Chapter 5 accounting smart book
1. flour 2. sunscreen 3. paper towels
Industries/products more suitable for process costing than job-order costing include?
True
True or false: A processing department needs to calculate a separate unit cost for each type of cost incurred.
according to the amount of the allocation base incurred in the department
In process costing, manufacturing overhead costs are distributed to each department _________.
credit and debit
The journal entry to record labor cost in the first department is ________ Wages payable and ________ Work in process-Department #1
debit
The journal entry to record material cost in the second department includes a ________ to Work in Process-Department #2.
Processing
Work is performed on products, and materials, labor, or overhead costs are added to products in a _________ department
2040
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 ______.
4,290
A company's beginning work in process contained 200 units that were 20% complete. Those units were completed and transferred to finished goods. During the period 4,300 units were started. Of the units started, 4,000 were transferred to finished goods. The 300 units in ending work in process were 30% complete. Using the weighted-average method, the equivalent units of production equals ______.
where work is performed on a product, and materials, labor or overhead are added
A processing department is an organization unit __________.
Is used for indistinguishable products and accumulates costs by department
Differences between job-order and process costing include that process costing?
conversion
Direct labor plus manufacturing overhead equals __________ cost
Weighted-average only
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 which method(s) of costing?
equivalent units in ending work in process plus units transferred out.
Equivalent units of production under the weighted-average method equals?
weighted-average and FIFO
Methods to calculate departmental unit costs include ____________.
340
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
operation
When products have both similar and individual characteristics, _________ costing is used.
transferred in
When unit costs are transferred from Department A to Department B, Department B will treat the costs as ______.
Work in process
When using process costing, each processing department has a separate ________ _________ __________ account
Products are homogeneous.
Which of the following is not a characteristic of operation costing? 1. Products are processed in batches. 2. Costs are accumulated by department. 3. Products are homogeneous. 4. Costs are accumulated by operation
FIFO method
Bases costs solely on the costs and outputs from the current period.
$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 ______.
products are processed in batches and costs are accumulated by department
Characteristics of operation costing include ______.
Weighted-average method
Combines costs and outputs from the current and prior periods.
6
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 $ _________
both units in ending inventory and units transferred to the next department
Costs per equivalent unit are used to value _________.
will always be 100% complete with respect to Department A
Costs transferred in from Department A to Department B ____________.
generally applied using a predetermined overhead rate
In process costing, manufacturing overhead costs are ____________.
process
Industries that convert raw materials into homogeneous products typically use __________ costing
equivalent
Number of partially completed units x Percentage completion of those units with respect to the processing in the department = ___________ units
Department
Process costing accumulates costs by?
work in process
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
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.
1. flow of costs through the manufacturing accounts 2. basic purpose to assign and compute product costs 3. manufacturing accounts used
Similarities between job-order costing and process costing include?
beginning
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.
equivalent
To report ending inventory, partially completed units are translated into __________ units
True
True or false: The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing.
Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.
Which of the following is a key difference between process and job-order costing? 1. Job-order costing is used for indistinguishable products, and process costing is used for different jobs that have unique production requirements. 2. Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order. 3. Process costing accumulates costs by order, and job-order costing accumulates costs by department. 4. Job-order costing systems compute unit costs by department, and process costing systems compute unit costs by job.
#2 and credit Work in Process-Department #1
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 ____ and?
credit and debit
The correct journal entry to apply manufacturing costs to processing Department #1 is ________ Manufacturing overhead and _______ Work in process-Department #1.
transferred out
The equivalent units completed are valued the same as units __________ for purposes of determining the cost per unit.
(Cost of beginning work in process inventory + Cost added during the period) ÷ Equivalent units of production
The formula for the cost per equivalent unit using the weighted-average method is __________.
Work in Process-Department #1 and credit Raw Materials
The journal entry to record direct materials costs in processing Department #1 is debit __________.