Exam 20: Process Costing

The cost of units sold is recorded by debiting Cost of Goods Sold and crediting ________.

The Polishing Department of Generation Fixtures,Inc.had 15,000 units in process on June 1 and received 22,000 units from the Machining Department.During the month,it completed 31,000 units and transferred them to the Packaging Department and had 6,000 units in ending Work-in-Process Inventory.Calculate the number of units accounted for by the Polishing Department for June.

The journal entry to record indirect labor costs incurred includes a debit to Manufacturing Overhead and credit to Wages Payable.

When indirect materials are issued to production,the Raw Materials Inventory account is credited.

Under process costing,the costs incurred by each department are reported in ________.

In process costing,which of the following is recorded by debiting the Manufacturing Overhead account?

Under process costing,direct materials and direct labor are assigned to Work-in-Process Inventory for each process that uses them.

In a process costing system,equivalent units must be calculated separately for materials and conversion costs.

The Assembly Department of Intuitive,Inc.,manufacturer of computers,had 2,000 units of beginning inventory in September,and 8,000 units were transferred to it by the Production Department.The Assembly Department completed 4,000 units during the month and transferred them to the Packaging Department.Calculate the total number of units accounted for by the Assembly Department if it had 6,000 units in ending inventory.The weighted-average method is used.

The production cost reports show the calculations for the physical flows and the ________ flows of the products.

Morewell,Inc.used a predetermined overhead allocation rate to allocate $85,000 and $65,000 of indirect costs to Coloring Department and Mixing Department,respectively.The journal entry to record the allocation of overhead costs to the Coloring Department is ________.

A production cost report shows only the calculations for the physical flow of products.

During September,the Filtering Department of Downtown Center,Inc.had a beginning Work-in-Process Inventory of 500 units with costs of $78,000.During the month,800 units were transferred in from the Milling Department with costs of $211,000.It had 500 units in ending Work-in-Process Inventory.What is the cost per equivalent unit of production for the transferred in units that were transferred to the Filtering Department in September under the first-in,first-out (FIFO)method? (Round your answer to the nearest cent.)

The Assembling Department of Miller,Inc.had 10,000 units in process on December 1 and received 30,000 units from the Sewing Department.During the month,it completed 20,000 units and transferred them to the Packaging Department.Calculate the number of units accounted for by the Assembling Department for December.Prepare the production cost report for the Assembling Department for the whole units for the month of December.Use the FIFO method.

LDR Manufacturing produces a pesticide chemical and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,42,000 fl.oz.of chemicals were started in production.Of these,32,000 fl.oz.were completed and 10,000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly through the process. At the end of the month,LDR calculated equivalent units.The ending inventory in the Mixing Department was 65% complete with respect to conversion costs.With respect to direct materials,what is the number of equivalent units in the ending inventory?

On September 30,the Sorting Department of Tea Works had ending Work-in-Process Inventory of 30,000 units that was 43% complete for materials and 35% complete for conversion costs.This means that for the beginning Work-in-Process Inventory,________% of the materials and ________% of conversion costs were added during October.

Under process costing,the total production costs incurred in each process must be split between the units that have been completed in that process and transferred to the next process and the ________.

Under the first-in,first-out (FIFO)method,the current period equivalent units of production for transferred in units in beginning inventory are zero because ________.

The ________ account is credited to adjust for overallocated overhead costs.

The production cost report for Department 1 shows that $160,000 was assigned to the 31,000 units transferred to Department 2.This transfer cost assigned to units transferred to Department 2 is recorded with a debit to Work-in-Process-Department 2.