Exam 5: Process Costing

The number of equivalent units is usually the same for direct materials and conversion costs.

When the last process of the product has been completed and the product is transferred to storage for sale to the final customer, what journal entry does the company record?

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 conversion costs is 50%.

If a company has 6,000 units that are 60% complete, the equivalent unit figure is 3,600.

The following information is provided by Arrow Company: The units in ending WIP Inventory were 78% complete for materials and 40% complete for conversion costs. What are the total equivalent units for direct materials?

At Opal Incorporated, 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 direct materials?

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 100%.

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for conversion costs?

The journal entry a company would make under process costing to transfer direct materials into the Assembly Department would be

Start the Day Right has 2500 gallons of orange juice in WIP Inventory, with 75% of materials already added. What are equivalent units in ending WIP Inventory for materials if the orange juice is 58% through the process?

The existence of ending Work In Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory, and how much of the cost should be assigned to units completed during the period.

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 cost per equivalent unit for conversion costs would be closest to

Freddie Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows: What are the equivalent units for conversion costs?

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 costs of units completed and transferred would be closest to

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

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is credited when the frisbees are totally completed?

The Candy Factory manufactures healthy candy that it sells to consumers and groups in the marketplace. The business produces chocolate-covered cherries in a three-step process to develop the center of the cherries, coat the cherries in chocolate, and package the final product. The total cost to produce a pound of chocolate covered cherries is the sum of the cost per pound in each of the following processes: The managerial accountant reported that there is no Work in Process Inventory. Assuming that there is no work in process inventories, calculate the total cost per pound for each of the three processes listed above and the total cost to produce a pound of chocolate covered cherries. Explain why the cost in each process is important to the managerial accountant. Discuss at least three reasons why the cost in the process is important and how this cost is used at the company.

Sunnyside Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 18,000 gallons of the drink, and the 1900 gallons left in ending WIP were 20% of the way through the process. The equivalent units for flavoring is

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for Manufacturing Overhead?

Brambles Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. What is the total number of equivalent units for conversion costs?