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Exam 28: Process Cost Accounting

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Question 31

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Kobold Company manufactures lamps. In May, Department B started 4,500 units. None had been transferred in from a prior department. Of the 4,500 units started, 4,250 were transferred out -3,850 to the next department, Department C, and 400 were transferred to Finished Goods. All the materials issued during May were used in production while only 70% of the labor and overhead was added to the ending inventory. Calculate the equivalent units for material and for the labor and manufacturing overhead.

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Equivalent Productio...

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Question 32

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In the process cost accounting system, the -----------of the ending work in process is estimated.

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percentage...

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Question 33

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Match the following definitions to the term that they relate to.

As percentage of completion is difficult to evaluate for manufacturing overhead costs, the percentage complete is ignored and considered immaterial.

Simon Productions Company had a beginning work in process inventory totaling $7,200. During the current period, the company added materials costs of $15,680, labor cost of $13,500 and overhead of $20,100. Equivalent production was 12,000 units, and 9,000 units were completed and transferred to the finished goods inventory. Inventory costs would be determined using a unit cost (rounded to two decimal places) of

Jocose Company recorded the following journal entries. Write a description for each numbered journal entry. Number your descriptions to match the journal entry numbers.

The method that combines the cost of beginning inventory and the current costs of the period is the

After closing the Manufacturing Overhead Applied account to Manufacturing Overhead it is determined that overhead has been underapplied. As a result, the Manufacturing Overhead account before closing will have a -----------balance.

The activity for Noah Company's mixing department for August is given below. All material is add at the beginning of the process. _Units Labor & _Material Labor & Overhead % - Compute the cost of Noah's completed units.

The total accounted for consists of

When finished goods are sold, the entry to record the cost of goods sold includes a----------- to the Cost of Goods Sold account.

During the month, 1,950 units of a product were completed and 900 units were two-thirds complete with respect to labor and are still in process. The total equivalent units of production for labor for the month is

The entry to transfer costs from Department A to Department B is recorded as

Explain the flow of production in a manufacturing environment for production as the products are started and moved through the production process and eventually sold. Include the account titles.

The Completion Department transferred 6,900 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 1,200 units were still in process at the end of the month which were 55% complete. Inventory unit cost at the end of the month were $3) 50. What were total production costs for the month?

The ending Work in Process inventory in the mixing department contains 650 units that are 58% complete with respect to labor costs. How many equivalent units are in the ending inventory?

The ending work in process inventory does not appear on the following month's cost of production report.

When the----------- method is used to calculate unit costs, the beginning inventory costs areadded to the current period costs, and the sum is divided by the equivalent units of production.

Equivalent units of production must be calculated separately for materials, labor, and-----------whenever the percentages of completion for the elements are different.

During the month, 3,630 units of a product were completed and 1,800 units were two-thirds complete with respect to labor and are still in process. The total equivalent units of production for labor for the month is