Exam 4: Process Costing

Qu Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: The cost per equivalent unit for conversion costs for the first department for the month is closest to:

The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a first-in, first-out process costing system. All materials at Kittina are added at the beginning of the production process. On February 1, the work in process inventory account contained $55,620 of material cost and $123,120 of conversion cost. Cost per equivalent unit for February was $3.10 for materials and $7.50 for conversion costs.What total amount of cost should be assigned to the units in work in process on February 28?

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.The cost per equivalent unit for materials for the month in the first processing department is closest to:

Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $3.39. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Qu Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: How many units were started AND completed during the month in the first processing department?

Under the first-in, first-out method, the cost per equivalent unit equals:

In the cost reconciliation report under the weighted-average method, the "Total cost accounted for" equals:

The cost per equivalent unit under the first-in, first-out method of process costing is equal to the cost added during the period divided by the equivalent units of production for the period.

Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to:

When computing the cost per equivalent unit, the weighted-average method of process costing considers:

Activity in Saggers Corporation's Assembly Department for the month of March follows: The equivalent units for materials for March, using the first-in, first-out method, are:

Ockey Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Fabrication and Customization. Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees.The total amount of Information Technology Department cost allocated to the two operating departments is closest to:

Yamane Corporation, a manufacturer, uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Administration and Facilities, and two operating departments, Assembly and Finishing. Data concerning those departments follow: Administration Department costs are allocated first on the basis of labor hours and Facilities Department costs are allocated second on the basis of space occupied.The total Finishing Department cost after allocations is closest to:

Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to:

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

Jahncke Incorporated uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of November. Required: Compute the costs per equivalent unit for the Assembly Department for November.

Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to:

Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: What are the equivalent units for materials for the month in the first processing department?

Farsat Incorporated uses the first-in, first-out method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required:Using the first-in, first-out method, determine the equivalent units of production for materials and conversion costs.

From the standpoint of cost control, the first-in, first-out method of process costing is superior to the weighted-average method.