Exam 15: Process Costing

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Equivalent units of production are used to determine the cost per unit of completed products.

In continuous process manufacturing, generally once the production begins, it continues until the finished product emerges.

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

Materials costs of $600,000 and conversion costs of $642,600 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

Equivalent units are calculated by

In a process cost system, units to be accounted for in a department are equal to the

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

The total units to be accounted for is computed by adding

One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job.

The assignment of the three manufacturing cost elements to Work in Process in a process cost system is the same as in a job order cost system.

Byers Company had the following department information for the month: Total materials costs \ 48,000 Equivalent units of materials 10,000 Total conversion costs \ 80,000 Equivalent units of conversion costs 20,000 What is the total manufacturing cost per unit?

If there are no units in process at the beginning of the period, then

A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred out of the Baking Department will be transferred to:

In a process cost system, materials, labor and overhead are only added in the first production department.

A company that produces motion pictures would likely use a process cost system.

A process cost system would be used by all of the following except a(n)

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.