Exam 21: Process Costing

Materials costs of $300,000 and conversion costs of $321,300 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 the 8,000 units in the ending work in process?

Madison Industries has equivalent units of 2,000 for materials and for conversion costs. Total manufacturing costs are $160,000. Total materials costs are $120,000. How much is the conversion cost per unit?

In a process cost system, materials, labor and overhead are only added in the first production department.

Equivalent units for materials total 20,000. There were 16,000 units completed and transferred out. Equivalent units for conversion costs equals 18,000. How much are the physical units for conversion costs if ending work in process is 50% complete?

Benson Industries uses a process cost system. Products are processed first by Department A, second by Department B, and then they are transferred to the finished goods warehouse. Shown below is the cost information for Department B during the month of October: The cost of work in process in Department B at October 1 is $25,000, and the cost of work in process at October 31 has been determined to be $30,000. Instructions Prepare journal entries to record for the month of October: (a) The transfer of production from Department A to B. (b) The manufacturing costs incurred by Department B. (c) The transfer of completed units from Department B to the finished goods warehouse.

In a process cost system, product costs are summarized:

A production cost report

Large inventories of raw materials must be maintained in a just-in-time system.

Cinder Company had the following department information for the month: How much is the total manufacturing cost per unit?

The basic similarities between job order cost and process cost systems include all of the following except the

Holton Company has the following equivalent units for July: materials 10,000 and conversion 9,000. Production cost data are: The unit production costs for July are:

If a processing department has 27,000 units in process at the beginning of the period, completes and transfers out 90,000 and has 18,000 units in process at the end of the period, then the number of units started into production during the period was ______________ units.

A process with no beginning work in process, completed and transferred out 14,000 units during a period and had 7,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00. The department transferred out 12,000 units and had 1,500 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

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.

Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a

In a production cost report, which one of the following sections is not shown under Costs?

Charley Company's Assembly Department has materials cost at $3 per unit and conversion cost at $6 per unit. There are 15,000 units in ending work in process, all of which are 70% complete as to conversion costs. How much are total costs to be assigned to inventory?