Exam 17: Process Costing

Beginning inventory contained 5,000 units of goods that were 40 percent complete as to direct material,and 50 percent complete as to conversion.What is the equivalent units completed for materials and conversion at the beginning of the year,respectively? Assume that both types of costs are incurred evenly throughout the process.

Answer the following questions using the information below: Dustin Plastics,Inc. ,manufactures plastic moldings for car seats.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through Department A and Department B.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production. Data for Department A for February 2015 are: Costs for the Department A for February 2015 are: -What is the total amount of the work-in-process ending inventory for Department A at the end of February?

Pet Products Company uses an automated process to manufacture its pet replica products.For June,the company had the following activities: Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method.Round equivalent unit costs to the nearest cent.

The first-in,first-out (FIFO)process costing method assigns the cost of the previous accounting period's equivalent units in beginning work-in-process inventory to the first units completed and transferred out of the process.

Answer the following questions using the information below: The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories,direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing. -What is the Townsend Company conversion cost per equivalent unit in April?

General Fabricators assembles its product in several departments.It has two departments that process all units.During October,the beginning work in process in the cutting department was half completed as to conversion,and complete as to direct materials.The beginning inventory included $12,000 for materials and $3,000 for conversion costs.Ending work-in-process inventory in the cutting department was 40% complete.Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 75% complete as to conversion.Direct materials are added at the end of the process.Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs.Ending inventory was 25% complete.Additional information about the two departments follows: Required: Prepare a production cost worksheet using weighted-average for the cutting department and FIFO for the finishing department.

Use the information below to answer the following question(s). Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August: -Calculate the equivalent units for conversion costs at Apex Disk Company using the weighted-average method.

Use the information below to answer the following question(s). Father Time Clock Shop manufactures clocks on an automated assembly line.It utilizes two cost categories: direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production,while conversion costs are allocated evenly throughout production,and the company uses weighted-average costing. Data for the Assembly Department are: -What is the conversion cost per equivalent unit in June at Father Time Clock Shop?

Transferred-in costs are an allocated indirect cost in process costing.

Process-costing systems separate costs into cost categories according to which factor(s)?

Operation-costing differs from pure process-costing in that operation-costing charges each work order separately for direct material cost.

Process-costing systems using standard costs usually accumulate actual costs separately from the inventory accounts.

Which of the following journal entries correctly reflects the transfer of goods completed from the Assembly Department to the Testing Department?

Use the information below to answer the following question(s). Carnival Furniture had 60,000 foam cushions in process at May 1 (70% converted)and 40,000 cushions in process at May 31 (50% converted).All direct materials are added at the beginning of the production process.During the month,140,000 cushions were transferred to finished goods. -What is the Carnival Furniture equivalent units for materials costs for May using the weighted average method?

Managers find operation costing useful in cost management because it

Use the information below to answer the following question(s). Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August: -Calculate equivalent units for direct materials using the FIFO method.

Use the information below to answer the following question(s). Father Time Clock Shop manufactures clocks on an automated assembly line.It utilizes two cost categories: direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production,while conversion costs are allocated evenly throughout production,and the company uses weighted-average costing. Data for the Assembly Department are: -Which of the following entries would be made to record the issue of direct materials in the Testing Department,under process-costing?

Use the information below to answer the following question(s). Plastic Molding,Inc.'s costing system utilizes two cost categories;direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Data for the Assembly Department for March are: -How many units were completed and transferred out of the Assembly Department during March?

In process costing only the weighted average and FIFO methods are IFRS/ASPE compliant.

Equivalent units in beginning work in process plus equivalent units of work done in the current period equals equivalent units completed and transferred out in the current period minus equivalent units in ending work in process.