Exam 6: Process Costing

Conversion costs include:

Direct materials used in production,direct labor,and applied overhead are charged to the _______________ account.

Firms that offer services cannot have work-in-process inventories.

_________________________ are costs transferred from a prior process to a subsequent process.

Process costing is most appropriate for manufacturers of homogeneous products.

Process accounting's solution for nonuniform manufacturing inputs is:

The usual approach is to treat transferred-in goods as a separate conversion category when calculating equivalent units.

Figure 6-3. Kelley 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 October follows: During October,32,000 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October: By October 31,3,000 units that were 75 percent complete remained in Mixing.Kelley uses the weighted average method. Refer to Figure 6-3.Kelley's cost of October's ending work in process for the mixing department would be

Which of the following businesses is most likely to use process costing?

How is unit cost calculated?

The number of physical units is multiplied by the _____________________ to calculate equivalent units.

Figure 6-3. Kelley 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 October follows: During October,32,000 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October: By October 31,3,000 units that were 75 percent complete remained in Mixing.Kelley uses the weighted average method. Refer to Figure 6-3.Kelley's total costs to account for would be:

Mermain Inc.,manufactures products that pass through two processes.The company uses the weighted average method to compute unit costs.During March,equivalent units were computed as follows: Cost was added as follows: Required:

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

Which step is physical flow analysis in the general pattern of a process-costing production report?

To calculate the equivalent units of production,the number of physical units is multiplied by the percentage of completion.

If great accuracy in computing unit costs is desired,a company should use the _________ method to determine unit cost.

Which is the best description of the production report?

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

Information concerning Department A of Ali Company for the month of June is as follows: All materials are added at the beginning of the process.Using the first-in,first-out method,the cost (rounded to two places)per equivalent unit for materials is: