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Exam 20: Process Cost Accounting

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Question 81

True/False

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A process cost summary usually does not include the number of equivalent units of production for the period.

A) True
B) False

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Question 82

Multiple Choice

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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 labor usage is:

A) Debit Factory Payroll Payable $160,000;credit Cash $160,000.
B) Debit Work in Process Inventory $160,000;credit Factory Payroll Payable $160,000.
C) Debit Cost of Goods Sold $160,000;credit Factory Payroll Payable $160,000.
D) Debit Work in Process Inventory $160,000;credit Raw Materials Inventory $160,000.
E) Debit Work in Process Inventory $160,000;credit Cash $160,000.

F) A) and B)
G) A) and E)

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Question 83

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Andrews Corporation uses a process costing system for manufacturing.The following information is available for the February in its Polishing Department: The cost per equivalent unit of production for direct materials is:

Manufacturers that utilize process operations produce large quantities of identical products.

Andrews Corporation uses a process costing system for manufacturing.The following information is available for the February in its Polishing Department: The cost per equivalent unit of production for conversion is:

The FIFO method of computing equivalent units focuses on production activity in the current period only.

The following table of cost information is available for the Renaldo 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.

In process costing,all indirect materials are charged directly to Work in Process Inventory.

In a process costing system,the purchase of raw materials is debited to the Raw Materials Inventory.

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

Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

Prepare the required general journal entry to record the following transactions for the O'Harra Company. a.Used $78,000 of direct labor in the production department. b.Used $17,000 of indirect labor.

The term "process costing system" is used in reference to the number of trained individuals and computers required to process the collected cost information.

During March,the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor.The production department incurred direct materials cost of $253,000 and its beginning inventory included materials cost of $93,500.Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Grayson Company had 8,700 units in beginning inventory with accumulated costs for direct materials of $17,900,$16,500 direct labor,and $13,200 of overhead.During July,the company completed and transferred 50,000 units to finished goods.Costs incurred in the current period included $45,000 of direct materials,$58,500 of direct labor,and $46,800 of factory overhead.Ending inventory consisted of 12,000 units which were 90% complete with respect to materials and 50% complete with respect to labor and overhead.Compute the value assigned to ending inventory based on the weighted average method of inventory costing.

The following journal entry would be made to record the use of $6,100 of direct labor in a production department during the reporting period

During December,the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product.At the end of March,15,000 additional units were in process in the production department and were 80% complete with respect to materials.The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December.Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

The following data is available for Donaldson Corp.for the current year: Calculate the equivalent units of production for the year using the weighted average method.

In process costing,the cost object is the process and in job costing,the cost object is a job.

Equivalent units of production are equal to: