Question 1

A company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor.The beginning inventory was completed this year and another 120,000 units were started.Of those started,80,000 were finished and the remaining 40,000 were left 20% complete.Calculate the equivalent units of production for the year using the weighted average method.

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Question 2

Prepare the required general journal entries to record the following transactions for the Bell Company.
a.Purchased $40,000 of raw materials on account.
b.Used $12,000 of direct materials in the production department.
c.Used $5,000 of indirect materials.

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Question 3

Lipinski Company completed and transferred 90,000 units during the current period.Based on the following information,determine the cost of the goods completed during the current reporting period and journalize the transfer.

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Question 4

A company uses a process cost accounting system and the weighted average method for inventory costs.The following information is available regarding direct labor for the current year:
Goods in process,January 1 5,500 units,80% complete
Goods in process,December 31 8,800 units,40% complete
Units completed and transferred to
finished goods 46,900 units
Direct labor costs during the year $266,300
(a)Calculate the equivalent units of production for direct labor for the year.
(b)Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

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Question 5

Prepare the required general journal entry to record the following transactions for the Flaherty Company.
a.Incurred $95,000 of factory labor cost which is paid in cash.
b.Used $78,000 of direct labor in the production department.
c.Used $17,000 of indirect labor.

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Question 6

Iolaus Company provides the following data for the current year:
Estimated Factory Overhead …………………7,800
Factory Overhead Incurred………………… $11,400
Factory Overhead Applied………………… ?
Estimated Direct Labor Cost …………………12,000
Direct Labor Cost Incurred………………… 11,800
Required:
a.Calculate the predetermined overhead allocation rate based on direct labor.
b.Determine the amount of overhead applied to production.
c.Prepare the journal entry to apply factory overhead to goods in process.

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Question 7

The following data is available for Osman Corp.for the current year:
Beginning inventory of goods in process 12,000 units,60% completed
Ending inventory of goods in process 18,000 units,30% completed
Units completed and transferred to
finished goods during the year 144,000 units
Calculate the equivalent units of production for the year using the weighted average method.

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Question 8

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August.Indiana Factory uses the FIFO method of inventory costing.
  The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned to the ending goods in process inventory for August.

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Question 9

Prepare general journal entries to record the following production activities for Sherman Manufacturing.
a.Purchased $82,000 of raw materials on credit.
b.Used $63,500 of direct materials in production.
c.Used $12,800 of indirect materials.

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Question 10

During the year,RB Corp.introduced 132,000 units into production and 144,000 units were completed and transferred to finished goods.At the end of the year,the company had 13,600 units in process that were 80% complete.Determine how many units the company had in goods in process at the beginning of the year.

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Question 11

Refer to the following information about the Painting Department in the Richardson Factory for the month of June.Richardson Factory uses the weighted-average method of inventory costing.
Beginning goods in process inventory:
  Compute the total cost of all units that were completed and transferred to finished goods during June.Compute the total cost of the ending goods in process inventory.

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Question 12

Refer to the following information about the Painting Department in the Richardson Factory for the month of June.Richardson Factory uses the FIFO method of inventory costing.
Beginning goods in process inventory:
Physical units…………………………………………... 5,000 units
% complete for materials………………………………. 70%
% complete for labor and overhead……………………. 25%
Materials cost from May……………………………….. $7,350
Labor and overhead cost from May……………………. $3,125
Product started and completed:
Physical units…………………………………………… 40,000 units
Ending goods in process inventory:
Physical units………………………………………….... 4,000 units
% complete for materials………………………………. 40%
% complete for labor and overhead ……………………. 10%
Manufacturing costs for June:
Materials………………………………………………… $96,975
Labor and overhead……………………………………... $79,470
Compute equivalent units for direct materials,direct labor and overhead for June.

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Question 13

Prepare journal entries to record the following production activities for Sherman Manufacturing.
a.Incurred $105,100 of factory labor cost which is paid in cash.
b.Used $93,900 of direct labor in the production department.
c.Used $11,200 of indirect labor.

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Question 14

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August.Indiana Factory uses the FIFO method of inventory costing.
  The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned all units that were completed and transferred during August.

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Question 15

Browning Company had 8,700 units in beginning inventory with accumulated costs for direct materials of $17,900,$16,500 direct labor,and $13,200 of overhead.During July,the company completed and transferred 50,000 units to finished goods.Costs incurred in the current period included $45,000 of direct materials,$58,500 of direct labor,and $46,800 of factory overhead.Ending inventory consisted of 12,000 units which were 80% complete with respect to materials and 50% complete with respect to labor and overhead.Compute the value assigned to ending inventory based on the weighted average method of inventory costing.

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Question 16

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August.Indiana Factory uses the FIFO method of inventory costing.
  The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned to the beginning units that were completed and transferred during August.

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Question 17

Prepare journal entries to record the following production activities for Sherman Manufacturing.
a.Incurred overhead costs of $79,000 (paid in cash).
b.Applied overhead at 110% of direct labor costs which are $93,900.
c.Transferred completed products with a cost of $258,200 to finished goods inventory.
d.Sold $602,000 of product on credit.Cost is $271,000.

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Question 18

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August.Indiana Factory uses the weighted average method of inventory costing.
  The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned to the units that were started and completed during August.

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Question 19

Heesacker,Inc.uses a process cost accounting system.The following operating and cost data occurred during October:
  Materials are added at the beginning of the process.Direct labor and overhead are incurred evenly throughout the process.Prepare the October process cost summary assuming the weighted average method of inventory costing.

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Question 20

The second step in accounting for production activity in a period is to compute ______________________.

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Quiz 20: Process Costing

Prepare the required general journal entries to record the following transactions for the Bell Company. a.Purchased $40,000 of raw materials on account. b.Used $12,000 of direct materials in the production department. c.Used $5,000 of indirect materials.

Lipinski Company completed and transferred 90,000 units during the current period.Based on the following information,determine the cost of the goods completed during the current reporting period and journalize the transfer.

Prepare the required general journal entry to record the following transactions for the Flaherty Company. a.Incurred $95,000 of factory labor cost which is paid in cash. b.Used $78,000 of direct labor in the production department. c.Used $17,000 of indirect labor.

Prepare general journal entries to record the following production activities for Sherman Manufacturing. a.Purchased $82,000 of raw materials on credit. b.Used $63,500 of direct materials in production. c.Used $12,800 of indirect materials.

Prepare journal entries to record the following production activities for Sherman Manufacturing. a.Incurred $105,100 of factory labor cost which is paid in cash. b.Used $93,900 of direct labor in the production department. c.Used $11,200 of indirect labor.

The second step in accounting for production activity in a period is to compute ______________________.