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

Angelina Company manufactures plastic cups in one department.The following information is available: Work-In-Process Inventory, beginning 0 Units started 150,000 Units completed and transferred 12,000 Work-In-Process Inventory, end 3,000 Direct materials added \3 0,000 Direct labor \2 0,700 Factory overhead \ 10,350 The units in the ending Work-In-Process Inventory are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.The cost of one completed unit is ________.

In process costing,a company has some unfinished units at the end of the accounting period.________ units are the number of completed units that could have been produced from the inputs used to create the unfinished units.

Saludo 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 \ 425,000 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 materials is ________.

Paula Inc.manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: Direct materials added \ 336,000 Direct labor 460,800 Factory overhead 230,400 Total costs to account for \1 ,027,200 Units started 80,000 Units completed and transferred 67,200 Units not complete 12,800 Units in beginning inventory 0 The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The cost of a finished unit is ________.

Healthy Connection Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No Finished Goods Inventory is maintained and product costs are applied directly to Cost of Goods Sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Healthy Connection Company purchased $6,000 of direct materials and incurred $3,000 in conversion costs to produce 40 bicycles.When production is complete,the journal entry has a Debit to ________.

In nonprofit organizations,the challenge is to apply the costs from various departments to different ________.

In process costing,which of the following cost(s)is(are)usually included in transferred-in costs?

Which of the following outputs would NOT use a process costing system?

Fish 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 \ 492,000 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 total cost of goods transferred out of the Printing Department is ________.

The manufacturing costs of the Assembly Department for the month of July are as follows: Direct materials added \2 20,000 Direct labor costs added \ 190,000 Factory overhead costs applied \1 40,000 The company uses a process costing system.At July 31,the cost of the goods completed and transferred to the Finishing Department was $563,000. Required: A) Prepare summary journal entries for the use of direct materials, direct labor and factory overhead. B) Prepare a journal entry for the transfer of completed goods.

Excalibur Company produces calendars in a one-department process.The following data is available for the past month: Work-in-process inventory, beginning 0 Units started 15,000 Units completed and transferred 12,000 Work-in-process inventory, ending 3,000 Direct materials added \3 0,000 Direct labor \2 0,700 Factory overhead costs \1 0,350 The units in process at the end of the month are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.What are the equivalent units for materials for the month?

Source documents used in job-order costing include material requisition forms and time cards.

Green Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: Direct materials added \ 336,000 Direct labor 460,000 Factory overhead 204,000 Total costs to account for \1 ,000,000 Units started 80,000 Units completed and transferred 67,200 Units not complete 12,800 Units in beginning inventory 0 The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The journal entry to record the requisition of direct materials for the Assembly Department includes a Debit to ________.

Melody Scott 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) 130\% The journal entry to record the actual factory overhead costs incurred would include a ________.

Conoco Company has an actual factory overhead cost of Depreciation Expense-Equipment of $5,000.Job-order costing is used.The journal entry to record this actual cost would include ________.

Rozman Company produces calendars in a one-department process.The following data is available for the past month: Work-in-process inventory, beginning 0 Units started 15,000 Units completed and transferred 12,000 Work-in-process inventory, ending 3,000 Direct materials added \3 0,000 Direct labor \2 0,700 Factory overhead costs \1 0,350 The units in process at the end of the month are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.What are the equivalent units for conversion costs for the month?

Orlando Company manufactures phones in a two-department process that includes Assembly and Finishing.Information about the Assembly Department follows: Direct materials added \ 310,000 Direct labor 460,000 Factory overhead 230,000 Total costs to account for \1 ,000,000 There was no beginning inventory and 80,000 units were started in the Assembly Department.By the end of the month,67,200 units were completed and transferred to the Finishing Department and 12,800 units were still in process.The partially complete units were 100 percent complete with regard to direct materials but 75 percent complete with regard to conversion costs.The equivalent units for materials for the month for the Assembly Department are ________.

Backflush costing has only two categories of costs that include materials and conversion costs.

Bertinoli's Company makes gadgets.The company uses process costing.All direct materials are introduced at the end of the process.Conversion costs are incurred evenly throughout the process.In February,there was no beginning Work-in-Process Inventory,but 490,000 units were started.At the end of February,there were 90,000 units still in process at the 70% level of completion.Total costs incurred during February were $1,212,500 for materials and $3,664,000 for conversion costs. Required: A) Compute the number of units completed and transferred. B) Compute the equivalent units for materials and conversion costs. C) Compute the cost per equivalent unit for materials and conversion costs. Round to two decimal places. D) Compute the cost of the units completed and transferred. E) Compute the cost of ending work-in-process inventory.

Michael Company uses job-order costing.The company has gathered the following data: Direct materials purchased for cash \ 60,000 Direct materials requisitioned \ 50,000 Direct labor costs incurred \ 90,000 Factory overhead costs incurred \ 60,000 Cost of goods completed \1 80,000 Cost of goods sold \1 70,000 Sales for cash \3 00,000 Factory overhead applied ? Factory overhead costs are applied at 90% of direct labor costs. Required: A) Prepare the required journal entries for the above transactions. B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.