Exam 6: Process Costing

In JIT manufacturing, work cells are created that produce a product from start to finish.

The cost assigned to goods from a prior process is called the __________ cost. or

For beginning work-in-process category using FIFO, the manufacturing cost is the sum of the current-period __________ and the current __________ to complete the BWIP.

Figure 6-11 Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: Refer to Figure 6-11. The cost of January's ending work in process for the Mixing Department using the FIFO method is

Figure 6-20 Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were: Three types of cups were produced in April. The quantities and direct materials costs were: Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used. Refer to Figure 6-20. What is Outrageous Cups' conversion cost per unit for the heat-treat operation, rounded to two decimal places?

For the receiving department, transferred in goods are added at the __________ of the process.

As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: Refer to Figure 6-5. How many units were completed?

Figure 6-18 The Round Table Company makes carpenter's squares and uses a process costing system. There is no spoilage. Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are given below: The Finishing Department adds materials at the point where processing is 50 percent complete. Refer to Figure 6-18. The equivalent units for materials in the Finishing Department is

Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units: Costs: The company uses FIFO inventory assumption. Refer to Figure 6-12. What are the FIFO cost per unit for conversion?

The cost assigned to goods from a prior process is termed:

Activity-based costing might have a role in process costing settings under what conditions?

Which is NOT a difference between the job-order costing system and the process costing system?

Figure 6-3 Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Number of tax returns 300 Refer to Figure 6-3. What is the cost of services sold?

Victory, Inc., manufactures a product that passes through two processes: Mixing and Packaging. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows: During October, 150,000 units were completed and transferred to Packaging. The following costs were incurred by the Mixing Department during October: There were 12,000 units that were 70 percent complete remaining in the Mixing Department at October 31. Use the weighted average method and round unit costs to two decimal places. Required:

The process that accumulates production costs by process and uses a work-in-process account for each process is called:

Figure 6-9 Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2014 are as follows: Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. Refer to Figure 6-9. How many equivalent units for materials would there be for Anzalone Corporation in May using the FIFO method?

Refer to Figure 6-18. The equivalent units for transferred-in the Finishing Department is

Figure 6-21 Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. Refer to Figure 6-21. What is Golden Ring Company's unit cost of Larger?

Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units: Costs: The company uses FIFO inventory assumption. Refer to Figure 6-12. What are the FIFO equivalent units for materials?