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Exam 3: Process Costing and Analysis

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Question 71

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All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

A) True
B) False

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Question 72

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The following is an account for a production department, showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly.If the units in ending goods in process inventory cost $4,590, and the started and completed units cost $41,850, what was the cost of completing the units in the beginning goods in process inventory?

A) $12,150
B) $2,160
C) $7,560
D) $54,000
E) $37,260

F) All of the above
G) A) and D)

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Question 73

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After posting all actual factory overhead and applying factory overhead to production departments in a process costing system:

Partially completed production is measured for an account at two points in time for each accounting period.These measurement points and the account are ________________ and ____________.

Process cost accounting systems consider overhead costs to include those costs that cannot be readily identified with any specific process.

If Department G uses $53,000 of direct labor and Department H uses $21,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

Accountants use the term "process cost accounting system" because these systems use a number of trained individuals and computers to process the collected cost information.

Assuming the FIFO inventory valuation method, use the following information to determine the cost of the goods completed during the current reporting period:

In a process cost accounting system, factory wages are debited to _______________, and when direct labor is used, that account is credited and ____________________ is debited.When indirect labor is used, the ________________________ account is debited and ______________________ is credited.

Refer to the following information about the Painting Department in the Richardson Factory for the month of June: -If FIFO is used, what is the total cost of all units that were completed and transferred to finished goods during June? What is the total cost of the ending goods in process inventory?

When a process cost accounting system records the purchase of raw materials, the Raw Materials Inventory account is credited.

If the allocated overhead equaled the actual overhead, then total manufacturing costs incurred in both departments during the reporting period were $35,300.

Que Corporation uses a process cost accounting system.The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075.The complete journal entry to be made by Que at the time of this sale is:

The Filtering Department started the current month with beginning goods in process inventory of $55,000.During the month, it was assigned the following costs: direct materials, $77,000; direct labor, $44,000; and factory overhead, 20% of direct material cost.Also, inventory with a cost of $66,000 was transferred out of the department to the next phase in the process.The ending balance of the Goods in Process Inventory account for the Filtering Department is:

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

What total cost should be assigned to all units that were completed during August?

The Packing Department transferred out completed units with a cost of $74,000.This transfer should be recorded with the following entry:

On a process cost summary, the total costs to account for (the processing costs for the period plus the goods in process at the beginning of the period)should equal ___________________ (____________________ plus _____________________).

In process cost accounting systems, when units are transferred from the Softening Department to the Hardening Department, ____________________ is debited and __________________________ is credited.

A department had 12,500 units that were 20% complete in beginning Goods in Process Inventory.During the current period 60,000 units were transferred in.Ending Goods in Process Inventory was 15,000 units that were 70% complete.Assume this company uses the weighted-average method of process costing and direct material is added uniformly throughout the process.What are the equivalent units produced with respect to direct material?