Exam 4: Systems Design: Process Costing

Ogden Company uses the weighted-average method in its process costing system.Information for the month of January concerning Department A,the first stage of the company's production process,follows: Materials are added at the beginning of the process.The ending work in process is 50% complete with respect to conversion costs.What cost would be recorded for the ending work-in-process inventory?

Glo Co.,a manufacturer of combs,uses the weighted-average method in its process costing system.The company sold 125,000 units during the month of April.There is only one processing department.The following additional information is provided: What were the equivalent units of production for conversion costs for April?

(Appendix 4B)The direct method has the disadvantage that it may leave some service department costs unallocated.

(Appendix 4A)Carson Company uses the FIFO method in its process costing system.The Assembly Department started the month with 6,000 units in its beginning work-in-process inventory; 20% of the units were complete with respect to conversion costs.An additional 74,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.Of the 8,000 units in the ending work-in-process inventory of the Assembly Department,60% were complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

(Appendix 4A)What are the equivalent units of production for labour and overhead for the month?

Assume that there is no beginning work-in-process inventory,and the ending work-in-process inventory is 50% complete with respect to conversion costs.What would be the number of equivalent units of production with respect to conversion costs under the weighted-average method?

When computing the cost per equivalent unit,it is NOT necessary to consider the percentage of completion of the units in beginning inventory under the weighted-average method.

Using the weighted-average method,the total cost of the units in ending work-in-process inventory is closest to which of the following?

Overland,Inc.,uses the weighted-average method in its process costing system.The company's work-in-process inventory on April 30 consists of 25,000 units.The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs.If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs,what is the total cost in the April 30 work-in-process inventory?

$4 per EU x 5,000 x 80% = $16,000 b)

Larner Company uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below: According to the company's records,the conversion cost in beginning work-in-process inventory was $68,064 at the beginning of June.Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

(Appendix 4B)Under the step-down method of allocation,what would be the amount of cost allocated from the Cafeteria to the Cutting Department?

(Appendix 4A)The "Quantity Schedule and Equivalent Units" section of the production report is the same for the weighted-average method and the FIFO method of process costing.

(Appendix 4B)Cost allocation is still an issue even if a service department generates some revenues from operating departments.

(Appendix 4B)The reciprocal method of allocating service department costs is much simpler than the direct method and as a consequence is much more widely used.

(Appendix 4A)Roger Company uses the FIFO method in its process costing system.The following data are taken from the accounting records of a particular department for June: What is the cost of the 75,000 units transferred out of the department during June?

(Appendix 4B)Under the step-down method of allocation,what would be the amount of Custodial Services cost allocated to the Assembly Department?

(Appendix 4A)Using the FIFO method,what are the equivalent units of production for materials for May?

(Appendix 4B)Suppose Maintenance Department costs are allocated on the basis of labour hours.What would be the amount of cost allocated to Milling from Maintenance under the direct method?

(Appendix 4A)Creer Company uses the FIFO method in its process costing system.Department A had 20,000 units in process at the beginning of January,and 40% were complete with respect to conversion costs.All materials are added at the beginning of the process in Department A.The January 1 work-in-process inventory in Department A contained $10,000 in materials cost and $11,600 in conversion cost.During January,materials costs were $0.50 per equivalent unit,and conversion costs were $1.50 per equivalent unit.All of the units in the beginning work-in-process inventory were completed and transferred out during the month.What was the total cost attached to these units when they were transferred to the next department?