Exam 5: Process Costing

Process costing is typically used for businesses that make unique goods in relatively small amounts.

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, what are the total equivalent units for conversion costs?

A company manufactures wallets. Last month's costs were: What were the conversion costs for the month?

A system for assigning costs for products made in a continuous process is

Beginning WIP inventory is 15,500 units, 75% complete for materials. During the month 90,000 units were started; 87,000 were finished; and ending WIP was 18,500 units that were 50% complete for materials. How many equivalent units should be used to allocate costs for materials (assume as usual, that the weighted average method is used, not FIFO)?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the total cost of units remaining in ending WIP?

The journal entry to record the ultimate completion of the units would include a debit to the WIP inventory account of the last sequential production department.

How are manufacturing costs treated in process costing?

Materials are added at the beginning of the process and conversion costs are added uniformly. At period end, what would be the total equivalent units for direct materials?

Which item would appear last on a production cost report?

Ending WIP inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

The mixing department has 18,000 units and $50,000 in costs for which to account. Of the 18,000 units, 12,000 were completed and transferred to the next department. The 6,000 remaining were 25% complete for conversion costs. Direct materials are added at the beginning of the process, and the conversion costs are added evenly throughout the process. The cost per equivalent unit is $2.25 for direct materials and $0.80 for conversion costs. The total costs to account for are

Costs are transferred, along with the units, from one WIP inventory to the next.

The "total physical units to account for" is the sum of the units in beginning WIP inventory plus the units started in production during the period.

The number of equivalent units is usually the same for direct materials and conversion costs.

Assume 12,500 units were in beginning WIP; 45,200 units were started; 47,000 units were completed; and 10,700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

The production equivalent unit report summarizes all 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 conversion costs?

On a production cost report, the following cost(s)would appear

Beginning WIP inventory is 900 units; completed and transferred out were 3,400 units; and Ending WIP inventory is 800 units. What is the number of units started?