Which of the following types of entities would be most likely to use a process costing system?
|B)||a furniture manufacturer|
|C)||a law firm|
|D)||a utility producing natural gas|
Costs in a process costing system are accumulated:
|B)||by individual job.|
|C)||by both job and department.|
|D)||by neither job nor department.|
Which of the following is an example of an industry in which operation costing would be used?
A processing pattern in which, after a certain point, some units may go through different processing departments than others is referred to as:
The purpose of the quantity schedule on a production report is:
|A)||to calculate unit costs for a given period.|
|B)||to show how costs charged to a department during a given period have been accounted for.|
|C)||to calculate the equivalent units for a given period.|
|D)||to calculate total costs for a given period.|
Which of the following characteristics applies to process costing, but does not apply to job order costing?
|A)||the need for averaging.|
|B)||the use of equivalent units of production.|
|C)||the use of separate, identifiable jobs.|
|D)||the use of predetermined overhead rates.|
Bronx, Inc.'s beginning work-in-process inventory consisted of 12,000 units, 100% complete as to materials cost and 40% complete as to conversion costs. The total cost in the beginning inventory was $25,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $1.50 for materials and $3.20 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred was:
In a process cost system, the application of manufacturing overhead usually would be recorded as a debit to:
|C)||Cost of goods sold|
Questions 9-10 refer to the following:
Oxnard, Inc. uses a process costing system. For March, the month just completed, the opening work in process inventory consisted of 60,000 units which were 60 percent completed as to processing. The ending inventory for the month consisted of units that were 20 percent completed as to processing. A summary of cost data for the month follow:
| Units|| Processing Cost|
| Work in process inventory on March 1|| 60,000 || $35,000|
|Units started into production and costs incurred during the month|| 190,000 || $700,000|
|Units completed and transferred out during the month|| 200,000|
Assuming that Oxnard uses the moving average method, what unit cost figure should be used for processing cost for March (to the nearest whole penny)?
Assuming that the unit cost is $3.75 for processing for March, what is the amount of processing cost that should be assigned to the ending work in process inventory?