Exam 6: Process Costing

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 What is the unit cost per tax return?

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 cost per unit for materials using the weighted average method is

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 materials?

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 units started and completed?

When products and their costs are moved from one process to the next process, these costs are referred to as

The following information pertains to Firewire Corporation: Materials are added at the beginning of the process. If 18,000 units were completed during the month, ending work in process at November 30 is

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 assigned to the units completed and transferred to finishing?

Figure 6-16 Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during October: Refer to Figure 6-16. The number of units completed in the second department during April is

Lakeside Corporation produces two types of product: Normal and Extra. 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 $200,000 for labor and $600,000 for overhead. Budgeted direct labor hours were 5,000. It takes 6 minutes to mix the ingredients needed for each bottle. Normal and Extra flow through the Mixing Department, followed by the Cooking and Bottling departments. Required:

Companies using JIT manufacturing do not use __________ inventories for their process costing. or

Layla Company began making mascara in November 2014 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

When materials are not added uniformly using a work-in-process system, __________ of equivalent units are needed, one for each type of input.

Equivalent units expresses all activity of the period in terms of

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 materials using weighted average would be

The __________ method is a unit-costing method that merges prior-period work and costs with current period work and costs.

In process costing, costs are accounted for by

The appropriate cost accounting system to use when inventory items are produced on an assembly line is

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 equivalent units for materials and conversion respectively?

Spoilage in a process costing process means that more units enter the process than leave it.

Figure 6-4 The following information is available from the records of Diamond Cut, Inc.: Refer to Figure 6-4. What are the conversion costs in the Finishing Department?