Exam 21: Process Costing

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

Process cost systems are used to apply costs to similar products that are ____________ in a ____________ fashion.

The first step performed in preparing a production cost report is computing the equivalent units of production.

Long Manufacturing has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6,000 and ending work in process equaled 400 units. Long 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 $30,000?

Muffy Painting Company has the following production data for March. Instructions Compute equivalent units of production for March for both materials and conversion costs. Materials are entered at the beginning of the process.

Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine.

In a process cost system, manufacturing costs are summarized in a ________________ report for each department.

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

The production cost report is an internal document that shows production quantity and ______________ for a production department.

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 425,000 units, completed and transferred out 400,000 units, and ending work in process 50,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Sandusky Widget Company has the following production data for March. Instructions Compute the physical units for March.

The total units accounted for equals units in

Production costs chargeable to the Sanding Department in July for Joyful Art are $12,500 for materials, $26,000 for labor, and $10,000 for manufacturing overhead. Equivalent units of production are 25,000 for materials and 20,000 for conversion costs. Instructions Compute the unit costs for materials and conversion costs.

Which of the following is not a necessary step in preparing a production cost report?

Just-in-time processing requires

A process with 1,200 units of beginning work in process, completed and transferred out 15,000 units during a period. There were 7,500 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

Tip Top Painting Company has the following production data for January: $\bullet$ Beginning work in process, 0 units $\bullet$ Units transferred out, 35,000 $\bullet$ Units in ending work in process, 6,000, which are 30% complete for conversion costs Materials are added only at the beginning of the process. Instructions Compute equivalent units of production for both materials and conversion costs.

Glazer, Inc. has the following production data for June: The units in work in process are 100% complete for materials and 60% complete for conversion costs. Materials costs are $6 per unit and conversion costs are $11 per unit. Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

A primary driver of overhead costs in continuous manufacturing operations is:

Minor Company had the following department data: Materials are added at the beginning of the process. What is the total number of equivalent units for materials in July?