The following information is available from the records of Diamond Cut, Inc.: \[\begin{array} { l c } \text { Direct Materials-Assembly Department } & \$ 10,000 \\ \text { Direct Materials-Finishing Department } & 15,000 \\ \text { Direct Labor-Assembly Department } & 11,000 \\ \text { Direct Labor-Finishing Department } & 20,000 \\ \text { Applied Overhead-Assembly Department } & 11,000 \\ \text { Applied Overhead-Finishing Department } & 20,000 \\ \text { Actual Overhead-Assembly Department } & 12,500 \\ \text { Actual Overhead-Finishing Department } & 17,500 \end{array}\] What are the conversion costs in the Finishing Department?

A) $35,000 B) $37,500 C) $40,000 D) $57,500 A) $35,000 B) $37,500 C) $40,000 D) $57,500

Edelstein Company had the following data for 2018: $\begin{array}{lr} \text { Units in process at the beginning of the month } & 4,000 \\ \text { Units in process at the end of the month } & 10,000 \\ \text { Units started during the month } & 40,000 \end{array}$ Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion. What is the number of units completed and transferred out during the period?

A) 34,000 units B) 54,000 units C) 44,000 units D) 40,000 units A) 34,000 units B) 54,000 units C) 44,000 units D) 40,000 units

Exam 6: Process Costing

The following information is available from the records of Diamond Cut, Inc.: Direct Materials-Assembly Department \ 10,000 Direct Materials-Finishing Department 15,000 Direct Labor-Assembly Department 11,000 Direct Labor-Finishing Department 20,000 Applied Overhead-Assembly Department 11,000 Applied Overhead-Finishing Department 20,000 Actual Overhead-Assembly Department 12,500 Actual Overhead-Finishing Department 17,500 What are the conversion costs in the Finishing Department?

(Multiple Choice)

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Question 161

The cost assigned to goods from a prior process is called the __________ cost.

(Short Answer)

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Question 162

Using the weighted average costing method, the costing of goods transferred out is __________ since there is only one category of completed units.

(Short Answer)

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Question 163

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 FIFO would be

(Multiple Choice)

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Question 164

The unit-costing method that merges prior-period work and costs with current-period work and costs is called:

(Multiple Choice)

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Question 165

The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period.

(True/False)

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Question 166

Licorice Corp. manufactures cricket bats. The company's manufacturing operations and costs applied to products for the month of December were: Grading Machining Shaping Direct labor \ 4,000 \ 5,000 \ 6,000 Factory overhead 11,000 12,000 10,000 Total \ 15,000 \ 17,000 \ 16,000 Two types of bats were produced in December. The quantities and direct materials costs were: Type Quantity Direct materials Ordinary 20,000 \ 15,000 Premium 12,000 \ 30,000 Both types of bats pass through all the three departments. An operation costing system is used. Compute the total cost of premium bats produced in the month of December.

(Multiple Choice)

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Question 167

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 are the FIFO cost per unit for materials?

(Multiple Choice)

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Question 168

A process is a series of activities or operations, which are linked to perform a specific objective.

(True/False)

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Question 169

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 are the FIFO cost per unit for conversion?

(Multiple Choice)

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Question 170

Edelstein Company had the following data for 2018: Units in process at the beginning of the month 4,000 Units in process at the end of the month 10,000 Units started during the month 40,000 Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion. What is the number of units completed and transferred out during the period?

(Multiple Choice)

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Question 171

In operation costing, the process which produces batches of different products which are identical in many ways but differ in others is called __________ process

(Short Answer)

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Question 172

Companies using JIT manufacturing do not use __________ inventories for their process costing.

(Short Answer)

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Question 173

Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during April: Units, beginning work in process 4,000 Units, ending work in process 5,500 The number of units started and completed in the second department during April is

(Multiple Choice)

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Question 174

Manufacturing firms that have characteristics of both job and process environments often use __________ processes.

(Short Answer)

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Question 175

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called:

(Multiple Choice)

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Question 176

The cost assigned to goods from a prior process is called the __________ cost.

Using the weighted average costing method, the costing of goods transferred out is __________ since there is only one category of completed units.

The unit-costing method that merges prior-period work and costs with current-period work and costs is called:

The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period.

A process is a series of activities or operations, which are linked to perform a specific objective.

In operation costing, the process which produces batches of different products which are identical in many ways but differ in others is called __________ process

Companies using JIT manufacturing do not use __________ inventories for their process costing.

Manufacturing firms that have characteristics of both job and process environments often use __________ processes.

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called:

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

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