Process Costing

Which type of company would most likely use a process cost system for its manufacturing operations?

What is the primary difference in how costs are accumulated between a job order cost system and a process cost system?

In a process cost system, how are unit costs computed?

What are equivalent units of production designed to measure?

The output of Kori Company’s Packaging Department consists of 10,000 units completed and transferred out, and 5,000 units in ending work in process that are 70 percent complete. What are the equivalent units of production for the period?

The four steps for preparing a production cost report are performed in what sequence?

In the cost reconciliation schedule of a production cost report, costs accounted for consist of what two elements?

In the Kellogg's Mixing Department example, with a total manufacturing cost per unit of $0.75, what is the cost assigned to the 700,000 units transferred out?

What is the primary objective of a just-in-time (JIT) processing system?

Activity-based costing (ABC) differs from conventional costing systems primarily in its treatment of what?

In the journal entry to assign factory labor costs to production in a process cost system with two departments (Machining and Assembly), which accounts would be debited?

The Fabricating Department for Outdoor Essentials has 15,000 units transferred out and 10,000 units in ending WIP. Materials are added at the beginning of the process. What are the equivalent units for materials?

The Fabricating Department for Outdoor Essentials has 15,000 units transferred out and 10,000 units in ending WIP that are 30 percent complete as to conversion. What are the equivalent units for conversion costs?

In the Kellogg's Mixing Department example, total materials costs are $450,000 and total equivalent units for materials are 900,000. Total conversion costs are $205,000 and total equivalent units for conversion are 820,000. What is the total manufacturing cost per unit?

What is the key document that management uses to understand the activities in a department in a process cost system?

Which of the following is NOT a benefit of Activity-Based Costing (ABC)?

In the Atlas Company example from Appendix 21A, what is the activity-based overhead rate for the 'Setups' activity cost pool?

According to the Atlas Company example in Appendix 21A, how much overhead cost is allocated to the Ab Coaster product from the 'Setups' activity?

In the Atlas Company ABC example (Appendix 21A), the total overhead cost per unit for the Ab Coaster under ABC is $88.00. The cost under traditional costing was $30.00. What is the amount of the understatement of cost per unit for the Ab Coaster?

What is the correct journal entry to record the transfer of partially completed goods from the Machining Department to the Assembly Department in a process cost system?

In the Rodayo Manufacturing example, the unit materials cost is $6 and the unit conversion cost is $9. At March 31, there are 800 units in ending work in process that are 25 percent complete as to conversion costs and 100 percent complete as to materials. What is the total cost of the ending work in process inventory?

What is the term for the sum of labor costs and overhead costs in a process costing system?

In the weighted-average method of computing equivalent units, the beginning work in process inventory is:

A primary driver of overhead costs in continuous manufacturing operations with high automation is typically:

The Ruth Company transfers units from the Blending Department to the Bottling Department. In June, the cost of units transferred was $19,000. Which journal entry is correct?

What is operations costing?

Which of the following is considered a limitation of Activity-Based Costing (ABC)?

In the cost reconciliation schedule for the Rodayo Manufacturing problem, the total cost to be accounted for is $186,600. If the cost of units transferred out is $180,000, what is the cost of the ending work in process?

What are the three manufacturing cost elements tracked by both job order and process cost systems?

The physical unit flow section of a production cost report includes all of the following except:

If the unit materials cost is $4 and the unit conversion cost is $7, and there are 5,000 units in ending work in process that are 100 percent complete for materials and 40 percent complete for conversion, what is the cost of the ending work in process?

Which of the following is a key difference between job order costing and process costing regarding documentation?

What is the formula to compute the physical units to be accounted for?

In the Hollins Company example, production costs for the Finishing Department are materials $12,000, labor $29,500, and overhead $18,000. Equivalent units are 20,000 for materials and 19,000 for conversion. What is the unit materials cost?

Which of these companies would be LEAST likely to use a process cost system?

In a cost reconciliation schedule, the 'costs to be accounted for' section includes:

What are the two components of the 'costs accounted for' section in a cost reconciliation schedule?

The Karlene Industries Heating Department started November with 1,000 trays in WIP and started 12,000 more. It ended with 2,000 trays in WIP. How many trays were transferred out?

In the Karlene Industries example, beginning WIP had $640 in materials costs and the department added $3,000 during the month. Equivalent units for materials were 13,000. What is the unit cost for materials?

One of the accounting benefits of a Just-in-Time (JIT) system is:

What type of cost is an example of an activity cost pool in an ABC system?

The journal entry to record the use of indirect materials in a process cost system would include a:

Under the weighted-average method, unit production costs are based on:

What is one reason a service company like Jiffy Lube would use a process cost system?

If a department starts with 2,000 units in beginning WIP, starts 14,000 units, and has 1,000 units in ending WIP, how many units were transferred out?

A total quality control system, which is an element of JIT processing, means that:

If unit costs are materials $3.20 and conversion $6.50, and 4,000 units that are 100 percent complete to materials and 25 percent complete to conversion are in ending WIP, what is the cost assigned to ending WIP?

In the Atlas Company ABC example, the overhead cost per unit for the Ab Bench was $18.40. With direct materials of $40.00 and direct labor of $12.00, what is the total ABC-based cost per unit?

A company starts the month with no beginning WIP. It starts 40,000 units and transfers out 35,000 units. The ending WIP is 40 percent complete as to conversion costs. How many equivalent units of conversion are there?

Which of the following is NOT one of the three elements of JIT processing?