Exam 6: Process Costing

The Roberto Company had computed the flow of units for Department A for the month of May as follows: Materials are added at the beginning of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 70% complete as to direct labor and factory overhead costs and the work in process at May 31 was 60% complete as to direct labor and factory overhead costs. What was the cost of the goods transferred out and in ending work in process using the FIFO method?

Figure 6-5.For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete. -Refer to Figure 6-5. How many equivalent units of production did Haley Co. have for the period?

The _______________________ separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.

Explain the role of the departmental production report in process costing and name the five steps for completing the departmental production report.

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

The document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Figure 6-2.The Bing Corporation produces a product that passes through two processes. During June, the first department transferred 60,000 units to the second department. The cost of the units transferred was $90,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during June: -Refer to Figure 6-2. Units completed in the second department during June for Bing Corporation would be

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Using the FIFO method, what is the materials cost of the work in process at April 30 (round unit calculations to the nearest cent)?

Figure 6-3.Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. -Refer to Figure 6-3. Kelley's cost of October's ending work in process for the mixing department would be

Figure 6-4.The following information is available for Department X for August: -Refer to Figure 6-4. Department X's cost per equivalent unit for conversion using the weighted average method would be

When should process costing techniques be used in assigning costs to products?

If changes occur in the ________ of the manufacturing inputs from one period to the next, then FIFO produces a more accurate unit cost than does the weighted average method.

Garrison Inc. manufactures product where all manufacturing inputs are applied uniformly. The company produced the following physical flow schedule for July: Required: Prepare a schedule of equivalent units using the FIFO method.

List the five steps in preparing a production report.

Figure 6-5.For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete. -Refer to Figure 6-5. If Haley Co. incurred $31,800 in production costs what was Haley's cost per equivalent unit for the period?

Match the five steps involved in creating the department production report with the steps below in the proper order. -cost reconciliation

Match the five steps involved in creating the department production report with the steps below in the proper order. -calculation of equivalent units

Choose the most likely used costing system for the industries listed below. -Costing system used by a food manufacturer.

Match the five steps involved in creating the department production report with the steps below in the proper order. -computation of unit cost

The controller has asked you do determine what method you think would be the best approach to dealing with beginning work-in-process; weighted average costing method or FIFO costing method. Explain the differences between the two methods. Which method would you recommend?