Exam 5: Cost Behavior: Analysis and Use

The cost reconciliation prepared within a department's periodic production report is only used for the purpose of costing the units completed and transferred out of the department during the period (either to another department or to finished goods).

The Morgan Company uses the weighted-average method in its process costing system.For a particular department,the company had 54,000 equivalent units of production with respect to conversion costs in March.There were 7,500 units in the department's beginning work in process inventory,two thirds complete with respect to conversion costs.During March,52,500 units were started and 50,000 were completed and transferred out of the department.The ending work in process inventory in the department?

Strap Company uses the weighted-average method in its process costing system.The company has only one processing department.The ending work in process inventory consists of 10,000 units,60% complete with respect to materials.The total dollar value of this inventory is $38,000.The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period.With respect to conversion costs,the ending work in process inventory is?

The total cost assigned to units transferred out during October was? (Do not round intermediate calculations)

Using the weighted-average method,the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

Equivalent units of production in a department for a period will be equal to the number of equivalent units in ending work in process inventory.

Baker Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs.An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

Narver Company uses the weighted-average method in its process costing system.Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units of production for conversion costs in the Lubricating Department for October?

Larner Company uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below: According to the company's records,the conversion cost in beginning work in process inventory was $68,064 at the beginning of June.Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round your answers to three decimal places. )

Using the first-in-first-out (FIFO)method,the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

Assuming that Tru-Colour Paint Company uses the weighted-average method,the equivalent units of production for conversion costs would be?

What was the conversion cost per equivalent unit for May? (Round your answers to the nearest whole cent)

In which circumstance is the FIFO method more likely to be preferred in determining the costs of processing?

Jimbob Co.uses the FIFO method in its process costing system.The following data concern the operations of the company's first processing department for a recent month.

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

Process costing would be appropriate for each of the following except?

Paxton Company 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 accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round your answer to three decimal places. )

Assuming that Jimbob Co.uses the FIFO method,the equivalent units of production for materials would be?

In process costing,the same equivalent units figure is always used for both materials and conversion costs.

Production and cost data for the month of February for Process A of the Packer Manufacturing Company follow: