Exam 5: Process Costing

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, the cost per equivalent unit for materials would be closest to

If all direct materials are added at the beginning 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

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

The two basic types of product costing systems are

The five steps of the process costing procedure are scrambled below: 1. Assign total costs to units completed and to units in ending WIP inventory. 2) Summarize total costs to account for. 3) Compute the cost per equivalent unit. 4) Summarize the flow of physical units. 5) Compute output in terms of equivalent units. The correct order for these steps is:

Assume that 8,200 units were in beginning WIP inventory, 34,500 were started, 30,000 were completed, and 12,700 were in ending WIP inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?

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

Yummy Tummy Desserts has 3,200 quarts of ice cream in WIP inventory, with all materials already added. The ice cream is 75% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work in Process inventory.

Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process.

At Hodgson 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?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is credited when the frisbees are totally completed?

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 100%.

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

In a process costing environment, direct materials and direct labor are usually combined into one cost category called "conversion costs."

The entry to transfer goods in process from Dept. A to Dept. B includes increasing (debiting)WIP inventory in Dept. A.

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 conversion costs?

The first step of the 5-step process costing procedure is to summarize the flow of physical units.

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

The first step of the 5-step process costing procedure is to summarize total costs to account for.