Exam 21: Process Costing

At Crenshaw Company materials are entered at the beginning of each process. Work in process inventories with the percentage of work done on conversion and production data for its Painting Department in selected months are as follows: Instructions (a) Compute the physical units for July. (b) Compute the equivalent units of production for materials and conversion costs for September.

The general ledger of Oates Company has the following work in process account. Production records show that there were 2000 units in beginning inventory 50% complete; 8000 units started and 4500 units transferred out. The beginning work in process had conversion costs of $3150. The units in ending inventory were 60% complete. Materials are added at the beginning of the process. Instructions Answer the following questions. (a) How many units are in process at June 30? (b) What is the unit conversion cost for June? (c) What is the conversion cost in the June 30 inventory?

One of the major benefits of JIT is the elimination of ______________ and ____________ inventory accounts.

In activity-based costing the focus is on the activities performed to produce specific products.

A process with no beginning work in process completed and transferred out 85000 units during a period and had 50000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:

Production costs chargeable to the Sanding Department in July in Magnum Company are $30000 for materials $17000 for labor and $13000 for manufacturing overhead. Equivalent units of production are 30000 for materials and 20000 for conversion costs. Instructions Compute the unit costs for materials and conversion costs.

Materials requisitions are:

The primary benefit of activity-based costing is ______________ product costing.

Which of the following is not considered a benefit of JIT processing?

Watts Company adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Instructions Complete the following calculation of equivalent units for materials and conversion costs.

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

In order to compute the physical unit flow a company must first compute unit production costs.

In the Camria Company materials are entered at the beginning of the process. If there is no beginning work in process but there is an ending work in process inventory the number of equivalent units as to materials costs will be

In the Shaping Department of Jenkins Company the unit materials cost is $3.00 and the unit conversion cost is $1.80. The department transferred out 8000 units and had 2000 units in ending work in process 20% complete. If all materials are added at the beginning of the process the total cost to be assigned to the ending work in process is

Tomlinson Company has the following production data for May: $\bullet$ Beginning work in process 0 units $\bullet$ Units started 62000 $\bullet$ Ending work in process 5000 units that are 100% complete for materials and 60% complete for conversion costs $\bullet$ Unit materials cost $5 $\bullet$ Unit conversion cost $8 Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Super-Tech Industries had the following department information about physical units and percentage of completion: Physical Units Work in process, June 1(75\%) 8,000 Completed and transferred out 22,000 Work in process, June 30(50\%) 12,000 If materials are added at the beginning of the production process what is the total number of equivalent units for materials during June?

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

Which of the following manufacturing cost elements occurs in a process cost system?

Charley Company's Assembly Department has materials cost at $2 per unit and conversion cost at $4 per unit. There are 20000 units in ending work in process all of which are 70% complete as to conversion costs and 100% complete as to materials. How much are total costs to be assigned to inventory?

ABC seeks to identify the _______________ that measure the activities performed on the product.