Exam 4: Systems Design: Process Costing

(Appendix 4A)What are the equivalent units of production for material for the month?

Using the weighted-average method,the cost per equivalent unit of conversion cost for May is closest to which of the following?

Harker Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 16,000 units in its beginning work-in-process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $29,440.An additional 59,000 units were started into production during the month,and 61,000 units were completed in the Welding Department and transferred to the next processing department.There were 14,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $246,400 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

(Appendix 4A)The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no ending work-in-process inventory.

If all units go through all processing departments,then the processing departments are arranged in a parallel,rather than sequential,fashion.

(Appendix 4B)Under the direct method of allocating service department costs,reciprocal services provided among service departments are ignored.

(Appendix 4B)If personnel department expenses are allocated on the basis of the number of employees in various departments,then the number of employees in the personnel department itself must be included in the allocation base when the step-down method is used.

(Appendix 4A)The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work-in-process inventory.

(Appendix 4A)Which of the following statements referring to a production report is not correct?

(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 A?

(Appendix 4B)Central Medical Clinic has two Service Departments-Building Services and Energy-and three Operating Departments-Pediatrics,Geriatrics,and Surgery.Central allocates the cost of Building Services on the basis of square metres and Energy on the basis of patient days.Budgeted operating data for the year just completed follow: Required: a) Prepare a schedule to allocate Service Department costs to Operating Departments by the direct method, rounding all dollar amounts to the nearest whole dollar. b) Prepare a schedule to allocate Service Department costs to Operating Departments by the step-down method, allocating Building Services first, and rounding all amounts to the nearest whole dollar.

What was the unit cost for conversion included in the beginning work-in-process inventory,rounded to the nearest cent?

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

(Appendix 4B)Which of the following statements about reciprocal service department costs is correct?

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

David Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 20,000 units that were 80% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $123,200.An additional 65,000 units were started into production during the month.There were 19,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $389,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

What was the cost of the units transferred to the Finishing Department during May?

(Appendix 4A)Farwest Inc.uses the FIFO 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 FIFO method, determine the equivalent units of production for materials and conversion costs by compiling the "Quantity Schedule and Equivalent Units" portion of the production report.

Rariton Company uses the weighted-average method in its process costing system.The Moulding Department is the second department in its production process.The data below summarize the department's operations in January: The Moulding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work-in-process inventory in the Moulding Department for January?

(Appendix 4A)Using the FIFO method,the cost per equivalent unit of conversion cost for May is closest to which of the following?