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