Exam 20: Process Cost Accounting

If Department R uses $60,000 of direct materials and Department S uses $15,000 of direct materials,the following journal entry would be recorded by the process costing system

During November,the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 that were started and completed in November.November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of November,40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to conversion for November using the weighted-average method.

Refer to the following information about the Finishing Department in the Davidson Factory for the month of June.Davidson Factory uses the FIFO method of inventory costing.

During March,the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 that were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to both materials and conversion respectively for March using the FIFO method.

In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

Which of the following statements is most accurate?

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

A company uses a process costing system.Its Weaving Department completed and transferred out 120,000 units during the current period.The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs). Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.

An ____________________ is the number of units that could have been started and completed given the costs incurred during the period. Answers must appear in this order.

Metaline Corp.uses the weighted average method for inventory costs and had the following information available for the year.The number of units transferred to finished goods during the year is:

In a process costing system,direct material costs incurred are recorded:

A company uses a process costing system.Its Assembly Department's beginning inventory consisted of 30,000 units,75% complete with respect to direct labor and overhead.The department completed and transferred out 127,500 units this period.The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period.Assuming the weighted average method,the direct labor cost per equivalent unit (rounded to the nearest cent)is:

Which of the following products is most likely to be produced in a process operations system?

The FIFO method of computing equivalent units includes the beginning inventory costs in computing the cost per equivalent unit for the current period.

Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations for June.The journal entry to record June production activities for overhead allocation is:

One section of the process cost summary describes the equivalent units of production for the department during the reporting period and presents the calculations of the direct materials and conversion costs per equivalent unit.

Process costing systems are commonly used by companies that manufacture standardized products by passing them through a series of manufacturing steps.

Prepare journal entries to record the following production activities for Oaks Manufacturing. a.Used $93,900 of direct labor in the production department. b.Used $11,200 of indirect labor.

The purchase of raw materials on account in a process costing system is recorded with a:

Wyman Corporation uses a process costing system.The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075.The complete journal entry to be made by Wyman at the time of this sale is: