Chapter 28 – Process Cost Accounting
Chapter 28 – Process Cost Accounting
28–39
(1) Materials were entered into production
(2) Salaries and wages for March were recorded
(3) Manufacturing overhead was charged to work in process
(4) Production costs transferred out of the assembly department
(5) The cost of units completed were transferred to FGI
(6) Sales on credit
(7) Cost of sales removed from FGI
75. Kobold Company manufactures lamps. In May, Department B started 4,500 units. None
had been transferred in from a prior department. Of the 4,500 units started, 4,250 were
transferred out—3,850 to the next department, Department C, and 400 were transferred to
Finished Goods. All the materials issued during May were used in production while only 70%
of the labor and overhead was added to the ending inventory. Calculate the equivalent units
for material and for the labor and manufacturing overhead.
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AACSB: Analytic
AICPA BB: Critical Thinking
Bloom’s: Apply
Learning Objective: 28-01 Compute equivalent units of production with no beginning work in process inventory.
Level: Medium
Topic: Process Cost Accounting System
28–48
82. Using the information given, what are the quantity to account for, the quantity accounted
for, and the equivalent production units for the month of November for Department R?
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85. Match the following definitions to the term that they relate to.
1. Costs of units transferred out plus the cost of the
ending work in process units
unit cost
9
2. All manufacturing costs not classified as direct
materials or direct labor
manufacturing
overhead
2
3. Estimated number of units that could have been
started and completed with the same effort and costs
incurred in the department during the same time period
costs accounted
for
1
4. Cumulative cost total
work in process
8
5. The total of the number of units sold times the average
cost for each
equivalent units
3
6. Summarizes total units to be accounted for and total
units accounted for
costs to be
accounted for
4
7. The units completed but not yet sold
finished goods
7
8. Units begun but not yet completed
cost schedule
10
9. All departmental manufacturing costs divided by the
production for the period
cost of goods
sold
5
10. Summarizes total costs to be accounted for and total
costs accounted for
quantity
schedule
6