Exam 5: Process Costing

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 total cost per equivalent unit of production would be

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

Figure 5-4 The following information is available for Department X for August: Work in progress, August 1 Materials £8,000 Conversion costs £15,000 Costs added during August: Materials £28,000 Conversion costs £25,000 Equivalent units of production (weighted average): Materials 4,000 Conversion 5,000 -Refer to Figure 5-4. Department X's cost per equivalent unit for conversion using the weighted average method would be

The sum of direct labour and factory overhead is referred to as

Equivalent units of production are

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 converted. How many equivalent units for materials would there be using the FIFO method?

The two methods used to determine equivalent units of production are

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. -Refer to Figure 5-2. Equivalent units of production for materials using the weighted average method would be

If beginning inventory contained 2,000 units of product that were judged to be 40 per cent complete as to labour, the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units are

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 started and completed in Corn Corporation's second department during June would be

Beginning inventory for the month contained 2,000 units that were 70 per cent complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 3,000 units, 20 per cent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

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. -Refer to Figure 5-2. Equivalent units of production for conversion costs using the weighted average method would be

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 conversion costs would there be for Gill Ltd. in March using the FIFO method?

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 of goods transferred out using the FIFO method would be

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: Work in progress, June 1 Units ( 60\% complete) 5,000 Direct materials £20,000 Direct labour £24,000 Overhead £4,000 During June, 80,000 units were completed and transferred to packaging. The following costs were incurred by the mixing department during June: Direct materials £180,000 Direct labour 200,000 Overhead 59,200 At June 30, 12,000 units that were 10 per cent complete remained in the mixing department. Use the weighted average method, and round unit costs to two decimal places. a.Determine equivalent units of production for June. b.Determine June's total costs to account for. c.Determine total cost per equivalent unit of production. d.Determine the cost of goods transferred to the packaging department. e.Determine the cost of June's ending work in progress for the mixing department.

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