Exam 19: Costing Systems Process Costing

Johnson Electronics Inc.manufactures a variety of microelectronic component parts and utilizes a process costing system.The following information was provided by the accounting department as of July 31,2014: a.Units started during the month of July totaled 118,200. b.Units partially complete as of July 31 equaled 7,400. c.Ending work in process inventory as of July 31,2014,was 70 percent complete. d.Direct materials are added at the beginning of the process,and conversion costs are incurred uniformly throughout the process. e.No units were in process on July 1,2014. Using the information provided,compute the equivalent units of production for direct materials and conversion costs for July using the FIFO costing method.

Which of the following statements is true?

During October,Department A of Answer Inc.started 320,000 units of product in a particular manufacturing process.The beginning work in process inventory was 50,000 units,and the ending inventory was 30,000 units.Direct materials are introduced at the start of processing,and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs.Department A uses the FIFO costing method. The number of units started and completed by department A of Answer during October was

To assign production costs to products manufactured,managers must trace all period costs to units produced and prepare process cost reports.

The Finishing Department of White Light Company has the following information available for 2014: Assuming that the Company uses the FIFO process costing method,what are the equivalent units for conversion costs for 2014?

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods -Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7.Under this assumption,the ending balance for Work in Process Inventory of Taylor Company would be

In a process costing system,some of the increases to Department C's Work in Process Inventory account would come from Department B's

A measure of productive output of units for a period of time,expressed in terms of completed whole units,is the definition of

If 45,000 units of ending work in process inventory are 60 percent complete as to conversion costs,27,000 equivalent units of conversion costs must be incurred to complete these units during the next period.

One of the steps in preparing the process cost report requires dividing current costs charged to the Work in Process Inventory account of each department or production process by equivalent units to calculate the cost per equivalent unit.

Process costing information can inform managers about the specific units of products ordered by customers.

The product unit cost is the sum of the cost elements added in all production department processes.

Under the FIFO method,the equivalent units will always equal the actual units in beginning work in process inventory,plus the actual units started and completed during the current period,plus the actual units in ending work in process inventory during the current period.

Nader Inc.has the following information available: At the beginning of the period,there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,4,300 units were started and completed.Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO costing method. ) -The equivalent units of production for direct materials and conversion costs,respectively,of Nader Inc.were

One reason for preparing a process cost report for a particular department is to determine the amount of costs to transfer to the next department or to the Finished Goods Inventory account at the end of the period.

Information for the current month for Process 5 is shown below. Direct materials are added at the beginning of the process.Beginning work in process is 40 percent complete as to conversion costs;ending work in process inventory is 60 percent complete.The cost of ending work in process inventory totaled

Regardless of beginning inventory levels,beginning inventory is always ignored while computing the equivalent units of production.

Process costing is applicable to production operations that

Which of the following entities probably would use a process costing system?