Exam 6: Process Costing

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000 -Refer to Figure 6-17. The equivalent units for conversion using FIFO would be

The process that determines the equality of the costs in beginning work in process and the costs incurred during the period is called .

FIFO follows the job-order costing principle.

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. -When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

The units that could have been produced in a period given the amount of manufacturing inputs used are called __________ .

For beginning work-in-process category using FIFO, the manufacturing cost is the sum of the current-period __________ and the current __________ to complete the BWIP.

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000 -Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using weighted average is

When spoilage is due to the exacting nature of a particular job it is called spoilage.

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

The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating .

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

The material cost per equivalent unit using the weighted average method is calculated as

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 per equivalent unit of production for materials using the weighted average method is

In order to determine product costs, JIT firms are usually structured so they can use:

The following information is available: Units in process, November 1 (60% converted) 2,000 units Units in process, November 30 (60% converted) 4,000 units Units started during the month 30,000 units Materials are added at the beginning of the process. How many equivalent units for conversion would there be in November using the weighted average method?

is a costing system that blends job-order and process-costing procedures applied to batches of homogeneous products.

Equivalent units expresses all activity of the period in terms of

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

Figure 6-7 Edelstein Company had the following data for 2016: Units in process at the beginning of the month 4,000 Units in process at the end of the month 10,000 Units started during the month 40,000 Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion. -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

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