Exam 6: Systems Design: Process Costing

Baker Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 8,000 units in its beginning work-in-process inventory that were 90% complete with respect to conversion costs.An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 11,000 units in the ending work-in-process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

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

(Appendix 6A)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?

The Assembly Department started the month with 35,000 units in its beginning work-in-process inventory.Additional units 472,000 were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 34,000 units in the ending work-in-process inventory of the Assembly Department.How many units were transferred to the next processing department during the month?

(Appendix 6A)Under the FIFO process costing method,the equivalent units of production in the production report relate to work done only during the current period.

(Appendix 6A)Tarten Company uses the FIFO method in its process costing system.Operating data for the Curing Department for the month of March appear below: According to the company's records,the conversion cost in beginning work-in-process inventory was $7,470 at the beginning of March.The cost per equivalent unit for conversion costs for March was $8.20. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

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?

(Appendix 6A)Production and cost data for the month of February for Process A of the Packer Manufacturing Company were as follows: The company uses the FIFO cost method in its process costing system. Required: a)Calculate the equivalent units and unit costs for February for materials and 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 and finished goods inventories.

(Appendix 6A)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?

(Appendix 6A)Using the FIFO method,the total cost of units in the ending work-in-process inventory is closest to which of the following?