ACCT 201B -- Connect Practice Problems Chp. 4
The equivalent units completed are treated the same as units _____ out for purpose of determining the cost per unit
transferred
Once production is completed in the processing departments, to what account are the production costs transferred?
Finished goods
When a customer's order is filled and units are sold, there should be a _______ to Finished Goods and a _______ to Cost of Goods Sold.
credit debit
In a processing department, all units of output are ______.
homogeneous
_____-____ costing cost sheets to accumulate costs
job-order
What would be the journal entry to record direct materials costs in processing Department #1?
Debit Work in Process-Department #1 and credit Raw Materials
The correct journal entry to apply manufacturing costs to processing Department #1 would be to _______ Manufacturing overhead and ________ Work in process- Department #1.
credit debit
Both job-order costing and process costing provide a mechanism to compute unit _______ cost
product
______ costing is used in industries that convert raw materials into homogeneous products
process
The weighted-average method includes costs for:
prior and current periods
What costing system is most likely to be used when raw materials are converted into homogeneous products?
process
________ completed units are translated into an equivalent number of fully completed units when determining a department's output.
partially
What is the journal entry to record the transfer of partially completed products from processing Department #1 to processing Department #2?
Debit Work in process-Department #2 and credit Work in process-Department #1
Equivalent units of production can be computed using:
either the weighted-average or FIFO method
In ______ costing, it makes no sense to try and identify materials, labor and overhead costs with a particular customer order
process
______ cost is direct labor cost plus manufacturing overhead cost
conversion
What are the different ways to compute the equivalent units of production? (2)
1. FIFO method 2. Weighted-average method
What are similarities between job-order costing and process costing? (3)
1. The flow of costs through the manufacturing accounts is basically the same for both costing systems 2. The purpose is to assign raw materials, labor and manufacturing overhead to products 3. The same basic manufacturing accounts are used for both costing systems
Which of the following products would be more suitable for process costing than job-order costing?
1. breakfast cereal 2. gasoline 3. sunscreen
What products would be more suitable for process costing than job-order costing? (3)
1. breakfast cereal 2. sunscreen 3. gasoline
What type of output is produced in a processing department? (2)
1. homogeneous 2. identical units
Both process costing and job-order costing assign which of the following costs to products? (3)
1. labor 2. materials 3. manufacturing overhead
process costing system (4):
1. raw materials 2. work in process 3. finished goods 4. cost of goods sold
What are the equivalent units in a processing department's work in process of the work in process contains 300 units that are 40% complete?
120
There are _______ equivalent units in work in process when work in process contains 500 units that are 34% completed.
170 ***500 X 34% = 170
A processing department transferred 3,000 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, what were the equivalent units of production for materials costs in the department?
3,040 ** = 3,000 + (100 X 40%) = 3,040
Which of the following can be added in any processing department when using process costing?
Materials, labor and overhead
When computing the equivalent units of production under the weighted-average method, partially completed ______ inventory is ignored.
beginning work in process
In process costing, which account does every processing department have?
Work in Process
How is activity performed in the processing department?
activity is performed uniformly on all units
In the ________-________ method, equivalent units of production are the number of units transferred to the next department or to finished goods plus equivalent units in ending work in process.
weighted-average
Under which method does equivalent units of production equal the number of units transferred to the next department (or finished goods) plus equivalent units in ending work in process?
weighted-average
Recording the transfer of partially completed products from one processing department to another, requires a debit and a credit to the _____ account in both of the processing departments
work in process
Using the weighted-average method, there are a total of _____ equivalent units of production if work in process inventory has 40 equivalent units and 30 units were transferred to the next department.
70
To calculate cost per equivalent unit using the weighted-average method, add the cost of _______ work in process inventory and costs added during the period and divide by equivalent units of production.
beginning
The journal entry to record material cost in the first department would include a _____ to Work in Process-Department #1
debit
As units go through the processing departments, in which department are the cost of materials, labor, and overhead added?
each processing department
What is the journal entry to record the transfer of completed units to the finished goods warehouse?
Debit Finished goods and credit Work in process
What would be the journal entry to record direct labor costs in processing Department #1?
Debit Work in process-Department #1 and credit Salaries and wages payable