Exam 5: Process Costing

Blossom Company has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. What would have been the journal entry to record the transfer of product from the assembly department to the shaping department?

Which of the following items would appear first on a production cost report?

The following information is provided by Galloway Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs for which Galloway has to account (i.e., its total costs to account for)?

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows: What are the equivalent units for conversion costs?

Process costing is most likely used in which of the following industries?

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 cost per equivalent unit for conversion costs would be closest to

Total direct materials = $67,500, and there is no beginning WIP inventory. Units completed are 15,000 with no ending work in process inventory. The cost per unit is $4.50.

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is credited for direct labor used during the molding process?

The following information is provided by Arrow Company: The units in ending WIP inventory were 80% complete for materials and 40% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

A shampoo manufacturer offers the following information: The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. What is the total cost of units in ending WIP?

Sunnyside Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 14,000 gallons of the drink, and the 1,500 gallons left in ending WIP were 50% of the way through the process. Costs incurred during the period were: The cost assigned to ending work in process would be closest to

The following information is provided by Mel Company: The units in ending WIP inventory were 90% complete for materials and 25% complete for conversion costs. Required: a. What are the total equivalent units for direct materials? b. At the end of the year, what are the equivalent units for conversion costs?

During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows: What are the equivalent units for direct materials?