CH 4

When ending work in process contains 500 units that are 34% completed, there are_______ equivalent units

170= 500x34%

Each department has a separate Work in Process account when using Blank______ costing.

process

Prior costs are blended with current period costs when using the Blank______ method(s).

weighted-average

Methods to calculate departmental unit costs include Blank______.

weighted-average FIFO

The journal entry to record direct labor costs in processing Department #1 is debit Blank______,

work in process-Department #1 and credit Salaries and wages payable

The journal entry to record the transfer of completed units to the finished goods warehouse is to debit Blank______.

Finished goods and credit Work in process

Which of the following equations is correct?

Units in beginning WIP + units started or transferred in = Units in ending WIP + units completed and transferred out

o 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 a customer's order is filled and units are sold, there is a Blank______ to Finished Goods and a Blank______ to Cost of Goods Sold.

credit; debit

To report ending inventory, partially completed units are translated into______ units.

equivalent

Once production is completed in all processing departments, production costs are transferred to Blank______.

finished goods

When production is completed in the last processing department, units are transferred to the _______ ________ account.

finished goods

When using process costing, which of the following can be added in any department?

Materials, labor, and overhead

The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing. T/F

TRUE

True or false: A processing department needs to calculate a separate unit cost for each type of cost incurred.

TRUE

In process costing, manufacturing overhead costs are ______.

generally applied using a predetermined overhead rate

In a processing department, all units of output are _______.

homogeneous/identical/uniform/

When many different jobs or products are worked on each period, the most likely costing system used is Blank______.

job-order

When unit costs are transferred from Department A to Department B, Department B will treat the costs as ______.

transferred in

The activity in a processing department is performed Blank______.

uniformly on all units

A processing department produces Blank______ units.

homogenous identical

The journal entry to record direct materials costs in processing Department #1 is debit Blank______.

Work in Process-Department #1 and credit Raw Materials

Characteristics of operation costing include ______.

costs are accumulated by department products are processed in batches

The correct journal entry to apply manufacturing costs to processing Department #1 is ______(debit/credit) Manufacturing overhead and _______ (debit/credit) Work in process-Department #1.

credit; debit

Number of partially completed units x Percentage completion = _________ units.

equivalent

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

only weighted-average

The equivalent units completed are valued the same as units Blank______ for purposes of determining the cost per unit.

transferred out

Direct labor plus manufacturing overhead equals _______ cost.

conversion

Equivalent units of production under the weighted-average method equals Blank______.

equivalent units in ending work in process plus units transferred out

The equivalent units of production computed under the weighted-average method takes into account the percentage completed of the beginning inventory. T/F

False

The journal entry to record labor cost in the first department is ________ (debit/credit) Wages payable and ________ (debit/credit) Work in process-Department #1.

credit; debit

Work is performed on products, and materials, labor, or overhead costs are added to products in a(n)______ department.

processing

A processing department is an organization unit Blank______.

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

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 Blank______.

#2 and credit Work in Process-Department #1

Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the period, $5,000 of materials and $9,250 in conversion costs were added. If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is Blank______. Multiple choice question.

($3,650 + $5,000) ÷ 250 = $34.60

Costs in beginning work in process inventory was $4,500 and $37,800 in costs were added during the period. If there are 7,050 equivalent units, the cost per equivalent unit under the weighted-average method is $

6

When computing the equivalent units of production under the weighted-average method, partially completed Blank______ inventory is ignored.

Beginning work in process

Match the costing method to the manner in which unit costs are calculated. Weighted-average method FIFO Method

Combines costs and outputs from the current and prior periods Bases costs solely on the costs and outputs from the current period.

The entry to record the sale of finished goods to customers is a debit to Blank______.

Cost of goods sold and a credit to Finished goods

Similarities between job-order costing and process costing include the Blank______.

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

Differences between job-order and process costing include that process costing Blank______.

-is used for indistinguishable products -accumulates costs by department

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

120

A processing department transferred 2,000 units to the next department. Ending work in process in the department contained 100 units that were 40% complete with regard to materials and 25% complete with regard to conversion costs. Using the weighted-average method, the equivalent units of production for materials is Blank______.

2,000 + (100 × 40%) = 2,040

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

279=150+(215x60%)

The journal entry to record material cost in the second department includes a ________ (debit/credit) to Work in Process-Department #2.

debit

True or false: Process costing is used when a company produces a continuous flow of units that are homogeneous.

TRUE

Which of the following is a key difference between process and job-order costing?

Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.

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

work in process

When using process costing, each processing department has a separate _______ _______ _______ account.

work in process/progress

When using process costing, materials, labor and overhead may be added in Blank______processing department.

any

The journal entry to apply overhead cost to processing Department #1 is to debit Blank______.

Work in process-Department #1 and credit Manufacturing overhead

The journal entry to record the transfer of completed units to finished goods is______ finished goods and ________ work-in-process

debit; credit

A product requires processing in two departments, A and B. Products start in Dept. A. Costs transferred out of Dept. A will be transferred to Blank______.

Work in Process - Dept. B