Process operations is defined as a manufacturing

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Process operations is defined as a manufacturing process that includes:High level of standardizationSeries of sequential processesThe cost object in a job order system is the specific job and the cost object in a process costing system isthe process.In process operations, where there is sequential processing the output of one department becomes theinput to the next department.The journal entry to record the insurance on the factory equipment is to:Debit factory overheadCredit prepaid insuranceA department begins the month with 100 units at a cost of $7,500 in goods in process. An additional1,000 units are started during the month and additional costs incurred are $12,500. At the end of themonth, there are 200 units still in process which are 50% complete. The ending balance in goods inprocess inventory is$2000.Units to account for=1,100Ending in process=200 unitsCompleted units=900Costs to account for= $7,500+$12,500= $20,000EUP = 900*100%+200*50%= 1,000 unitsCost per unit= $20,000/ 1,000units= $20/unitGIP= 200*50%*$20=$2,000When indirect materials are used in process costing, the effect on the raw materials inventory account isa decreaseThe cost of units transferred from Work in Process Inventory to Finished Goods Inventory is called thecost of goods manufacturedThe journal entry to record payment of production labor in process costing isto:Factory payroll payableCashList the four steps involving analysis when accounting for a departments activity, with the first step listedon top:1.Physical flow
2.Equivalent units3.Cost per equivalent units4.Cost assignment and reconciliation

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Term
Spring
Professor
Curfman

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