Exam 17: Costing Systems: Process Costing

Information for the current month for Process B is shown below. Units completed-60,000 Units in ending work in process-6,000 Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs;ending work in process inventory is 50 percent complete.The cost of ending work in process inventory totaled

Jackson Electronics Inc.manufactures a variety of microelectronic component parts and utilizes a process costing system.The following information was provided by the accounting department as of July 31,2014: a.Units started during the month of July totaled 118,200. b.Units partially complete as of July 31 equaled 7,400. c.Ending work in process inventory as of July 31,2014,was 70 percent complete. d.Direct materials are added at the beginning of the process,and conversion costs are incurred uniformly throughout the process. e.Units in process on July 1,2014-8,200 units. Using the information provided,compute the equivalent units of production for direct materials and conversion costs for July using the average costing method.

A process costing system accounts for product costs

If a company uses a process costing system to account for costs in its three production departments,how many Work in Process accounts will it use?

Production has just been completed for January 2014 by Colombo Inc.The company utilizes a process costing system,and the following accounting and operating information was obtained from company records: a.Beginning work in process inventory consisted of units totaling 8,200 that were 60 percent complete as of January 1,2014 (all direct materials were added to the units at the beginning of the production process that took place in the preceding month). b.260,000 units were started during January. c.At the end of the month,22,400 units were in work in process inventory and were 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. From the figures shown above,and assuming a FIFO costing flow,prepare in good form a schedule of equivalent production for the month ended January 31,2014.

Nader Inc.has the following information available: At the beginning of the period,there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,4,300 units were started and completed.Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO costing method. ) -The equivalent units of production for direct materials and conversion costs,respectively,of Nader Inc.were

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods -Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7.Under this assumption,the ending balance for Work in Process Inventory of Taylor Company would be

Information for the current month for Process D is shown below. Units completed-72,000 Units in ending work in process inventory-5,000 Direct materials are added at the beginning of the process.Beginning work in process is 50 percent complete as to conversion costs;ending work in process inventory is 40 percent complete.Determine the cost of ending work in process inventory.

The following data were taken from the accounting records of a company that uses the FIFO method in its process costing system: The equivalent units are

Which of the following in a process costing system helps in verifying the cost of ending work in process inventory for a period?

Montell Inc.produces a variety of outdoor equipment products and utilizes a process costing system.The following information was provided by the accounting department as of March 31,2014: a.Units started during the month of March totaled 314,000. b.Units partially complete as of March 31 equaled 76,000. c.Ending work in process inventory as of March 31,2014,was 80 percent complete. d.Direct materials are added at the beginning of the process,and conversion costs are incurred uniformly throughout the process. e.No units were in process on March 1,2014. Using the information provided,compute the equivalent units of production for direct materials and conversion costs for the month ended March 31,2014,assuming a FIFO costing flow.

Direct materials are most likely added at the beginning of the process.

Which of the following products probably would be produced by a company using a process costing system?

Cloud Nine International uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the average costing method.The following data are available for one of its accounting periods: -Equivalent units for conversion costs of Cloud Nine International are

Information for the current month for Process 5 is shown below. Direct materials are added at the beginning of the process.Beginning work in process is 40 percent complete as to conversion costs;ending work in process inventory is 60 percent complete.The cost of ending work in process inventory totaled

In a process costing system,the amount of total costs to be accounted for is made up of direct materials and conversion costs incurred during the current period plus those costs included in the beginning Work in Process Inventory account.

During April,Department A started 400,000 units of product in a particular production process.The beginning work in process inventory was 40,000 units,and the ending inventory was 50,000 units.Direct materials are introduced at the start of processing,and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs.Department A uses the FIFO costing method. -The number of equivalent units produced in Department A with respect to conversion costs were

The FIFO process costing method assumes that the items in ending work in process inventory were started and completed during the current period.

The average costing method is a costing method in which the cost flow follows the logical product flow.

Under the average costing method in a process costing system,the costs in beginning inventory are combined with current period costs to compute an average product unit cost.