Exam 5: Process Costing

When the units are sold, Cost of Goods Sold is credited.

The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, the total equivalent units for direct materials are:

Perfect Pigments has 3,500 gallons of paint in WIP inventory, with 80% of materials already added. The paint is 50% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

In a particular department, 8,200 units were started and all but 800 were completed at the end of the period. These 800 were 80% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for direct materials?

If a company has 6,000 units that are 60% complete, the equivalent unit figure is 3,600.

The following information is provided by Adametz Company: The units in ending WIP inventory were 90% complete for materials and 50% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

In a department, 26,000 units are completed and transferred out and 7,400 remain in ending WIP at 65% complete. If an equivalent unit costs $9.00 for direct materials, what is the value of materials transferred out?

A shampoo manufacturer offers the following information: The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units for direct materials?

Conversion costs are usually incurred evenly throughout productions.

Note the following data: Costs of units transferred to finished goods would be closest to

In Step 1 of the process costing procedure, the "total units to account for" is the sum of

In process costing, the costs flow from Raw Materials Inventory, to Work in Process Inventory, to Finished Goods Inventory.

To assign costs to the units in ending WIP inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

In process costing, units that are partially completed are accounted for the same as units in finished goods inventory.

A pizza company produces frozen pizzas in three departments: assembly, freezing, and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes: The cost per equivalent unit for crust ingredients would be closest to

There are a total of 14,000 students at a school. Eighty percent of them go full time at 16 hours per term. Ten percent take a half-load of 8 hours per term, and ten percent take a three-quarter load of 12 hours per term. What is the equivalent number of full-time students?

During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

What are the ending inventory equivalent units for materials if 15,500 units are completed and transferred out and 4,200 remain in ending WIP at 35% complete?

The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.