Exam 21: Process Costing

Match the items in the two columns below by entering the appropriate code letter in the space provided. A. Just-in-time processing F. Units transferred out B. Equivalent units of production G. Activity-based costing C. Total units accounted for H. Physical units D. Production cost report I. Unit production costs E. Cost reconciliation schedule J. Total manufacturing cost per unit ____ 1. A summary of both production quantity and cost data for a production department. ____ 2. Shows that the total costs accounted for equal the total costs to be accounted for. ____ 3. Work done during a period expressed in fully completed units. ____ 4. Focuses on the activities performed in manufacturing a specific product. ____ 5. Actual units to be accounted for during a period, irrespective of any work performed. ____ 6. Units transferred out during the period plus units in ending work in process. ____ 7. Unit materials costs plus unit conversion costs. ____ 8. Total units accounted for minus units in ending work in process. ____ 9. Costs expressed in terms of equivalent units of production. ____ 10. Uses a "pull approach" in manufacturing.

In Saint-Simon, Inc., the Assembly Department started 18,000 units and completed 21,000 units. If beginning work in process was 9,000 units, how many units are in ending work in process?

The Assembly Department of Nitz Company has the following production and cost data at the end of May, 2010. Production: 30,000 units started into production; 25,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs. Manufacturing Costs: Materials added at beginning of process, $90,000; labor, $75,000; overhead $60,000. Instructions Prepare a production cost report for the month of May.

Baker Winery manufactures a fine wine in two departments, Fermenting and Bottling. In the Fermenting Department, grapes are aged in casks for a period of 30 days. In the Bottling Department, the wine is bottled and then sent to the finished goods warehouse. Labor and overhead are incurred uniformly through both processes. Materials are entered at the beginning of both processes. Cost and production data for the Fermenting Department for December 2010 are presented below: Instructions (a) Compute the equivalent units of production. (b) Determine the unit production costs. (c) Determine the costs to be assigned to units transferred out and ending work in process.

The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Which of the following is a true statement about process cost systems?

Hanker Company had the following department data on physical units: Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Just-in-time strives to eliminate inventories by using a pull approach.

Which of the following statements is incorrect concerning just-in-time (JIT) processing?

Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of $190,000, $145,000 of which were materials costs. During March, the following occurred: Instructions Answer the following questions and show the computations that support your answers. 1. What are the equivalent units of production for materials and conversion costs in the Fabricating Department for the month of March? 2. What are the costs assigned to the ending work in process inventory on March 31? 3. What are the costs assigned to units completed and transferred out during March?

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

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 those units that were completed and transferred out of the process in September?

If 100,000 units are transferred out of a department and there are 20,000 units still in process at the end of a period, the number of units that were started into production during the period is

The ledger of Kinsler Company has the following work in process account. Production records show that there were 700 units in the beginning inventory, 30% complete, 2,300 units started, and 2,500 units transferred. The beginning work in process had materials cost of $3,060 and conversion costs of $2,330. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Instructions (a) How many units are in process at May 31? (b) What is the unit materials cost for May? (c) What is the unit conversion cost for May? (d) What is the total cost of units transferred out in May? (e) What is the cost of the May 31 inventory?

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 20,000 units were completed and transferred out; and there were 10,000 units in the ending work in process that were 40% complete. During July, $96,000 materials costs and $84,000 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July was

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

Department 1 of a two department production process shows: How many units were transferred out to Department 2?

Which of the following is correct regarding cost systems?

Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.

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