Exam 3: Process Costing

Equivalent units of production are used to determine the cost per unit of completed products.

Schiller Company has unit costs of $2 for materials and $6 for conversion costs. There are 5,600 units in ending work in process which are 25% complete as to conversion costs, and fully complete as to materials cost. How much is the total cost assigned to the ending work in process inventory if the FIFO method is used?

Equivalent units are calculated by

When comparing the FIFO with the weighted-average method, the FIFO method provides current cost information.

A characteristic of products that are mass-produced in a continuous fashion is that

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 8,000 units and had 2,000 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

A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 22,000 units were completed and transferred out of the process during the month, how many units were started into production during the month?

There are no units in process at the beginning of the period, 1,500 units in process at the end of the period that are 40% complete, and 15,000 units transferred out during the period. Based on this information, there were 14,400 equivalent units of production during the period.

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

Conversion cost per unit equals $6. Total materials cost equal $90,000. Equivalent units for materials are 10,000. How much is the total manufacturing cost per unit?

Materials requisitions are:

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

A process cost accounting system is most appropriate when

Materials costs of $600,000 and conversion costs of $642,600 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, 100,000 units were started into production in September, and there were 8,000 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 those units that were completed and transferred out of the process in September?

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

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Total physical units to be accounted for are equal to the units

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

When finished goods are sold, the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.

Differences between a job order cost system and a process cost system include all of the following except the