Identify the control document for materials flow when a materials requisition slip is not used.

The following refers to units processed in Sunflower Printing’s binding department in March. Prepare a physical flow reconciliation.

Switch Co. manufactures a single product in one department. Direct labor and overhead are added evenly throughout the process. Direct materials are added as needed. The company uses monthly reporting periods for its weighted-average process costing. During January, Switch completed and transferred 220,000 units of product to finished goods inventory. Its 10,000 units of beginning work in process consisted of $\$ 7,500$ of direct materials and $\$ 49,850$ of conversion. In process at month-end are 40,000 units (50% complete with respect to direct materials and $30 \%$ complete with respect to conversion). During the month, the company used direct materials of $\$ 112,500$ in production, and incurred conversion costs of $\$ 616,000$. Required

1. Prepare the company's process cost summary for January using the weighted-average method.
2. Prepare the journal entry dated January 31 to transfer the cost of completed units to finished goods inventory.
3. The cost accounting process depends on several estimates. a. Identify two major estimates that affect the cost per equivalent unit. b. In what direction might you anticipate a bias from management for each estimate in part $3 \mathrm{a}$ (assume that management compensation is based on maintaining low inventory amounts)? Explain your answer.

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 22,200 units of product to finished goods inventory. Its 3,000 units of beginning work in process consisted of $\$ 19,800$ of direct materials and $\$ 221,940$ of conversion costs. It has 2,400 units ( $100 \%$ complete with respect to direct materials and $80 \%$ complete with respect to conversion) in process at month-end. During the month, $\$ 496,800$ of direct material costs and $\$ 2,165,940$ of conversion costs were charged to production.

Required

1. Prepare the company's process cost summary for May using the weighted-average method.
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.
3. The costing process depends on numerous estimates. a. Identify two major estimates that determine the cost per equivalent unit. b. In what direction might you anticipate a bias from management for each estimate in part $3 \mathrm{a}$ (assume that management compensation is based on maintaining low inventory amounts)? Explain your answer.

Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.

The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 24,000 were in process at the beginning of the period. The other 56,000 units were started and completed during the period. At periodend, 16,000 units were in process. Compute the department's equivalent units of production with respect to direct materials under each of three separate assumptions, using the weighted average method:

1. All direct materials are added to products when processing begins.
2. Beginning inventory is $40 \%$ complete as to materials and conversion costs. Ending inventory is $75 \%$ complete as to materials and conversion costs.
3. Beginning inventory is $60 \%$ complete as to materials and $40 \%$ complete as to conversion costs. Ending inventory is $30 \%$ complete as to materials and $60 \%$ complete as to conversion costs.

For each of the following products and services, indicate whether it is more likely produced in a process operation or a job order operation.

1. Beach toys
2. Concrete swimming pool
3. iPhones
4. Wedding reception
5. Custom suits
6. Juice
7. Tattoos
8. Guitar picks

Match each of the following items A through $\mathrm{G}$ with the best numbered description of its purpose. A. Factory Overhead account B. Process cost summary C. Equivalent units of production D. Work in Process Inventory account E. Raw Materials Inventory account F. Materials requisition G. Finished Goods Inventory account

_____1. Notifies the materials manager to send materials to a production department. _____2. Holds costs of indirect materials, indirect labor, and similar costs until assigned to production. _____3. Holds costs of direct materials, direct labor, and applied overhead 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.

The production department started the month with a beginning work in process inventory of $\$ 20,000$. During the month, it was assigned the following costs: direct materials, $\$ 152,000$; direct labor, $\$ 45,000$; overhead applied at the rate of $40 \%$ of direct labor cost. Inventory with a cost of $\$ 218,000$ was transferred to finished goods. The ending balance of work in process inventory is

a. $\$ 330,000$. b. $\$ 17,000$. c. $\$ 220,000$. d. $\$ 112,000$. e. $\$ 118,000$.

Can services be delivered by means of process operations? Support your answer with an example.

Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of $21,300 on November 1, which consisted of$6,800 of direct materials and $14,500 of conversion costs. During the month the company incurred the following costs:

$$\begin{array}{lr} \text{Direct materials}&\$116,400\\ \text{Conversion}&1,067,000\\ \end{array}$$

During November, the company finished and transferred 100,000 units of its product to finished goods. A the end of the month, the work in process inventory consisted of 12,000 units that were $100 \%$ complet with respect to direct materials and $25 \%$ complete with respect to conversion. Required

1. Prepare the company's process cost summary for November using the weighted-average method.
2. Prepare the journal entry dated November 30 to transfer the cost of the completed units to finished goods inventory.

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $84,300 as of October 1, which consisted of$17,100 of direct materials and $67,200 of conversion costs. During the month the company incurred the following costs:

$$\begin{array}{lr} \text{Direct materials}&\$144,400\\ \text{Conversion}&862,400\\ \end{array}$$

During October, the company started 140,000 units and transferred 150,000 units to finished goods. At the end of the month, the work in process inventory consisted of 20,000 units that were $80 \%$ complete with respect to conversion costs.

Required

1. Prepare the company's process cost summary for October using the weighted-average method.
2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

Anheuser-Busch InBev is attempting to reduce its water usage. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful?

Hotwax completed products costing $\$ 275,000$ and transferred them to finished goods. Prepare its journal entry to record the transfer of units from production to finished goods inventory.