Exam 5: Process Costing

If conversion costs are added evenly throughout 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

In process costing, units that are partially completed are accounted for the same as units in Finished Goods Inventory.

The managerial accountant at Coastal Edge Manufacturing reported the following data: The managerial accountant is required to determine the total cost per equivalent unit at Coastal Edge Manufacturing. What were the (a)the total direct material cost per unit; (b)the conversion cost per unit; and, (c)total per unit cost of direct material costs and conversion costs added during January?

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly. The total cost of units transferred out to Finished Goods Inventory is closest to

When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

Flying High Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is credited?

When units are sold, Finished Goods Inventory is credited.

A company manufactures wallets. Last month's costs were: What were the conversion costs for the month?

Assume no beginning WIP Inventory. The ending WIP Inventory is 30% complete for materials. The total number of equivalents for materials would be

The May Corporation uses a process system. During the current period, 2700 units were started and 1600 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $32,100 and conversion costs added were $35,800. There was no beginning WIP Inventory and conversion costs are added evenly throughout the process. At the end of the period, what are the total equivalent units for conversion costs?

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to WIP-Processing Department #1.

Baxter Company produces Frisbees using a three-step sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?

In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

When calculating equivalent units in a second or later processing department, all physical units should be considered 50% complete with respect to transferred-in work and costs.

The only difference between the weighted average method of process costing and the FIFO method is

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data that represents the Shaping Department is listed below: Which of the following is the total number of physical units?

A system for assigning costs for products made in a continuous process is

Process costing would likely be used by which of the following?

Second or subsequent departments must account for units and costs transferred in from previous departments.