Exam 6: Process Costing

Figure 6-3.Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. -Refer to Figure 6-3. Kelley's cost of goods transferred to the molding department during October would be

Figure 6-3.Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. -Refer to Figure 6-3. Kelley's total costs to account for would be

Indigo Inc., manufactures a product that passes through two processes. The following information is available for the first department for September. All materials are added at the beginning of the process. Beginning work in process consisted of 200 units that were 60% complete with respect to conversion. Ending work in process consisted of 500 units that were 10% complete with respect to conversion. During the month, 3,000 units were started in process. Required:

Firms that have adopted a __________ approach try to reduce WIP inventories to very low levels.

Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March. The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows: Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000. -Refer to Figure 6-7. Using the weighted average method, the total cost of the units in the ending work-in-process inventory at March 31 is

Units transferred from a prior process to a subsequent process are referred to as

A production report is divided into two sections:

Figure 6-1.The following information is available for Department Z for the month of July: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Figure 6-1. Department Z's cost per equivalent unit of production for materials using the FIFO method would be

The total associated manufacturing costs for beginning work in process units under the FIFO method are

If great accuracy in computing unit costs is desired, a company should use the _________ method to determine unit cost.

Match the five steps involved in creating the department production report with the steps below in the proper order. -physical flow analysis

Figure 6-3.Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. -Refer to Figure 6-3. Kelley's equivalent units of production using the weighted average method would be

The production report

Davidson Company manufactures a product that passes through two processes. The following information is available for the first department for October. All materials are added at the beginning of the process. Beginning work in process consisted of 20,000 units that were 80% complete with respect to conversion. Ending work in process consisted of 15,000 units that were 40% complete with respect to conversion. During the month, 90,000 units were started in process. Required:

In process costing, each producing department has its own work-in-process account.

The FIFO method is the only method used to calculate equivalent units in process costing.

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

Which statement best describes the concept of equivalent units of production?

Which of the following methods uses costs and work of beginning work in process?

What does the accountant need to know to calculate unit cost?