Exam 5: Process Costing Systems

Reliable Manufacturers had no units in process at the beginning of the year.During the current year,140 000 units were started.There were 15 000 units in work-in-process at the end of the year.These units were 40 per cent complete.If total production costs for the year were $393 000 what should be the cost per equivalent unit?

In its initial year of operation,Montoya Manufacturing started and completed 4000 identical widgets and had 1000 widgets that were 40 per cent complete in work-in-process at the end of the year.Total production costs for the year were $55 000.How many total equivalent units were completed during the year?

Companies that produce a homogeneous product where all the units are the same would most likely use which type of costing?

Rollins Manufacturing Rollins Manufacturing uses process costing. The following information was available for the current year: -If Rollins uses the weighted-average method,how many total equivalent units were completed in the current period?

For each of the following organisations,indicate which type of costing system would be the most appropriate: job costing (JC),or process costing (PC). Accounting fim Saft dink producer Construction firm Law firm Toy manufacturer Drug manufacturer Raw mineral extractor Paint manufacturer

Aster Manufacturing uses the weighted-average method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 90 \% complete) 100000 \5 4000 Units started this period (current period production work) 150000 9036000 Ending work-in-process ( 90\% complete) 40000 Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the cost allocated to the ending work-in-pracess units? D. What is cost of goods manufactured for the year?

Rollins Manufacturing Rollins Manufacturing uses process costing. The following information was available for the current year: Number of units in beginning work-in-process inventory 4000 (30\% complete) Number of units started in the current period 35000 Number of units in ending work-in-process inventory 3000 (80\% complete) -If Rollins uses the first-in,first-out (FIFO)method,how many total equivalent units were completed in the current period?

Define the term 'equivalent unit' as it relates to process costing along with a simple numerical example of its calculation.

Robinson Products uses the weighted-average method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 10 \% complete) 5000 \1 500 Units started this period (current period production work) 90000 2790000 Ending work-in-process ( 40\% complete) 2000 Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent urit? C. What is the cost allocated to the ending work-in-pracess units? D. What is cost of goods manufactured for the year?

Jameson Manufacturing uses the weighted average method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 30 \% complete) 40000 \3 00000 Units started this period (current period production work) 200000 800000 Ending work-in-process ( 50\% complete) 30000 Additionally,management informs that 20 000 units were spoiled in the period,and this spoilage was detected at the 20% stage of completion.Finally,direct material costs are added at the beginning of the production process,and conversion costs are incurred uniformly throughout the process.Direct material costs are 30% of total beginning WIP costs,while conversion costs are 80% of current period production costs. Required: A. How mary total equrvalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the spoilage cost for the pariod? D. How is the spoilage cost treated if it is normal spoilage, or if it is abnormal spoilage?

What is the FIFO and process costing method?

Under what circumstances might physical units and equivalent units in a period be the same?

Mighty Mouse Toy Factory uses the weighted average method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 10 \% complete) 20000 \2 00000 Units started this period (current period production work) 200000 800000 Ending work-in-process ( 50\% complete) 50000 Direct material costs are added at the beginning of the process,while conversion costs (direct labour and overhead)are added uniformly throughout the process.Conversion costs are 75% of all beginning costs and current period costs;the rest are direct material costs. Required: A.What is the direct material cost per equivalent unit? B.What is the conversion cost per equivalent unit?

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Number Production Beginning work-in-process ( 60\% complete) 20000 \7 2000 Current period production 300000 1809000 Ending work-in-process ( 35\% complete) 10000 -If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost per equivalent unit for December?

Sheldon Toys Inc manufactures toy cannons. This period, beginning WIP inventory was 4000 units that were 30 per cent complete, and ending inventory was 2000 units that were 40 per cent complete. Beginning and ending WIP costs were $10 000 and $7000 respectively. Further, 9000 units were produced this year at a cost of $25 000. -What is the cost per equivalent unit,if the FIFO method was used?

Which of the following statements is false regarding process costing?

Which of the following companies would not be likely to adopt a process costing system?

Which costs should be included in the calculation of the cost per equivalent unit using the weighted-average method of process costing?

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Number Production Beginning work-in-process ( 60\% complete) 20000 \7 2000 Current period production 300000 1809000 Ending work-in-process ( 35\% complete) 10000 -If Bost uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,what is the cost of the ending work-in-process inventory for December?

Lee Manufacturing uses process costing.The following information is available for the current year: Number of units in beginning inventory 1000 Number of units started in the current period Number of units available in the current period 11000 Number of units in ending inventory Number of units completed in the current period 9400 If Lee uses the FIFO method of process costing,which units are assumed to be the first ones finished during the year?