Exam 8: Process Costing

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. - What are the equivalent units of production for materials during the period?

In the computation of the manufacturing cost per equivalent unit, the weighted-average method of process costing considers:

The Fremont Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work-in-process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

Sarfina Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below: Percent Complete with Respect Units to Conversion Beginning work-in-process 15,000 20\% inventory Transferred in from the prior department 89,000 during September Ending work-in-process inventory 24,000 90\% According to the company's records, the conversion cost in beginning work-in-process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September? (Round your answer to 3 decimal places.)

Phantom Company has beginning and ending Work-in-Process Inventories that are 45% and 10% complete, respectively. Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units:

Vacumatic, Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department, Assembly, for a recent month. Required: Using the FIFO method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of ending work-in-process inventory. d. Determine the cost of units transferred out of the department during the month.

Tracker Sports is a manufacturer of sportswear. Tracker produces its products in two departments. The information for the current month for Department #2 is as follows: Beginning work-in-process 20,000 unit Units transferred in from Department \#1 40,000 units Units completed 50,000 units Ending work-in-process 10,000 units Beginning WIP transferred in costs \ 50,000 Beginning WIP direct materials \ 12,000 Beginning WIP direct labor \ 3,200 Beginning WIP overhead \ 1,600 Coststransferred in from Department \#1 \ 100,000 Direct material added during month \ 60,000 Direct labor during month \ 20,000 Manufacturing overhead applied ??? Beginning WIP was half complete as to conversion costs. Direct materials for Department #2 are added when the process is 25% complete. Manufacturing overhead is applied at a rate equal to 50 percent of direct labor. Ending WIP was 60 percent complete. Tracker Sports uses first-in, first-out (FIFO) costing. Required: (HINT: use 4 decimal places in your calculations) a. Compute the equivalent units of production for each input. b. Compute the cost per equivalent unit. c. Compute the cost transferred out to finished goods. d. Compute the ending work-in-process inventory balance.

A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the disposition of these units and (2) the costs charged to the department and the allocation of these costs is called a:

Mobility, Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department, Shaping, for a recent month. Work-in-process, beginning: Units in process 500 Percent complete with respect to materials 70\% Percent complete with respect to conversion 40\% Units started into production during the month 28,000 Work-in-process, ending: Units in process 100 Percent complete with respect to materials 50\% Percent complete with respect to conversion 30\% Required: Using the FIFO method, determine the equivalent units of production for materials and conversion costs.

The following data has been provided by Radiotronics Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Wiring Department for the month of March. Cost in beginning work-in-process inventory \2 ,260 Units started and completed this month 4,650 Materials Conversion Cost per equivalent unit \ 33.30 \ 21.20 Equivalent units required to complete the units in beginning work-in-process inventory 300 230 Equivalent units in ending work-in-process inventory 380 297 Required: Determine the cost of the units transferred out and the cost of ending work-in-process inventory of the department during March using the FIFO method.

An equivalent unit of conversion costs is equal to the amount of conversion costs required to:

Which of the following statements is (are) true regarding product costing? (A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full. (B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units.

In a process costing system, manufacturing overhead applied is usually recorded as a debit to:

In a production cost report using process costing, transferred-in costs are most similar to:

A company should use process costing, rather than job costing, if:

The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning irventory -0- Units started in production 20,000 Units finished during the period 16,000 Units in process at the end of the period (complete as to materials, 4,000 1/4 complete as to labor and overhead) Cost of materials used \ 35,200 Labor and overhead costs \ 37,400 - Total cost of the 4,000 units of the ending inventory:

Tiny Villages Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department, Extruding, for a recent month. Required: a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work-in-process inventory. d. Determine the cost of the units transferred to the next department.

In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adapted)

Department A had no Work-in-Process at the beginning of the period, 1,000 units were completed during the period, 200 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period: Direct materials (1,200 at \ 10) \ 12,000 Direct labor 5,500 Factory overhead 4,400 Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

In the weighted-average approach, the number of physical units transferred out cannot be greater than the equivalent number of units produced during the period.