Exam 6: Process Costing

In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to assign conversion costs.

Figure 6-10 Julius Corporation's mixing department began January 2014 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). Refer to Figure 6-10. If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Julius using the FIFO costing method?

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Refer to Figure 6-19. Mountainside's equivalent units for transferred-in units using FIFO would be

Figure 6-1 The Sinbad Company has the following information for the Assembly Department for October 2014: Overhead rate is 200 percent of direct labor costs. Allen Company uses a process costing system for the Assembly Department. Refer to Figure 6-1. The journal entry to record materials purchased would include a

Figure 6-14 The following information is available for Department C for the month of June: Materials are added at the beginning of the process. Round unit costs to two decimal places. Refer to Figure 6-14. The cost of ending work in process using the weighted average method is

Figure 6-21 Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. Refer to Figure 6-21. What is Golden Ring Company's amount transferred from the Mixing Department to the Cooking Department for Work Order 10?

Figure 6-9 Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2014 are as follows: Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. Refer to Figure 6-9. How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO method?

Using the weighted average costing method, the costing of goods transferred out is __________ since there is only one category of completed units.

Which is NOT a disadvantage of the weighted average costing assumption in process costing?

Refer to Figure 6-22. Department C's equivalent units of production for conversion using the weighted average method is

If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are

Figure 6-22 The following information is available for Department C for the month of August: Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption. Refer to Figure 6-22. Department C's conversion cost per unit using the weighted average method is

Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units: Costs: The company uses FIFO inventory assumption. Refer to Figure 6-12. What are the FIFO equivalent units for conversion?

GanMaoling Corporation produces a product that passes through two departments. For May, the following equivalent unit schedule was prepared for the first department: Required:

Figure 6-11 Rawlings, 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 January follows: During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: Refer to Figure 6-11. There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. Total cost per equivalent unit of production using the FIFO method is

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using FIFO would be

The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given number of partially completed units is:

Figure 6-21 Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. Refer to Figure 6-21. What are Golden Ring Company's conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?

Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will

The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period.