Exam 20: Process Costing

The journal entry to record indirect labor costs incurred,but not paid,includes a debit to Manufacturing Overhead and a credit to Wages Payable.Process costing is used.

Which of the following is NOT a way in which managers use the production cost reports to make decisions for their companies?

The production cost report for Department 2 shows that $454,000 was assigned to the 50,000 units transferred to Finished Goods Inventory.Cost of goods manufactured equals $454,000.Process costing is used.

In a production cost report,the number of units to account for must always be greater than the number of units accounted for.

At the start of June,the Polishing Department of Corona Counters,Inc.had 15,000 units in beginning inventory.During the month,it received 25,000 units from the Machining Department.It started and completed 17,000 units and transferred 32,000 units to the Packaging Department.It had 8,000 units in ending Work-in-Process Inventory.Direct materials are added at the beginning of the process.Units in beginning Work-in-Process Inventory were 50% complete in respect to conversion costs.Units in ending Work-in-Process Inventory were 40% complete with respect to conversion costs. Prepare the production cost report for the Polishing Department for the equivalent units of production for the month of June.Use the FIFO method.

If a business operates in an industry that experiences significant cost changes,should the business prepare its production cost report using the FIFO method or the weighted-average method? Explain your answer.

Under process costing,the unit cost of the completed units is less than the unit cost of the incomplete units.

A report prepared by a processing department for equivalent units of production,production costs,and the assignment of those costs to the completed and in-process units is called a(n)________.

During August,the Filtering Department of Rudbeckia,Inc.had beginning Work-in-Process inventory of 120 units with costs of $50,000.525 units were transferred in during the month.It had 60 units in ending Work-in-Process Inventory.Under the first-in,first-out (FIFO)method,current period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is ________.

At the end of an accounting period,the costs assigned to a production department can be split into the cost of units fully completed and transferred out,and the cost of units partially completed and remaining in the Work-in-Process Inventory of that department.

During August,the Filtering Department of Speedwell,Inc.had a beginning Work-in-Process Inventory balance of 120 units with costs of $60,000.During the month,it started and completed 260 units.It had 30 units in the ending Work-in-Process Inventory.What is the number of equivalent units of production for transferred in units in the Filtering Department in August under the first-in,first-out (FIFO)method?

Coat-All Paint Company used a predetermined overhead allocation rate to allocate $80,000 and $50,000 of indirect costs to the Coloring Department and the Mixing Department,respectively.The journal entry to record the allocation of overhead costs to the Coloring Department is ________.Process costing is used.

Conversion costs include the costs of purchasing and converting raw materials into finished products.

A characteristic of products that are produced in a series of steps or processes is that ________.

Production costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.

The production cost report for Department 2 shows that $452,000 was assigned to the 59,000 units transferred to Finished Goods Inventory.This cost assigned to Finished Goods Inventory is recorded with a debit to Work-in-Process-Department 2.Process costing is used.

Jabari Manufacturing,a widgets manufacturing company,divides its production operations into three processes-Department 1,Department 2,and Department 3.The company uses a process costing system.Jabari incurred the following costs during the year to produce 4800 units: Department 1 \ 17,000 Department 2 \ 7000 Department 3 \ 10,000 If Jabari could sell only 3100 units during the year,what will be the cost per unit of widget produced? (Round your answer to the nearest cent.)

The Assembling Department of Patchwork,Inc.had 11,000 units in process on December 1 and received 30,400 units from the Sewing Department.During the month,it completed 20,700 units and transferred them to the Packaging Department.Calculate the number of units accounted for by the Assembling Department for December.The company uses the FIFO method.

The Polishing Department of Silverworks,Inc.had 15,000 units in process on June 1 and received 25,000 units from the Machining Department.During the month,it completed 32,000 units and transferred them to the Packaging Department.Prepare the production cost report for the Polishing Department for the units for the month of June.(Use the first-in,first-out method.)

A process costing system is generally used by companies that produce homogeneous products.