Exam 4: Process Costing

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse: Finished Goods Materials

The following data were taken from the accounting records of the Hazel Corporatio? which uses the weighted-average method in its process costing system: Beginning work in process inventory (100\% complete as to materials; 70\% complete as to conversion) 30,000 units Started in process during the period 90,000 units Ending work in process inventory (100\% complete as to materials; 60\% complete as to conversion) 20,000 units The equivalent units of production for materials costs were?

Strap Company uses the weighted-average method in its process costing system. The company has only one processing department. The ending work in process inventory consists of 10,000 units, 60% complete with respect to materials. The total dollar value of this inventory is $38,000. The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period. With respect to conversion costs, the ending work in process inventory is?

If the weighted-average method is used, both the material cost and conversion cost per equivalent unit will always be the same.

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 total cost of the units in ending work in process inventory is

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: Direct materials \ 298,800 Direct labour \ 540,800 Factory overhead \ 135,400 During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What amount below was the total cost of units completed during May closest to

Reference: 04-02 Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): Number of Units Labour and Overhead (Percentage Complete) Work in process inventory, Sept. 1 60,000 15\% Transferred in during the month 105,000 Work in process inventory, Sept. 30 40,000 20\% Transferred In Materials Labour \& Overhead Beginning work in process inventory \ 60,000 \ 30,000 \ 16,000 Cost added during the month \ 115,500 \ 63,000 \ 320,000 -The equivalent units of production for material for the month are?

Valley Manufacturing Company's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the Weighted-average method. Given this information, the total cost of the units completed and transferred out was?

A manufacturer of blank CDs would ordinarily use process costing rather than job-order costing.

If a business wishes to track the costs of completing units in beginning work in process, the first-in-first-out (FIFO)method should be used.

Process manufacturers typically process a continuous flow of raw materials into a finished state.

Trapp Company uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was?

The cost reconciliation prepared within a department's periodic production report is only used for the purpose of costing the units completed and transferred out of the department during the period (either to another department or to finished goods).