Exam 20: Process Costing

The Assembly Department of Smart Computers had 500 units of beginning inventory in the month of September and 2,000 units were transferred to it from the Production Department. The Assembly Department completed 1,000 units during the month and transferred them to the Packaging Department. Calculate the total number of units to account for by the Assembly Department.

The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the:

Michael Paints has two processes-Coloring Department and Mixing Department. Michael sold 450 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, Michael used a predetermined overhead allocation rate to allocate $80,000 and $90,000 of indirect costs to the Coloring Department and Mixing Department, respectively. The actual overhead costs incurred amounted to $150,000 at the end of the year. What are the journal entries to record the sale of goods and the adjustment for over/underallocated manufacturing overhead at the end of the year if Michael follows a process costing system?

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 gallons of chemicals were started into production. During the month, 32,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs. At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to conversion costs. The total cost of product in ending inventory was:

In a production cost report, the number of "total units to account for" consists of:

A cellular phone manufacturer is more likely to use a process costing system, rather than job order costing.

The Assembly Department of Smart Computers had a beginning inventory of 5,000 units. During November, it assembled 2,000 units and transferred them to the Packaging Department. It incurred $250,000 in direct materials and $75,000 in conversion costs. The ending inventory in November was 3,000 units which were 100% and 60% complete with respect to materials and conversion costs, respectively. Calculate the total equivalent units of production for conversion costs for November.

Under the first-in, first-out (FIFO)method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:

Iowa Inc. purchased raw materials for $6,000 and $25,000 for cash and on account, respectively. Provide the journal entry to record purchase of raw materials.

Michael Paints has two processes-Coloring Department and Mixing Department. Michael assigned $385,000 to the 5,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record completion of processing is:

In a process costing system, equivalent units must be calculated separately for materials and conversion costs.

Significant changes in costs are not exposed in a first-in, first-out (FIFO)method.

Costs incurred on goods sold are transferred to the Cost of Goods Sold account from the:

Under process costing, the costs incurred by each department are recorded in:

Both job order costing and process costing track the product costs of direct materials, direct labor, and manufacturing overhead through three inventory accounts on the balance sheet.

A textile manufacturing company is most likely to use job order costing to arrive at the cost per unit of textile manufactured and sold to customers.

Organic Sugar Company at Ohio has six processing departments for refining sugar: Affination, Carbonatation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from the month of August for the Decolorization Department are as follows: The ending Work-in-Process Inventory is 100% and 65% complete with respect to direct materials and conversion costs respectively. Compute the cost per equivalent unit for the units transferred to the Boiling process. (Round your answer to two decimal places)

The Assembling Department of Mat Liners had 10,000 units in process in December beginning and received 30,000 units from the Sewing Department. During the month, it completed 20,000 units and transferred them to the Packaging Department. Calculate the number of units accounted for by the Assembling Department for December.

The Refining Department of Sweet Sugar Inc. had 55,000 tons of sugar to account for in December. Of the 55,000 tons, 45,000 tons were completed and transferred to the Boiling Department, and the remaining 10,000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for conversion costs.

Which of the following is a step in the preparation of a production cost report?