Exam 6: Systems Design: Process Costing

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

Department 2 is the second of three sequential processes.All materials are added at the beginning of processing in Department 2.During October,Department 2 reported the following data: The company uses the weighted-average method in its process costing system.To the nearest cent,what is the cost per equivalent unit on the production report for conversion costs?

Assuming that Cherrington Company uses the weighted-average method,the conversion costs for work in process ending inventory in May is closest to which of the following? (Round your intermediate answers two decimal places)

(Appendix 6A)Using the FIFO method,what are the equivalent units of production for materials for May?

(Appendix 6B)In the production report,a separate line is included in the units accounted for section for normal units lost.

Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process.A review of the company's inventory and cost records for the most recently completed year revealed the following information: The company uses the weighted-average method in its process costing system.The ending inventory is 50% complete with respect to conversion costs. Required: a)Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b)Determine the cost transferred to finished goods. c)Determine the amount of cost that should be assigned to the ending work-in-process inventory.

(Appendix 6A)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?

(Appendix 6A)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?

(Appendix 6A)Using the FIFO method,the cost per equivalent unit of conversion cost for May is closest to which of the following?

(Appendix 6A)Assuming that Cherrington Company uses the FIFO method,what is the cost per equivalent unit for conversion costs for May,rounded to the nearest cent?

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

In process costing,costs are accumulated in processing departments,rather than by job.

(Appendix 6B)Units can disappear because of evaporation,losses,or rejection.Such missing units can be considered to be a normal part of the processing or may be deemed to be abnormal.

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

Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for conversion costs for the month in the refining Department,rounded to the nearest cent?

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 6A)The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work-in-process inventory plus the costs added during the period,all divided by the equivalent units of production for the period.

$4 per EU x 5,000 × 80% = $16,000 b)

Job-costing systems tend to produce more accurate product cost information compared to process costing systems.On the other hand they also tend to be more costly systems than processing costing systems. Required: Comment on the two observations.

Carver 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,determine the equivalent units of production for materials and conversion costs by compiling the "Quantity Schedule and Equivalent Units" portion of the production report.