ACCT2023 ch4 connect

identical

In a processing department, all units of output are __________ (1 word)

beginning; ending

Units in ______________________ (1 word) work in process + units started or transferred in = units in ____________________ (1 word) work in process inventory + units completed and transferred out

work in process

When using process costing, a separate ________________________ (3 words) account is maintained for each processing department

any

When using process costing, materials, labor, and overhead may be added in ______________ (1 word) processing department

job-order costing; process costing

The two common methods for determining unit product costs are _______________________ (2 words) and _____________________ (2 words)

Weighted-average only

Equivalent units of production equals the number of units transferred to the next department (or finished goods) plus equivalent units ending work in process under which method of costing?

weighted-average method

(cost of beginning work in process inventory + cost added during the period)/ equivalent units of production = cost per equivalent unit (what method is this)

A, D

Methods to calculate departmental unit costs include: A. FIFO B. LIFO C. Specific Identification D. Weighted-average

equivalent units

Number of partially completed units x Percentage completion = ______________________________________ (2 words)

B, C, D

Similarities between job-order costing and process costing include the: A. way in which unit costs are calculated B. basic purpose to assign and compute product costs C. manufacturing accounts used D. flow of costs through the manufacturing accounts

Job order costing

______________________ (3 words) is used for many different products with unique production requirements

FIFO method

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

Weighted-average method

combines costs and outputs from current and prior periods

ending inventory; transferred

cost per equivalent unit are used to value both units in ______________________________________ (2 words) and units _______________________ (1 word) to the next department

processing department

An organization unit where work is performed on a product, and materials, labor and overhead are added is called a ___________________________________ (2 words)

A, D

Differences between job-order costing and process costing include that process costing: A. is used for indistinguishable products B. assigns materials, labor and overhead costs to specific customer orders C. computed unit costs by job D. accumulates costs by department

conversion

Direct labor plus manufacturing overhead equals _______________ (1 word) cost

credit, debit

The journal entry to apply manufacturing costs to processing department #1 would be to ______________ (debit/credit) manufacturing overhead and __________________ (debit/credit) work in process- department #1

credit; debit

The journal entry to record labor cost in the first department would be to _____________ (debit/credit) ages payable and ________________ (debit credit) Work in process- department #1

debit

The journal entry to record material cost in the second department would include a _______________ (debit/credit) to Work in Process-Department #2

debit; credit

The journal entry to record the transfer of completed units to finished goods would be to _____________ (debit/credit) finished goods and ___________________ (debit/credit) work in process

credit; debit

When a customer's order is filled and units are sold, there is a _______________ (debit/credit) to finished goods and a ______________ (debit/credit) to cost of goods sold

finished goods

When production is completed in the last processing department, units are transferred to the _________________________ (2 words) account

beginning work in process

when computing the equivalent units of production under the weighted-average method, partial led completed ____________________________________ (4 words) inventory is ignored

120

If ending work in process contains 300 units that are 40% complete under the number of equivalent units is _______

allocation base

In process costing, manufacturing overhead costs are distributed to each department according to the amount of the ______________________________ (2 words) incurred in the department

predetermined overhead rate

In process costing, manufacturing overhead costs are generally applied using a __________________________ (3 words)

A, C, D

Industries/ products more suitable for process costing than job-order costing include A. paper towels B. shipbuilding C. breakfast cereal D. sunblock

beginning

To calculate cost per equivalent unit using the weighted-average method, add the cost of ________________ (1 word) work in process inventory to costs added during the period and divide by equivalent units of production

transferred in

When unit costs are transferred from Department A to Department B, Department B will treat the costs as _____________________ (2 words)