Exam 6: 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 following data were taken from the accounting records of the Hazel Corporation,which uses the weighted-average method in its process costing system: Beginning work in process inventory (100\% complete as to materials; 70\% 30,000 units complete as to corversion) Started in process during the period 90,000 units Ending work in process inventory (100\% complete as to materials; 60\% complete as to corversion) 20,000 units What were the equivalent units of production for conversion costs?

Qart Company uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below: Units Percentage complete Beginning work in process inventory 4,500 20\% Transferred in from the prior department during 74,00 March Completed and transferred to the next department during March 74,500 Ending work in process 4,000 60\% inventory According to the company's records,the conversion cost in beginning work-in-process inventory was $1,656 at the beginning of March.Additional conversion costs of $129,960 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for March on the Cutting Department's production report? (Round off to three decimal places.)

Wire One Company uses the weighted-average method in its process costing system.The Coating Department is the second department in its production process.The data below summarize the department's operations in February: Units Percentage complete Beginning work in process 3,800 70\% inventory Transferred in from the prior department during 52,000 January Completed and transferred to the next department during January 53,000 Ending work in process inventory 2,800 30\% The Coating Department's production report indicates that the cost per equivalent unit for conversion cost for January was $4.37. How much conversion cost was assigned to the ending work-in-process inventory in the Coating Department for February?

Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Units Beginning work in process inventory 16,000 Started into production during May 100,000 Completed during May 92,000 Ending work in process inventory 24,000 The beginning work-in-process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work-in-process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs. The costs were as follows: Materials Conversion Beginning work-in-process inventory \ 54,560 \ 35,560 Costs incurred during May \ 468,000 \ 574,040 -Using the weighted-average method,the cost per equivalent unit of conversion cost for May is closest to which of the following?

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: Beginning work in process inventory: Cost \ 17,500 Units 20,000 units Percentnge completion: Materials 100\% Conversion 60\% Units completed and transferred out: 75,000 units Cost per equivalent unit: Material: $1.75 Conversion: $0.50 What is the cost of the 75,000 units transferred out of the department during June?

When normal losses are charged to good output a special journal entry is required to account for costs related to spoiled units.

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 labour and overhead for the month of May?

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?

Madsen Company uses the weighted-average method in its process costing system. During October, the Mixing Department transferred out 40,000 units. The October 31 work-in-process inventory in the Mixing Department consisted of 4,000 equivalent units of material and 5,000 equivalent units of labour and overhead. The cost per equivalent unit was $2.50 for materials and $6.25 for labour and overhead. -The "Total cost accounted for" section of the production report for October will show an amount equal to which of the following?

When assigning costs to partially completed units in the ending work-in-process inventory,it is NOT necessary to consider the percentage of completion of the units 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 materials?

Assuming normal losses are charged to good output the production report will account for lost units but not assigned a value in equivalent units.

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 Conversion cast Work in process, beginning \ 8,000 \ 6,000 Current added during January \ 40,000 \ 32,000 Equivalent units of production 100,000 95,000 Cost per equivalent unit \ 0.48 \ 0.40 Units completed and transferred to the next department 90,000 units Work in process, ending 10,000 units 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?

Reid Company uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work-in-process inventory were 80% complete with respect to conversion costs. Units in the ending work-in-process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Units Conversion costs Work in process inventory on June 1 15,000 \ 50,200 Units started into production 145,000 Conversion costs incurred during June \ 175,700 Units completed and transferred to the next department during June 130,000 - 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?

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse: Finished good Work in process

Activities in the Challenger Company's Assembly Department for the month of March follow: - Using the FIFO method,what are the equivalent units of production for conversion for March?

Index Company uses the FIFO method in its process costing system.The first processing department,the Forming Department,started the month with 17,000 units in its beginning work-in-process inventory; the units were 10% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $9,010.An additional 76,000 units were started into production during the month,and 83,000 units were completed and transferred to the next processing department.There were 10,000 units in the ending work-in-process inventory of the Forming Department; 70% of the units were complete with respect to conversion costs.A total of $445,915 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 Forming Department's production report? (Round off to three decimal places.)

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 weighted-average cost method,what are the equivalent units of production for conversion costs for the Refining Department for the month?

(Appendix 6A)All production costs have been steadily rising in the Donner Company for several periods,and the company maintains large work-in-process inventories.What is the Donner Company's cost per equivalent unit,as computed using the FIFO method?