I{C}{C}{C}. In a process costing environment, production flow may include from _
ID: 2422487 • Letter: I
Question
I{C}{C}{C}. In a process costing environment, production flow may include from __________ to a _________ or more departments, processes, or work cells.
II{C}{C}{C}. A process costing system maintains a _________________ Work in Process Inventory account for each department, process, or work cell.
III{C}{C}{C}. Each Work in Process Inventory account contains costs of any direct _____________, direct ____________, and ________________ for that department, process, or work cell, as well as any costs that have been transferred in from the ______________ department, process, or work cell.
IV{C}{C}{C}. At the ___________ of every accounting period, a ____________ report assigns the costs that have accumulated during the period to the units that have transferred out of the department and to the units that are still a part of the work in process.
V{C}{C}{C}. A process cost report may be prepared using the __________ costing method or the _______________ costing method.
VI{C}{C}{C}. _______________ production (equivalent units) is a measure of the number of equivalent whole units worked on during a period.
A. Explain why the calculation of equivalent units is necessary.
B. Equivalent production applies a ______________of-completion factor to partially completed units to calculate the equivalent number of ___________ units produced in an accounting period for each type of production input.
C. The number of equivalent units produced is the sum of the following:
1. Total units ______________ and ____________ during the period
2. An amount representing the work done on _______________ completed products in both the beginning and ending work in process inventories.
Explanation / Answer
I{C}{C}{C}. In a process costing environment, production flow may include from two to a Dozen or more departments, processes, or work cells. II{C}{C}{C}. A process costing system maintains a separate Work in Process Inventory account for each department, process, or work cell. III{C}{C}{C}. Each Work in Process Inventory account contains costs of any direct materials, direct labor, and overhead for that department, process, or work cell, as well as any costs that have been transferred in from the previous department, process, or work cell. IV{C}{C}{C}. At the end of every accounting period, a process report assigns the costs that have accumulated during the period to the units that have transferred out of the department and to the units that are still a part of the work in process. V{C}{C}{C}. A process cost report may be prepared using the FIFO costing method or the Average costing method. VI{C}{C}{C}. Equivalent production (equivalent units) is a measure of the number of equivalent whole units worked on during a period. A. Explain why the calculation of equivalent units is necessary. B. Equivalent production applies a percentage of-completion factor to partially completed units to calculate the equivalent number of whole units produced in an accounting period for each type of production input. C. The number of equivalent units produced is the sum of the following: 1. Total units started and completed during the period 2. An amount representing the work done on partially completed products in both the beginning and ending work in process inventories.
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