2,000 Units in process at the end of the month 4,000 Units started during the month 30,000 Materials are added at the beginning of the process. -Refer to Figure 6-8. Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the FIFO method?

The whole units that could have been produced in a period given the amount of manufacturing inputs used is(are) called:

Banzai Corporation produces calculators on an assembly line in a single-step process. Factrory overhead is applied based on direct labor cost. The following data pertains to September 2016: Current manufacturing costs: Required: a. Prepare traditional journal entries for the following events in September: 1. Purchase of materials on account 2. Requisition of materials into production 3. Usage of direct labor 4. Application of overhead 5. Completion of finished goods b. What is the amount of direct labor in ending work in process? a. Prepare traditional journal entries for the following events in September:

Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. -Refer to Figure 6-15. What is the cost assigned to the units completed and transferred to finishing?

Manufacturing firms that have characteristics of both job and process environments often use processes.

The accounting system which accumulates production costs by process and uses a work-in-process account for each process is called .

Figure 6-10 Julius Corporation's mixing department began January 2016 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). -Refer to Figure 6-10. If materials were added when the units are 50 percent complete, how many equivalent units of production for materials would there be for Julius Corporation using the FIFO costing method?

Figure 6-4 The following information is available from the records of Diamond Cut, Inc.: -Refer to Figure 6-4. What are the conversion costs in the Finishing Department?

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

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: Costs The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. -Refer to Figure 6-19. Mountainside's equivalent units for conversion using FIFO would be