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Title: Question 1
QA_Ori: The main deciding factor in choosing between a job order costing system or a
process costing system is the type of product or service. Examples where a process
Title: Question 2
Title: Question 3
QA_Ori: Yes, services can be delivered by processes. For example, Federal Express
QA_Edit:
Title: Question 4
QA_Ori: The journal entries to match cost flows with product flows are primarily the same
Title: Question 5
QA_Ori: A materials consumption report is an alternative control document.
QA_Edit: A materials consumption report is an alternative control document.
Title: Question 6
QA_Ori: The computation of equivalent units of production focuses on converting partially
completed units to a measure in terms of completed units. We need to use EUP because
Title: Question 7
QA_Ori: The two main methods of process costing are the weighted-average and the
Title: Question 8
QA_Ori: A process cost accounting system treats labor that is used entirely within one
Title: Question 9
QA_Ori: Direct labor costs flow first from the Factory Payroll account to the Goods in
Title: Question 10
Title: Question 11
QA_Ori: Yes, it is possible to have either underapplied or overapplied overhead in a
Title: Question 12
QA_Ori: Equivalent units for direct materials differ from that for direct labor (and overhead)
Title: Question 13
QA_Ori:
The four steps in accounting for production activity (for process operations) are: 1)
QA_Edit:
Title: Question 14
QA_Ori:
The process cost summary serves at least three purposes: (a) to help department
QA_Edit:
Title: Question 15
QA_Ori: Yes. Polaris might use process costing to determine the cost of manufacturing a
Title: Question 16
QA_Ori: Likely processing steps for the snowmobiles include making the frame, assembly,
Title: Quick Study 20-1
QA_Ori:
QA_Edit:
Title: Quick Study 20-2
QA_Ori:
1. Raw Materials Inventory...................................................62,000
Title: Quick Study 20-3
QA_Ori:
1. Factory Payroll.................................................................135,000
Title: Quick Study 20-4
QA_Ori:
1. Factory Overhead............................................................. 9,000
2. Factory Overhead.............................................................10,000
3. Factory Overhead.............................................................156,000
Title: Quick Study 20-5
QA_Ori:
Title: Quick Study 20-6
QA_Ori:
Equivalent units under the weighted-average method
Equivalent
EUP for Labor Units
Title: Quick Study 20-7
QA_Ori: The cost of beginning inventory plus the costs added during the period
should equal the cost of units transferred out plus the cost of ending inventory.
Title: Quick Study 20-8
QA_Ori: The auto garage can use a process cost system for routine, repetitive
activities like oil changes. It can use a job order cost system for specialized work
on individual cars, including body repair and other repairs that differ across cars.
A total cost per car can be computed by combining the outputs from the process
and job order systems.
Title: Quick Study 20-9
QA_Ori:
Equivalent units under the FIFO method
Equivalent
EUP for Labor Units
* Units completed – Units in beginning work in process = Units started and completed
QA_Edit:
Equivalent units under the FIFO method
Title: Quick Study 20-10
QA_Ori:
QA_Edit:
Title: Quick Study 20-11
QA_Ori: The process cost summary sections are Costs Charged to Production,
Equivalent Units of Production, and Cost Assignment and Reconciliation.
Title: Quick Study 20-12
QA_Ori: If the company is successful in reducing water usage, its raw materials
Title: Quick Study 20-13
QA_Ori:
Title: Quick Study 20-14
QA_Ori:
Equivalent units under the weighted-average method
Equivalent
EUP for Labor Units
Units completed and transferred out (680,000 x 100%).......................... 680,000
QA_Edit:
Title: Quick Study 20-15
QA_Ori:
Equivalent units under the FIFO method
Equivalent
EUP for Labor Units
Equivalent units to complete beginning work in process (320,000 x
240,000
* Units completed – Units in beginning work in process = Units started and completed
680,000 – 320,000 = 360,000
QA_Edit:
Equivalent units under the FIFO method
Equivalent
Units
240,000
Title: Exercise 20-1
QA_Ori:
1. F 5. G
Title: Exercise 20-2
QA_Ori:
1. Raw Materials Inventory ..................................................80,000
2. Goods in Process Inventory.............................................42,000
3. Factory Overhead ............................................................22,500
Title: Exercise 20-3
QA_Ori:
1. Factory Payroll ................................................................95,000
2. Goods in Process Inventory.............................................75,000
QA_Edit:
Title: Exercise 20-4
QA_Ori:
1. Factory Overhead ............................................................38,750
2. Goods in Process Inventory.............................................82,500
QA_Edit:
Title: Exercise 20-5
QA_Ori:
1. Finished Goods Inventory................................................135,600
2. Accounts Receivable........................................................315,000
Cost of Goods Sold..........................................................175,000
QA_Edit:
Title: Exercise 20-6
QA_Ori:
1.
Oct. 31 Goods in Process Inventory.............................................522,000
2.
Oct. 31 Goods in Process Inventory.............................................130,000
3.
Oct. 31 Goods in Process Inventory.............................................227,500
4.
Oct. 31 Finished Goods Inventory ...............................................595,000
5.
Oct. 31 Accounts Receivable........................................................950,000
Oct. 31 Cost of Goods Sold .........................................................540,000
