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Exam 3: Process Costing and Analysis

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Question 51

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The process cost summary is an important managerial accounting report produced by a process cost accounting system.

A) True
B) False

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Question 52

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Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost.The entry to apply overhead to these production departments is:

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Question 53

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Which of the following characteristics does not usually apply to process manufacturing systems?

If a department that applies process costing starts the reporting period with 50,000 physical units that were 25% complete with respect to direct materials and 40% complete with respect to direct labor, it must add 12,500 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

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

The following data are available for Osman Corp.for the current year: Using FIFO, calculate the equivalent units of production for the year.

The following journal entry would be made to record the transfer of completed goods from Shoving to the finished goods inventory for this period:

An equivalent unit of production is an estimate of efforts that is used to calculate the ______________ of each production component.

Hybrid costing systems can only be applied to agricultural products.

A company's beginning work in process inventory consisted of 20,000 units that were one-fifth complete with respect to direct labor.These beginning units were completed and another 90,000 units were started during the current period.Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period.Using FIFO, the equivalent units of production were:

To compute an equivalent unit of production, one must be able to reasonably estimate:

Refer to the following incomplete table of cost information: -What was the cost of goods transferred out of the Grating Department and into the Bagging Department?

At the beginning of the recent period, there were 900 units of product in a department, one-third completed.These units were finished and an additional 5,000 units were started and completed during the period.800 units were still in process at the end of the period, one-fourth completed.Using the FIFO valuation method, the equivalent units produced by the department were:

Process manufacturing, also called process operations or process production, is the ___________ production of products in a _____________________ flow of steps.

A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

If the predetermined overhead allocation rate is 225% of direct labor cost and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Compare and contrast the FIFO and weighted-average methods of process costing.

A company uses a process cost accounting system.The following information is available regarding direct labor for the current year: (a)Calculate the equivalent units of production for direct labor for the year using FIFO. (b)Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

The FIFO method of process costing computes equivalent units of production in a slightly different manner than the computation used in the weighted-average method of process costing.