Exam 20: Process Costing

During August, the Filtering Department of Olive Company had beginning transferred in balance of 200 units with costs of $50,000. During the month, it started and completed 250 units. It had 50 units in ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO)method?

On September 30, the Boiling Department of Tea Works, had beginning Work-in-Process Inventory of 30,000 units which was 40% complete for materials and 35% complete for conversion costs. This means that for the beginning inventory ________ % of the materials and ________ % of conversion costs were added during October.

Delaware Company purchased raw materials worth $500 for cash. The journal entry to record this transaction will include:

The cost of units sold is recorded by debiting Cost of Goods Sold and crediting:

The Assembly Department of Smart Computers incurred $250,000 in direct materials and $75,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,000 and 800, respectively. The cost per equivalent unit of production for direct materials is:

In a process costing system, a department's total production costs incurred in a particular period must equal the total costs transferred out of the department.

Gizmo Manufacturers, a widgets manufacturing company, divides its production operations into three processes-Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year 2014, to produce 5,000 units. If Gizmo could sell only 3,500 units in 2014, what will be the cost per unit of widget produced?

Direct labor costs are accumulated in the Manufacturing Overhead account.

The Polishing Department of Wood Shiners had 15,000 units in process on June 1 and received 25,000 units from the Machining Department. What is the number of units to account for by the Polishing Department for June?

A production cost report shows only the calculations for the physical flow of products.

Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to:

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below. Refining Department, ending balance at January 31, 2012 For the Refining Department, what was the total number of equivalent units of production for conversion costs for the month of January?

A process is one of a series of steps in manufacturing production, usually associated with making large quantities of similar items.

The cost amounts that are transferred out from one process to another process become transferred in costs for the receiving process.

At the end of an accounting period, the costs assigned to a production department can be split into the cost of units fully completed and transferred, and the cost of units partially completed and remaining in the Work-in-Process Inventory of that department.

Which of the following formulae is used to calculate the cost per equivalent unit of production (EUP)for direct materials?

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below. Refining Department, beginning balance at January 1, 2012 Costs added during January Refining Department, ending balance at January 31, 2012 For the Refining Department in the month of January, what was cost per equivalent unit with respect to conversion costs? (Use the weighted average method and round your calculations to the nearest cent.)

The production cost reports show the calculations for the physical flows and the ________ flows of the products.

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 by 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 accounted for by the Assembly Department if it had 1,500 units in ending inventory.

Under process costing, depreciation on plant machinery is debited to the respective process's Work-in-Process Inventory.