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

REM Company manufactures plastic cups in one department.The following information is available: The units in the ending work-in-process inventory are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.The cost of the ending work-in-process inventory is ________.

________ is the system that applies costs to similar products that are mass-produced in continuous fashion through a series of production processes.

Backflush costing systems assume that conversion-cost account balances should be approximately zero at all times.

Each job has its own job-cost record in a job-costing system.

Seymour 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 equivalent units for materials are ________.

The chemical and glass industries normally use job costing.

In job-order costing,the journal entry to record the completion of units in process would include a debit to Finished Goods Inventory.

Backflush costing has no work-in-process inventory account.

During the month of May,Scott Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 shirts in process at May 31 and the shirts were 75 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.The equivalent units for conversion costs for May are ________.

Sturdy Company produces calendars in a one-department process.The following data is available for the past month: The units in process at the end of the month are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.What are the equivalent units for materials for the month?

One of the primary purposes of an activity-based costing system is to ________.

In process costing,the central product-costing problem is how each department computes the cost of ________.

In job-order costing,actual factory overhead rates are used to apply factory overhead costs to products.

Wally 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 unit cost for conversion costs is ________.

In job-order costing,the journal entry to record the application of factory overhead costs to jobs includes a debit to ________.

The ________ system is better suited for a single physical unit or a few similar units.

The first step in process costing is to calculate the cost of goods transferred during the accounting period.

In job-order costing,the journal entry to record the transfer of completed goods from the production area would include a credit to ________.

Process costing accumulates costs for a period and divides them by quantities produced during the period to get average costs.

Progressive Company produces a product in a process-costing system involving several departments.The company uses the weighted-average method of product costing.The first department's data for the month of April follow: Stage of Completion: Required: A)Compute equivalent units for materials and conversion costs. B)Compute the cost per unit for materials and conversion costs. C)Compute the cost of the units transferred. D)Compute the cost of the ending work-in-process inventory.