Exam 5: Process Costing

CUPORAMA Corp. manufactures cups. The company’s manufacturing operations and costs applied to products for April were: Moulding Heat-treat Finishing Direct labour \ 25,000 \ 12,500 \ 7,500 actory overhead 30,000 17,500 12,600 otal \ 55,000 \ 30,000 \ 20,10 Three types of cups were produced in April.The quantities and direct materials costs were: Type Quantity Direct Materials Casts 5,000 \ 15,000 Cups 7,000 22,470 Mugs 8,000 32,500 Casts are produced in the Moulding Department.Cups pass through the Moulding and Finishing departments.Mugs pass through all three departments.An operations costing system is used. -Refer to the figure.What is CUPORAMA's conversion cost per unit for the heat-treat operation,rounded to two decimal places?

What is the appropriate cost accounting system to use when inventory items are produced on an assembly line?

Under what conditions might activity-based costing have a role in process costing settings?

Which of the following determines whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process plus the manufacturing costs incurred in the current period?

What costs are included in the cost per equivalent unit using the weighted average method?

Pelosi Company manufactures chairs. The following information was given for the company: Units, beginning work in process 0 Units started 20,000 Units completed ? Units, ending work in process 5,000 Cost of direct materials \ 440,000 Cost of conversion \ 64,000 Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. -Refer to the figure.What are the costs per unit for materials and conversion,respectively?

-Refer to the figure.What is Department A's conversion cost per unit using the weighted average method?

What is the term for the whole units that could have been produced in a period given the amount of manufacturing inputs used?

Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows: Costs Units Materials Conversion Work in process, March 1 25,000 \ 68,750 \ 167,650 Started during March 100,000 300,000 903,350 Work in process, March 31 10,000 Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. -Refer to the figure.How many equivalent units for conversion costs would there be for Gill Corporation in March using the FIFO method?

Which of the following process costing methods is simpler to use?

Takon manufactures specialized plastic boxes in two processes: Moulding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs Work in process, October 1 30 \ 1,590 \ 0 \ 513 Transferred in during October ? Completed during October 105 Work in process, October 31 15 Costs added during October \ 4,410 \ 1,050 \ 1,767 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. -Refer to the figure.What would be Takon's equivalent units for conversion using FIFO?

What does JIT manufacturing emphasize?

Irvin Corporation’s Mixing Department began January 2011 with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). -Refer to the figure.If materials were added when the units were 80 percent complete,how many equivalent units of production for materials would there be for Irvin using the weighted average costing method?

Peck Corporation produces a product that passes through two processes. During October, the first department transferred 20,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department’s operations during October: Units, beginning work in process $\quad$$\quad$ 4,000 Units, ending work in process $\quad$$\quad$$\quad$ 5,500 -Refer to the figure.What is the number of units started in the second department during October?

Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information: Small Large Work Order 10 Work Order 11 Direct materials (actual costs) \ 45,000 \ 75,000 Applied conversion costs: Mixing ? ? Cooking \ 12,000 \ 12,000 Bottling \ 10,000 \ 15,000 Batch size (bottles) 5,000 5,000 In the Mixing Department,conversion costs are applied on the basis of direct labour hours.Budgeted conversion costs for the department for the year were $50,000 for labour and $125,000 for overhead.Budgeted direct labour hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle. Small (Work Order 10)and Large (Work Order 11)flow through the Mixing Department first,then through the Cooking and Bottling departments. -Refer to the figure.What is Ring Company's unit cost of Small?

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%. Units: Units \% Complete for Conversions Work in process, 7/1 60,000 15\% Started 105,000 Work in process, 7/31 40,000 20\% Costs: Materials Conversion Beginning work in process \ 16,500 \ 33,250 Current costs \ 643,500 \ 332,500 -Refer to the figure.What is the cost assigned to the units completed and transferred to finishing?

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%. Units: Units \% Complete for Conversions Work in process, 7/1 60,000 15\% Started 105,000 Work in process, 7/31 40,000 20\% Costs: Materials Conversion Beginning work in process \ 16,500 \ 33,250 Current costs \ 643,500 \ 332,500 -Refer to the figure.What are the equivalent units for materials?

The following information pertains to Fry Corporation: Units Work in process, December 1 (20\% complete) 3,000 Staited in December 24,000 Materials are added at the beginning of the process. If 18,000 units were completed during the month,what would be the ending work in process at December 31?

Wall Company manufactures a product that passes through two processes.The following information is available for the first department for April: All materials are added at the beginning of the process. Beginning work in process consisted of 7,000 units that were 90 percent complete with respect to conversion. Ending work in process consisted of 3,000 units that were 40 percent complete with respect to conversion. There were 35,000 units started in process during the month. a.Prepare a physical flow schedule. b.Compute equivalent units using the weighted average method.

The following information is available for Department A for the month of January: Work in process, January 1 (70\% complete) 10,000 Direct materials \ 36,000 Direct labour 18,000 Manufacturing overhead Total work in process, January 1 Started in production during January Costs added: 40,000 Direct materials \ 108,000 Direct labour 48,000 Manufacturing overhead Total costs added during January Work in process, January 31 ( 80\% complete) 4,000 Materials are added at the beginning of the process.Round unit costs to two decimal places. -Refer to the figure.What is the cost per equivalent unit of production for materials using the weighted average method?