Accounting Chapter 5

Costs per equivalent unit are used to value ______.

both units in ending inventory and units transferred to the next department

Units in beginning WIP + units started or transferred in = Units in ending WIP + units completed and transferred out

correct

process costing accumulates costs by

department

Prior costs are blended with current period costs when using the ______ method(s).

weighted-average

Costs transferred in from Department A to Department B ______.

will always be 100% complete with respect to Department A

A processing department is an organization unit

where work is performed on a product, and materials, labor or overhead are added

Similarities between job-order costing and process costing include the

manufacturing accounts used; flow of costs through the manufacturing accounts; basic purpose to assign and compute product costs

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 ______.

($3,650 + $5,000) ÷ 250 = $34.60

cost per equivalent unit

(Cost of beginning WIP inventory + Cost added during period) / equivalent units of production

True or false: The equivalent units of production computed under the weighted-average method takes into account the percentage completed of the beginning inventory.

False

Units in work in process inventory + units started or transferred in =

Units in work in process inventory + units completed and transferred out.

In process costing, manufacturing overhead costs are distributed to each department ______.

according to the amount of the allocation base incurred in the department

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.