Cost Accounting

When compared to job costing, the cost of record-keeping is generally

lower

If a company has two or more departments, they Blank______ costing method(s).

may choose to use different

Department A's beginning work in process for materials cost totaled $15,000. Current material costs for the month equal $90,000, and there are 5,000 equivalent units. Material cost per equivalent unit using FIFO costing is $

$18

Department A's beginning work in process conversion costs were $6,675. During the month, total conversion costs were $32,700. Total equivalent units were 10,000 for materials and 7,500 for conversion costs. The cost per equivalent unit for conversion costs using the FIFO method equals

$4.36

Department XY started the month with 1,000 units in work in process that were 100% complete as to materials and 70% complete as to conversion costs. During the month, 12,000 units were started, and 9,000 units were completed and transferred to Department ZT. The ending work in process units in Department XY are 100% complete as to materials and 40% complete as to conversion costs. Equivalent units of production for Department XY using FIFO costing equals:

12,000 units for materials and 9,900 units for conversion costs

Cranford Company completed and transferred out 3,200 units in May 2023. There were 400 units in the Work-in-Process Inventory on May 31, 2023, 40% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $16,800 and $12,240, respectively. There was no beginning inventory on May 1, 2023. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

Convertion cost per unit = conversion cost / (transferred units + WIP) = $16,800 / [3200 + (400* 40% )] =$16,800 / 3360 = $5 per unit Material Cost per unit = Material Cost / (transferred units + WIP) = $12,240 / [(3200 + 400) * 100%] =$ 3.4 per unit Total cost of the work transferred = Transferred units × conversion cost per unit + transferred units × material cost per unit =(3200 * 5 ) +(3200 * $3.4) = $26,880

A standardized method or technique of making a product that is repeatedly performed is called a(n)

Operation

A standardized method, process or technique of making a product that is repeatedly performed is called a(n)

Operation

Which of the following sections of the production cost report focus on managing costs?

Section 3 Section 5 Section 4

Which of the following statements are true?

The production process is a major factor in choosing a costing system. Job costing provides more information than process costing. Record-keeping costs are usually lower with process costing than with job costing.

Direct labor is sometimes treated as part of manufacturing overhead because it is

a small portion of total product cost

Prior department costs are

conceptually equivalent to raw materials costs also called transferred-in costs

In many companies, Blank______ is(are) a small portion of the total product cost and, therefore, classified as part of manufacturing overhead.

direct labor

The key difference between operations costing and job and process costing is that

direct materials

The key difference between operation costing and job and process costing is that for each work order or batch passing through a particular operation,

direct materials are different but conversion costs are the same

Prior department costs are

generally excluded for performance evaluation purposes often excluded when comparing actual department costs with budgeted costs

Operation costing is best suited for manufacturing goods that

have some common and some individual characteristics

Prior department costs are included in department product cost calculations for

inventory valuation only

Equivalent units computed under the FIFO method are Blank______ equivalent units computed under weighted-average method.

less than or equal to

When comparing weighted-average and FIFO,

measuring the physical flow of resources is the same under the two methods

A hybrid of job and process costing is called _______ costing.

operation

The costs of units transferred out of one department and into another are

relatively easy to calculate called prior department costs

Departments within the same manufacturing company

may choose to use different process costing methods

Assigning costs to ending work-in-process inventory and goods transferred out is the Blank______ step in the five-step process.

Final

When using FIFO costing, the costs to be accounted for on the production report (Section 3) is

always equal to

Which of the following are true of process costing?

FIFO costing keeps the costs and the work separate and, in effect, computes separate unit costs for the two periods. Weighted-average costing adds the costs together first and then divides this total cost by the total work for the two periods.

Step 3 in process costing is to identify the total costs to be accounted for. Which of the following describes that step?

Total costs to be accounted for = Costs in beginning WIP inventory + Costs incurred this period

Process costing can

be adapted to reflect production flows that are not totally homogeneous