Exam 6: Process Costing

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.Total equivalent units for Material P under the weighted-average method are calculated to be:

What are the equivalent units for the month of July if the company uses the weighted-average method?

The journal entry to record finished product units would include a debit to:

Conversion costs are the sum of direct labor and:

In a given process costing system, the equivalent units are computed using the weighted-average method.With respect to conversion costs, the percentage of completion for the current period is necessary for the calculation of the:

Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method.Total equivalent units for conversion under the FIFO method are calculated to be:

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Cost per equivalent unit for Material P under the weighted-average method is calculated to be:

Amos and Son Manufacturing Company of Asheville, Tennessee, produces about 1,000 units of hand-crafted wooden chairs per month. Their chairs are known for quality and durability. Most of the chairs are marketed through two furniture outlets with over 200 stores in the southwestern United States. You have been hired as a cost consultant to recommend improvements in Amos and Son's process cost system, a system installed some fifty years ago. Since then, the number of product lines has increased tenfold, and the units sold each year have increased from 3,000 to 12,000. You discover a process cost system driven by volume only, with a single rate for factory overhead based on units produced. Required: Given these limited facts, explain what impact changing to an activity-based process costing/management system (ABC/ABM) would have on Amos and Son's costing and pricing activities.

Marshall Company uses the weighted-average process costing in accounting for its production activities.Materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. August's production records indicate the following information: Required: Prepare a production cost report for the Marshall Company.In your report, combine direct labor and factory overhead into a single cost pool for conversion costs.

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2019 are provided below: Total equivalent units for conversion under the FIFO method are calculated to be:

DeFond Company has a process costing system. All materials are introduced at the beginning of the process in Department One. The following information is available for the month of January:

Assad Company uses the process costing method with the following data for the month of July. Required: (1) Compute cost per equivalent unit under the weighted-average method. (2) Compute cost per equivalent unit under FIFO method.

Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method.Cost per equivalent unit for conversion under the FIFO method is calculated to be:

Matrix Inc. calculates cost for an equivalent unit of production using the weighted-average method.Cost per equivalent unit for materials under the weighted-average method is calculated to be:

Transferred-in costs are costs of work performed:

Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.uniformly during the process. Cost per equivalent unit for conversion under the weighted-average method is calculated to be:

The first step in determining process costs is:

The journal entry to record incurred direct labor would include a credit to:

Chen Manufacturing uses backflush costing.Chen has the following information for the most recent month of activity: Purchase of direct materials \ 725,000 Direct materials used \ 705,000 Conversion cost incurred \ 1,450,000 Direct materials standard cost \ 20 per unit Conversion cost at standard \ 40 per unit Units produced 35,000 units Units sold 33,000 units Required 1.Prepare the journal entries for purchase of materials, conversion costs, the completion of product during the month, the sale of product, and the closing entries for conversion costs and material costs. 2.What is the final amount for cost of goods sold? 3.Under what conditions is backflush costing used in practice?

Which method is (are) used to prepare the departmental production cost report when using a process cost system?