Exam 21: Process Costing

In a process cost system product costs are summarized:

Zibba Company enters materials at the beginning of the process. In January there was no beginning work in process but there were 200 units in the ending work in process inventory. The number of units completed equals the number of

Why do some companies need a cost accounting system while others do not? What are the determining characteristics or factors that influence the type of cost accounting system that is appropriate for a company?

Sandusky Widget Company has the following production data for March. Instructions Compute the physical units for March.

Tip Top Painting Company has the following production data for January: $\bullet$ Beginning work in process 0 units $\bullet$ Units transferred out 35000 $\bullet$ Units in ending work in process 10000 which are 30% complete for conversion costs Materials are added only at the beginning of the process. Instructions Compute equivalent units of production for both materials and conversion costs.

Maisley Company decided to analyze certain costs for June of the current year. Units started into production equaled 28000 and ending work in process equaled 4000. With no beginning work in process inventory how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $140000?

In a process cost system manufacturing costs are summarized in a ________________ report for each department.

The production cost report is an internal document that shows production quantity and ______________ for a production department.

Gloria Company had no beginning work in process. During the period 16000 units were completed and there were 1200 units of ending work in process. How many units were started into production?

Cohen Company is trying to determine the equivalent units for conversion costs with 5000 units of ending work in process at 80% completion and 45000 units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process and conversion costs occur evenly throughout the entire production period. What is the equivalent units of production for conversion costs for the current period?

Wilkinson Company has gathered the following information. Units in beginning work in process -0- Units started into production 54,000 Units in ending work in process 10,000 Percent complete for conversion costs in ending work in process 60\% Costs incurred: Direct materials \ 81,000 Direct labor \ 99,000 Overhead \ 131,000 Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.

Crawford Company has the following equivalent units for July: materials 20000 and conversion costs 18000. Production cost data are: Materials Conversion Work in process, July 1 \ 6,400 \ 3,000 Costs added in July 50,400 42,000 The unit production costs for July are: Materials Conversion Costs A) \ 2.52 \ 2.50 B) 2.84 2.33 C) 2.52 2.33 D) 2.84 2.50

Holton Company has the following equivalent units for July: materials 20000 and conversion 18000. Production cost data are: Materials Conversion Work in process, July 1 \8 ,000 \ 3,750 Costs added in July 63,000 52,500 The unit production costs for July are: Materials Conversion Costs A) \ 3.15 \ 3.13 B) 3.55 2.92 C) 3.15 2.92 D) 3.55 3.13

Physical units accounted for are 160000. Total conversion costs are $387100. There are 4000 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit?

Glazer Inc. has the following production data for June: Transferred out 50000 units Ending work in process 5000 units The units in work in process are 100% complete for materials and 60% complete for conversion costs. Materials costs are $3 per unit and conversion costs are $6 per unit. Instructions Determine the costs to be assigned to the units transferred out and the units in ending work in process.

The Finishing Department of Edwards Company has the following production and cost data for July: 1. Transferred out 8000 units. 2. Ending work in process 2000 units that are 40% completed at July 31. 3. Materials added $30000; conversion costs incurred $17600. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Instructions (a) Compute the equivalent units of production for materials and conversion costs for the month of July. (b) Compute unit costs and prepare a cost reconciliation schedule.

If equivalent units are 15000 for conversion costs and units transferred out equals 10000 what stage of completion should the ending work in process be for the 20000 units remaining?

In continuous process manufacturing generally once the production begins it continues until the finished product emerges.

One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job.

Match the items in the two columns below by entering the appropriate code letter in the space provided.