Exam 5: Process Costing

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the Finishing Department follows: The cost per equivalent unit for conversion costs would be closest to

Both process costing and job costing assign costs to units as they proceed through the process.

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.The following data represents data in the Finishing Department:Finishing Department What are the equivalent units for conversion costs?

Equivalent units express the amount of work done during a period in terms of partially completed units.

If conversion costs are added evenly throughout 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

There are 35,000 units started.25,600 were completed and transferred out and the 9,400 remaining units were 65% complete for conversion costs.The total number of equivalent units for conversion costs is

Raw materials purchased were $18,640 and ending inventory of raw materials was $5,200.If raw materials beginning inventory was 30% of materials used in the process,what was the cost of materials used in production?

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

Which costs comprise WIP Inventory on a production cost report?

The five steps of the process costing procedure are scrambled below: 1.Assign total costs to units completed and to units in ending WIP Inventory. 2.Summarize total costs to account for. 3.Compute the cost per equivalent unit. 4.Summarize the flow of physical units. 5.Compute output in terms of equivalent units. The correct order for these steps is:

Sunnyside Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 14,000 gallons of the drink,and the 1,500 gallons left in ending WIP were 50% of the way through the process. Costs incurred during the period were: The cost assigned to ending work in process would be closest to

The last step of the 5-step process costing procedure is to summarize the flow of physical units.

A tennis ball maker gives us its data for the year: Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs. On December 31,the cost per equivalent unit for direct materials would be closest to

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. What are the total equivalent units for direct materials?

The managerial accountant at Picture Frame Manufacturing reported that the company plans to transfer $250,000 to the Finished Goods Inventory account for the 40,000 picture frames that were completed during the month of September.Compute the cost to make one completed picture frame.Assume that the sales revenue per picture frame is $12 per frame,what is the gross profit per picture frame?

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 direct materials?

In a mass-production environment,direct labor is usually a relatively small component of the total manufacturing costs.

When the units are sold,Cost of Goods Sold is credited.

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 is the total cost of units completed and transferred?