Exam 14: Process-Costing Systems

The entry to record the sale of goods would include a debit to Cost of Goods Sold.

Meredith Company produces one product in a process- costing system involving several departments. The first department's costs and output for the month of April are as follows: * 100% completed for materials, 40% completed for conversion costs # 100% completed for materials, 30% completed for conversion costs Required: Compute the cost of work completed and the cost of the ending work- in- process inventory using the weighted- average method.

is supported by a file of completed job- cost records.

In process costing, the costs incurred in a previous department for items that have been received by a subsequent department

Python Company produces plastic cups in a one- department process. The following information is available: Work-in- process inventory,beginning 0 Units started 60,000 Units complete and transferred out 48,000 Work-in- process inventory,ending 12,000 Direct materialsadded \ 240,000 Direct labor \ 165,600 Factory overhead \ 82,800 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The unit cost of direct materials is:

In process costing, the journal entry to record direct labor would include a:

Process costing accumulates costs for a period and divides them by quantities produced during the period to get average costs.

Blends of ideas from both job costing and process costing

Under what conditions can significant amounts of work in process be safely ignored in process costing?

Speedwagon Company produces calendars in a one- department process. The following information is available: Direct materials added \ 30,000 Direct labor \ 20,700 Factory overhead \ 10,350 Work-in- process inventory, beginning -0- Units started 15,000 Units completed and transferred out 12,000 Work-in- process inventory, ending 3,000 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The cost of one completed unit is:

Chemical and oil companies normally use process costing.

Foreman Company produces calendars in a one- department process. The following information is available: Direct materials added \ 30,000 Direct labor \ 20,700 Factory overhead \ 10,350 Work-in- process inventory, beginning -0- Units started 15,000 Units completed and transferred out 12,000 Work-in- process inventory, ending 3,000 The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for materials are:

All product costing uses averaging to determine total costs of production.

Temporary overhead account

In a job- cost system all costs for a particular product service or batch of product are recorded on the:

Spokes Company uses a backflush- costing system to produce bicycles. Bicycles are scheduled for production only after orders are recorded and products are shipped to customers immediately upon completion. No finished goods inventory is maintained and product costs are applied directly to cost of goods sold. Standard cost for materials and conversion is $150 and $75, respectively. During the current month, Spokes Company purchased $6,000 of direct materials and incurred $3,300 in conversion cost to produce 40 units. The entry to apply cost to completed goods includes a debit to:

The entry to record applied overhead would include a debit to Work- in- Process Inventory.

Transferred- in costs include only direct materials.

This cost accounting system uses averaging to determine costs per unit of production

Units that are started but not completed by the end of the accounting period are known as: