FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Process Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

The journal entry to record the issuance of direct material into production includes

A) a credit to Raw Materials Inventory.
B) a credit to Finished Goods Inventory.
C) a credit to Work in Process Inventory.
D) a credit to Cash.

E) B) and C)
F) None of the above

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Gatlin Manufacturing adds direct materials at the beginning of the production process,while conversion costs are incurred uniformly throughout the process.At the end of the period,equivalent units for direct materials were 250 more than equivalent units for conversion costs.1,000 units were started during the period,and 1,000 units were also completed.Ending Work in Process Inventory was 50% complete.How many physical units were in ending Work in Process Inventory?

A) 250
B) 500
C) 750
D) 1,000

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

How is the ending balance in Work in Process Inventory calculated for a firm that uses the weighted average method of process costing?

Livingston Co.uses process costing to account for the production of elastic bands.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.During April 8,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The equivalent cost per unit for materials using the weighted average method would be closest to:

The journal entry to record the issuance of direct material into production includes

TryFit Co.uses process costing to account for the production of energy food bars.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.During April 8,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The value of ending inventory using the weighted average method would be closest to:

The production report contains information about the number of physical units and equivalent units,but not their costs.The production report includes information about the number of physical units,equivalent units,cost per equivalent unit,and a reconciliation of the cost of work in process.

Which of the following is not used in the calculation of cost per equivalent unit?

Kenney Co.uses process costing to account for the production of canned energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 19,200 units for materials and 16,000 units for conversion costs.Beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs.April costs were $57,600 for materials and $64,000 for conversion costs.Ending inventory still in process was 6,400 units (100% complete for materials,50% for conversion) .The total cost per unit using the weighted average method would be closest to:

For a firm that uses the weighted average method of process costing,which of the following must be true?

The journal entry to record the actual overhead costs incurred includes

A major difference between job order costing and process costing is the treatment of nonmanufacturing costs.In both job order costing and process costing,nonmanufacturing costs are expensed in the period in which they are incurred.

The FIFO method combines last period's costs as well as this period's costs in the calculation of unit costs.The FIFO method separates the costs of beginning inventory from the costs that were incurred during the current period.

Under the weighted-average method,the only partially completed units that need to be addressed are the units in beginning inventory.Under the weighted-average method,the only partially completed units that need to be addressed are the units in ending inventory.

Process costing is used to calculate the cost of homogenous goods or services.Process costing is used by companies that produce homogeneous products or services using a series of standardized processes.

Bosco Corp uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 60% completed.During January,13,650 units were completed.On January 31,the inventory consisted of 650 units that were 70% completed.How many units were started during January?

To reconcile the number of physical units using the weighted average method of process costing,one must determine whether the units were:

Rathburn,Inc.is a service firm that uses process costing.The firm worked on a total of 1,000 cases this month,800 of which were completed during the period.The remaining cases were 40% complete.The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period,and had $4,800 in direct labor and manufacturing costs in beginning inventory.Using the weighted average method,what was the total cost of cases completed during the period?

Physical units multiplied by their percentage of completion yields

An equivalent unit is a measure used to convert costs incurred in the previous period to costs incurred in the current period.An equivalent unit is a measure used to convert partially completed units into the equivalent of a full unit.