Cost accounting CH17

Beg inv. DM. 19,200 Conv cost 10800 Manufacturing cost added DM. 70000 Conv cost. 240000 How many of the units that were started and completed during October ?

85,000 units ( 11,000 - 25,000 )= 8,500

When a bakery transfers goods from the Baking Department to the Decorating Department, the accounting entry is a. Work in Process — Baking Department Work in Process — Decorating Department b. Work in Process — Decorating Department Accounts Payable c. Work in Process — Decorating Department Work in Process — Baking Department d. Work in Process — Baking Department Accounts Payable

C

Which of the following statements best describes conversion costs

Conversion costs are all manufacturing costs other than direct materials costs

A major advantage of using the FIFO process-costing method is that

FIFO provides managers with information about changes in the costs per unit from one period to the next

Which of the following statements is true of process costing

In a period of falling prices, weighted-average process-costing method will increase tax payments as compared to FIFO process-costing method

Which of the following is an assumption under FIFO process-costing method

It assumes that the ending work in process consists of only the lower cost current period units

The weighted average process-costing method calculated the equivalent units by

The equivalent units completed during the current period plus the equivalent units in ending inventory

The purpose of the equivalent-unit computation is to

assist the business in determining the cost assigned to ending inventory and work-in-process inventory

Process costing should be used to assign costs to products when

the units produced are similar

A distinct feature of the FIFO process-costing method is that the

work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units