Exam 14: Job-Costing and Process-Costing Systems

Python Company produces plastic cups in a one-department process.The following information is available: Work-in-process inventory, beginning 0 Units started 60,000 Units complete and transferred out 48,000 Work-in-process inventory, ending 12,000 Direct materials added \ 180,000 Direct labor \ 165,600 Factory overhead \ 82,800 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs.The unit cost of direct materials is _____.

Broderick Company manufactures phones in a two-department process: Assembly and Finishing.Information on the first department, Assembly, follows: Direct materi als added \ 336,000 Direct labor 460,000 Factory overhead Total costs to account for \ 1,000,000 There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 75% complete as far as conversion costs.The entry to record the requisition of direct materials includes a debit to _____.

In process costing, the journal entry to transfer completed units from Department A to Department B would include a _____.

Fish Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: Direct materi als added \ 336,000 Direct labor 460,000 Factory overhead 230,000 Total costs to account for \ 1,026,000 There was no beginning inventory, and of the 80,000 units started in production 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 80% complete as far as conversion costs.The equivalent units for conversion costs are _____.

The centerpiece of a job-costing system is the balanced scorecard.

Unlike job-order costing, process costing requires only one work-in-process account.

Savior Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of June follow: Work-in-process inventory, June 1 Units 15,000 units Direct materials 100\% complete) \ 34,000 Conversion costs 30\% complete) \ 14,000 Units started in June 65,000 units Units completed in June 62,000 units Work-in-process inventory, June 30 20,000 units 100\% complete with regard to materials and 60\% complete with regard to conversi on costs) Direct material s added in June \ 285,000 Conversion costs added in June \ 210,000 The unit cost for materials is _____.

Equivalent units are computed to assign cost to partially completed units.

Time cards record the materials used in particular jobs.

Chemical and oil companies normally use process costing.

Process costing averages costs over large numbers of nearly identical products.

A process-costing method that adds the cost of 1) all work done in the current period to 2) the work done in the preceding period to the current period's beginning inventory of work in process, and divides the total by the equivalent units of work done to date

The record of the time a particular direct laborer spends on each job

Carnival Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$ Started and in process 10,000 These units had all materials added but were only 60% completed for conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The total cost of ending work-in-process inventory is _____.

Sudsy Company produces calendars in a one-department process.The following information is available: Direct materials added \ 30,000 Direct labor \ 20,700 Factory overhead \ 10,350 Work-in-process inventory, beginning -0- Units statted 15,000 Units completed and transferred out 12,000 Work-in-process inventory, ending 3,000 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs.The total of costs to account for is _____.

Flat Company uses a backflush-costing system to produce bicycles.Bicycles are scheduled for production only after orders are recorded, and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.Standard cost for materials and conversion is $150 and $75, respectively. During the current month, Flat purchased $9,000 of direct materials and incurred $5,300 in conversion cost to produce 40 units.The entry to record the purchase of materials includes a debit to _____.

In process costing, the journal entry to record direct labor would include a _____.:

Job-order costing can be used only in manufacturing environments.

Measures in equivalent units are found only in manufacturing situations.

Construction and printing industries normally use job-order costing.