Exam 6: Process Cost Accounting--Additional Procedures

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

Highlander Corporation is a manufacturer that uses the average cost method to account for costs of production.Highlander manufactures a product that is produced in three separate departments: molding,assembling,and finishing.The following information was obtained for the assembling department for the month of June: Work in process,June 1: 4,000 units composed of the following: The following activity occurred during the month of June: (3)Materials are added at the end of the process. Prepare in good form a cost of production report for the assembling department for the month of June.Show supporting computations in good form.The report should include: a.Equivalent units of production. b.Total manufacturing costs. c.Cost per equivalent unit. d.Dollar amount of ending work in process. e.Dollar amount of inventory cost transferred out.

Materials are added at the end of the process in a company's curing department,the second stage of the production cycle.The following information is available for the month of July: Under the cost accounting system,the costs incurred on the lost units are absorbed by the remaining good units.Using the average cost method,what are the equivalent units for the materials unit cost calculation?

Blanche Corporation adds materials at the end of the process in the injection department,which is the second of two stages of its production cycle.Information concerning the materials used in the forming department in April follows: Using the average cost method,what is the materials cost of the work in process at March 31 (rounded to nearest dollar)?

A major difference between FIFO and average costing is:

Anderson Compounds produces two industrial chemical compounds,Gorp and Gumm,from the same process,which last year,cost $240,000.Anderson produced 20,000 pounds of Gorp,which sells for $60 per gallon and 60,000 gallons of Gumm,which sells for $30 per gallon.After the split-off point,Gorp required additional processing costing $300,000 to make it salable.Using the adjusted sales method,what is the completed cost of Gorp?

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 average cost method,the cost (rounded to two places)per equivalent unit for materials for June is:

Information for Milton,Inc.in July for the Finishing Department,the second stage of the production cycle,is as follows: Material costs are added at the end of the process.The ending work in process is 40% complete as to conversion costs.Ignoring any transferred in costs,how would the total costs accounted for be distributed using the average cost method?

Each of the following is a method by which to allocate joint costs except:

Thomas Lumber Company produces furniture grade lumber and building grade lumber from a joint process.Sawdust,a by-product of the manufacturing process is sold to a local toy manufacturer to stuff leather toys for $10 per ton.In February,the company produced 3,000 tons of sawdust.What is the entry to reduce the cost of the main products by the estimated sales value of the by-product?

Howard Poster Incorporated had 12,000 units of work in process in Department B on October 1.These units were 60 percent complete as to conversion costs.Materials are added at the end of the process.During the month of October,38,000 units were transferred in from Department A and 40,000 units were completed.Howard had 10,000 units of work in process on October 31.These units were 75 percent complete as to conversion costs. 1)Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.(Ignore units transferred in. ) 2)Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.(Ignore transferred in costs. )

Under which of the following conditions will the first-in,first-out method of process costing produce the same cost of goods manufactured amount as the average cost method?

During June,Birch Bay Company's Department B equivalent unit product costs computed under the FIFO method were as follows: Materials are introduced at the end of the process in Department B.There were 4,000 units (70 % 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:

Logan,Inc. ,had 9,000 units of work in process in Department M on March 1 that were 50 percent complete as to conversion costs.Materials are introduced at the beginning of the process.During March,18,000 units were started,20,000 units were completed,and there were 1,000 units of normal losses.Logan had 6,000 units of work in process at March 31 that were 70 percent complete as to conversion costs.Under Logan's cost accounting system,lost units reduce the number of units over which total cost can be spread.Using the average cost method,what were the equivalent units for March for conversion costs?

In a process cost system,how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units?

The Roberto Company had computed the flow of units for Department A for the month of May as follows: ​ Materials are added at the beginning of the process.There were 8,000 units of work in process at May 31.The work in process at May 1 was 70 percent complete as to conversion costs and the work in process at May 31 was 60 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?

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 first-in,first-out method,what are the equivalent units of production for materials and conversion costs for the month of April?

The following information is available for the month of August from the First department of the Twigg Corporation: Materials are added in the beginning of the process in the First department.Using the average cost method,what are the equivalent units of production for the month of August?

Plemmon Company adds materials at the beginning of the process in the forming department,which is the first of two stages of its production cycle.Information concerning the materials used in the forming department in April follows: Using the average cost method,what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?

The following information is available for the month of October from the First department of the Vaughn Corporation: Materials are added in the beginning of the process in the First department.Using the average cost method,what are the equivalent units of production for the month of October?