acct sb 4
units in ___ work in process inventory + unites started or transferred in = units in ___ work in process inventory + unites completed and transferred out
1. beginning 2. ending
the journal entry to record the transfer of completed unites to finished goods would be to ___ finished goods and ___ work in process
1. debit 2. credit
when ending work in process contains 500 units that are 34% completed, there are ___ equivalent units
170
using the weighted average method, if WIP 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
each department has a separate work in process account when using ___ costing
process
direct labor plus manufacturing overhead equals ____ cost
conversion
when a customers order is filled and units are sold, there is a ___ to finished goods and a ___ to COGS
credit, debit
the journal entry to record material cost in the second department would include a ___ to WIP department #2
debit
number of partially completed units x percentage completion=
equivalent units
once production is completed in all processing departments, production costs are transferred to:
finished goods
when using process costing, materials can be added ___ processing department
in any
the two common methods for determining product costs are:
job order costing and process costing
when many different jobs or products are worked on each period, the most likely costing system is used:
job-order
the equivalent units completed are valued the same as units ___ for purposes of determining the cost per unit
transferred out
bases costs solely on the costs and outputs from the current period
FIFO
operations costing is similar to job-order costing because
each batch is charged for its own specific materials
equivalent units of production under the weighted-average method equal ___
equivalent units in ending work in process plus units transferred out
in process costing, manufacturing overhead costs are:
generally applied using a predetermined overhead rate
work is performed on products, and materials, labor, and overhead costs are added to products in a(n) ___ department
processing
examples of products that may use operation costing include: (3)
shoes, jewelry, clothing
the difference in the treatment of costs transferred in from department a to department B when compared to materials and conversion costs is that costs transferred in:
will always be 100% complete with respect to department a
similarities between job-order costing and process costing include the:
- manufacturing accounts used - basic purpose to assign and compute product costs - flow of costs through the manufacturing accounts
combines costs and outputs from the current and prior periods
weighted-average method
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
t/f: when using process costing, labor and overhead can be added in any department, but materials can only be added in the first processing department
false
differences between job-order and process costing include that process costing: (2)
- accumulates costs by department - is used for indistinguishable products
a processing department produces ___ units (2)
- homogenous - identical
costs in beginning WIP inventory was $4500 and $37800 in costs were added during the period. Under the weighted-average method, if there are 7050 equivalent units, the cost per equivalent unit is $___
6
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
beginning
when computing the equivalent units of production under the weighted-average method, partially completed ___ inventory is ignored
beginning work in process
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
characteristics of operation costing include: (2)
- products are processed in batches - costs are accumulated by department
industries/ products more suitable for process costing than job-order costing include:
- sunscreen - flour - paper towels
the journal entry to record labor cost in the first department would be to ___ wages payable and ___ WIP department 1
credit, debit