Exam 5: Process Costing

Beginning WIP Inventory is 15,500 units,75% complete for materials.During the month 90,000 units were started;87,000 were finished;and ending WIP was 18,500 units that were 50% complete for materials.How many equivalent units should be used to allocate costs for materials (assume as usual,that the weighted average method is used,not FIFO)?

The journal entry to record the ultimate completion of the units would include a credit to the WIP Inventory account of the last sequential production department.

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the Finishing Department follows: What are the equivalent units for conversion costs?

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units in ending WIP Inventory.

When calculating equivalent units in a second or later processing department,all physical units should be considered 100% complete with respect to transferred-in work and costs.

Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct labor and Conversion 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 cost per equivalent unit for conversion costs?

Assume that 8,200 units were in beginning WIP Inventory,34,500 were started,30,000 were completed,and 12,700 were in ending WIP Inventory.Direct materials are added at the beginning of the process.What are the total equivalent units for direct materials?

The following information is provided by Greenbay Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs for which Greenbay has to account (i.e. ,its total costs to account for)?

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. At the end of the year,what are the equivalent units for conversion costs?

A shampoo manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. What is the total cost of units in ending WIP?

Color Wheel has 3,500 gallons of paint in WIP Inventory,with 75% of materials already added.What are equivalent units in ending WIP Inventory for materials if the paint is 60% through the process?

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

There are 34,400 units started.25,600 were completed and transferred out and the 8,800 remaining units were 60% complete for conversion costs.The total number of equivalent units for conversion costs is

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 costs to account for are

When units are sold,Cost of Goods Sold is debited.

Direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: Required: a.What are the total equivalent units for direct materials? b.What are the total equivalent units for conversion costs? c.What is the cost per equivalent unit for direct materials? d.What is the cost per equivalent unit for conversion costs? e.What is the total cost of units completed and transferred out? f.What is the total cost of units remaining in ending WIP?

The first step of the 5-step process costing procedure is

The following information is provided by Arrow Company: The units in ending WIP Inventory were 80% complete for materials and 40% complete for conversion costs. At the end of the year,what are the equivalent units for conversion costs?

In process costing,manufacturing costs are usually combined into two categories: direct materials and conversion costs.