ACCT 311 Chapter 4
The journal entry to record the transfer of partially completed products from processing Department #1 to processing Department #2 is to debit Work in Process Department ______.
#2 and credit work in process department 1
The journal entry to record direct materials costs in processing Department #1 is debit ______.
Work in Process-Department #1 and credit Raw Materials
Equivalent units of production under the weighted-average method equal ______.
equivalent units in ending work in process plus units transferred out
The activity in a processing department is performed ______.
uniformly on all units
The journal entry to record direct labor costs in processing Department #1 is debit ______,
Work in process-Department #1 and credit Salaries and wages payable
in process costing, manufacturing overhead costs are distributed to each department
according to the amount of allocation base incurred in the department
weighted average method
combines costs and outputs from the current and prior periods
The journal entry to record labor cost in the first department is ____ Wages payable and ____ Work in process-Department #1.
credit, debit
conversion cost
direct labor cost plus manufacturing overhead
Number of partially completed units x Percentage completion = _____ units
equivalent
To report ending inventory, partially completed units are translated into ________ units.
equivalent
Once production is completed in all processing departments, production costs are transferred to ______.
finished goods
In process costing, manufacturing overhead costs are ______.
generally applied using a predetermined overhead rate
When many different jobs or products are worked on each period, the most likely costing system used is ______.
job order
The two common methods for determining unit product costs are ______ costing.
job order and process
When unit costs are transferred from Department A to Department B, Department B will treat the costs as ______.
transferred in
Methods to calculate departmental unit costs include ______.
weighted average and FIFO
Costs transferred in from Department A to Department B ______.
will always be 100% completed with respect to department a
Process costing produces ______ units.;
homogeneous
True or false: The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing.
true
Equivalent units of production equals the number of units transferred to the next department (or finished goods) plus equivalent units in ending work in process under which method(s) of costing?
weighted average only
When ending work in process contains 500 units that are 34% completed, there are ____ equivalent units.
170=500x.34
If ending work in process contains 300 units that are 40% complete the number of equivalent units is ______.
120 = 300 x 0.4
A company transferred 150 units to finished goods and has 215 units in ending work in process inventory that are 60% complete. Using weighted-average costing, the number of equivalent units is ______.
279 = 150 + (215 x 60%) = 279
Units in _______ work in process inventory + units started or transferred in = Units in _______ work in process inventory + units completed and transferred out.
beginning ending
When computing the equivalent units of production under the weighted-average method, partially completed ______ inventory is ignored.
beginning work in process
Costs per equivalent unit are used to value ______.
both units in ending inventory and units transferred to the next department
The journal entry to record material cost in the second department includes a ____ to Work in Process-Department #2.
debit
The journal entry to record the transfer of completed units to finished goods is ______ Finished Goods and ______ Work in Process.
debit credit
Conversion costs are ______.
direct labor plus manufacturing overhead
True or false: 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 because they can all be added in any processing department
Differences between job-order and process costing include that process costing ______.
is used for indistinguishable products accumulates costs by department
Products such as clothing that are produced in batches by can vary considerably from model to model may use ____ costing.
operation
The weighted-average method includes costs for ______.
prior and current periods
A processing department is an organization unit ______.
where work is performed on a product, and materials, labor, and overhead are added
Operations costing is similar to process costing because ______.
labor and overhead costs are accumulated by operation or department
Job-order costing is used for ______.
many different products with unique production requirements
When products have both similar and individual characteristics, ______ costing is used.
operation
Process costing accumulates costs by
process OR department OR operation
Work is performed on products, and materials, labor, and overhead costs are added to products in a ___ department.
processing OR operating OR assembly
Which of the following is not a characteristic of operation costing?
products are homogeneous
examples of products that may use operation costing include
shoes, clothing, jewelry
the equivalent units completed are valued the same as units ___ for purposes of determining the cost per unit
transferred out
True or false: The equivalent units of production computed under the weighted-average method does not take into account the percentage completed of the beginning inventory.
true
when using process costing, each processing department has a separate _____ _____ ____ account.
work in process
Similarities between job-order costing and process costing include the ______.
flow of costs through the manufacturing accounts basic purpose to assign and compute product costs manufacturing accounts used
In a processing department, all units of output are
homogeneous OR identical OR uniform OR indistinguishable OR equivalent
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
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 ______.
34.60 = (3650+5000) / 250
The correct journal entry to apply manufacturing costs to processing Department #1 is ________ Manufacturing overhead and _________ Work in process-Department #1.
Credit Debit
Methods to calculate departmental unit costs include ______.
FIFO weighted-average
When production is completed in the last processing department, units are transferred to the ____ ____ account.
finished goods
The formula for the cost per equivalent unit using the weighted-average method is ______.
(Cost of beginning work in process inventory + Cost added during the period) ÷ Equivalent units of production
True or false: A processing department needs to calculate a separate unit cost for each type of cost incurred.
True
Operations costing is similar to job-order costing because ______.
each batch is charged for its own specific materials
A company's beginning work in process contained 200 units that were 20% complete. Those units were completed and transferred to finished goods. During the period 4,300 units were started. Of the units started, 4,000 were transferred to finished goods. The 300 units in ending work in process were 30% complete. Using the weighted-average method, the equivalent units of production equals ______.
4290 = 4200+300x 30%
Costs in beginning work in process inventory was $4,500 and $37,800 in costs were added during the period. If there are 7,050 equivalent units, the cost per equivalent unit under the weighted-average method is $
6 = (4500+37800) / 7050
FIFO method
Bases costs solely on the costs and outputs from the current period
FIFO method
Bases costs solely on the costs and outputs from the current period.
Weighted-average method
Combines costs and outputs from the current and prior periods.
Which of the following equations is correct?
Units in beginning WIP + units started or transferred in = Units in ending WIP + units completed and transferred out
Equivalent units of production equals the number of units transferred to the next department (or finished goods) plus equivalent units in ending work in process under which method(s) of costing?
Weighted-average only
A product requires processing in two departments, A and B. Products start in Dept. A. Costs transferred out of Dept. A will be transferred to ______.
Work in Process - Dept B
The journal entry to apply overhead cost to processing Department #1 is to debit ______.
Work in process-Department #1 and credit Manufacturing overhead
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 a customer's order is filled and units are sold, there is a ______ to Finished Goods and a ______ to Cost of Goods Sold.
credit, debit
the correct journal entry to apply manufacturing costs to processing dept 1 is ____ manufacturing overhead and _____ work in process dept 1
credit, debit
The journal entry to record the transfer of completed units to finished goods is _____ finished goods and ____ work in process
debit, credit
To report ending inventory, partially completed units are translated into ____ number of partially completed units x percentage completion
equivalent or equal units
When using process costing, a separate ______ account is maintained for each processing department.
work in process
the journal entry to apply overhead cost to processing department 1 is to debit
work in process Dept 1 and credit manufacturing overhead
The journal entry to record direct materials costs in processing Department #1 is debit ______.
work in process department 1 and credit raw materials
The journal entry to record the transfer of partially completed products from processing Department #1 to processing Department #2 is to debit Work in Process Department ______.
#2 and credit Work in Process-Department #1
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 ______.
$34.60 Reason: ($3,650 + $5,000) ÷ 250 = $34.60
The journal entry to record the transfer of completed units to the finished goods warehouse is to debit ______.
Finished goods and credit Work in process
