Exam 14: Job-Order Costing and Process-Costing Systems

________ is the system that applies costs to similar products that are mass-produced in continuous fashion through a series of production processes.

Walter Company manufactures greeting cards.Special glittery material is added at the end of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of September follow: Work-In-Process Inventory,September 1: Units 22,500 Direct materials ( 0 \% complete) \0 Conversion costs ( 30\% complete) \2 0,472 Units started in September 127,500 Units completed in September 123,000 Work-In-Process Inventory, September 30 27,000 Direct materials added in September \ 427,000 Conversion costs added in September \3 15,000 With regard to the Work-In-Process Inventory on September 30,materials are 0 percent complete and conversion costs are 60 percent complete.The unit cost for conversion costs is ________.

During the month of May,Lucas Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 shirts in process at May 31 and the shirts were 75 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.The equivalent units for conversion costs for May are ________.

In a job-order system,accountants apply factory overhead costs to Work-In-Process Inventory by using the ________.The company does not use activity-based costing.

Linda Company manufactures gadgets in one department.The following information is available: Work-In-Process Inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-In-Process Inventory, end 12,000 Direct materials added \ 240,000 Direct labor \1 64,780 Factory overhead \ 82,000 The units in the ending Work-In-Process Inventory are 0 percent complete with respect to materials and 50 percent complete with respect to conversion costs.Direct materials are added at the end of the process.The cost of one completed unit is ________.

Examples of activity centers with indirect costs include receiving,testing and packaging.

In job-order costing,the journal entry to record the completion of units in process would include a Debit to Finished Goods Inventory.

In process costing,the journal entry to transfer completed units from Department A to Department B would include a ________.

Bernard Bassuluchi Company uses a job-order costing system and has the following data available: Beginning Direct Materials Inventory \ 26,000 Beginning Work-In-Process Inventory \ 64,000 Beginning Finished Goods Inventory \ 58,000 Direct materials purchased on account \1 48,000 Direct materials requisitioned \8 2,000 Direct labor cost incurred \1 30,000 Factory overhead incurred \ 146,000 Cost of goods completed \2 92,000 Cost of Goods Sold \ 256,000 Overhead application rate (based on direct labor cost) 125\% The journal entry to record the purchase of direct materials would include a ________.

In activity-based costing systems,the budgeted overhead rate for products is developed after considering indirect costs for ________.

When public accounting firms apply indirect costs to audit engagements,they use ________ or ________ as the cost driver.

Three types of costs are accumulated on job-cost records that include direct materials,________ and ________.

Latinovich Company has the following information available for the month of March: Units Transterred- Direct Conversion in Costs Materials Costs Work-in-process inventory, March 1 240 \ 33,600 0 \ 18,000 * Percent complete 100\% 0\% 62.5\% Transferred-in during March 400 Completed in March 440 Work-in-process inventory, March 31 200 *Percent complete 100\% 0\% 80\% Costs added in March \5 2,000 \1 3,200 \4 8,600 The company uses the weighted-average method of process costing.What are the equivalent units for March for conversion costs?

In a job-order system,which of the following statements is TRUE?

Carlson Company has two departments.Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B.The following information is available: budgeted Costs Bept. A Dept. B Direct labor cost \ 150,000 \ 165,000 Machine hours 51,000 20,000 Factory overhead cost \ 225,000 \ 180,000 Actual data for Job #10 are as follows: Actual Costs Dept, A Dept, B Direct materials requisitioned \ 10,000 \1 6,000 Direct labor cost \ 11,000 \1 4,000 Machine hours 5,000 3,000 Required: A) Compute the budgeted factory overhead rate for Department A. B) Compute the budgeted factory overhead rate for Department B. C) What is the total overhead cost for Job #10? D) If Job #10 consists of 50 units of product, what is the unit cost of this job?

The last step in calculating the production-cost report is to apply unit costs to units completed and to units in the ending work-in-process inventory.

The centerpiece of a job-order costing system is the balanced scorecard.

Schaefer Company has the following information available for the month of March: Units Transterred- Direct Conversion in Costs Materials Costs Work-in-process inventory, March 1 240 \ 33,600 0 \ 18,000 * Percent complete 100\% 0\% 62.5\% Transferred-in during March 400 Completed in March 440 Work-in-process inventory, March 31 200 *Percent complete 100\% 0\% 80\% Costs added in March \5 2,000 \1 3,200 \4 8,600 The company uses the weighted-average method for process costing.What are the equivalent units for March for transferred-in costs?

Equivalent units are computed to assign costs to partially completed units.

Job-order costing can be used only in manufacturing environments.