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