Exam 6: Process Costing

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. The company uses FIFO inventory assumption. -Refer to Figure 6-12. What are the FIFO equivalent units for materials? a. 304,500 b. 294,500 c. 302,500 d. 262,500 e. none of the above

Figure 6-10 Julius Corporation's mixing department began January 2016 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). -Refer to Figure 6-10. If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Julius using the FIFO costing method?

JIT manufacturing emphasizes

In a process-costing system, work-in-process inventory, materials are added uniformly so that multiple calculations of equivalent units are needed for each type of input.

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: -What is the unit cost per tax return?

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: units, beginning work in process 0 units started 200 units completed ? units, ending work in process (40% complete) 50 -Refer to figure 6-5. What were the total number of units to account for?

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: Costs 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 transferred-in units using weighted average would be

Figure 6-1 The Allen Company has the following information for the Assembly Department for October 2016: -When products and their costs are moved from one process to the next process, these costs are referred to as

Using the weighted average costing method, the costing of goods transferred out is since there is only one category of completed units.

The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given number of partially completed units is:

"Total costs to account for" does NOT include which of the following costs?

Abnormal spoilage costs are treated the same as normal spoilage for process costing.

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: units, beginning work in process 0 units started 200 units completed ? units, ending work in process (40% complete) 50 -Refer to Figure 6-5. If a total of $11,050 in production costs were incurred, what is the unit cost in February?

When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good units.

Figure 6-13 Wonder Paints Corporation's Mixing Department began August 2016 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). -Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

The cost flows for a process-costing system are totally different from those of a job order costing system.

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

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. The company uses FIFO inventory assumption. -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?

Figure 6-2 Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: There were no work in process inventories and 1,000 podiums were produced. -Refer to Figure 6-2. What is the cost transferred out of the assembly department.

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: Costs 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 costs transferred out using weighted average would be