Question 1

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota Factory uses the FIFO method of inventory costing.
 $$\begin{array} { l | l | l } 
& \begin{array} { l } 
\text { Equivalent } \
\text { Units }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Cost }
\end{array} \
\hline \text { Beginning Work in Process: } & & \
\hline \text { Costs from prior month } & & \$ 7,000 \
\hline \text { Materials added } & 300 & \
\hline \text { Labor and overhead added } & 375 & \
\hline \text { Started and completed goods: } & & \
\hline \text { Materials added } & 2,000 & \
\hline \text { Labor and overhead added } & 2,000 & \
\hline \text { Ending Work in Process: } & & \
\hline \text { Materials added } & 320 & \
\hline \text { Labor and overhead added } & 360 &
\end{array}$$ The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00.Prepare a cost reconciliation for the month of August.

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Question 2

The third step in accounting for production activity in a period, before assigning and reconciling costs, is to compute the ________.

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Question 3

Prepare journal entries to record the following production activities for Oaks Manufacturing.
a. Used $93,900 of direct labor in the production department.
b. Used $11,200 of indirect labor.

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Question 4

Giga Company uses a weighted average process cost system. The department started and finished 129,000 units during the current period. The ending inventory consists of 60,000 units that are 75% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $262,500 and overhead costs of $126,000.
(a) Compute the equivalent cost per unit for direct labor.
(b) Compute the equivalent cost per unit for overhead.

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Question 5

Bagger, Inc. uses a process costing 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 6

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles ________ with the ________.

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Question 7

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

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Question 8

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota 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.
 $$\begin{array} { l | l | l } 
& \begin{array} { l } 
\text { Equival ent } \
\text { Units }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Cost }
\end{array} \
\hline \text { Beginning Work in Procest: } & & \
\hline \text { Costs from prior month } & & \$ 7,000 \
\hline \text { Materials added } & 300 & \
\hline \text { Labor and overhead added } & 375 & \
\hline \text { Started and completed goods: } & & \
\hline \text { Materials added } & 2,000 & \
\hline \text { Labor and overhead added } & 2,000 & \
\hline \text { Fnding Work in Procest: } & & \
\hline \text { Materials added } & 320 & \
\hline \text { Labor and overhead added } & 360 &
\end{array}$$

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Question 9

Prepare general journal entries to record the following production activities for Oaks 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

The following table of cost information is available for the Renaldo Company for the month of November:
 $$\begin{array} { l | l | l | l } 
& \begin{array} { l } 
\text { Goods in } \
\text { Process } \
\text { Inventory- } \
\text { Mixing }
\end{array} & \begin{array} { l } 
\text { Goods in } \
\text { Process } \
\text { Inventory- } \
\text { Molding }
\end{array} & \begin{array} { l } 
\text { Finithed } \
\text { Goods } \
\text { Inventory }
\end{array} \
\hline \text { Begining Inventory } & \$ 12,000 & \$ 15,000 & \$ 24,000 \
\hline \text { Costs incurred: } & & & \
\hline \text { Direct materials } & 22,000 & 14,000 & \
\hline \text { Direct labor } & 32,000 & 17,000 & \
\hline \text { Overhead applied } & 47,000 & 24,500 & \
\hline \text { Costs transferred out } & ( 100,000 ) & ( 152,000 ) & \
\hline \text { Costs transferred in } & & 100,000 & 152,000 \
\hline \text { Cost f goods sold } & & & ( 149,000 ) \
\hline \text { Ending inventory } & 13,000 & 18,500 & 27,000
\end{array}$$ Based on the table of cost information above, prepare the general journal entry required to record the:
a. Transfer of goods from the molding department to the finished goods inventory.
b. Cost of goods sold for November.

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The answer of The following table of cost information is...

Question 11

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota Factory uses the FIFO method of inventory costing.
 $$\begin{array} { l | l | l } 
& \begin{array} { l } 
\text { Equivalent } \
\text { Units }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Cost }
\end{array} \
\hline \text { Beginning Work in Process: } & & \
\hline \text { Costs from prior month } & & \$ 7,000 \
\hline \text { Materials added } & 300 & \
\hline \text { Labor and overhead added } & 375 & \
\hline \text { Started and completed goods: } & & \
\hline \text { Materials added } & 2,000 & \
\hline \text { Labor and overhead added } & 2,000 & \
\hline \text { Ending Work in Procest: } & & \
\hline \text { Materials added } & 320 & \
\hline \text { Labor and overhead added } & 360 &
\end{array}$$ 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 Work in Process inventory for August.

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Question 12

An ________is the number of units that could have been started and completed given the costs incurred during the period.

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Question 13

Materials and labor costs that are clearly associated with a specific process or department are known as _ . Those costs that are not clearly associated with a specific process or department are called _ _.

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Question 14

Port Manufacturing Company uses a process costing system. Materials are added at the beginning of the process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The following are the operating and cost data information for October.
The October 1 beginning Work in Process Inventory consisted of 20,000 units. The costs for this inventory are $82,500 of direct materials, $24,400 of direct labor, and $48,800 of factory overhead. Factory overhead is applied at 200% of direct labor cost.
In addition to the beginning inventory costs, the company issued the following costs into Work in Process Inventory; direct materials, $240,000; direct labor, $68,000; factory overhead, $136,000.
During October, the company completed and transferred 60,000 units of its product to finished goods. At the end of the month, the Work in Process inventory consisted of 15,000 units that were 40% complete with respect to direct labor and factory overhead and 100% complete with respect to
materials.
Prepare the company's process cost summary for October using the weighted average method.

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Question 15

Grayson 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 90% 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

If a process has ________ or ________ inventory of partially completed production, equivalent units must be calculated so that total costs incurred during the period are assigned to all units worked on.

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Question 17

Kominski Company completed and transferred 90,000 units during the current period. Based on the following information, determine the cost of the units completed during the current reporting period and journalize the transfer.
 $$\begin{array} { l | l | l } 
& \begin{array} { l } 
\text { Direct } \
\text { Materials }
\end{array} & \begin{array} { l } 
\text { Direct } \
\text { Labor/OH }
\end{array} \
\hline \text { Costs of Beginning Work in Process: } & \$ 576,000 & \$ 400,000 \
\hline \text { Costs incurred this period } & 2,400,000 & 5,120,000 \
\hline \text { Equivalent urrits of production } & \$ 9,000 & 92,000
\end{array}$$

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The answer of Kominski Company completed and transferred 90,000 units...

Question 18

During the year, LT 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 Work in Process at the beginning of the year.

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Question 19

Prepare journal entries to record the following production activities for Oaks 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 20

Process operations, also called process manufacturing or process production, is the ________ production of similar products in a ________ flow of sequential steps.

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Quiz 20: Process Costing

The third step in accounting for production activity in a period, before assigning and reconciling costs, is to compute the ________.

Prepare journal entries to record the following production activities for Oaks Manufacturing. a. Used $93,900 of direct labor in the production department. b. Used $11,200 of indirect labor.

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles with the .

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Prepare general journal entries to record the following production activities for Oaks 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.

An ________is the number of units that could have been started and completed given the costs incurred during the period.

Materials and labor costs that are clearly associated with a specific process or department are known as _ . Those costs that are not clearly associated with a specific process or department are called _ _.

If a process has or inventory of partially completed production, equivalent units must be calculated so that total costs incurred during the period are assigned to all units worked on.

Process operations, also called process manufacturing or process production, is the production of similar products in a flow of sequential steps.