Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 3, Problem 6GAP
To determine
Concept introduction:
Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.
To calculate:
Following using the FIFO method
a. Physical units’ reconciliation
b. Number of equivalent units
c. Cost per equivalent units
d. Cost reconciliation
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Students have asked these similar questions
The four-steps of tracking product costs in a process costing system are OA. accumulate, assign, allocate, and
adjust OB. assign, analyze, approximate, and allocate OC. arrive, analyze, assume, and allocate O D. verify,
analyze, record, and adjust
Required information[The following information applies to the questions displayedbelow.]We discuss how to prepare the process costing production reportusing the weighted-average method. In addition, we discuss that aproduction report is a summary of what occurs in the productionprocess, and includes information about the number of physicalunits, number of equivalent units, cost per equivalent unit, and areconciliation of the cost of Work in Process Inventory.
Knowledge Check 01Paula's Fab Tee Company, which prints T-shirts, has three processingdepartments (printing, labeling, and packaging). The total cost per equivalentunit was $17.80 for the printing department, $0.80 for the labeling department,and $0.40 for the packaging department. The total cost of the 1,450 units thatwere transferred out of the Work in Process Inventory (Packaging) account tothe Finished Goods Inventory account was:
Which of the following are steps in process costing?
Question 5 options:
A)
Visualize the physical flow of units
B)
Calculate the equivalent units
C)
Determine the per-unit costs
D)
Calculate the Cost of Goods Manufactured and the Ending WIP Inventory
E)
All of the above
Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Briefly describe the difference between job order...Ch. 3 - Prob. 2QCh. 3 - Explain the differences between Raw Materials...Ch. 3 - Explain the flow of costs in a process costing...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - What triggers the cost of manufacturing to be...Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - The primary difference between FIFO and...Ch. 3 - Prob. 9MCCh. 3 - Prob. 10MCCh. 3 - Prob. 1MECh. 3 - Prob. 2MECh. 3 - Prob. 3MECh. 3 - Prob. 4MECh. 3 - Prob. 5MECh. 3 - Calculation Cost per Equivalent unit...Ch. 3 - Prob. 7MECh. 3 - Prob. 8MECh. 3 - Prob. 9MECh. 3 - Prob. 10MECh. 3 - Prob. 11MECh. 3 - Prob. 12MECh. 3 - Calculating Equivalent Units (FIFO) The Cuttilg...Ch. 3 - Compare Weighted-Average and FIFO Process Costing...Ch. 3 - Prob. 15MECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Calculating Equivalent Units, Unit Costs, and Cost...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Recording Manufacturing Costs in Process Costing...Ch. 3 - Prob. 1.1GAPCh. 3 - Prob. 1.2GAPCh. 3 - Prob. 2GAPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 3.2GAPCh. 3 - Prob. 4GAPCh. 3 - Prob. 5.1GAPCh. 3 - Prob. 5.2GAPCh. 3 - Prob. 6GAPCh. 3 - Prob. 1.1GBPCh. 3 - Prob. 1.2GBPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 4GBPCh. 3 - Prob. 5.1GBPCh. 3 - Prob. 5.2GBPCh. 3 - Prob. 6GBP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Label each of the following activities as unit-level batch-level, product-level, or facility-level activity. Determine one or more potential cost driver(s) for each activities. warehouse expense machine setup quality control engineering design production schedulingarrow_forwardSummarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work-in-process inventory. please provide answer along with explanation, computation and formulation with steps thanksarrow_forwardMatch each of the following items A through G with the best numbered description of its purpose. A. Factory Overhead account E. Raw Materials Inventory account B. Process cost summary F. Materials requisition C. Equivalent units of production G. Finished Goods Inventory account D. Work in Process Inventory accounts 1. Notifies the materials manager to send materials to a production department. 2. Holds indirect costs until assigned to production. 3. Hold production costs until products are transferred from production to finished goods (or another department). 4. Standardizes partially completed units into equivalent completed units. 5. Holds costs of finished products until sold to customers. 6. Describes the activity and output of a production department for a period. 7. Holds costs of materials until they are used in production or as factory overhead.arrow_forward
- Subject - Acountingarrow_forwardPlace the following steps required to prepare a process costing production report into their correct order. I. Reconcile the total cost of work in process inventory. II. Apply manufacturing overhead to specific jobs. III. Calculate cost per equivalent unit. IV. Record costs incurred for each job on a separate job cost sheet. V. Convert physical units into equivalent units. VI. Reconcile the number of physical units. VII. Prepare a production report. 1. 2. 3. 4. 5 List separately any step that should not be included in the process. (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) ■ I ✔ || IV VI iv MI V il V VI VIIarrow_forwardCustoms has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?arrow_forward
- Complete this production cost report:arrow_forwardFrenchys has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?arrow_forwardIdentify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost pool C. supervising cost pool D. testing cost poolarrow_forward
- For each cost pool, identify an appropriate cost driver. A. order department B. accounts receivable processing C. catering D. raw material inventoryarrow_forwardRex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.arrow_forwardWhich of the following is the step in which materials, labor, and overhead are detailed? A. determining the units to which costs are assigned B. determining the equivalent units of production C. determining the cost per equivalent units D. allocating the costs to the units transferred out and the units partially completedarrow_forward
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