Exam 4: Systems Design: Process Costing

Fabian Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 9,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs.During the month,an additional 90,000 units were transferred in from the prior department to begin processing in the Assembly Department.During the month,87,000 units were completed in the Assembly Department and transferred to the next processing department.There were 12,000 units in the ending work-in-process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

Barker Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Using the weighted-average 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 units transferred out of the department during the month. d) Determine the cost of ending work-in-process inventory in the department

(Appendix 4A)The Smith 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 Forming Department,during March: Cost in the beginning work-in-process inventory and cost added during the month were as follows: The Forming Department is the first department in the production process; after forming has been completed, the units are transferred to the Finishing Department. Required: a) Assuming the company uses the weighted-average method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent. b) (Appendix 4A) Assuming the company uses the FIFO method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent.

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

$112,000 ÷ 28,000 EUs = $4 per EU

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

(Appendix 4A)If a company uses two different unit cost figures to cost transfers from one department to another under a process costing system,then which of the following statements is reasonable to assume?

What are the equivalent units of production for material for the month?

The Nichols Company uses the weighted-average method in its process costing system.The company recorded 29,500 equivalent units of production 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.What was the number of units started during November in the department?

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

Sarver Company uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March: The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

Able Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Prepare a production report for the department using the weighted-average method

(Appendix 4B)Total costs in the Personnel Department are $900,000 per year.Under the step-down method,the costs of the Personnel Department are allocated before the costs of the Engineering Department are allocated.What would be the amount of this cost allocated to the Engineering Department under the step-down method,rounded to the nearest dollar?

The "Total cost to account for" section of the production report for October will show an amount equal to which of the following?

(Appendix 4A)Winder Company uses the FIFO method in its process costing system.Department One is the first stage of the company's production process.The following information pertains to conversion costs for April for Department One: What are the equivalent units of production for conversion costs?

Trapp Company uses the weighted-average method in its process costing system.The beginning work-in-process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs.The cost of the beginning work-in-process inventory in the department was recorded as $10,000.During the period,9,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs.What was the cost of units transferred out during the month?

(Appendix 4B)The step-down method of allocating service department costs takes into account some,but not all,of the reciprocal services that service departments provide to each other.

(Appendix 4A)On November 1,Yankee Company had 20,000 units of work in process in Department No.1 that were 100% complete with respect to material costs and 20% complete with respect to conversion costs.During November,160,000 units were started in Department No.1,and 170,000 units were completed and transferred to Department No.2.The work in process on November 30 was 100% complete with respect to material costs and 40% complete with respect to conversion costs.By what amount would the equivalent units of production for conversion costs for the month of November differ if the FIFO method were used instead of the weighted-average method?

(Appendix 4A)Marten Company uses the FIFO method in its process costing system.Operating data for the Casting Department for the month of September appear below: According to the company's records,the conversion cost in beginning work-in-process inventory was $83,600 at the beginning of September.Additional conversion costs of $427,682 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September on the Casting Department's production report? (Round off to three decimal places.)

(Appendix 4A)Karmen Company uses the FIFO method in its process costing system.Operating data for the Enamelling Department for the month of May appear below: What were the equivalent units of production for conversion costs in the Enamelling Department for May?