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Exam 5: Process Costing

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Question 91

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Companies that use automated production processes often condense the three manufacturing costs into two categories: direct materials and conversion costs.

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Question 92

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In process costing the cost for direct materials,direct labour and manufacturing overhead are assigned to each job.

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Question 93

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In process costing,the manufacturing costs assigned to the product must always follow the physical movement of the product.

The product costing system normally used to assign costs to goods that are mass produced is

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to Raw Materials inventory.

The number of equivalent units for conversion costs at Hannish Orchards is

In process costing,the costs flow from Work in Process Inventory,to Raw Materials Inventory,to Finished Goods Inventory.

A company manufactures organic juices.Last month's costs were: What were the conversion costs for the month?

If all direct materials are added at the end of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 50%.

When units are transferred from Processing Department #1 to Processing Department #2,a credit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

The number of equivalent units is computed after computing the cost per equivalent unit.

In Step 1 of the process costing procedure,the "total units accounted for" is the sum of

Green Paints has 4,000 gallons of paint in WIP inventory,with all materials already added.The paint is 80% through the process.Assuming all conversion costs are added evenly throughout the process,what are the equivalent units for conversion costs?

A transfer of $24,000 from the assembly department to the packaging department would require the entry of a

If all direct materials are added at the beginning of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is

What are the total equivalent units for conversion costs?

The Baking Department of Sweet Cakes Co.had 20,000 partially completed units in work in process at the end of August.All of the direct materials had been added to these units,but the units were only 75% of the way through the conversion process.In addition,450,000 units had been completed and transferred out of the Baking Department to the Packaging Department during the month. Required: A.What are the total equivalent units for direct materials? B.At the end of the year,what are the equivalent units for conversion costs?

Record the following process costing transactions in the general journal: a.Purchase of raw materials on account,$18,000 b.Requisition of direct materials to: Assembly Department,$8,000 Finishing Department,$4,000 c.Incurrence and payment of manufacturing labour,$21,600 d.Incurrence of manufacturing overhead costs: Property taxes-plant,$3,800 Utilities-plant,$9,000 Insurance-plant,$2,200 Depreciation-plant,$6,800 e.Assignment of conversion costs to the Assembly Department: Direct labour,$9,400 Manufacturing overhead,$5,800 f.Assignment of conversion costs to the Finishing Department: Direct labour,$8,800 Manufacturing overhead,$12,400 g.Cost of goods completed and transferred out of the Assembly Department to the Finishing Department,$20,500 h.Cost of goods completed and transferred out of the Finishing Department into Finished Goods Inventory,$31,200

The Assembly Department of Watts Speakers began November with 18,000 partially complete units in beginning work in process inventory.The beginning work in process inventory balance of $85,014 consisted of $38,000 of direct materials and $47,014 of conversion costs.During the month,production that cost $350,715 (direct materials,$138,715,and conversion costs,$212,000)was started on 90,000 units.Watts completed and transferred to the Testing Department a total of 99,000 units.The ending work in process inventory was 55% complete as to direct materials and 75% complete as to conversion costs.Zoom Auto Parts uses the weighted-average method for process costing. Required: A.Compute the equivalent units for direct materials and conversion costs. B.Compute the cost per equivalent unit.

If all direct materials are added at the beginning of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 0%.