Exam 6: Process Costing

For the receiving department, transferred in goods are added at the __________ of the process.

Spoilage in a process costing process means

Abnormal spoilage is treated differently from normal spoilage in what way?

The production report is the document that summarizes the manufacturing activity that takes place in a work-in-process department.

Rawlings, 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 January follows: Work in process, January 1: Units (35\% complete) 7,500 Direct materials \ 36,000 Direct labor \ 45,000 Overhead \ 15,000 During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: Direct materials \ 133,050 Direct labor 180,000 Overhead (applied) 45,000 There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. Total cost per equivalent unit of production using the FIFO method is

Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were: Molding Heat-treat Finishing Direct labor \ 25,000 \ 12,500 \ 7,500 Factory overhead 30,000 17,500 12,600 Total \ 55,000 \ 30,000 \ 20,100 Three types of cups were produced in April. The quantities and direct materials costs were: Type Quantity Direct Materials Casts 5,000 \ 15,000 Cups 7,000 22,470 Mugs 8,000 32,500 Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used. What is Outrageous Cups' conversion cost per unit for the heat-treat operation, rounded to two decimal places?

The basic characteristics of process costing include: cost flows, journal entries, and the __________ report.

Maynard Inc. manufactures desks. The following data was given for production in February: units, beginning work in process 0 units started 200 units completed ? units, ending work in process ( 40\% complete) 50 If a total of $11,050 in production costs were incurred, what is the unit cost in February?

The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given number of partially completed units is:

The following information pertains to Mcintosh Company: Work-in-process inventory, February 1 (30\% complete) $\quad 20,000$ units Units transferred in 50,000 units Work-in-process inventory, February $29(60 \%$ complete) 16,000 units Materials are added at the start of the process. How many equivalent units for materials would there be using the weighted average method?

In calculating equivalent units of production using the weighted average method, the transferred-in goods are treated as materials added at the beginning of the process.

The material cost per equivalent unit using the weighted average method is calculated as

Wonder Paints Corporation's Mixing Department began August 2018 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Wonder Paints using the weighted average costing method?

In a __________ costing system, production costs are accumulated by process.

Rawlings, 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 January follows: Work in process, January 1: Units (35\% complete) 7,500 Direct materials \ 36,000 Direct labor \ 45,000 Overhead \ 15,000 During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: Direct materials \ 133,050 Direct labor 180,000 Overhead (applied) 45,000 The cost of January's ending work in process for the Mixing Department using the FIFO method is

Services that are basically homogeneous and repetitive cannot take advantage of a process-costing approach.

The appropriate cost accounting system to use when inventory items are produced on an assembly line is

Phantom Enterprises adds materials to production at the beginning of the process in the Production Department. It uses a single-step process. Data on material for this department for July 2018 are as follows: Production data (units): In process, beginning of July 10,000 Started during July 60,000 Completed and transferred out during July 55,000 Manufacturing cost: Work in process, beginning \ 39,000 Materials used in July \ 186,000 The company uses the FIFO inventory method. The materials cost in Work in Process on July 31 is

Under the weighted average method, once weighted average equivalent units are calculated then the first-in, first-out equivalent units can be obtained by subtracting out:

The Allen Company has the following information for the Assembly Department for the month of October: Materials purchased \ 4,000 Materials used 49,000 Direct labor 30,000 Actual manufacturing overhead 56,000 Cost of goods completed and transferred to the Finishing Dept. 125,000 Overhead rate is 200 percent of direct labor costs. Allen Company uses a process costing system for the Assembly Department. The journal entry to record goods completed and transferred out of the Assembly Department would include a