Exam 6: Process Costing

Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March. The beginning inventory was 70 percent complete for materials and 30 percent complete for conversion costs.The ending inventory was 90 percent complete for materials and 50 percent complete for conversion costs. Costs pertaining to the month of March are as follows: Beginning inventory costs are: materials,$44,400; conversion cost $30,500. Costs incurred during March are: materials used,$588,000; conversion cost $624,000. Refer to Figure 6-7.Using the weighted average method,the total cost of the units in the ending work-in-process inventory at March 31 is:

In process costing,each producing department has its own work-in-process account.

A cost transferred from a prior process to a subsequent process is referred to as

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 FIFO method,what is the materials cost of the work in process at April 30 (round unit calculations to the nearest cent)?

A production report is divided into two sections:

FIFO assumes that units in beginning work in process are completed last.

Barr Inc.,manufactures a product that passes through two processes: mixing and packaging.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for June follows: During June,80,000 units were completed and transferred to packaging. The following costs were incurred by the mixing department during June: At June 30,12,000 units that were 10 percent complete remained in the mixing department. Use the weighted average method and round unit costs to two decimal places. Required:

The _________________________ combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

Figure 6-2. The Bing Corporation produces a product that passes through two processes.During June,the first department transferred 60,000 units to the second department.The cost of the units transferred was $90,000.Materials are added uniformly in the second process.The following information was provided about the second department's operations during June: Refer to Figure 6-2.Units started and completed in Bing Corporation's second department during June would be

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

Figure 6-8. Department A had the following data for October: Refer to Figure 6-8.

AL Corporation produces a product that passes through two departments.For January,the following equivalent unit schedule was prepared for the first department: Costs assigned to beginning work in process: Manufacturing costs incurred during the month: Required:

Which of the following does not appear in the production report?

Large manufacturing plants,such as chemical,food,and tire manufacturers,use process costing.

___________ costs are a type of raw material cost.

Describe the differences between process costing and job-order costing.

Since FIFO excludes prior-period work and costs,it is necessary to create three categories of completed units.

Figure 6-1. The following information is available for Department Z for the month of July: Materials are added at the beginning of the process.(Round unit costs to two decimal places.) Refer to Figure 6-1.Department Z's cost of goods transferred out using the FIFO method would be

Parallel processing requires that units pass through one process before they can be worked on in the next process.

Indigo Inc.,manufactures a product that passes through two processes.The following information is available for the first department for September. All materials are added at the beginning of the process. Beginning work in process consisted of 200 units that were 60 percent complete with respect to conversion. Ending work in process consisted of 500 units that were 10 percent complete with respect to conversion. During the month,3,000 units were started in process. Required: