Exam 21: Process Costing

The Pasta Factory manufactures spaghetti sauce through two production departments: Cooking and Packaging. For the month of February the work in process accounts show the following debits: Instructions Journalize the February transactions that involved the work in process accounts.

Department 1 of a two department production process shows: Beginning Work in Process 10,000 Ending Work in Process 50,000 Total units to be accounted for 180,000 How many units were transferred out to Department 2?

Unit production costs are expressed in terms of _____________ units of production.

Materials costs of $600000 and conversion costs of $642600 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 100000 units were started into production in September and there were 8000 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 the 8000 units in the ending work in process?

Production cost reports provide a basis for evaluating the productivity of a department.

The physical units in a department are another name for the equivalent units of production.

Which of the following is considered a difference between a job order cost and a process cost system?

Mayer Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18000 and ending work in process equaled 1200 units. Mayer had no beginning work in process inventory. Conversion costs are applied equally throughout production and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $72000?

Sequal Company has the following production data for June: units transferred out 50000 and ending work in process 6000 units that are 100% complete for materials and 30% complete for conversion costs. Unit materials cost is $5 and unit conversion cost is $7. Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

The total units to be accounted for is computed by adding

A process cost system would be used for all of the following products except

The Assembly Department shows the following information: Beginning Work in Process 20,000 Ending Work in Process 65,000 Total units to be accounted for 31,000 How many total units are to be accounted for by the Assembly Department?

The production cost report summarizes the activities that have taken place in a department or process over a period of time. Identify the major types of information found on a production cost report and indicate who in the business organization uses this type of information and for what purpose the information is used.

In Kapler Company the Cutting Department had beginning work in process of 8000 units transferred out 25000 units and had an ending work in process of 4000 units. How many units were started by Kapler during the month?

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