Exam 6: Process Costing

Green 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 May follows: Materials Units Costs Work-in-Process Inventory at May 1 15,000 \ 8,000 Units started during May 60,000 \ 38,500 Units completed and transferred to next department 65,000 during May Using the FIFO costing method, calculate the materials cost of the Work-in-Process Inventory in the forming department at May 31. (Round unit calculations to the nearest cent.)

The following amounts were selected from the production report of Doggie Donuts Corporation: Actual units in production 55,000 Equivalent units (materials) 55,000 Equivalent units (conversion) 45,000 Cost per equivalent unit (materials) $1.50 Cost per equivalent unit (conversion) $1.10 Doggie Donuts uses the weighted average costing method in preparing its production reports. What must Doggie Donuts' total production cost to be accounted for have been?

Describe the differences between process costing and job-order costing.

Which two methods determine the equivalent units of production in process costing?

Match each following terms with their correct description from the items listed below. -Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration

BeeAll Corporation produces a product that passes through two departments. For November, the following equivalent unit schedule was prepared for the first department: Units completed 140,000 140,000 Units in ending Work-in-Process Inventory \times fraction complete: Materials (20,000\times100\%) 20,000 Conversion (20,000\times40\%) Equivalent units of output Costs assigned to beginning Work-in-Process Inventory: Materials: $88,000 Conversion: $35,000 Manufacturing costs incurred during the month: Materials: $72,000 Conversion: $76,000 Required: A. Compute the unit cost for November in the first department using the weighted average costing method. B. Determine the cost of goods transferred out for the first department. C. Determine the cost of ending Work-in-Process Inventory in the first department.

Department C of Boot and Shoe Company Information concerning Department C of Boot and Shoe Company for the month of March is as follows: Materials Units Cost Work-in-Process Inventory, beginning of month 20,000 \ 14,250 Started in March 85,000 \ 66,600 Units completed 90,000 Work-in-Process Inventory, end of month 15,000 All materials are added at the beginning of the process. -Refer to Department C of Boot and Shoe Company. What would be the cost (rounded to two decimal places) per equivalent unit for materials when using the first-in, first-out method?

Which term reflects total cost divided by units produced?

Refer to LuLu, Inc. What would be the total cost per equivalent unit of production?

Department C of Boot and Shoe Company Information concerning Department C of Boot and Shoe Company for the month of March is as follows: Materials Units Cost Work-in-Process Inventory, beginning of month 20,000 \ 14,250 Started in March 85,000 \ 66,600 Units completed 90,000 Work-in-Process Inventory, end of month 15,000 All materials are added at the beginning of the process. -Refer to Department C of Boot and Shoe Company. What would be the equivalent units for materials when using the first-in, first-out method?

Beginning inventory for the month contained 12,000 units that were 60% complete with respect to materials. During the month, 80,000 units were completed and transferred out. Ending inventory contained 6,000 units, 30% complete with respect to materials. What would be the weighted average equivalent units of production for materials for the month?

Equivalent units of output are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Manufacturing firms always operate with significant Work-in-Process Inventory.

Department ABC The following information is available for Department ABC for the month of September: Units Cost Work-in-Process Inventory, September 1 ( 70\% complete) 5,000 Direct materials \ 6,000 Direct labour 3,000 Manufacturing overhead 4,000 Total Work-in-Process Inventory, September 1 \1 3,000 Started in production during September 20,000 Costs added: Direct materials \ 18,000 Direct labour 8,000 Manufacturing overhead 10,000 Total costs added during September \3 6,000 Work-in-Process Inventory, September 30, (80% complete) 2,000 Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Department ABC. What would be the cost of goods transferred out when using the FIFO costing method?

In which measure is equivalent production expressed to describe all activity of the period?

Department ABC The following information is available for Department ABC for the month of September: Units Cost Work-in-Process Inventory, September 1 ( 70\% complete) 5,000 Direct materials \ 6,000 Direct labour 3,000 Manufacturing overhead 4,000 Total Work-in-Process Inventory, September 1 \1 3,000 Started in production during September 20,000 Costs added: Direct materials \ 18,000 Direct labour 8,000 Manufacturing overhead 10,000 Total costs added during September \3 6,000 Work-in-Process Inventory, September 30, (80% complete) 2,000 Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Department ABC. What would be the cost of ending Work-in-Process Inventory when using the FIFO costing method?

What type of input is normally found in a process costing accounting system?

Match each following terms with their correct description from the items listed below. -The costs transferred from a prior process to a subsequent process

Department ABC The following information is available for Department ABC for the month of September: Units Cost Work-in-Process Inventory, September 1 ( 70\% complete) 5,000 Direct materials \ 6,000 Direct labour 3,000 Manufacturing overhead 4,000 Total Work-in-Process Inventory, September 1 \1 3,000 Started in production during September 20,000 Costs added: Direct materials \ 18,000 Direct labour 8,000 Manufacturing overhead 10,000 Total costs added during September \3 6,000 Work-in-Process Inventory, September 30, (80% complete) 2,000 Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Department ABC. What would be the cost per equivalent unit of production for materials when using the FIFO costing method?

Nichola, Inc. manufactures products that pass through two processes. The company uses the weighted average costing method to compute unit costs. During April, equivalent units were computed as follows: Units completed 50,000 50,000 Units in ending Work-in-Process Inventory \times fraction complete: Materials (9,000\times100\%) 9,000 Conversion (9,000\times80\%) Equivalent units of output The costs to be accounted for were as follows: Materials \ 73,750 Conversion cost 57,200 Total cost \1 30,950 Required: A. Determine the cost of the goods transferred out. B. Determine the cost of ending Work-in-Process Inventory. C. Determine the cost of the goods transferred out if materials in ending Work-in-Process Inventory had been 90% complete and conversion in ending Work-in-Process Inventory had been 70% complete. Round costs per unit to two decimal places if necessary.