Exam 6: Process Costing

Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-process inventories.

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 amount transferred from the Bottling Department to Finished Goods for Work Order 10?

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 materials?

__________ is a costing system that blends job-order and process-costing procedures applied to batches of homogeneous products.

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: Refer to Figure 6-5. What are the equivalent units?

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 conversion using FIFO would be

Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for conversion costs were produced using the weighted average method?

The basic characteristics of process costing include: cost flows, journal entries, and the __________ report.

The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs is called:

The following information pertains to Southland Company: Materials are added at the beginning of the process. If equivalent units of production for conversion using the weighted average method was 39,000, ending work in process at April 30 must have been

Services that are basically homogeneous and repetitive cannot take advantage of a process-costing approach.

Xavier Corporation manufactures a plastic toy product in a two-stage production process. Plastic material is brought into the Forming Department where it is shaped. Shaped products are then moved to the Finishing Department where metal is added. The following data is given for the Forming Department for November: Round to two decimal places. Required:

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 per unit for Cups in April?

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 conversion cost per unit using FIFO would be

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 unit for conversion using weighted average would be

The process that determines the equality of the costs in beginning work in process and the costs incurred during the period is called __________ .

The following information pertains to the Springfield Company: Materials are added at the start of the process. How many equivalent units for conversion costs would there be using the FIFO method?

Process systems are characterized by a larger number of homogeneous products passing through a series of processes.

The local USPS office sorts letters by zip code. During the month of March, 200,000 letters were sorted. The cost of sorting includes the following: Required:

The units that could have been produced in a period given the amount of manufacturing inputs used are called __________ .