Exam 5: Process Costing

In a process costing environment,direct materials and direct labor are usually combined into one cost category called "conversion costs."

How is the cost per equivalent unit computed?

Direct materials are often added at a particular point in the production process.

In a department,26,000 units are completed and transferred out and 7,400 remain in ending WIP at 65% complete.If an equivalent unit costs $9.00 for direct materials,what is the value of materials transferred out?

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding,coloring and finishing.When the frisbees and associated costs are transferred from the molding process to the coloring process,which account is credited?

Yummy Tummy Desserts has 3,200 quarts of ice cream in WIP Inventory,with all materials already added.What are equivalent units in ending WIP Inventory for materials if the ice cream is 75% through the process?

Prime costs include direct labor and direct materials.

The mixing department has 18,000 units and $50,000 in costs for which to account.Of the 18,000 units,12,000 were completed and transferred to the next department.The 6,000 remaining were 25% complete for conversion costs.Direct materials are added at the beginning of the process,and the conversion costs are added evenly throughout the process.The cost per equivalent unit is $2.25 for direct materials and $0.80 for conversion costs.The total cost of ending WIP is

The journal entry to record the use of direct labor in Processing Department #1 would include a debit to Wages Payable.

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 direct materials?

The production equivalent unit report summarizes all costs.

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What is the total cost of units remaining in ending WIP?

During a period,38,200 units were completed and 4,200 units were in ending WIP Inventory.Ending WIP was 75% complete for direct materials and 50% complete for conversion costs.What are the equivalent units for conversion costs?

The entry to transfer goods in process from Dept.A to Dept.B includes increasing (debiting)WIP Inventory in Dept.A.

When units are transferred from Processing Department #1 to Processing Department #2,a debit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.

Equivalent units should be computed separately for direct materials and conversion costs.

Blossom Company has two sequential processing departments: Assembly and Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. What would have been the journal entry to record the transfer of product from the assembly department to the Shaping Department?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is debited for Manufacturing Overhead?

Baron Corporation has two sequential processing departments: Assembly and Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. The total cost of units transferred out to Finished Goods Inventory would be closest to