Exam 6: Process Cost Accounting--Additional Procedures

CPG Company manufactures chemicals.Chemical agent PL62 is refined in the Refining department and,after it is transferred to the Mixing department,a reactive agent is added to it.In January,6,000 gallons of PL62 having a cost of $30,000 were transferred from the refining to the Mixing department where 4,000 gallons of the reactive agent were added.When calculating the inventory costs in the Mixing department,what will the cost per unit relating to gallons transferred in from the Refining department be?

Boron Refiners had 50,000 gallons started in its process in June.At June 30,35,000 gallons were completed and transferred to finished goods and 10,000 gallons were still in process,one-fourth completed as to materials,labor and overhead.The remaining 5,000 units were lost to evaporation,a normal result of the process.Costs of production during the month were $75,000,$50,000,and $25,000 for material,labor and overhead,respectively.What is the cost per equivalent unit in June?

An example of a process where all of the materials would be added at the end of the process would be:

Dover Enterprises has two products,Chalk V and Alabaster X,that come from a joint process,blending.Alabaster X undergoes additional curing after the split-off before it can be sold.The entry to account for the movement of products from the blending department is:

In order to compute equivalent units of production using the FIFO method of process costing,work for the period must be broken down to units:

Regina Manufacturing uses the FIFO method of process costing.The production report for the Curing Department,where the materials are added at the beginning of the period,for September was as follows: The number of units started and completed during the period was:

The following information is available for the month of April from the First department of the Armque Corporation: Materials are added in the beginning of the process in the First department.Using the first-in,first-out method,what are the equivalent units of production for the month of April?

During June,Birch Bay Company's Department B equivalent unit product costs computed under the average cost method were as follows: Materials are introduced at the end of the process in Department B.There were 4,000 units (50 % complete as to conversion costs)in work in process at June 30.The total costs assigned to the June 30 work in process inventory should be:

Braun Company produces two chemical compounds,Herzog and Lomax from a joint process.Joint costs to produce 500 gallons of Herzog and 300 gallons of Lomax were $80,000.A by-product,Horst,results from the joint process and has a market value of $1,000.Assuming Braun accounts for the by-product as a reduction in the costs assigned to the products,what are the joint costs assigned to Herzog?

If the amount of loss in a manufacturing process is normal,it should be classified as a:

What losses should not affect the recorded cost of inventories?

Joint costs are commonly allocated based upon relative:

Kyle,Inc. ,instituted a new process in October.During October,18,000 units were started in Department A.Of the units started,2,000 were lost in the process,12,000 were transferred to Department B,and 4,000 remained in work in process at October 31.The work in process at October 31 was 100 percent complete as to material costs and 15% complete as to conversion costs.Material costs of $78,400 and conversion costs of $52,920 were charged to Department A in October.What were the total costs transferred to Department B and assigned to ending work in process using the average cost method?

Budde Chemicals produces two industrial chemical compounds,X15 and Z24,from the same process,which last year cost $600,000.Budde produced 10,000 gallons of X15,which sells for $40 per gallon and 40,000 gallons of Z24,which sells for $20 per gallon.Using the relative sales method,how much of the joint cost should be allocated to X15?

Which of the following is most likely to be accounted for as a by-product?

Klug Industries adds materials at the beginning of the process in the molding department,which is the first of two stages of its production cycle.Information concerning the materials used in the molding department in August follows: Using the FIFO method,what is the materials cost of the work in process at August 31 (rounded to nearest dollar)?

Information concerning Department A of Ali Company for the month of June is as follows: Units Materials Costs Work in process,beginning of month 20,000 $14,550 Started in June 85,000 $66,300 Units completed 90,000 Work in process,end of month 15,000 All materials are added at the beginning of the process.Using the first-in,first-out method,the cost (rounded to two places)per equivalent unit for materials for June is:

Which of the following is not an acceptable method for accounting for by-products in a joint manufacturing process?

The following information is available for the month of April from the Second department of the Armque Corporation: Materials are added at the end of the process in the Second department.Using the average cost method,what are the equivalent units of production for materials and conversion costs for the month of April?

The Roberto Company had computed the flow of units for Department B for the month of May as follows: ​ Materials are added at the end of the process.There were 8,000 units of work in process at May 31.The work in process at May 1 was 30 percent complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs.What was the cost of the goods transferred out and in ending work in process using the FIFO method? (Ignore transferred-in costs).