Cost Accounting Chapter 4 Jeff Long

5. Finished snowboards that cost $100,000 were sold to customers.

Dr. Cost of goods sold Cr. Finished Goods

4. Finished snowboards worth $80,000 were transferred from the Shaping Department to the finished goods warehouse.

Dr. Finished Goods Cr. Work in process - shaping

2. Manufacturing overhead was applied to the Shaping Department, $10,000.

Dr. Work in process - shaping Cr. Manufacturing overhead

3. Unshaped, cut snowboards worth $60,000 were transferred from the Cutting Department to the Shaping Department.

Dr. Work in process - shaping Cr. Work in process - cutting

1. Raw materials worth $12,000 were issued for use in the Cutting Department.

Dr. work in process - cutting Cr. Raw Materials

Equivalent units is computed using which formula?

Equivalent units = Number of partially completed units x Percentage completion

Which of the following statements about companies that use processing costing is FALSE? - A processing department is an organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product. - Costs are accumulated by department. - Raw material costs are added only to the first processing department. - A separate Work in Process account is maintained for each processing department.

Raw material costs are added only to the first processing department

A company has three processing departments: Mixing, Baking, and Packaging. The Baking Department transfers 500 units to the Packaging Department. How will the Packaging Department account for the costs of those 500 units?

costs transferred in

Sneaker Styles Company manufactures a wide variety of sneakers. Which of the following systems is most suitable for Sneaker Styles?

operation costing

The cost of beginning work in process inventory plus the costs added to production during the period equals the _______.

total cost to be accounted for

Which of the following statements about processing costing is FALSE? - Process costing accumulates costs by department. - Process costing assigns departmental costs uniformly to all identical units that pass through the department during a period. - Process costing systems compute unit costs by department. - Process costing is used when a company produces a continuous flow of units that are distinguishable from one another.

Process costing is used when a company produces a continuous flow of units that are distinguishable from one another.