Process Costing Paper 9

Costs in a process costing system are accumulated:

Which of the following is an example of an industry in which operation costing would be used?

A processing pattern in which, after a certain point, some units may go through different processing departments than others is referred to as:

The purpose of the quantity schedule on a production report is:

Which of the following characteristics applies to process costing, but does not apply to job order costing?

Bronx, Inc.’s beginning work-in-process inventory consisted of 12,000 units, 100% complete as to materials cost and 40% complete as to conversion costs. The total cost in the beginning inventory was $25,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $1.50 for materials and $3.20 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred was:

In a process cost system, the application of manufacturing overhead usually would be recorded as a debit to:

Oxnard, Inc. uses a process costing system. For March, the month just completed, the opening work in process inventory consisted of 60,000 units which were 60 percent completed as to processing. The ending inventory for the month consisted of units that were 20 percent completed as to processing. A summary of cost data for the month follow:

	Units	Processing Cost
Work in process inventory on March 1	60,000	$35,000
Units started into production and costs incurred during the month	190,000	$700,000
Units completed and transferred out during the month	200,000

Assuming that Oxnard uses the moving average method, what unit cost figure should be used for processing cost for March (to the nearest whole penny)?

Oxnard, Inc. uses a process costing system. For March, the month just completed, the opening work in process inventory consisted of 60,000 units which were 60 percent completed as to processing. The ending inventory for the month consisted of units that were 20 percent completed as to processing. A summary of cost data for the month follow:

	Units	Processing Cost
Work in process inventory on March 1	60,000	$35,000
Units started into production and costs incurred during the month	190,000	$700,000
Units completed and transferred out during the month	200,000

Assuming that the unit cost is $3.75 for processing for March, what is the amount of processing cost that should be assigned to the ending work in process inventory?

Goggle-Eyed Old Snapping Turtle, a sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, which are then transferred to the Finishing Department where a sealant is applied. The Forming Department began manufacturing 10,000 "Casey Sluggers" during the month of May. There was no beginning inventory. Costs for the Forming Department for the month of May were as follows: Direct materials $33,000 Conversion costs 17.000 Total $50 000 A total of 8,000 bats were completed and transferred to the Finishing Department; the remaining 2,000 bats were still in the forming process at the end of the month. All of the Forming Department’s direct materials were placed in process, but, on average, only 25% of the conversion cost was applied to the ending work-in-process inventory. The cost of the units transferred to the Finishing Department is: