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Exam 28: Process Cost Accounting

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Question 31

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When finished goods are sold, the entry to record the cost of goods sold includes

A) a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.
B) a debit to Cost of Goods Sold and a credit to Sales.
C) a debit to Cost of Goods Sold and a credit to Finished Goods Inventory.
D) a debit to Finished Goods Inventory and a credit to Sales.

E) A) and B)
F) B) and D)

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Question 32

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The total accounted for consists of

A) the units started in production.
B) the units transferred out and the units in ending work in process.
C) the units started and the units transferred out.
D) the units transferred out and the units completed.

E) A) and C)
F) A) and B)

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Question 33

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A cost of production report provides separate sections to summarize quantities and costs.

In a process cost accounting system, a separate Work in Process Inventory account is maintained for each producing department.

Equivalent production units may be computed

Goods transferred to another department for further processing are nonetheless considered 100 percent complete on the cost of production report of the department making the transfer.

Equivalent production units must be computed separately for materials, labor, and ____________________ whenever the stages of completion for the elements are different.

Department R Cost Data for November 2013 $\begin{array}{lr}\text { Current department costs--November: } & \\\text { Materials } & \$ 51,121 \\\text { Labor } & 11,304 \\\text { Manufacturing Overhead } & 9,106\\\text { Quantities: }\\\text { Beginning inventory, work in process } & -0-\text { units } \\\text { Started in production } & 6,700 \text { units } \\\text { Transferred out to next department } & 6,000 \text { units } \\\text { Ending inventory, work in process } & 700 \text { units }\\\text { Stage of completion--work in process: }\\\text { Ending inventory: }\\\text { Materials } & 100 \% \\\text { Labor and overhead } & 40 \%\end{array}$ -Complete the Cost of Production Report for Department R for November from the information given.

The units transferred in from a prior department are included in the quantity to be accounted for on the cost of production report for the receiving department.

Cost data for a firm's first department, Dept. A, for June 2013 is given below. -Prepare equivalent production computations for Dept. A from the information provided.

The ending Work in Process inventory in the mixing department contains 300 units that are 70% complete with respect to labor costs. How many equivalent units are in the ending inventory?

Each section of the production report has two parts. They reconcile

When beginning inventory is part of the production report, costs from the prior department are included. They are

The ending work in process inventory does not appear on the following month's cost of production report.

-Prepare the Quantity Schedule for Department J for October 2013 in good format from the information given.

During the month, 1,600 units of a product were completed and 900 units were two-thirds complete with respect to labor and still in process. The total equivalent units of production for labor for the month is

Rounding is often necessary to make the Production Report cumulative cost total agree to the total costs accounted for. In the following periods, the amount of the adjustment is either added to or subtracted from the _____________ in work in process.

-Complete the Cost Schedule for Department J from the information given.

Process cost accounting is most appropriate

In a process cost accounting system,