DEFINITIONS
The mass production of products in a continuous flow of steps is the definition of:
Process Operations.
- Chong
Department A had a beginning inventory balance of 25 units. During the Accounting period, the department started an additional 275 units and had an ending balance of 50 units.
How many units were transferred out?
250 Units.
-Laura
Recording the cost of raw materials purchased for use in a process costing system includes a _______.
Debit to Raw Materials
- Ha
True.
-Laura
Hybrid Costing System
Department C had total labor and overhead cost combined of $25,000 in beginning goods in process Inventory and added an additional $165,000 in labor and overhead costs in this period.
If the department had $38,000 EUP for labor and overhead, the cost per equivalent unit of production is $_______.
5.
- Lizzie
Equivalent units of production are equal to________.
The number of units that could have been started and completed given the cost incurred.
-Maria
Process systems have high product flexibility.
False.
-Laura
What is the FIFO Method?
The FIFO method computes equivalent units based only on production activity in the current period.
A company using process operations started and processed 400 units in its first department. 40% complete with respect to materials and 25% complete with respect to labor and overhead labor and overhead is ______ units.
100.
- Anh
The journal entry to record the applied factory overhead is to:
Debit work in Process Inventory and credit Factory Overhead.
-Jeanette
Using the weighted-average method, the computation of EUP separates units in beginning inventory from those started during the period; therefore, costs must also be separated.
False.
-Chong
What is the weighted-average method?
The weighted-average method combines units and costs across two periods in computing equivalent units.
Department B had a beginning inventory balance of 150 Units. During the accounting period, the department started an additional 950 units and 975 units were completed and transferred out. Department B had an ending balance of ______ units.
125 Units.
- Chong
The Journal entry to record the transfer of units from one department to the next is to:
Debit work in process Inventory - Dept. 2 and credit Work in Process Inventory - Dept. 1
- Jeannette
Process operations involve the mass production of similar products in a continuous flow of sequential processes.
True.
- Karen