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Exam 6: Process Costing

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Question 91

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Montgomery Corporation produces boxes of cookies that go through three departments: Mixing, Cooking and Packaging. During April, Montgomery produced 250,000 boxes of cookies with the following costs: Required: A. Calculate the costs transferred out of each department. B. Prepare journal entries that reflect these cost transfers.

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Question 92

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Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March. The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs. Costs pertaining to the month of March are as follows: Beginning inventory costs are: materials, $44,400; conversion cost $30,500. Costs incurred during March are: materials used, $588,000; conversion cost $624,000. -Refer to Figure 6-7. Using the weighted average method, the unit cost of materials for March is

A) $4.50.
B) $5.33.
C) $5.00.
D) $5.46.

E) All of the above
F) B) and C)

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Question 93

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Which of the following best describes sequential processing?

Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March. The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs. Costs pertaining to the month of March are as follows: Beginning inventory costs are: materials, $44,400; conversion cost $30,500. Costs incurred during March are: materials used, $588,000; conversion cost $624,000. -Refer to Figure 6-7. Using the weighted average method, the equivalent unit conversion cost for March is

Figure 6-1. The following information is available for Department Z for the month of July: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Figure 6-1. Department Z's cost of goods transferred out using the FIFO method would be

The number of physical units is multiplied by the _____________________ to calculate equivalent units.

If great accuracy in computing unit costs is desired, a company should use the _________ method to determine unit cost.

MATCHING Choose the most likely used costing system for the industries listed below. a. Process Costing b. Job Order Costing -Costing system used by a food manufacturer.

Figure 6-2. The Bing Corporation produces a product that passes through two processes. During June, the first department transferred 60,000 units to the second department. The cost of the units transferred was $90,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during June: -Refer to Figure 6-2. Units started and completed in Bing Corporation's second department during June would be

What is the major advantage of the weighted average cost method?

Figure 6-8. Department A had the following data for October: -Refer to Figure 6-8.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period. Only current work and costs are used to calculate this period's unit cost.

Conversion costs include:

Units transferred from a prior process to a subsequent process are referred to as

Process costing would be most appropriate for which of the following?