Exam 6: Process Cost Accounting Additional Procedures

In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:

What losses should not affect the recorded cost of inventories?

The Roberto Company had computed the flow of units for Department A for the month of May as follows: Materials are added at the beginning of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 70 percent complete as to conversion costs and the work in process at May 31 was 60 percent complete as to conversion costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method?

During June, Birch Bay Company's Department B equivalent unit product costs computed under the average cost method were as follows: Materials are introduced at the end of the process in Department B. There were 4,000 units (60 % complete as to conversion costs) in work in process at June 30. The total costs assigned to the June 30 work in process inventory should be:

Information for Tyson Company in May for Department One, the first stage of the production cycle, is as follows: Material costs are added at the beginning of the process. The ending work in process is 80 percent complete as to conversion costs. How would the total costs accounted for be distributed using the average cost method?

Normal losses that occur in the manufacturing process are properly classified as:

Nate Company manufactures Products A and B from a joint process that also yields a by-product, X. Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products. Additional information is as follows: (1) Assuming that joint product costs are allocated using the relative sales value at split-off approach, what was the joint cost allocated to Products A and B? (2) Prepare the journal entry to transfer the finished products to separate inventory accounts. (3) Assuming the sales value of X is stable, prepare the journal entries to: (a) place the by-product in stock (b) record the sale of 3,000 units for $10,500 on account.

Which of the following is most likely to be accounted for as a by-product?

Keith Company manufactures Products A, B, and C from a joint process. Additional information is as follows: Assuming that joint costs are allocated using the relative sales value at split-off approach, what was the sales value at split off for Product A?

Which of the following statements best describes a by-product?

The Roberto Company had computed the flow of units for Department A for the month of May as follows: Materials are added at the end of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 30 percent complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method?

Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production. Highlander manufactures a product that is produced in three separate departments: molding, assembling, and finishing. The following information was obtained for the assembling department for the month of June: Work in process, June 1: 4,000 units composed of the following: The following activity occurred during the month of June: (1) 20,000 units were transferred in from the molding department at a cost of $300,000. (2) Costs were added by the assembling department as follows: (3) Materials are added at the end of the process. (4) 18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The degree of completion of work in process at June 30 follows: Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good form. The report should include: a.Equivalent units of production. b.Total manufacturing costs. c.Cost per equivalent unit. d.Dollar amount of ending work in process. e. Dollar amount of inventory cost transferred out.

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Using the FIFO method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?

Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs. 1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method. 2) Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.

Information concerning Department A of Ali Company for the month of June is as follows: All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two places) per equivalent unit for materials for June is:

The following information is available for the month of April from the First department of the Armque Corporation: Materials are added at the end of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of April? Materials Conversion

Van Pelt Company uses the average cost method of process costing. The production report for the Mixing department follows: In process, beginning of period 1,000 units 800 units - materials 50% complete; conversion costs 40% complete 200 units - materials 25% complete; conversion costs 15% complete Placed in process during period 5,000 units Transferred to packing department 4,800 units In process, end of period 1,200 units 700 units - materials 75% complete; conversion costs 50% complete 500 units - materials 25% complete; conversion costs 20% complete What are the equivalent units for:

Each of the following is a method by which to allocate joint costs except:

The following information is available for the month of April from the First department of the Armque Corporation: Materials are added at the end of the process in the First department. Using the first-in, first-out method, what are the equivalent units of production for the month of April? Materials Conversion

Stanley Company adds materials at the beginning of the process in Department M. Data concerning the materials used in the March production follows: Using the average cost method, the equivalent units for the materials unit cost calculation are: