Exam 6: Process Costing

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs Units Trans.-in Materials Conv. Work in process, July 1 30 \ 1,590 \ 0 \ 513 Transferred in during July ? Completed during July 105 Work in process, July 31 15 Costs added during July \ 4,410 \ 1,050 \ 1,767 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Rounded to two decimal places, Mountainside's cost per equivalent units for transferred-in costs using weighted average would be

Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units: Units, beginning work in process 40,000 (20\% complete for materials, $60 \%$ complete for conversion) Started Completed? Units, ending work in process $\quad 50,000 \quad$ (25\% complete for materials, $80 \%$ complete for conversion) Costs: Materials Conversion Total beginning workin process \ 6,080 \ 2,160 \ 8,240 current costs \ 220,875 \ 30,600 \ 251,475 total costs \ 226,955 \ 32,760 \ 259,715 The company uses FIFO inventory assumption. What is the journal entry for the cost of goods sent to binding?

In a process costing system, which of the following would be TRUE?

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 What are the equivalent units?

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: Large Larger Work Order 10 Work Order 11 Direct materials (actual costs) \4 5,000 \7 5,000 Applied conversion costs: Mixing ? ? Cooking \ 12,000 \ 12,000 Bottling \ 10,000 \ 15,000 Batch size (bottles) 5,000 5,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company's unit cost of Large?

A key input to the cost of production report is __________ costs.

Thunder Roads Enterprises makes the following information available: Units in process at the beginning of the month 2,000 Units in process at the end of the month 4,000 Units started during the month 30,000 Materials are added at the beginning of the process. Beginning and ending units were 60 percent complete as to conversion costs. What is the number of units started and completed?

__________ is a costing system that blends job-order and process-costing procedures applied to batches of homogeneous products.

Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process ( $1 / 3$ complete) $\quad 6,000$ Units, ending work in process ( $1 / 2$ complete) $\quad 4,000$ The equivalent units for those transferred in from the prior department using weighted average is

Cadmium Corporation manufactures leather bags. The following information pertains to the month of August: Units Work in process, August 1 (40\% complete) 900 Started in August 4,000 Materials are added at the beginning of the process. If 3,700 units were completed during the month, ending work in process on August 31 is:

Mandarin Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data of Mandarin Company for the month of September follows: Production data: In process, September 1 ( 37.50\% converted) 8,000 units Started during September 20,000 units Completed and transferred to finished goods 25,500 units In process, September 30 (80\% converted) 2,500 units Manufacturing costs: Work in process (WIP), Beginning \ 24,500 Materials \8 0,000 Direct labor cost \2 5,500 Factory overhead cost \7 5,000 Required: Prepare a cost of production report for the month of September. Use the first-in, first-out process costing approach.

The following information is available for Department C for the month of August: Units Cost Work in process, August 1 (70\% complete) 10,000 Direct materials \ 36,000 Direct labor 18,000 Manufacturing overhead 24,000 Total work in process, August 1 \ 78,000 Started in production during August 40,000 Costs added: Direct materials 108,000 Direct labor 48,000 Manufacturing overhead 61,040 Total costs added during August \ 217,040 Work in process, August 31 (80\% complete) 4,000 Units completed and transferred out 42,000 Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption. Department C's equivalent units of production for conversion using the weighted average method is

In order to determine product costs, JIT firms are usually structured so they can use:

Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows: Costs Units Materials Conversion Work in process, May 1 25,000 \ 68,750 \ 167,650 Started during May 100,000 300,000 903,350 Work in process, May 31 10,000 Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. How many equivalent units for materials would there be for Anzalone Corporation in May using the FIFO method?

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: Large Larger Work Order 10 Work Order 11 Direct materials (actual costs) \4 5,000 \7 5,000 Applied conversion costs: Mixing ? ? Cooking \ 12,000 \ 12,000 Bottling \ 10,000 \ 15,000 Batch size (bottles) 5,000 5,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company's amount transferred from the Mixing Department to the Cooking Department for Work Order 10?

The Allen Company has the following information for the Assembly Department for the month of October: Materials purchased 45,000 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. What is the total amount of debits to Work in Process-Assembly Department for October?

For beginning work-in-process category using FIFO, the manufacturing cost is the sum of the current-period __________ and the current __________ to complete the BWIP.

When manufacturing companies exhibit characteristics of both job and process environments, they use batch production processes.

The __________ method is a unit-costing method that merges prior-period work and costs with current period work and costs.

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: Large Larger Work Order 10 Work Order 11 Direct materials (actual costs) \4 5,000 \7 5,000 Applied conversion costs: Mixing ? ? Cooking \ 12,000 \ 12,000 Bottling \ 10,000 \ 15,000 Batch size (bottles) 5,000 5,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What are Golden Ring Company's conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?