Exam 28: Process Cost Accounting

During the month, 8,000 units of a product were completed and transferred out and 3,000 units were 1/3 complete at the end of the period. The direct material cost was $115.00 per unit and the combined labor and overhead cost was $227.00 per unit. What is the cost of the completed units?

To obtain meaningful unit costs in a process cost accounting system, the work completed must be measured in------------ units of production.

In a process cost accounting system, a separate Work in Process Inventory account is maintained for each producing department.

The two sections of the cost of production report are

At the end of the month, the entry to close the Manufacturing Overhead control account is recorded as

The activity for Noah Company's mixing department for August is given below. All material is add at the beginning of the process. _Units Labor & _Material Labor & Overhead % - Compute the total cost of a completed unit.

On a cost of production report, beginning work in process

The process costs associated with departmental inputs and outputs are reconciled on the Cost of Production report.

-Prepare the Quantity Schedule for Department J for October 2019 in good format from the information given.

When the average cost method is used, units in beginning inventory which are 40 percent complete are multiplied by 60 percent to calculate equivalent units of production.

In Gerth Manufacturing, production is started in the fabricating department. The work is then transferred to the finishing department where goods are completed and then transferred to the finished goods storeroom. Data about the company's costs during February 2019 are given below. During the month, products costing $45,000 were transferred from the fabricating department to the finishing department; goods costing $56,000 were transferred from the finishing department to finished goods inventory; and goods that cost $63,000 were sold on account for $79,000. Record the following events on page 3 of a general journal. Use February 28 as the date. Omit descriptions. (a.)Place materials into production (b.)Charge labor costs into production (c.)Charge overhead costs into production (d.)Transfer product from fabricating department to finishing department (e.)Transfer finished goods from finishing department to finished goods inventory (f.)Sale of goods (g.)Record cost of goods sold

Rounding is often necessary to make the Production Report cumulative cost total agree to the total costs accounted for. In the following periods, the amount of the adjustment is either added to or subtracted from the in work in process.

Use the following information for the questions. Cost data for a firm's first department, Dept. A, for June 2019 is given below.Material costs place into productio -Prepare equivalent production computations for Dept. A from the information provided.

Goods transferred to another department for further processing are considered 100 percent complete on the cost of production report for the department making the transfer.

At the end of the month, the balance in the Manufacturing Overhead control account is closed into the departmental work in process accounts.

Fill in the blanks in the Quantity Section of the following Production Report. Equivalent Production Computations for June 2019 Department M Materials: Units Transferred Out Labor and Manufacturing Overhead: Units Transferred Out

The activity for Noah Company's mixing department for August is given below. All material is add at the beginning of the process. _Units Labor & _Material Labor & Overhead % - Compute the cost of Noah's ending work in process inventory.

The headings for the columns of the Cost Schedule section of the Production Report when there is no beginning inventory are

-Calculate the equivalent production units from the information given.

A cost of production report provides separate sections to summarize quantities and costs.