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Exam 20: Process Cost Accounting

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Question 21

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Refer to the following information about the Dipping Department of the Indiana Factory for the month of August. Indiana 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 ending goods in process inventory for August.

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Question 22

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Lipinski Company completed and transferred 90,000 units during the current period. Based on the following information, determine the cost of the goods completed during the current reporting period and journalize the transfer.

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Question 23

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The following table of cost information is available for the Messier Company for the month of November: Based on the table of cost information above, prepare the general journal entry required to record the: a. Transfer of goods from the molding department to the finished goods inventory. b. Cost of goods sold for November.

A company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor. The beginning inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were 20% complete. Calculate the equivalent units of production for the year using the FIFO method.

When the final production department completes goods, the cost of the completed goods are transferred to ___________________.

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 ___________________.

A process cost summary involves computations and analysis at four sequential steps. These are (1) _________ (2) ___________, (3) _____________, and (4) ____________.

Medina 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:

What are the four steps in accounting for production activity in a period?

Iolaus Company provides the following data for the current year: Required: a. Calculate the predetermined overhead allocation rate based on direct labor. b. Determine the amount of overhead applied to production. c. Prepare the journal entry to apply factory overhead to goods in process.

Accountants use the term process cost accounting system because this system uses a number of trained individuals and computers to process the collected cost information.

A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. The department started and finished 127,500 units this period. The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

In a process cost accounting system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

The purchase of raw materials on account in a process costing system is recorded with a:

Describe the flow of overhead costs in a process cost accounting system, including accounts used.

A company uses the weighted average method for inventory costing. During a period, Department A finished and transferred 50,000 units to Department B. Also, during the period, 10,000 units were started but brought only to a stage of being 3/5 completed. The number of equivalent units produced by Department A during the period was:

A process cost summary is a managerial accounting report that describes:

Direct costs in process cost accounting include only those costs that can be readily identified with individual product units.

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.