Exam 5: Process Costing

If the cost of materials increased from January to February and there is beginning inventory for each month, which of the following statements would be true? (Assume all other factors are held constant.)

Figure 5-7 The Corn Ltd. produces a product that passes through two processes. During April, the first department transferred 40,000 units to the second department. The cost of the units transferred was £60,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during April: Units, beginning work in progress $\quad$$\quad$ 8,000 Units, ending work in progress $\quad$$\quad$$\quad$ 11,000 -Refer to Figure 5-7. Units completed in the second department during April for Corn Ltd. would be

Equivalent production expresses all activity of the period in terms of

Figure 5-11 Gill Ltd. adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March 2004 are as follows: Costs Units Materials Conversion Work in progress, March 1 25,000 £68,750 £167,650 Started during March 100,000 300,000 903,350 Work in nrogress March 31 10000 Beginning inventory was 70 per cent complete. Ending inventory was 40 per cent complete. -Refer to Figure 5-11. How many equivalent units for materials would there be for Gill Ltd. in March using the FIFO method?

Figure 5-6 Kramer, 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 April follows: Work in progress, April 1: Units (35\% complete) 5,000 Direct materials £24,000 Direct labour £30,000 Overhead £10,000 During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April: Direct materials £90,000 Direct labour 120,000 Overhead 30,000 Two thousand five hundred (2,500) units that were 80 per cent complete remained in mixing at April 30. -Refer to Figure 5-6. Kramer's equivalent units of production using the weighted average method would be

Conversion costs consist of

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

Figure 5-10 The following information is available: Units in process at the beginning of the month 2,000 Units in process at the end of the month 4,000 Units started during the month 30,000 Materials are added at the beginning of the process. -Refer to Figure 5-10. Beginning and ending units were 60 per cent complete as to conversion costs. What is the number of units started and completed?

The following information pertains to Jones Company: Units Work-in-progress inventory, March 1 (30\% complete) 20,000 Units transferred in 50,000 Work-in-progress inventory, March 31(60\% complete ) 16,000 Materials are added at the start of the progress. How many equivalent units for conversion costs would there be using the FIFO method?

Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2011 are as follows: Production data: In process, beginning of month ( 20\% converted) 1,000 units Started during February 5,000 units Completed and trans ferred to finished goods 4,500 units In process, end of month ( 60\% converted) 1,500 units Manufacturing costs: Work in progress, beginning £14,730 Materials £45,000 Direct labour cost £102,960 Factory overhead cost £51,480

Beginning inventory for the month contained 2,000 units that were 45 per cent complete with respect to materials. During the month, 18,000 units were completed and transferred out. Ending inventory contained 2,500 units, 20 per cent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Davidson Company manufactures a product that passes through two processes. The following information is available for the first department for October. All materials are added at the beginning of the process. Beginning work in progress consisted of 20,000 units that were 80 per cent complete with respect to conversion. Ending work in progress consisted of 15,000 units that were 40 per cent complete with respect to conversion. During the month, 90,000 units were started in process. a.Prepare a physical flow schedule. b.Compute equivalent units using the FIFO method.

The following information is provided: Units Work in progress, June 1 (20\% complete) 4,000 Started in June 32,000 Work in process, June 30 (30\% complete) 12,000 Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be

Process costing is complicated by

Royal, Inc., manufactures products that pass through two or more processes. The company uses the weighted average method to compute unit costs. During April, equivalent units were computed as follows: Materials Conversion Cost Units completed 90,000 90,000 Units in EWIP \times Fraction complete: Materials (4,000\times100\%) 4,000 Conversion (4,000\times30\%) Equivalent units of output 91,200 The unit cost was computed as follows: Materials £5.00 Conver sion cost Total cost per unit £8.00 a.Determine the cost of the goods transferred out. b.Determine the cost of ending work in progress.

The Packing Department receives goods produced in previous departments. The costs transferred into the Packing Department are treated as

The cost per equivalent unit using the weighted average method is calculated as

Figure 5-9 The following information is available for Department Z for the month of July: Units Cost Work in progress, July 1 (70\% complete) 5,000 Direct materials £6,000 Direct labour 3,000 Manufacturing overhead 4,000 Total work in progress, July 1 £13,000 Started in production during July 20,000 Costs added: Direct materials £18,000 Direct labour 8,000 Manufacturing overhead 10,000 Total costs added during July £36,000 Work in progress, July 31 , ( 80 \% complete) 2,000 Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Figure 5-9. Department Z's cost per equivalent unit of production for conversion costs using the FIFO method would be

Lee Company began making lipstick in October 2011 using a single-step process. Lee incurred £42,000 for materials and £48,640 for conversion during the month. There were 21,000 cases of lipstick started in October and 3,000 cases unfinished (40 per cent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Lee using the FIFO method?

Figure 5-2 Units Work in progress, September 1 ( 40\% complete ) 5,000 Started in September 20,000 Work in progress, September 30(60\% complete ) 8,000 Materials are added at the beginning of the process. -Nortfont Industries had 25,000 units in production during the period just ended. Equivalent units of production were calculated at 24,000; 22,000 units were completed and transferred to finished goods. Cost associated with the beginning inventory was £125,000. Manufacturing costs totaling £850,000 were added during the period. Nortfont uses the weighted average cost method. Nortfont's cost per unit was