Exam 5: Process Costing

The managerial accountant at Print Manufacturing reported a grand opening at the new facility in Virginia.According to the reports,the direct material costs reported in the new operation are $1,750,000 and there are $1,900,000 total conversion costs.The managerial accountant also reported that there were 600,000 parts started in the operations in December and 500,000 parts completed during the month of December.The ending Work In Process Inventory was 30% complete as to the conversion work. Calculate (a)the equivalent units for direct materials and conversion costs; (b)calculate the cost per equivalent unit;and, (c)assign the total costs to units completed and transferred out and ending Work In Process Inventory.

The following information is provided by Adametz Company: The units in ending WIP Inventory were 90% complete for materials and 50% complete for conversion costs. What are the total equivalent units for direct materials?

The "total physical units to account for" must be greater than the "total physical units accounted for."

If all direct materials are added at the beginning of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 0%.

Satellite Manufacturing is a company that manufactures satellite parts.The two departments in the company include the Placement Department and the Organization Department.The managerial accountant assigned total costs to units completed and to units in ending Work In Process Inventory and reported the following information: Which of the following journal entry is needed to transfer the costs?

Color Wheel has 3,500 gallons of paint in WIP Inventory,with 75% of materials already added.The paint is 60% through the process.Assuming all conversion costs are added evenly throughout the process,what are the equivalent units for conversion costs?

To simplify the accounting,the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.

The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.

What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process department?

A shampoo manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31,the cost per equivalent unit for materials would be closest to

Brambles Corporation has two sequential processing departments: Assembly and Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. What is the total number of equivalent units for direct materials?

In Step 1 of the process costing procedure,the "total units to account for" is the sum of

How are manufacturing costs treated in process costing?

In a process system with multiple processes,the cost of units completed in Department One is transferred to

A shampoo manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31,what are the total equivalent units for conversion costs?

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to WIP-Processing Department #1.

At Billy Distillery,direct materials are added at the beginning of the process and conversion costs are added throughout the process.Data for the Finishing Department follows: Required: a.What are the equivalent units for conversion costs? b.What is the cost per equivalent unit for conversion costs? c.What are the equivalent units for direct materials? d.What are the total number of physical units for which to account?

If all direct materials are added at the end of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is

Second or subsequent departments must account for units and costs transferred in from previous departments.

The Candy Factory manufactures healthy candy that it sells to consumers and groups in the marketplace.The business produces chocolate-covered cherries in a three-step process to develop the center of the cherries,coat the cherries in chocolate,and package the final product.The total cost to produce a pound of chocolate covered cherries is the sum of the cost per pound in each of the following processes: The managerial accountant reported that there is no Work in Process Inventory.Assuming that there is no work in process inventories,calculate the total cost per pound for each of the three processes listed above and the total cost to produce a pound of chocolate covered cherries.Explain why the cost in each process is important to the managerial accountant.Discuss at least three reasons why the cost in the process is important and how this cost is used at the company.