Exam 14: Job-Order Costing and Process-Costing Systems

Broderick Company manufactures phones in a two-department process that involve Assembly and Finishing.The Assembly Department reported the follow data for the past month: The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The journal entry to record the requisition of direct materials for the Assembly Department includes a debit to ________.

The ________ account is supported by a file of job-cost records for partially completed jobs.

In process costing,the journal entry to transfer completed units from Department A to Department B would include a ________.

In service and nonprofit organizations,a job order or product is called a ________.

In a job-order system,accountants apply factory overhead costs to Work-in-process Inventory by using ________.

In process costing,transferred-in costs are combined with the direct material costs added in the second department to determine unit costs.

In job-order costing,a debit to Work-in-process Inventory is used to record ________.

Which of the following statements about backflush costing is FALSE?

During the month of May,Orton Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 30,000 shirts in process at May 31 and the shirts were 50 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.How many shirts were started during May?

Which output would NOT use a process costing system?

Trout Company manufactures greeting cards.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing Department for the month of September follow: Work-in-process inventory,September 1: With regard to the work-in-process inventory on September 30,materials are 100 percent complete and conversion costs are 60 percent complete.The total cost of the ending work-in-process inventory is ________.

Flat Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Flat Company purchased $9,000 of direct materials and incurred $5,300 in conversion costs to produce 40 bicycles.The journal entry to record the purchase of materials includes a debit to ________.

The manufacturing costs of the Assembly Department for the month of July are as follows: The company uses a process costing system.At July 31,the cost of the goods completed and transferred to the Finishing Department was $563,000. Required: A)Prepare summary journal entries for the use of direct materials,direct labor and factory overhead. B)Prepare a journal entry for the transfer of completed goods.

Bruce Company uses job-order costing.The company has gathered the following data: Factory overhead costs are applied at 90% of direct labor costs. Required: A)Prepare the required journal entries for the above transactions. B)Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.

Managers need to know product costs to make ongoing decisions such as which products to emphasize or deemphasize and the pricing of products.

Highlighter Company manufactures phones in a two-department process that involve Assembly and Finishing.The Assembly Department reported the follow data for the past month: The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The ending balance in Work-in-Process Inventory,Assembly is ________.

Actual factory overhead costs are Depreciation expense--equipment of $1,000 and Depreciation expense--computers of $2,000.Job-order costing is used.The journal entry to record these actual costs would include ________.

Splitsville Company has two departments.Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B.The following information is available: Actual data for Job #10 are as follows: Required: A)Compute the budgeted factory overhead rate for Department A. B)Compute the budgeted factory overhead rate for Department B. C)What is the total overhead cost for Job #10? D)If Job #10 consists of 50 units of product,what is the unit cost of this job?

Michelangelo's Pizza Company makes pizzas.The company uses process costing.All direct materials are introduced at the start of the process.Conversion costs are incurred evenly throughout the process.In February,there was no beginning Work-in-Process Inventory,but 490,000 units were started.At the end of February,there were 90,000 units still in process at the 70% level of completion.Total costs incurred during February were $1,212,500 for materials and $3,664,000 for conversion costs. Required: A)Compute the number of units completed and transferred. B)Compute the equivalent units for materials and conversion costs. C)Compute the cost per equivalent unit for materials and conversion costs.Round to two decimal places. D)Compute the cost of the units completed and transferred. E)Compute the cost of ending work-in-process inventory.

In job-order costing,a debit to Direct-Materials Inventory is used to record ________.