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Exam 28: Process Cost Accounting

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Question 1

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The ____________________ summarizes all costs charged to each department as well as the costs transferred out and to the cost assigned to goods still in process.

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cost of pr...

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Question 2

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Under the average cost method,the beginning inventory amount for each cost element is added to the amount of that cost element incurred during the current period.

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Question 3

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In a process cost accounting system,the average unit cost of a product is determined by dividing the total manufacturing cost incurred by the number of units placed in production during the period.

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

An ending work in process inventory of 500 units that are 40 percent complete is equivalent to ____________________ units of production.

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

In the manufacturing overhead subsidiary ledger,a departmental cost sheet is set up for each producing and each service department.

Cost data for a firm's first department,Dept.A,for June 2016 is given below. Prepare a cost of production report for the month of June from the information given.

Process cost accounting is most appropriate

During one month,3,000 units of a product were completed and 800 units were 20 percent complete and still in process.The equivalent production for the month is

Prepare the Quantity Schedule for Department J for October 2016 in good format from the information given.

Equivalent production units must be computed separately for materials,labor,and ____________________ whenever the stages of completion for the elements are different.

Rounding is often necessary to make the Production Report cumulative cost total agree to the total costs accounted for.In the following periods,the amount of the adjustment is either added to or subtracted from the _____________ in work in process.

After closing the Manufacturing Overhead Applied account to Manufacturing Overhead we see that overhead has been underapplied.As a result,the Manufacturing Overhead account before closing will have a ________ balance.

During the month,1,600 units of a product were completed and 900 units were two-thirds complete with respect material and one-third complete with respect to labor and overhead.After completing equivalent unit cost computations,the company determined material cost was $3.25 and the combined labor and overhead cost was $6.50 per unit.Compute the cost of ending work in process.

In a process cost accounting system,a separate Work in Process Inventory account is maintained for each producing department.

Under the average cost method,current period materials,labor and overhead added to production is added to the beginning inventory balance.The sum is then allocated between transferred out and costs remaining in ending work in process based on equivalent units of labor incurred.

On a cost of production report,the ____________________ total cost must equal the total costs accounted for.

Labor and manufacturing overhead costs are often considered to be at the same stage of production.

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