Exam 4: Systems Design: Process Costing

The Hardy Company manufactures a product that goes through two departments prior to completion.The following information is available on work in one of these departments,the Moulding Department,during the month of July: The Moulding Department is the first department in the production process; after moulding has been completed, the units are transferred to the Finishing Department. Required: Assuming the company uses the weighted-average method, calculate the equivalent units for materials and conversion costs, rounded to the nearest tenth of a cent.

Huffer Company uses the weighted-average method in its process costing system.The following information pertains to Processing Department D for the month of May: All materials are added at the beginning of the process.Which of the following costs is closest to the cost per equivalent unit for materials?

(Appendix 4B)Parker Company has two service departments-cafeteria and engineering-and two operating departments.The number of employees in each department is given below: The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments.If these costs are budgeted at $69,375,what would be the amount of cost allocated to Engineering under the direct method?

Assuming that Tru-Colour Paint Company uses the weighted-average method,what are the equivalent units of production for conversion costs?

Narver Company uses the weighted-average method in its process costing system.Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units of production for conversion costs in the Lubricating Department for October?

(Appendix 4B)Suppose Cafeteria Department costs are allocated on the basis of number of employees and that the step-down method is used with costs of the Cafeteria Department allocated first.What would be the amount of cost allocated from the Cafeteria Department to Maintenance Department?

In order to use process costing,the output of a processing department must be homogeneous.

(Appendix 4B)What is the value of S1 in the two equations?

(Appendix 4A)Assuming that the company uses the FIFO method,what is the cost per equivalent unit for conversion costs for the month in the refining Department,rounded to the nearest cent?

(Appendix 4B)What would be the amount of Accounting Department costs allocated to the Generation Department?

In process costing,the same equivalent units figure is used for both materials and conversion costs.

(Appendix 4A)Using the FIFO method,the total cost of units in the ending work-in-process inventory is closest to which of the following?

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

(Appendix 4A)Suppose there was no separate breakdown of the total cost of the beginning work-in-process inventory of $90,120 into materials ($54,560)and conversion ($35,560).Which method of accounting would not have been possible to use?

(Appendix 4B)The step-down method usually begins with the service department that provides the least amount of service to the other service departments.

The Richmond Company uses the weighted-average method in its process costing system.The company has only a single processing department.The company's ending work-in-process inventory on August 31 consisted of 18,000 units.The units in the ending work-in-process inventory were 100% complete with respect to materials and 60% complete with respect to labour and overhead.If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labour and overhead,what was the total cost assigned to the ending work-in-process inventory?

(Appendix 4B)Under the direct method of allocation,what would be the amount of Custodial Services cost allocated to the Cutting Department?

Using the weighted-average method,what are the equivalent units of production for labour and overhead for the month?

(Appendix 4B)Assume that the company uses the step-down method of allocating Service Department costs to Operating Departments,and Building and Grounds costs are allocated first.How much Personnel Department cost would be allocated to Operating Department B?

(Appendix 4A)Winkle Company uses the FIFO method in its process costing system.At the beginning of March,the work-in-process inventory in the Blending Processing Center consisted of 5,000 units,90% complete with respect to conversion costs.At the end of the month,the work-in-process inventory consisted of 2,000 units that were 60% complete with respect to conversion costs.If 10,000 units were transferred to the next processing center during the month,what would be the equivalent units of production for conversion costs?