Exam 5: Process Costing

When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called?

Both process costing and job costing assign costs to units as they proceed through the process.

The weighted-average method of process costing is simpler than the FIFO method.

At Opal Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for direct materials?

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

Wong completed 24,000 units and had another 6,000 units 45% complete. The total equivalent units for the period are 26,700.

The following information is provided by Bynes Company: The units in ending WIP Inventory were 85% complete for materials and 25% complete for conversion costs. Required: a. What are the total equivalent units for direct materials? b. At the end of the year, what are the equivalent units for conversion costs?

If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

Which of the following statements is true regarding a production cost report?

The following information is provided by Zander Corporation: The units in ending WIP Inventory were 70% complete for materials and 45% complete for conversion costs. What are the total equivalent units for direct materials?

The five steps of the process costing procedure are scrambled below: 1. Assign total costs to units completed and to units in ending WIP Inventory. 2) Summarize total costs to account for. 3) Compute the cost per equivalent unit. 4) Summarize the flow of physical units. 5) Compute output in terms of equivalent units. The correct order for these steps is:

A deodorant manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units for conversion costs?

The May Corporation uses a process system. During the current period, 3100 units were started and 1900 units were completed and transferred out. Ending units were 80% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP Inventory and conversion costs are added evenly throughout the process. At the end of the period, the total equivalent units for direct materials are

Blossom Company has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. What would have been the journal entry to record the transfer of product from the assembly department to the Shaping Department?

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units in ending WIP Inventory.

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to Raw Materials Inventory.

To find the "cost per equivalent unit," the "total costs to account for" are divided by the "total direct materials."

A golf ball manufacturer gives us its data for the year: Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs. On December 31, the total cost of the units in ending WIP would be closest to

At Trapeze Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for direct materials?

The costing system used by a company producing custom fireplace mantels would be