Exam 21: Process Costing

Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 60% complete. Instructions Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below.

Production costs chargeable to the Sanding Department in July for Joyful Art are $30000 for materials $26000 for labor and $10000 for manufacturing overhead. Equivalent units of production are 25000 for materials and 20000 for conversion costs. Instructions Compute the unit costs for materials and conversion costs.

The Molding Department of Kennett Company has the following production data: beginning work in process 25000 units (60% complete) started into production 475000 units completed and transferred out 450000 units and ending work in process 50000 units (40% complete). Assuming conversion costs are incurred uniformly during the process the equivalent units for conversion costs are:

A primary driver of overhead costs in continuous manufacturing operations is machine time used.

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January there were no units in the beginning work in process inventory; 90000 units were started into production in January; and there were 20000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1 the beginning work in process inventory consisted of 20000 units which were 60% complete and had a cost of $175000 $145000 of which were materials costs. During March the following occurred: Materials added \ 305,000 Conversion costs incurred \ 120,000 Units completed and transferred out in March 50,000 Units in ending work in process March 31 (40\% complete) 25,000 Instructions Answer the following questions and show the computations that support your answers. 1. What are the equivalent units of production for materials and conversion costs in the Fabricating Department for the month of March? 2. What are the costs assigned to the ending work in process inventory on March 31? 3. What are the costs assigned to units completed and transferred out during March?

If 150000 units are started into production there was no beginning work in process and 50000 units are in process at the end of the period how many units were completed and transferred out?

Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process?

The first step performed in preparing a production cost report is computing the equivalent units of production.

Large inventories of raw materials must be maintained in a just-in-time system.

The weighted-average method of computing equivalent units is the most widely used method in practice.

In Saint-Simon Inc. the Assembly Department started 60000 units and completed 70000 units. If beginning work in process was 30000 units how many units are in ending work in process?

Conversion cost per unit equals $6. Total materials cost equal $90000. Equivalent units for materials are 10000. How much is the total manufacturing cost per unit?

In a process cost system materials labor and overhead are only added in the first production department.

Just-in-time processing requires

Physical units are 40000. Total conversion costs are $158000. There are 1000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?

Process cost systems are used to apply costs to a specific job such as the manufacturing of a specialized machine.

Just-in-time strives to eliminate inventories by using a pull approach.

Minor Company had the following department data: Physical Units Work in process, July 1 30,000 Completed and transferred out 165,000 Work in process, July 31 45,000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials in July?

Which of the following is not a necessary step in preparing a production cost report?