Exam 20: Process Costing

Iolaus Company provides the following data for the current year: Estimated Factory Overhead …………………7,800 Factory Overhead Incurred………………… $11,400 Factory Overhead Applied………………… ? Estimated Direct Labor Cost …………………12,000 Direct Labor Cost Incurred………………… 11,800 Required: a.Calculate the predetermined overhead allocation rate based on direct labor. b.Determine the amount of overhead applied to production. c.Prepare the journal entry to apply factory overhead to goods in process.

A company uses the weighted average method for inventory costing.During a period,a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending goods in process inventory and are 75% complete.All of these are with respect to labor.The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825.Compute the equivalent cost per unit for labor.

A company uses the FIFO method for inventory costing.During a period,a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending goods in process inventory and are 75% complete.Compute the number of equivalent units produced by the department.

A company that applies process costing is most frequently characterized by:

In a process cost accounting system,the purchase of raw materials is credited to the Raw Materials Inventory.

Hybrid systems contain aspects of both process and job order operations.

Which of the following products is least likely to be produced in a process manufacturing system?

Process manufacturing,also called process operations or process production,is the ___________ production of products in a _____________________ flow of steps.

The following is an account for a production department,showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly.If the units in ending goods in process inventory cost $4,590,and the started and completed units cost $41,850,what was the cost of completing the units in the beginning goods in process inventory?

The third step in accounting for production activity in a period is to compute the ______________________.

In a process cost accounting system,the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Goods in Process Inventory account for that department.

A unique feature of process costing systems is the use of a single Goods in Process Inventory control account when more than one production department exists.

The purchase of raw materials on account in a process costing system is recorded with a:

In a process costing accounting system,direct materials used are debited to the __________ account,and indirect materials used are debited to the ____________ account.

A company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor.The beginning inventory was completed this year and another 120,000 units were started.Of those started,80,000 were finished and the remaining 40,000 were left 20% complete.Calculate the equivalent units of production for the year using the weighted average method.

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Describe the flow of labor in a process cost accounting system,including accounts used.

During March,the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods.Of the units transferred,25,000 were in process at the beginning of March and 110,000 were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor.Compute the number of units transferred to finished goods.

Prepare journal entries to record the following production activities for Sherman Manufacturing. a.Incurred $105,100 of factory labor cost which is paid in cash. b.Used $93,900 of direct labor in the production department. c.Used $11,200 of indirect labor.

A process cost summary shows the cost of a particular job manufactured in the reporting period.