Exam 6: Process Costing

Firms that offer services cannot have work-in-process inventories.

The following information concerns Schroeder's equivalent units in May: Using the weighted average method, what are Schroeder's equivalent units for May?

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 equivalent units of production for direct materials is

Process-costing systems are specifically designed to support costing of mass-produced homogeneous products.

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 cost per equivalent unit of production would be

Choose the most likely used costing system for the industries listed below. -Costing system used by a manufacturer of custom furniture.

AL Corporation produces a product that passes through two departments. For January, the following equivalent unit schedule was prepared for the first department: Costs assigned to beginning work in process: Manufacturing costs incurred during the month: Required:

Manufacturing firms may operate without significant work-in-process inventories.

The cost of a department's transferred-in goods is the cost of

Equivalent units of output are the complete units that could have been produced given the total amount of manufacturing effort expended during the period.

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

Which of the following does not appear in the production report?

Which of the following methods considers the percentage of completion of beginning work-in-process?

Process costing is most appropriate for manufacturers of homogeneous products.

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

The unit information section of the production report has two major subdivisions: (1) units to account for and (2) units accounted for.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period. Only current work and costs are used to calculate this period's unit cost.

A cost transferred from a prior process to a subsequent process is referred to as

King Corporation produces a product that passes through two departments. For December, the following equivalent unit schedule was prepared for the first department: Costs assigned to beginning work in process: Manufacturing costs incurred during the month: Required: