Exam 20: Process Cost Accounting

Luker Corporation uses a process costing system.The company had $160,500 of beginning Finished Goods Inventory on October 1.It transferred in $837,000 of goods completed during the period.The ending Finished Goods Inventory balance on October 31 was $158,200.The entry to account for the cost of goods sold in October is:

If a process has _______________ or _______________ inventory of partially completed production,equivalent units must be calculated so that total costs incurred during the period are assigned to all units worked on. Answers must appear in this order.

A company uses a process costing system and the weighted average method for inventory costs.The following information is available regarding direct labor for the current year: Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

The following data are available for a company's manufacturing activities: If materials are added when the production process begins and direct labor is applied uniformly throughout the process,what are the equivalent units for direct materials and for direct labor,respectively using the FIFO method of process costing?

A company uses the FIFO method for inventory costing.At the beginning of a period,the production department had 20,000 units in beginning Work in Process inventory which were 40% complete;the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.Compute the number of equivalent units produced by the department.

Refer to the following information about the Finishing Department in the Davidson Factory for the month of June.Davidson Factory uses the weighted-average method of inventory costing. Compute the total cost of all units that were completed and transferred to finished goods during June.Compute the total cost of the ending Work in Process inventory.

A company uses the FIFO method for inventory costing.At the start of the period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete;the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825.Compute the equivalent cost per unit for labor.

A company uses a process costing system and the weighted average method for inventory costs.The following information is available regarding direct labor for the current year: (a)Calculate the equivalent units of production for direct labor for the year. (b)Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

In a process costing system,with the exception of the first department,each department receives output from the prior department as a partially processed product.

If Grayson Manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department,the journal entry to record the labor used is

Port Manufacturing Company uses a process costing system.Materials are added at the beginning of the process.Direct labor and overhead are added evenly throughout the process.The company uses monthly reporting periods for its weighted-average process costing.The following are the operating and cost data information for October. The October 1 beginning Work in Process Inventory consisted of 20,000 units.The costs for this inventory are $82,500 of direct materials,$24,400 of direct labor,and $48,800 of factory overhead.Factory overhead is applied at 200% of direct labor cost. In addition to the beginning inventory costs,the company issued the following costs into Work in Process Inventory;direct materials,$240,000;direct labor,$68,000;factory overhead,$136,000. During October,the company completed and transferred 60,000 units of its product to finished goods.At the end of the month,the Work in Process inventory consisted of 15,000 units that were 40% complete with respect to direct labor and factory overhead and 100% complete with respect to materials. Prepare the company's process cost summary for October using the weighted average method.

A process costing system records all factory overhead costs directly in the Work in Process Inventory accounts.

A company uses the weighted average method for inventory costing.At the beginning of a period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete;the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.Compute the number of equivalent units produced by the department.

After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,

A company uses a process costing system.Its Welding Department completed and transferred out 100,000 units during the current period.The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

Equivalent units of production for direct materials and direct labor are usually the same.

The use of process costing is of little benefit to a service type of operation.

Job order costing and process costing are two major costing systems used in manufacturing.Briefly contrast the characteristics of these two systems.

A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory.The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs.Calculate the equivalent units of production for the month,assuming the company uses the weighted average method.