acct sb 4

units in ___ work in process inventory + unites started or transferred in = units in ___ work in process inventory + unites completed and transferred out

1. beginning 2. ending

the journal entry to record the transfer of completed unites to finished goods would be to ___ finished goods and ___ work in process

1. debit 2. credit

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

170

using the weighted average method, if WIP inventory has 100 units that are 40% complete and 300 units were transferred to the next department during the period, there are a total of ___ equivalent units of production

340

each department has a separate work in process account when using ___ costing

process

direct labor plus manufacturing overhead equals ____ cost

conversion

when a customers order is filled and units are sold, there is a ___ to finished goods and a ___ to COGS

credit, debit

the journal entry to record material cost in the second department would include a ___ to WIP department #2

debit

number of partially completed units x percentage completion=

equivalent units

once production is completed in all processing departments, production costs are transferred to:

finished goods

when using process costing, materials can be added ___ processing department

in any

the two common methods for determining product costs are:

job order costing and process costing

when many different jobs or products are worked on each period, the most likely costing system is used:

job-order

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

transferred out

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

FIFO

operations costing is similar to job-order costing because

each batch is charged for its own specific materials

equivalent units of production under the weighted-average method equal ___

equivalent units in ending work in process plus units transferred out

in process costing, manufacturing overhead costs are:

generally applied using a predetermined overhead rate

work is performed on products, and materials, labor, and overhead costs are added to products in a(n) ___ department

processing

examples of products that may use operation costing include: (3)

shoes, jewelry, clothing

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

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

combines costs and outputs from the current and prior periods

weighted-average method

recording the transfer of partially completed products from one processing department to another, requires a journal entry that affects the ___ account of both processing departments

work in process

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

differences between job-order and process costing include that process costing: (2)

- accumulates costs by department - is used for indistinguishable products

a processing department produces ___ units (2)

- homogenous - identical

costs in beginning WIP inventory was $4500 and $37800 in costs were added during the period. Under the weighted-average method, if there are 7050 equivalent units, the cost per equivalent unit is $___

6

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

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

characteristics of operation costing include: (2)

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

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

- sunscreen - flour - paper towels

the journal entry to record labor cost in the first department would be to ___ wages payable and ___ WIP department 1

credit, debit