Exam 18: Costing Systems- Process Costing

Jackson Electronics,Inc.,manufactures a variety of microelectronic component parts and utilizes a process costing system.The following information was provided by the accounting department as of July 31,20xx: a. Units started during the month of July totaled 118,200. b. Units partially complete as of July 31 equaled 7,400. c. Ending work in process inventory as of July 31, 20x8, was 70 percent complete. d. Direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. e. No units were in process on July 1, 20xx. Using the information provided, compute the equivalent units of production for direct materials and conversion costs for July using the FIFO costing method.

Regardless of the cost approach used,in a process costing system,costs attached to units in beginning inventory are included in the computation of costs per equivalent unit.

Information for the current month for Process 3 is shown below. Direct Materials Conversion Costs Beginning work in process \ 3,600 \ 930 Current month's costs 55,800 48,204 Equivalent units based on the FIFO costing method 62,000 61,800 Units completed-60,000 Units in ending work in process-6,000 Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 50 percent complete.The cost of ending work in process inventory totaled

Jackson Electronics,Inc.,manufactures a variety of microelectronic component parts and utilizes a process costing system.The following information was provided by the accounting department as of July 31,2010: a. Units started during the month of July totaled 118,200. b. Units partially complete as of July 31 equaled 7,400. c. Ending work in process inventory as of July 31, 2010, was 70 percent complete. d. Direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. e. Units in process on July 1, 2010 - 8,200 units. Using the information provided, compute the equivalent units of production for direct materials and conversion costs for July using the average costing method.

Trunkey Products,Inc.,uses a process costing system and has just completed production for the month of November 20xx.The following production data were obtained from the accounting records: a. Units in beginning inventory totaled 6,800 and were 30 percent complete as of November 1 (all direct materials were added to these products in the preceding month). b. During the period, 156,200 units were started. c. 19,200 units were partially completed as of November 30, 20xx. d. Ending work in process inventory was 40 percent complete at month end. From the data given, compute the equivalent units of production for direct materials and conversion costs for the month ended November 30, 20xx, assuming a FIFO flow of costs.

Use the following data from a company using a process costing system to answer the question(s)below. Beginning Work in Process Inventory on June 1 : 1,000 units - 100 percent complete as to direct materials 80 percent complete as to conversion costs Units Started During June: 6,500 units Ending Work in Process Inventory on June 30: 1,200 units - 100 percent complete as to direct materials 40 percent complete as to conversion costs The FIFO process costing method is used by the company. Equivalent units for direct materials during the month totaled

Information for the current month for Process D is shown below. Direct Materials Conversion Costs Beginning work in process \ 4,600 \ 9,600 Current month's costs 31,740 51,100 Equivalent units based on the FIFO costing method 69,000 70,000 Direct materials are added at the beginning of the process.Beginning work in process is 50 percent complete as to conversion costs; ending work in process inventory is 40 percent complete.Determine the cost of ending work in process inventory.

When the FIFO costing method is used in process costing,the number of units in beginning inventory is multiplied by 100 percent to determine the equivalent units.

The following data were taken from the accounting records of a company that uses the FIFO method in its process costing system: Beginning work in process inventory: 20,000 units (materials 100% complete,conversion costs 60% complete) Started in process during the period: 80,000 units Ending work in process inventory: 30,000 units (materials 100% complete,conversion Costs 70% complete) The equivalent units are

In a process costing system,unit cost is computed

During October,Department A started 320,000 units of product in a particular manufacturing process.The beginning work in process inventory was 50,000 units,and the ending inventory was 30,000 units.Direct materials are introduced at the start of processing,and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs.Department A uses the FIFO costing method. The number of units started and completed during October was

Use the following information to perform the calculations requested below,assuming that the average costing approach to a process costing system is being used. Beginning work in process inventory: 6,000 units,100 percent complete as to direct materials,75 percent complete as to conversion costs Ending work in process inventory: 18,000 units,100 percent complete as to direct materials,65 percent complete as to conversion costs Units started during the month: 44,000 a. Calculate units completed and transferred out during the month. b. Calculate units to be accounted for during the month. c. Calculate equivalent units for conversion costs. d. Calculate equivalent units for direct materials.

When computing the cost per equivalent unit,the FIFO process costing method considers

During March,Department A started 300,000 units of product in a particular production process.The beginning work in process inventory was 50,000 units,and the ending inventory was 40,000 units.Direct materials are introduced at the start of processing,and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs.Department A uses the FIFO costing method. The number of units started and completed during March was

Equivalent units of production usually are determined for

Nader,Inc.,has the following information available: Costs from Costs from Beginning Current Period Inventory Direct materials \ 2,300 \ 21,252 Conversion costs 6,200 150,536 At the beginning of the period,there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,4,300 units were started and completed.Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO costing method.) The cost of completing a unit during the current period was

The amount of equivalent production units for direct materials is always the same as that for conversion costs.

Nader,Inc.,has the following information available: Costs from Costs from Beginning Current Period Inventory Direct materials \ 2,300 \ 21,252 Conversion costs 6,200 150,536 At the beginning of the period,there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,4,300 units were started and completed.Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO costing method.) The equivalent units of production for direct materials and conversion costs,respectively,were

In a process costing system,all production costs are assigned to departments.

Average costing method tries to match cost flow with physical flow of production.