Exam 20: Process Costing

Under the first-in, first-out (FIFO)method, the current-period equivalent units of production for the units in beginning inventory is always 100%.

Companies that manufacture identical items through a series of uniform production steps use ________ to determine cost per unit sold.

Production cost reports prepared using first-in, first-out (FIFO)method assumes that the first units started in the production process are the first units completed and sold.

A production cost report cannot be used for the pricing of products as it depicts only the ways to control product costs.

A production cost report is a part of the financial statements available to the shareholders of a company.

In a process costing system, costs can be controlled with the aid of a production cost report.

Under process costing, the total production costs incurred must be split between the units that have been completed in that process and transferred to the next process and the:

During September, the Filtering Department of Olive Company had beginning transferred in units of 500 units with costs of $125,000. During the month, 800 units were transferred in from the Milling Department with transferred in costs of $200,000. It had 400 units in ending Work-in-Process Inventory. What is the total cost of production for the units transferred to the Finishing Department in September under the first-in, first-out (FIFO)method?

The Assembling Department of Mat Liners had 7,500 units in process on December 1 and received 10,000 units from the Sewing Department. Calculate the number of units to account for by the Assembling Department for December.

Both job order costing and process costing:

The first-in, first-out (FIFO)method creates better month-to-month cost comparisons than the weighted-average method:

Under a process costing system, direct labor costs are assigned to the Work-in-Process account of the department for which they are incurred.

Production cost reports prepared using first-in, first-out (FIFO)method assumes that the first units started in the production process are the last units completed and sold.

The direct labor costs and manufacturing overhead costs required to produce finished goods from raw materials are called:

The ________ account is credited to adjust for overallocated overhead costs.

Process costing is the most appropriate costing method for a restaurant serving specialty cuisine.

Cost amounts that are transferred out of one process become the transferred in cost for the next process.

Under a process costing system, product costs are accumulated with respect to jobs completed.

During September, the Filtering Department of Olive Company had beginning transferred in units of 400 units with costs of $80,000. During the month, 800 units were transferred in from the Milling Department with transferred in costs of $200,000. It had 400 units in ending Work-in-Process Inventory. What is the cost per equivalent unit of production for the transferred in units transferred to the Finishing Department in September under the first-in, first-out (FIFO)method?

The Assembling Department of Mat Liners had 10,000 units in process on December 1 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. Prepare the production cost report for the Assembling Department for the whole units for the month of December. Use the FIFO method.