Exam 6: Process Costing

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Refer to Figure 6-19. Mountainside's equivalent units for transferred-in units using weighted average would be

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Refer to Figure 6-19. Rounded to two decimal places, Mountainside's cost per equivalent units for transferred-in costs using weighted average would be

"Total costs to account for" does NOT include which of the following costs?

The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating __________ .

The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost.

Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. Refer to Figure 6-15. What is the cost per unit for conversion?

The material cost per equivalent unit using the weighted average method is calculated as

The FIFO method unit costs are used to value output that is related to future periods.

Xanadu Company manufactures a product that passes through two departments, Assembly and Finishing. In the Finishing Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout the process. During the month of January, the Finishing Department received 60,000 units from the Assembly Department. The transferred-in cost of the 60,000 units was $69,900. Costs added by Finishing during January included the following: On January 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs. On January 31, 12,000 units were in inventory, one-third complete with respect to conversion costs. The costs associated with the 10,000 units in beginning inventory were as follows: Required: Prepare a cost of production report using the weighted average method.

Which of the following would NOT be true when there is spoilage?

In process costing, __________ costing can be used to assign shared overhead to processes. or

The accounting system which accumulates production costs by process and uses a work-in-process account for each process is called __________ .

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' total cost for Casts in April?

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

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 journal entry to apply conversion costs in the Mixing Department for Work Order 10?

The following information is available: Materials are added at the beginning of the process. How many equivalent units for conversion would there be in November using the weighted average method?

Figure 6-8 Thunder Roads Enterprises makes the following information available: Materials are added at the beginning of the process. Refer to Figure 6-8. Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the FIFO method?

Which is NOT a feature of a process costing system?

Figure 6-6 Mannassass Company manufactures chairs. The following information was given for the company: Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. Refer to Figure 6-6. What are the costs per unit for materials and conversion respectively?