Exam 5: Process Costing

In the process costing method,when multiple production steps are required,the five-step process costing procedure must be completed in each production department.

The Jones Corporation uses a process system.During the current period,2,500 units were started and 1,100 units were completed and transferred out.Ending units were 60% complete for materials and 50% complete for conversion costs.Direct materials costs added were $35,405 and conversion costs added were $32,870.There was no beginning WIP Inventory and conversion costs are added evenly throughout the process.At the end of the period,the cost per equivalent unit for direct materials would be closest to

There are a total of 14,000 students at a school.Eighty percent of them go full time at 16 hours per term.Ten percent take a half-load of 8 hours per term,and ten percent take a three-quarter load of 12 hours per term.What is the equivalent number of full-time students?

The costing system used by an oil refinery would be

When units are sold,Finished Goods Inventory is debited.

Cost for direct materials,direct labor and Manufacturing Overhead are assigned to each job.

Costs are transferred,along with the units,from one WIP Inventory to the next.

Perfect Pigments has 3,500 gallons of paint in WIP Inventory,with 80% of materials already added.The paint is 50% through the process.Assuming all conversion costs are added evenly throughout the process,what are the equivalent units for conversion costs?

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

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

The following information is provided by Mel Company: The units in ending WIP Inventory were 90% complete for materials and 25% complete for conversion costs. Required: a.What are the total equivalent units for direct materials? b.At the end of the year,what are the equivalent units for 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 total cost of units completed and transferred out?

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

In process costing,the costs flow from Raw Materials Inventory,to Work In Process Inventory,to Finished Goods Inventory.

Process costing is typically used for businesses that make unique goods in relatively small amounts.

Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs.For calculating costs per equivalent unit,which of the following statements is true?

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in ending WIP Inventory.

The managerial accountant at Duck Manufacturing reported the following information: The cost of ending WIP is closest to

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 50%.

The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.