Exam 5: Process Costing

Equivalent units express the amount of work done during a period in terms of partially completed units.

Baron Corporation has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. The total cost of units transferred out to finished goods would be closest to

Raw materials purchased were $18,640 and ending inventory of raw materials was $5,200. If raw materials beginning inventory was 30% of materials used in the process, what was the cost of materials used in production?

When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

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

At Sunrise Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

Color Wheel has 3,500 gallons of paint in WIP inventory, with 75% of materials already added. What are equivalent units in ending WIP inventory for materials if the paint is 60% through the process?

When units are transferred from Processing Department #1 to Processing Department #2, a credit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

The following information is provided by Bynes Company: The units in ending WIP inventory were 85% 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?

Materials are added at the beginning of the process and conversion costs are added uniformly. What is the total number of physical units to account for?

Direct materials are often added at a particular point in the production process.

If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 0%.

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. The number of equivalent units for vitamins and minerals is

The entry to record the use of direct materials in production would include a

Which of the following is the last step of the 5-step process costing procedure?

If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is 50%.

The "total physical units to account for" is the sum of the units in beginning WIP inventory plus the units in ending WIP inventory.

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?

When units are sold, Finished Goods Inventory is debited.