Exam 16: Process Costing and Analysis

A company uses a process costing system and the weighted average method for inventory costs.The following information is available regarding direct labor for the current year: Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

Process costing is applied to operations with repetitive production and noncustomized products.

Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations for June. -The journal entry to record June production activities for goods transferred from production to finished goods is:

If Grayson Manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department,the journal entry to record the labor used is:

Prepare the required general journal entries to record the following transactions for the Ringer Company. a.Purchased $40,000 of raw materials on account. b.Used $12,000 of direct materials in the production department. c.Used $5,000 of indirect materials.

In a process costing system,companies typically end each period with only Finished Goods Inventory.

Direct labor and indirect labor are recorded,respectively,to:

The cost of units transferred from Work in Process Inventory to Finished Goods Inventory is called the cost of goods manufactured.

A company uses the FIFO method for inventory costing.At the start of the period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825.Compute the equivalent cost per unit for labor.

At the beginning of the month,the Painting Department of Skye Manufacturing had 20,000 units in inventory,70% complete as to materials,and 20% complete as to conversion.During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department.At the end of the month,the department had 15,000 units in inventory,40% complete as to materials and 10% complete as to conversion.If Skye Manufacturing uses the weighted average method of process costing,compute the equivalent units for materials and conversion respectively for the Painting Department.

A key idea in process costing that refers to the number of units that could have been started and completed given the costs incurred during the period is known as:

Using conversion cost per equivalent unit is appropriate for many businesses that use process costing because:

Andrews Corporation uses the weighted-average method of process costing.The following information is available for February in its Polishing Department: The cost per equivalent unit of production for conversion is:

In a process operation,the direct labor of a production department includes:

Companies that use a series of repetitive manufacturing processes to produce standardized products likely use a process costing system.

Equivalent units of production are equal to:

The following refers to units processed by a breakfast cereal maker in August.Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor,the equivalent units of direct labor in beginning Work in Process are 20,000.

Which of the following products is least likely to be produced in a process operation?

The number of equivalent units of production assigned to ending Work in Process inventory should be equal to or less than the number of physical units in ending Work in Process inventory.