Exam 6: Systems Design: Process Costing

Mukluk Company uses the FIFO method in its process costing system.The conversion cost for the month of April is $5.00 per equivalent unit,and the materials cost is $2.90 per equivalent unit.At the beginning of the month,1,000 units were in process,and 100% were complete with respect to materials and 30% were complete with respect to conversion,with a total cost at that point of $2,400.If these units are fully complete by the end of the month,what will be their total cost?

Valley Manufacturing Company's beginning work-in-process inventory consisted of 10,000 units,100% complete with respect to materials cost and 40% complete with respect to conversion costs.The total cost in the beginning inventory was $30,000.During the month,50,000 units were transferred out.The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method.Given this information,what was the total cost of the units completed and transferred out?

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?

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

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.

The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: Number of Units Conversion costs percentage complete Beginning work in process inventory 9,000 60\% Units started into production 45,000 Units completed and transferred out 46,000 Ending work in process inventory 8,000 25\% All materials are added prior to the beginning of work in the Blending Department. - Assuming that Tru-Colour Paint Company uses the FIFO method,what are the equivalent units of production for conversion costs?

Easy 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: 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.

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: Number of units Cost of materials Beginnirg work in process 30,000 \ 11,000 Started in May 80,000 \ 36,000 Units completed 85,000 Ending work in process 25,000 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?

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?

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: Work in process, beginning: Units in process 800 Stage of completion with respect to materials 70\% Stage of completion with respect to conversion 50\% Units started into production during the month 22,000 Work in process, ending: Units in process 300 Stage of completion with respect to materials 80\% Stage of completion with respect to conversion 70\% 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.

The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: Number of Units Conversion costs percentage complete Beginning work in process inventory 9,000 60\% Units started into production 45,000 Units completed and transferred out 46,000 Ending work in process inventory 8,000 25\% All materials are added prior to the beginning of work in the Blending Department. -Assuming that Tru-Colour Paint Company uses the weighted-average method,what are the equivalent units of production for conversion costs?

The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: Number of Units Conversion costs percentage complete Beginning work in process inventory 9,000 60\% Units started into production 45,000 Units completed and transferred out 46,000 Ending work in process inventory 8,000 25\% All materials are added prior to the beginning of work in the Blending Department. -Assuming that Tru-Colour Paint Company uses the weighted-average method,what are the equivalent units of production for materials?

The Morgan Company uses the weighted-average method in its process costing system.For a particular department,the company had 54,000 equivalent units of production with respect to conversion costs in March.There were 7,500 units in the department's beginning work-in-process inventory,two-thirds complete with respect to conversion costs.During March,52,500 units were started and 50,000 were completed and transferred out of the department.What was the ending work-in-process inventory in the department?

Ebis Company uses the FIFO method in its process costing system.The first processing department,the Welding Department,started the month with 13,000 units in its beginning work-in-process inventory; 10% of the units were complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $12,610.An additional 89,000 units were started into production during the month.There were 22,000 units in the ending work-in-process inventory of the Welding Department; 30% of these units were complete with respect to conversion costs.A total of $806,085 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 on the department's production report? (Round off to three decimal places.)

The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system. Number of Units Labour and overhead percentage complete Work in process inventory, May 1 10,000 40\% Units started 64,000 Completed and transferred out 60,000 Work in process inventory, May 31 14,000 70\% All materials are added at the beginning of the process. -What are the equivalent units of production for materials for the month of May?

(Appendix 6A)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.

Which of the following statements referring to a production report is not correct?

Garson Company uses the FIFO method in its process costing system.The Grinding Department started the month with 18,000 units in its beginning work-in-process inventory; 10% of the units were complete with respect to conversion costs.During the month,an additional 98,000 units were transferred in from the preceding department to begin processing in the Grinding Department.During the month,115,000 units were completed in the Grinding Department and transferred to the next processing department.Of the 1,000 units in the ending work-in-process inventory of the Grinding Department,20% were complete with respect to conversion costs.What were the equivalent units of production for conversion costs in the Grinding Department for the month?

The cost per equivalent unit will be greater when normal losses are charged to good output than when they are charged to manufacturing overhead.

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: Number of Units Conversion costs percentage complete Beginning work in process inventory 11,000 35\% Units started into production 120,000 Units completed and transferred out 114,000 30\% Ending work in process inventory 17,000 The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs. - Assuming that the company uses the FIFO method,what are the equivalent units of production for conversion costs for the refining Department for the month?