Exam 6: Process Costing

Figure 6-5. For the current period,Haley Co.started 20,000 units and completed 8,000 units,leaving 12,000 units in process 40 percent complete. Refer to Figure 6-5.If Haley Co.incurred $31,800 in production costs what was Haley's cost per equivalent unit for the period?

The presence of beginning and ending work-in-process inventories leads to much of the complication surrounding process costing.

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

What does the accountant need to know to calculate unit cost?

The major benefit of the FIFO method is simplicity.

Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method.During the current period,the beginning work-in-process inventory cost was $13,525.Manufacturing cost added was $57,000.If Burgundy's ending work-in-process inventory was valued at $15,100,then cost of goods transferred must have been

The weighted average costing method combines beginning inventory costs and work done with current period costs and work to calculate this period's unit cost.

Figure 6-8. Department A had the following data for October: Refer to Figure 6-8.What is the unit manufacturing cost for Department A for October?

The unit information section of the production report has two major subdivisions: (1)units to account for and (2)units accounted for.

When computing equivalent units of production,the method that combines partially completed units in beginning inventory with current period production is the

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials,direct labor,and overhead.

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 equivalent units of production for direct materials is:

What types of costs are normally found in a process accounting system?

The cost of a department's transferred-in goods is the cost of:

Nonuniform manufacturing inputs affect:

Scott Inc.,manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for May follows: During May,65,000 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during May: By May 31,4,000 units that were 80 percent complete remained in Mixing.Scott uses the weighted average method. Required: A.Calculate the equivalent units of production using the weighted average method. B.Calculate the total costs to account for. C.Calculate total cost per equivalent unit of production. D.Calculate the cost of goods transferred to the molding department during May. E.Calculate the cost of May's ending work-in-process for the mixing department.

Describe how process costing for services differs from process costing for manufactured goods.

The two methods used to determine equivalent units of production in process costing are

Figure 6-6. The Martin Company uses the weighted average method.The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs).The number of units completed was 120,000.The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). Refer to Figure 6-6.What are the equivalent units of production for conversion costs?

Which of the following businesses is most likely to use process costing?