Exam 20: Process Costing

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

The Assembly Department of GigaGo,Inc.,manufacturer of computers,had 4500 units of beginning inventory in September,and 3000 units were transferred to it by the Production Department.The Assembly Department completed 1500 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 6000 units in ending inventory.The weighted-average method is used.

The costs that were incurred in a previous process and brought into a later process as part of the product's cost are called ________ costs.

Under the first-in,first-out (FIFO)method,prior period costs are not merged with current period costs.

Which of the following businesses is most likely to use a process costing system?

The equivalent units of production for transferred in units are always 100%.

Process costing is the most appropriate costing method for a restaurant serving specialty cuisine.

The weighted-average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

Candace's Candies,Inc.produces gummy bears.The company purchases raw materials,stores them in a warehouse,and then runs them through two processes: production and packaging.During September,the production process incurred the following costs in processing 20,000 gummy bears: Wages of workers operating production equipment \ 50,500 Manufacturing overhead allocated to the production department 8000 Direct materials 210,000 Use the FIFO method to compute the September conversion costs in the Production Department.

In a process costing system,direct materials,direct labor,and manufacturing overhead are assigned to Work-in-Process Inventory for each process that uses them.

The Assembly Department of Interface,Inc.,manufacturer of computers,had 4500 units of beginning inventory in September,and 8000 units were transferred to it from the Production Department.The Assembly Department completed 4000 units during the month and transferred them to the Packaging Department.The weighted-average method is used.Calculate the total number of units to account for by the Assembly Department.

The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report.

Singh Enterprises manufactures picture frames.Its production operations are divided into two departments - Assembly and Finishing.The company uses a process costing system.Singh incurred the following costs during the year to produce 6000 picture frames: Assembly \ 9700 Finishing \ 2250 If Singh can only sell 5100 picture frames during the year,what will be the cost per unit of the picture frames produced? (Round your answer to the nearest cent.)

In a production cost report,________ includes the number of units completed and transferred out of a process and the number of units remaining in ending WIP.The weighted-average method is used.

Dhawan,Inc.has four processing departments and uses a process costing system.It incurred $150,000 in machinery depreciation and $60,000 in indirect costs that were paid in cash.Provide the journal entries to record these transactions.

Production cost reports prepared using the first-in,first-out (FIFO)method assume that the first units started in the production process are the first units completed and transferred out.

Happy Trails,Inc.manufactures railway coaches and uses the FIFO method of process costing to record costs.The Work-in-Process Inventory of the Heating Department on October 1 was 74% complete for materials and 23% complete for conversion costs.On October 31,its ending Work-in-Process Inventory was 84% complete for materials and 41% complete for conversion costs.This means that for the ending inventory,________% of the materials and ________% of the conversion costs were added during October.

The Polishing Department of Metalware Fixtures,Inc.had 20,000 units in process on June 1 and received 23,000 units from the Machining Department.During the month,it completed 31,000 units and transferred them to the Packaging Department and had 12,000 units in ending Work-in-Process Inventory.The company uses FIFO.Calculate the number of units accounted for by the Polishing Department for June.

The weighted-average method is used.In a process costing system with the first department,provide the formula (1)To account for and (2)Accounted for.

Under the first-in,first-out (FIFO)method,the current period equivalent units of production for the units in the beginning inventory are always 100% complete.