Exam 6: Process Costing

Transferred-in goods, must be converted to the units of measure used by the current department.

Figure 6-13 Wonder Paints Corporation's Mixing Department began August 2014 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). Refer to Figure 6-13. If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Wonder Paints using the weighted average costing method?

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 record materials used in the Mixing Department for Work Order 10?

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 Large?

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 are the equivalent units for conversion?

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called the __________ costing method.

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 materials?

Figure 6-22 The following information is available for Department C for the month of August: Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption. Refer to Figure 6-22. Department C's equivalent units of production for materials using the weighted average method is

Mortimer Company 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 May follows: During May, 37,500 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during May: There were 3,750 units that were 80 percent complete remaining in mixing at May 31. The equivalent units of production using the weighted average method is

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials issued to the department during the year divided by

Figure 6-13 Wonder Paints Corporation's Mixing Department began August 2014 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). Refer to Figure 6-13. If materials were added when the units were 80 percent complete, how many equivalent units of production for materials would there be for Wonder Paints using the weighted average costing method?

Banzai Corporation produces calculators on an assembly line in a single-step process. Factory overhead is applied based on direct labor cost. The following data pertains to September 2014: Required:

When spoilage is assumed to be __________ it is embedded in the total cost of good units.

When manufacturing companies exhibit characteristics of both job and process environments, they use batch production processes.

For the receiving department of a process-costing manufacturer, transferred-in goods are materials that are added at the end of the process.

Transferred-in costs are accounted for in the same manner as

Countryview Company manufactures a product that passes through two processes. The following information is available for the first department for June: Required:

Which is TRUE about services?

The weighted average costing method picks up __________ inventory costs and outputs and treats them as if they belong in the current period.

Figure 6-14 The following information is available for Department C for the month of June: Materials are added at the beginning of the process. Round unit costs to two decimal places. Refer to Figure 6-14. The cost of goods transferred out using the weighted average method is