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Exam 3: Process Costing

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Question 21

Multiple Choice

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The journal entry to record the completion of goods includes:

A) a credit to Conversion Costs.
B) a credit to Work in Process Inventory.
C) a credit to Finished Goods Inventory.
D) a credit to Cost of Goods SolD.
When goods are completed, the cost is debited to Finished Goods Inventory and credited to Work in Process Inventory.

E) A) and B)
F) All of the above

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Question 22

Multiple Choice

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

A) completed or still in process at the end of the period.
B) sold or still in inventory at the end of the period.
C) in the next production process or sold at the end of the period.
D) using direct materials or conversion costs at the end of the perioD.
One must determine whether the units were completed during the period or are still being worked on at the end of the perioD.

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

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Question 23

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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 total cost per unit using the weighted average method would be:

The process costing production report is used to determine how much manufacturing cost to transfer out of Finished Goods Inventory and into Cost of Goods Sold

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 cost per equivalent unit for materials using the weighted average method would be closest to:

Heathcoat Co. uses process costing to account for the production of canned vegetables. 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. On April 1, there were 2,000 units in beginning inventory (80% complete) . During April 10,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 40% for conversion) . The cost per equivalent unit for materials using the FIFO method would be closest to:

Under the weighted average method of process costing, the cost per equivalent unit is calculated for which of the following categories?

Heathcoat Co. uses process costing to account for the production of canned vegetables. 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. On April 1, there were 2,000 units in beginning inventory (80% complete) . During April 10,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 40% for conversion) . The total cost per unit using the FIFO method would be closest to:

Bosco Corp. uses a process costing system. Beginning inventory for January consisted of 1,500 units that were 50% completed. During January, 10,000 units were completed. On January 31, the inventory consisted of 750 units that were 75% completed. How many units were started during January?

The journal entry to record the application of overhead costs to production includes:

Which of the following is not a characteristic of process costing?

Which of the following statements is correct with respect to the differences between using the weighted-average method or the FIFO method of preparing a process production report?

To calculate cost per equivalent unit in process costing, divide total manufacturing costs by the total number of equivalent units. Under the weighted average method, what costs are reflected in total manufacturing costs?

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

Kramer Corp. began the current period with 4,000 units in process that were 100% complete as to materials and 60% complete as to conversion. Costs of $7,500 in direct materials and $4,700 in conversion costs were incurred in manufacturing those units in the previous period. Kramer ended the current period with 20,000 units completed and 5,000 units still in process. Work in process was 100% complete as to materials and 70% complete as to conversion costs. Kramer incurred $67,500 in direct materials costs, $7,000 in direct labor costs, and $40,000 in manufacturing overhead costs during the period. Required: Using the weighted average method, compute the following: a. Equivalent units of production for materials. b. Equivalent units of production for conversion. c. Cost per equivalent unit for materials. d. Cost per equivalent unit for conversion. e. Cost assigned to ending Work in Process Inventory f. Cost assigned to goods completed and transferred out

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 still in process at the end of the period?

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 units completed and transferred out using the weighted average method would be closest to:

Sanger Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,000 units that were 40% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 500 units that were 70% completed. What would be the equivalent units for conversion cost using the FIFO method?

For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:

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: