Ch 5

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

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

Work in Process-Department #1 and credit Raw Materials

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

transferred out

When using process costing, a separate Blank______ account is maintained for each processing department.

work in process

Costs per equivalent unit are used to value ______.

both ending inventory and units transferred to the next department

To report ending inventory, partially completed units are translated into _____ units.

equivalent

Work is performed on products, and materials, labor, or overhead costs are added to products in a(n) ... department. (Enter only one word per blank.)

processing, operating, or assembly

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

weighted-average

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

170

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______. Multiple choice question.

#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______.

$34.60

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.

$34.60

A processing department is an organization unit ______.

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

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

job-order

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

Work in process-Department #1 and credit Manufacturing overhead

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

When computing the equivalent units of production under the weighted-average method, the fact that the units in the ______ were partially complete with respect to materials and conversion is ignored.

beginning work in process inventory

Job-order costing is used for Blank______.

many different products with unique production requirements

Industries that convert raw materials into homogeneous products typically use costing. (Enter only one word per blank.)

process

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

transferred out

The weighted-average method includes costs for Blank______.

prior and current periods

A processing department is an organization unit Blank______.

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

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

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. (Enter only one word per blank.)

work in process

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.

Blank 1: credit Blank 2: debit

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

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

(Cost of beginning work in process inventory + Cost added during the period) ÷ Equivalent units of production

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.

Blank 1: beginning

Units in ____ work in process inventory + units started or transferred in = Units in ____ work in process inventory + units completed and transferred out

Blank 1: beginning Blank 2: ending

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______.

2040

Using the weighted-average method, if work in process 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

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

Blank 1: credit Blank 2: debit

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

False

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

True

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

equivalent units in ending work in process plus units transferred out

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

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

debit

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

debit