Question 1

Refer to the following information about the Painting Department in the Richardson Factory for the month of June:

-If FIFO is used, what is the total cost of all units that were completed and transferred to finished goods during June? What is the total cost of the ending goods in process inventory?

Accepted Answer

The answer of Refer to the following information about the...

Question 2

Equivalent units of production are equal to:

Accepted Answer

A)  The number of units that could have been completed if all effort had been applied to units that were started and completed that period. 
B)  The number of finished units actually produced that period. 
C)  The number of units introduced into the process that period. 
D)  The number of units still in process that period. 
E)  Physical units that were completed this period from all effort being applied to them.

Question 3

If the predetermined overhead allocation rate is 225% of direct labor cost, and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Accepted Answer

A) True 
 B)False

Question 4

Materials and labor costs that are clearly associated with a specific process are known as ___________________. Those costs that are not clearly associated with a specific process are called ________________.

Accepted Answer

The answer of Materials and labor costs that are clearly...

Question 5

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Accepted Answer

A)  Production department. 
B)  Service department. 
C)  Primary department. 
D)  Responsibility department. 
E)  Control department.

Question 6

Assuming the FIFO inventory valuation method, use the following information to determine the cost of the goods completed during the current reporting period:

Accepted Answer

The answer of Assuming the FIFO inventory valuation method, use...

Question 7

A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

Accepted Answer

A) True 
 B)False

Question 8

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August:

The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00.
-What total cost should be assigned to the units that were in process at the end of August?

Accepted Answer

The answer of  Refer to the following information about...

Question 9

Refer to the following information about the Painting Department in the Richardson Factory for the month of June:

-If FIFO is used, what was the materials cost per equivalent unit produced during June? What was the labor and overhead cost per equivalent unit produced during June?

Accepted Answer

The answer of Refer to the following information about the...

Question 10

At the beginning of the recent period, there were 900 units of product in a department, one-third completed. These units were finished and an additional 5,000 units were started and completed during the period. 800 units were still in process at the end of the period, one-fourth completed. Using the Weighted Average valuation method, the equivalent units produced by the department were:

Accepted Answer

A)  6,700 units. 
B)  5,900 units. 
C)  5,800 units. 
D)  6,100 units. 
E)  8,500 units.

Question 11

In a manufacturing operation with two process departments (1 and 2), the flow of costs would proceed from Goods in Process, Dept #1 to ________________ to _______________ to ______________.

Accepted Answer

The answer of In a manufacturing operation with two process...

Question 12

In a process manufacturing system, products pass through a series of sequential processes.

Accepted Answer

A) True 
 B)False

Question 13

A company uses a process cost accounting system. The following information is available regarding direct labor for the current year:
$\begin{array}{ll}
\text { Goods in process, January } 1 & 5,500 \text { units, } 80 \% \text { complete } \
\text { Goods in process, December } 31 & 8,800 \text { units, } 40 \% \text { complete } \
\text { Units completed and transferred to } & \
\text { finished goods } & 46,900 \text { units } \
\text { Direct labor costs during the year } & \$ 266,300
\end{array}$
(a) Calculate the equivalent units of production for direct labor for the year using Weighted Average.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

Accepted Answer

The answer of A company uses a process cost accounting...

Question 14

A department had 65 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 77 units were transferred out. Ending Goods in Process Inventory was 30 units which were 20% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

Accepted Answer

A)  83 
B)  70 
C)  100 
D)  77 
E)  107

Question 15

If the predetermined overhead allocation rate is 85% of direct labor cost, and the Polishing Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Accepted Answer

A) True 
 B)False

Question 16

Briefly explain the conditions under which job order cost accounting systems and process cost accounting systems are commonly applied.

Accepted Answer

The answer of Briefly explain the conditions under which job...

Question 17

When a process cost accounting system assigns the cost of materials to a production department, the journal entry debits the Raw Materials Inventory account and credits the Goods in Process Inventory account for that department.

Accepted Answer

A) True 
 B)False

Question 18

If Department N incurred direct labor cost of $22,000 and Department O incurred direct labor cost of $43,000, the following journal entry would be recorded by the process cost accounting system:

Accepted Answer

A) True 
 B)False

Question 19

If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

Accepted Answer

A) True 
 B)False

Question 20

The second step in accounting for production activity in a period is to compute ______________________.

Accepted Answer

The answer of The second step in accounting for production...

Exam 16: Process Costing and Analysis

Refer to the following information about the Painting Department in the Richardson Factory for the month of June: -If FIFO is used, what is the total cost of all units that were completed and transferred to finished goods during June? What is the total cost of the ending goods in process inventory?

Equivalent units of production are equal to:

If the predetermined overhead allocation rate is 225% of direct labor cost, and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Materials and labor costs that are clearly associated with a specific process are known as ___. Those costs that are not clearly associated with a specific process are called .

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Assuming the FIFO inventory valuation method, use the following information to determine the cost of the goods completed during the current reporting period:

A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

Refer to the following information about the Painting Department in the Richardson Factory for the month of June: -If FIFO is used, what was the materials cost per equivalent unit produced during June? What was the labor and overhead cost per equivalent unit produced during June?

In a manufacturing operation with two process departments (1 and 2), the flow of costs would proceed from Goods in Process, Dept #1 to ________ to _ to ________.

In a process manufacturing system, products pass through a series of sequential processes.

If the predetermined overhead allocation rate is 85% of direct labor cost, and the Polishing Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Briefly explain the conditions under which job order cost accounting systems and process cost accounting systems are commonly applied.

When a process cost accounting system assigns the cost of materials to a production department, the journal entry debits the Raw Materials Inventory account and credits the Goods in Process Inventory account for that department.

If Department N incurred direct labor cost of $22,000 and Department O incurred direct labor cost of $43,000, the following journal entry would be recorded by the process cost accounting system:

If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

The second step in accounting for production activity in a period is to compute ______________________.