Exam 4: Process Costing

When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weighted-average method.

Reference: 04-11 The following data relate to the Forming Department of Jimbob Co. for a recent month: Number of Units Conversion Costs (Percent Complete) Beginning work in process inventory 9,000 60\% Units started into production 45,000 - Units completed and transferred out 46,000 - Ending work in process inventory 8,000 25\% All materials are added prior to the beginning of work in the Forming Department. -Assuming that Jimbob Co. uses the FIFO method, the equivalent units of production for conversion costs would be?

Reference: 04-09 Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Units Beginning work in process inventory 16,000 Started into production during May 100,000 Completed during May 92,000 Ending work in process inventory 24,000 The beginning work in process inventory was $60 \%$ complete with respect to materials and $20 \%$ complete with respect to conversion costs. The ending work in process inventory was $90 \%$ complete with respect to materials and $40 \%$ complete with respect to conversion costs. The costs were as follows: Conversion Materials Beginning work in process inventory \ 54,560 \ 35,560 Costs incurred during May \ 468,000 \ 574,040 -Using the weighted-average method, the cost per equivalent unit of conversion cost for May is

Reference: 04-08 Information about units processed and processing costs incurred during a recent month in the Blending Department of a manufacturing company follow: Number of Units Conversion Costs (Percent Completion) Beginning work in process inventory 11,000 35\% Units started into production 120,000 - Units completed and transferred out 114,000 - Ending work in process inventory 17,000 30\% The beginning work in process inventory included $11,000 of conversion cost and $ 12,000 in material costs. During the month, the Department incurred an additional $290,000 in conversion costs and $ 143,000 in material costs. All materials are added at the beginning of production in each department. -Assuming that the company uses the weighted-average cost method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department

In order to use process costing, the output of a processing department must be homogeneous.

In process costing, costs are accumulated by department, or process, rather than by order.

Reference: 04-09 Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Units Beginning work in process inventory 16,000 Started into production during May 100,000 Completed during May 92,000 Ending work in process inventory 24,000 The beginning work in process inventory was $60 \%$ complete with respect to materials and $20 \%$ complete with respect to conversion costs. The ending work in process inventory was $90 \%$ complete with respect to materials and $40 \%$ complete with respect to conversion costs. The costs were as follows: Conversion Materials Beginning work in process inventory \ 54,560 \ 35,560 Costs incurred during May \ 468,000 \ 574,040 -Using the weighted-average method, the cost per equivalent unit of materials for May is

Reference: 04-01 A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows: Direct materials \ 33,000 Conversion costs \ 17,000 A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. -The cost of the work in process inventory in the Finishing Department at the end of May was?

In which circumstance is the FIFO method more likely to be preferred in determining the costs of processing?

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

Narver Company uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: Uhirs Percentage complefe Beginning work in grocess inventory 8,600 60\% Transferred in from the prior department during October 40,100 Completed and transferred to the next department during October 37,100 Ending work in process inventory 9,600 80\% What were the equivalent units of production for conversion costs in the Lubricating Department for October?

Reference: 04-08 Information about units processed and processing costs incurred during a recent month in the Blending Department of a manufacturing company follow: Number of Units Conversion Costs (Percent Completion) Beginning work in process inventory 11,000 35\% Units started into production 120,000 - Units completed and transferred out 114,000 - Ending work in process inventory 17,000 30\% The beginning work in process inventory included $11,000 of conversion cost and $ 12,000 in material costs. During the month, the Department incurred an additional $290,000 in conversion costs and $ 143,000 in material costs. All materials are added at the beginning of production in each department. -Assuming that the company uses the weighted-average cost method, what are th? equivalent units of production for material costs for the Blending Department for the month?

In process costing, a separate Work in Process account is maintained for each processing department.

Baker Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

Reference: 04-07 The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system. Units Labour and Overhead (Percentage Complete) Work in process, May 1 10,000 40\% Units started 64,000 Completed and transferred out 60,000 Work in process, May 31 14,000 70\% All materials are added at the beginning of the process. -The equivalent units of production for materials for the month of May were

The Morgan Company uses the weighted-average method in its process costing system. For a particular department, the company had 54,000 equivalent units of production with respect to conversion costs in March. There were 7,500 units in the department's beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The ending work in process inventory in the department?

Harker Company uses the weighted-average method in its process costing system.

Reference: 04-09 Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Units Beginning work in process inventory 16,000 Started into production during May 100,000 Completed during May 92,000 Ending work in process inventory 24,000 The beginning work in process inventory was $60 \%$ complete with respect to materials and $20 \%$ complete with respect to conversion costs. The ending work in process inventory was $90 \%$ complete with respect to materials and $40 \%$ complete with respect to conversion costs. The costs were as follows: Conversion Materials Beginning work in process inventory \ 54,560 \ 35,560 Costs incurred during May \ 468,000 \ 574,040 -Using the FIFO method, the equivalent unit cost of materials is

Jimbob Co. uses the weighted-average method in its process costing system. The company adds all required materials at the beginning of the process in Department A, which is the first of two stages in its production process. Information concerning operations in the Department A in October follows: Units Materials Cost Work in process on October 1 6,000 \ 3,000 Units started during October 50,000 \ 25,560 Units completed and transferred to the next Department during October 44,000 What were the equivalent units of production in Department A in October?