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Exam 28: Process Cost Accounting

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Question 41

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Total costs accounted for consists of the

A) cumulative cost plus the work in process-ending costs.
B) total costs transferred out less the total work in process-ending costs.
C) cumulative cost plus total costs transferred out.
D) total costs transferred out plus the total work in process-ending costs.

E) A) and B)
F) A) and C)

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Question 42

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The data about costs, ___________________, and equivalent production is assembled in a cost of production report.

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Question 43

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When the ____________________ cost method is used to calculate unit costs, the beginning inventory costs are added to the current period costs, and the sum is divided by the equivalent production units.

A process cost accounting system may be viewed as a monthly ____________________ cost system.

In Gerth Manufacturing, production is started in the fabricating department. The work is then transferred to the finishing department where goods are completed and then transferred to the finished goods storeroom. Data about the company's costs during February 2013 are given below. $\begin{array}{l}\text { Material costs placed into production: }\\\begin{array} { l r } \text { Fabricating Department } & \$ 64,000 \\\text { Finishing Department } & 2,500 \\\text { Direct labor costs: } & \\\text { Fabricating Department } & 6,000 \\\text { Finishing Department } & 16,000 \\\text { Taxes withheld from employees' earnings: } & \\\text { Social security tax withheld } & 1,364 \\\text { Medicare tax withheld } & 319 \\\text { Employees' income tax withheld } & 1,790 \\\text { Overhead costs: } & \\\text { Fabricating Department } & 17,000 \\\text { Finishing Department } & 9,000\end{array}\end{array}$ During the month, products costing $45,000 were transferred from the fabricating department to the finishing department; goods costing $56,000 were transferred from the finishing department to finished goods inventory; and goods that cost $63,000 were sold on account for $79,000. Record the following events on page 3 of a general journal. Use February 28 as the date. Omit descriptions. (a.) Place materials into production (b.) Charge labor costs into production (c.) Charge overhead costs into production (d.) Transfer product from fabricating department to finishing department (e.) Transfer finished goods from finishing department to finished goods inventory (f.) Sale of goods (g.) Record cost of goods sold

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.

McGill Manufacturing had 900 units in its work in process inventory at the beginning of a month. Of these units, 40 percent were complete with respect to labor, and 100% complete with respect to materials, and overhead. The firm transferred 4,000 units to the finished goods inventory during the month. It had 600 units of which 30 percent were complete and still in process at the end of the month. Equivalent production for the month was

The Painting Department transferred 6,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 800 units were still in process at the end of the month, and were 70% complete, and production costs incurred totaled $21,320. Inventory costs would be determined using a unit cost of

Fill in the blanks in the Quantity Section of the following Production Report.

Unit Manufacturing Company had no work in process at the beginning of a month. At the end of the month, 600 units were still in process at the end of the month, and were 40% complete. Equivalent production for the month was 5,240 units. How many units were transferred out of production to finished goods during the month?

On a cost of production report, the total of the costs of products transferred out of a department and the cost of the ending work in process in the department must equal the cumulative total cost for the department.

A department transferred 7,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 500 units were still in process at the end of the month. Equivalent production for the month was 7,400 units, and production costs incurred totaled $16,800. Inventory costs would be determined using a unit cost of

The Completion Department transferred 8,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 1,000 units were still in process at the end of the month, and were 40% complete. Inventory costs at the end of the month were $3.50. What were total production costs for the month?

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

Data about production in the Processing Department for July is given below. $\begin{array}{lr}\text { Beginning inventory, work in process } & -0- \\\text { Transferred in from prior department } & 17,000 \text { units } \\\text { Transferred out to next department } & 12,000 \text { units } \\\text { Ending inventory, work in process } & 2,500 \text { units } \\\text { Stage of completion of ending work in process: } & \\\text { Prior department costs } & 100 \% \\\text { Materials } & 60 \% \\\text { Labor and overhead } & 40 \%\end{array}$ 1. Compute the equivalent units of production for the prior department costs. 2. Compute the equivalent units of production for materials. 3. Compute the equivalent units of production for labor and overhead.

Costs of ____________________ departments are allocated as manufacturing overhead to the producing departments that benefit.

At the end of the month, the entry to close the Manufacturing Overhead control account is recorded as

On October 1, 2012, there was no beginning inventory in the Bottling Department. During the month, production was started on 7,400 units. The total cost of materials was $29,600. All materials were placed in production at the start of the manufacturing process in the department. During the month, 5,800 units were transferred to the next department. There were 1,600 units still in process at the end of the month. 1. What is the cost per equivalent unit for materials? 2. What is the cost of materials in the goods transferred to the next department? 3. What is the cost of materials in the ending work in process inventory?

A firm had a beginning work in process inventory totaling $4,000 and current period costs of $22,500. Equivalent production was 5,000 units, and 3,000 units were completed and transferred to the finished goods inventory. Inventory costs would be determined using a unit cost of

On a cost of production report, beginning work in process