accounting 202 chapter 4 learnsmart

when ending work in process contains 500 units that are 34% completed, there are ___ equivalent units

170

direct labor plus manufacturing overhead =

conversion cost

when a customer's order is filled and units are sold there is a ____ to finished goods and a ____ to cost of goods sold

credit, debit

number of partially completed units x percentage completion =

equivalent units

when production is completed in the last processing department, units are transferred to the ______ ______ account

finished goods

the journal entry to record the transfer of completed units to the finished goods warehouse is to debit:

finished goods and credit work in process

when using process costing, materials can be added ____ process department

in any

units in ______ work in process inventory + units started or transferred in = units in _____ work in process inventory + units completed and transferred out

-beginning -ending

the 2 common methods for determining unit product costs are

-job order costing and process costing

methods to calculate departmental unit costs include:

-weighted average -FIFO

job order costing is used for:

many different products with unique production requirements

weighted-average method

combines costs and outputs from the current and prior periods

in process costing, manufacturing overhead costs are

generally applied using a predetermined overhead rate

operations costing is similar to process costing because

labor and overhead costs are accumulated by operation or department

a processing department is an organization unit

where work is performed on a product, and materials, labor and overhead are added

when using process costing, each processing department has a separate ___ ____ ___ account

work in process

to report ending inventory, partially completed units are translated into ____ units

equivalent

equivalent units of production under the weighted-average method equal

equivalent units in ending work in process plus units transferred out

t/f when using process costing, labor and overhead can be added in any department, but materials can only be added in the first processing department

false

when products have both similar and individual characteristics, ____ costing is used

operation

the activity in a processing department is performed

uniformly on all units

direct labor plus manufacturing overhead equals

conversion cost

the journal entry to record material cost in the second department would include a ____ to work in process- department #2

debit

when unit costs are transferred from department A to Department B, Dep B will treat the costs as

transferred in

the journal entry to apply overhead cost to processing department #1 is to debit

work in process-dep #1 and credit manufacturing overhead

industries/products more suitable for process costing than job-order costing include

-sunscreen -flour -paper towels

conversion costs are

direct labor plus manufacturing overhead

the difference in the treatment of costs transferred in from department A to department B when compared to materials and conversion costs is that costs transferred in:

will always be 100% complete with respect to department A

the journal entry to record direct labor costs in processing department #1 is debit:

work in process-department #1 and credit salaries and wages payable

the equivalent units completed are valued the same as units ______ for purposes of determining the cost per unit

transferred out

costs per equivalent unit are used to value

both units in ending inventory and units transferred to the next department

the journal entry to record the transfer of partially completed products from processing department #1 to processing department #2 is to debit work in process department:

#2 and credit work in process- department #1

the correct journal entry to apply manufacturing costs to processing department #1 would be to ____ manufacturing overhead and _____ work in process-department #1

-credit -debit

products most likely to use a process costing system include

-flour -toothpaste -gasoline

the formula for the cost per equivalent unit using the weighted-average method is

(cost of beginning work in process inventory - cost added during the period)/equivalent units of production

ex of products that may use operation costing

-clothing -shoes -jewelry

FIFO method

Bases costs solely on the costs and outputs from the current period

in process costing, manufacturing overhead costs are distributed to each department:

according to the amount of the allocation base incurred in the department

differences between job-order and process costing include that process costing:

-is used for indistinguishable products -accumulates costs by department

similarities between job-order costing and process costing include the:

-manufacturing accounts used -basic purpose to assign and compute product costs -flow of costs through the manufacturing accounts

characteristics of operation costing include

-products are processed in batches -costs are accumulated by department

work is performed on products, and materials, labor and overhead costs are added to products in a _____ department

processing

to calculate cost per equivalent unit using the weighted-average method, add the cost of ____ work in process inventory to costs added during the period and divide by equivalent units of production

beginning

when computing the equivalent units of production under the weighted-average method, partially completed ____ inventory is ignored

beginning work in process