Exam 18: Process Costing

Equivalent full units of production significantly differ from units completed and transferred during the period only when no significant differences exist between beginning and ending work in process.

If beginning inventory in Work in Process is zero and 2,000 units are started during the period, assuming that 1,700 units were completed and transferred out, how many units remain in ending inventory?

A summary of work completed with related unit and total costs in a process costing system is called a(n):

In a production cost report, the units transferred out refer to the equivalent units completed during the period that have been moved to the next department or to Finished Goods Inventory.

When either a job order costing system or a process costing system is in use, the Direct Labor account is credited:

In a process costing system that uses equivalent full units of production, the per-unit cost of direct materials equals the total cost of materials used in the current month divided by the number of units completed and transferred during the current month.

A production cost report contains which of the following parts?

The unit cost of a case charged to cost of goods sold in May was:

The computation of equivalent full units is generally not necessary when:

In evaluating the efficiency of a production department, management should:

If beginning inventory in Work in Process is zero and 2,000 units are started during the period, assuming that 300 units remain in ending inventory, how many equivalent units were completed and transferred out?

A typical production cost report will contain all of the following except:

For the month of June, the number of equivalent units of direct materials produced was:

Process costing does not:

During August, Department Z started and completed 90,000 units and also finished 18,000 units that were 75% completed on July 31. On August 31, Department Z's ending inventory consisted of 26,000 units that were 45% completed. All manufacturing costs are incurred at a uniform rate throughout Department Z's production process. The number of equivalent full units of production for Department Z during August is:

The entry to record the sale of 3,500 units in June would include:

As costs flow from one production department to the next in a process costing system, one Work-in-Process Inventory account shows all the changes to the units in production.

The production cost report is an estimate of the equivalent units completed during the period.

The number of equivalent full units of production during a period may be greater than, equal to, or smaller than the actual number of units completed and transferred to the finished goods warehouse.

During the month of August, $582,000 of costs were transferred from the Mixing Department to the Baking Department. The journal entry to summarize the transfer of these costs includes: