accounting #2

Given $40,000 of current cost, $3,000 of costs in beginning inventory and 500 equivilant units, the cost per equivilant unit unsing the weighted-average method is?

86 (43,000/500)

When customers purchase producs, the manufacturing costs associated with the priducts are tranferred to...

Cost of Goods Sold

JVL Inc. adds all direct materials at the start of the production process. For a given period they had 100 units in the beginning inventory that were 40% complete as to conversion cost. During the period, 1,500 units were started and completed. Ending inventory contained 200 units that were 30% complete as to conversion cost. Compute the equivalent units for direct materials unsing FIFO method.

1,700 units (0 beginning invt+ 1,500 started/completed+ 200 in ending = 1700)

What is the journal entry to record the tranfer of partially completed products from processing Department #1 to processing Department #2

Debit Work in Process-department #2 and credit Work in Process-department #1

The journal entry to record the transfer of completed units to finished goods would be the _______ Finished Goods Inventory and ______Work in Process Inventory.

Debit, Credit

What method calculates cost per equivalent units using ONLY costs incurred by the processing department in the current period?

FIFO

Which of the following would be done to record the purhase of raw materials? -Debit, Raw Materials Invt and Credit Accounts Payable -Debit, Work in Process Invt and Credit Raw Matericals Invt -Debit, Raw Materials Invt and Credit Work in Process Invt. -Debit, Accounts Payable and Creidt Raw Materials Invt

Debit Raw Materals invt and credit Accounts Payable

Using the FIFO method, equivilent units of producation equals equivalent units to compete _______ work in process inventory plus units started and completed in the current period plus equivalent units in______ work in process inventory.

Beginning, ending

costs that are moved from on production process to another are called?

Transferred in costs

Costs tranferred from WIP to FG?

remain in FG until goods are sold, is called cost of goods completed, is called cost of goods manufactured

Using the FIFO method, what is the cost per equivalent units if cost in beginning inventory is $3,000, current costs are $6,000 and there are 75 equivalent units of production?

$80 (6,000/75)

Which of the following formulas calculates cost per equivalent unit under FIFO costing? -Current Cost/Units Started and Completed -(Beginning Inventory+ Current Cost)/Equivalent Units -Current Costs/ Equivalent Units -(Beginning Inventory+ Current Costs)/Units Started and Completed

(Beginning Inventory+ Current Cost)/Equivalent Units

Which of the following products would be more suitable for processing costing than job-order costing? -highway construction project -Breakfast cereal -sunscreen -Gasoline

-Breafast cereal -sunscreen -Gasoline

A company transfrred 150 units to finished goods and has 215 untis in ending work in process inventory that are 60% complete. Using weighted-average costing, the number of equivalent units is?

279 (250+(215x60%))

Using the weighted-average method, there are a total of______ equivalent units of production in work in process inventory had 100 units that are 40% complete and 300 units were trnaferred to the next department during the period.

340 (300+(100x40%))

The correct journal entry to record labor cost for process #1 would be to_______ Salaries & Wages Payable and ________ Work in Process Inventory (Process #1)

Credit, debit

To calculate cost per equivalent unit using the weighted-average method, add the cost of _____ inventory to the current costs and divide by______ units.

Beginning, equivalent

A roduction report includes?

Both unit and cost information

IN order to track the cost of partially completed units, they must be converted into a(n) _____ number of fully completed units.

equivalent units

Equivalent units of production under the weighted-average method equal...

equivalent units in ending work in process plus units tranferred out.

The key differences b/w the weighted-average method and the FIFO method is how they deal with units and costs...

in beginning Work in Process Inventory

When priduction is completed in the last processing department, the units are transfered to the _______ inventory account.

Finished Goods

When using process costing, costs are accumulated by?

Major process

Units completed- units in beginning inventory equals?

Units started and completed

The purchasr of raw materials is recorded with a ______to raw materials invt and ______ to accounts payable.

debit, credit

Which of the following are similarities b/w job-order costing and process costing? -The flow of costs through the inventory accounts is basically the same for both costing systems. -The same basic inventory accounts are used for both costing systems. -The purpose is to assign direct materials, direct labor and manufacturing overhead to products. -Both job order and process costing accumulate costs by unit.

First 3

A production report prepared using FIFO costing...

Is somewhat more detailed than a repost prepared the using weighted-average method

A company that makes customized products will use?

Job-order costing

Which of the following is NOT a method that can be used to prepare process costing production reports. -Fifo -Lifo Weighted-average method

LIFO

________(also called indirect costs) consists of all cost incurred to manufacture a product other than direct materials and direct labor.

MOH

When computing equivalent units the weighted-average method...

Only partially completed units in ending inventory are part of the calculation.

A journal entry that debits Work in Process Inventory and credits Raw Matericals Inventory is made to record?

Placing raw materials into production

_____ costing assigns costs to products as they move along the production process.

Process

How does process costing differ from job-order costing?

Process costing is used for homogeneous products, and accumulates costs by major process

The _______ provides information about the number of units and costs that flow though a manufaturing process during an accounting period.

Production Report

When comparing the FIFO method of computing equivalent units to the weighted-average method...

The weighted-average method blends together work and osts from prior periosd with the current whereas FIFO sperates the tow periods.

What is the entry to record the sale of finished goods to customers?

Debit Cost of Goods Sold, and credit Finished Goods Inventory

The major inputs that can be directly traced to a product are called ________.

Direct Materials

Both Process costing and job-order costing assign which of the following costs to products? -Direct Materials -Selling Costs -Manufacturing overhead -Direc Labor

Direct Materials and Labor, and MOH

True or Fales: The equivalent units of production computed under the weighted-average method does NOT take into account the percentage completed of the beginning inventory.

True

Ture or Fales: A production report prepared using the weighted-average method is structured very similarly to a producation report unsing the FIFO method?

True

Under the FIFO method, which of the following unventory balances are used in the calculated of equivalent units? -Ending work in process inventory -Beginning finished goods inventory -Beginning work is process inventory -Ending finished goods inventory

Ending work in process, and beginning work in process

What is the formula to reconcile the number of physical units the company worked on during the period?

Units in Beginning Inventory+ Units Started= Units Completed+ Units in Ending Inventory

Which of the following is ucluded in computing equivalent units under the FIFO method, but NOT UNDER the weighted-average method? -Partially completed units transferred out =Equivalent units to compete beginning work in process -Equivalent units in ending work in process

Equivalent units to complete beginning work in process