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Exam 20: Process Cost Accounting

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Question 31

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Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August.Minnesota Factory uses the FIFO method of inventory costing. The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned to the beginning units that were completed and transferred during August.

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Question 32

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If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period,the equivalent units of production with respect to direct labor also must be 100.

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Question 33

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When raw materials are purchased on account for use in a process costing system,the corresponding journal entry that should be recorded will include:

Metaline Corp.uses the weighted average method for inventory costs and had the following information available for the year.Equivalent units of production for the year are:

A process cost summary shows the cost of a particular job manufactured in the reporting period.

When the completed goods are sold,the cost of the completed goods are transferred to ____________________.

Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations for June.The journal entry to record June production activities for direct material usage is:

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor,the equivalent units of direct labor in Work in Process are 20,000.

In some circumstances,a process costing system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

In a process costing accounting system,factory wages are debited to ___________,when direct labor is used.When indirect labor is used,the ____________ account is debited.In both cases the _____________ is credited. Answers must appear in this order.

Process costing systems consider overhead costs to include those costs that cannot be traced to a specific process.

During November,the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 units that were started and completed in November.November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of November,40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to materials for November using the weighted-average method.

A company uses the weighted-average method for inventory costing.At the end of the period,22,000 units were in the ending Work in Process inventory and are 100% complete for materials and 75% complete for conversion.The equivalent costs per unit are materials,$2.65 and conversion $5.35.Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Process operations,also called process manufacturing or process production,is the ___________ production of similar products in a _____________________ flow of sequential steps. Answers must appear in this order.

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August.Minnesota Factory uses the FIFO method of inventory costing. The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Prepare a cost reconciliation for the month of August.

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. If the units completed were transferred to the Labeling Department,what is the appropriate journal entry to transfer the conversion costs?

A company uses a process costing system and the weighted average method for inventory costs.The following information is available regarding conversion activities for the current year: Calculate the equivalent units of production for direct labor for the year.

Once equivalent units are calculated for materials,this number will also be used for direct labor and factory overhead.

If a department that applies process costing starts the reporting period with 40,000 physical units that were 80% complete with respect to direct materials and 50% complete with respect to direct labor,it must add 8,000 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

Dazzle,Inc.produces beads for jewelry making use.The following information summarizes production operations for June.The journal entry to record June production activities for goods transferred from production to finished goods is: