Exam 21: Process Costing

The Nitrogen Fixation Department of Tomco Manufacturing began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 5,000 units that are 100% complete as to materials and 60% complete as to conversion costs. Instructions Compute the equivalent units of production for materials and conversion costs for the month of December.

In a process cost system, total costs are determined at the end of a month or year.

A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred out of the Baking Department will be transferred to:

If beginning work in process is 4,000 units, ending work in process is 2,000 units, and the units accounted for equals 10,000 units, what must units started into production be?

Cohen Manufacturing is trying to determine the equivalent units for conversion costs with 3,000 units of ending work in process at 80% completion and 21,000 physical units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. What is the equivalent units for conversion costs for the current period?

The Assembly Department shows the following information: How many total units are to be accounted for by the Assembly Department?

Madison Industries has equivalent units of 4,000 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?

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

In computing equivalent units, ___________ is not part of the equivalent units of production formula.

What is the biggest disadvantage of ABC?

Equivalent units of production measure the work done during a period, expressed in fully completed units.

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

Equivalent units of production must be calculated before the unit production costs can be computed.

Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process?

Which would be an appropriate cost driver for the delivery activity?

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.

Under the ABC philosophy:

The following department data are available: What is the total manufacturing cost per unit?

Conversion cost per unit equals $6.00. Total materials costs equal $80,000. Equivalent units for materials are 20,000. How much is the total manufacturing cost per unit?

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