Exam 5: Process Costing

Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When the balls and associated costs are transferred from the coloring process to the finishing process, which account is credited?

The costing system used by an oil refinery would be

Assume no beginning WIP inventory. The ending WIP inventory is 30% complete for materials. The total number of equivalents for materials would be

The number of equivalent units is computed before computing the cost per equivalent unit.

The cost per equivalent unit must be computed for transferred-in costs, as well as direct materials and conversions costs, in a subsequent department.

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials inventory.

To find the "cost per equivalent unit," the "total costs to account for" are divided by the "total equivalent units."

When units are sold, Cost of Goods Sold is debited.

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 cost per equivalent unit for direct materials?

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 in ending WIP inventory-Shaping would be closest to

The costing system used by a company producing custom fireplace mantels would be

A transfer of $30,000 from the assembly department to the packaging department would require the entry of a

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. What are the total 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 conversion costs?

At Sunrise Corporation, 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 completed and transferred out?

How is the cost per equivalent unit computed?

Product cost reports are done only for the final department in process costing.

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

Note the following data: The cost of ending WIP is closest to

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to WIP-Processing Department #1.