Exam 6: Process Costing

For which of the following businesses is process costing is most appropriate?

Select the appropriate definition for each of the items listed below. -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

FIFO assumes that units in beginning work in process are completed first,before any new units are started.

What information is found in the cost of production report?

Explain the role of the departmental production report in process costing,and name the five steps for completing the departmental production report.

In process costing,it is reasonable to assume uniform application of material costs.

Explain how nonuniform inputs and multiple departments affect process costing.

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Process costing is most appropriate for manufacturers of unique products.

Ingenuous Company manufactures a product that passes through two processes.The following information is available for the first department for September. All materials are added at the beginning of the process. Beginning work in process consisted of 25,000 units that were 80% complete with respect to conversion. Ending work in process consisted of 15,000 units that were 40% complete with respect to conversion. During the month,90,000 units were started in process. Required: A. Prepare a physical flow schedule. B. Compute equivalent units using the weighted average method.

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

Which of the following businesses is most likely to use process costing?

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

Select the appropriate definition for each of the items listed below. -Units must pass through one process before they can be worked on in later processes.

To calculate the equivalent units of production,the number of physical units is divided by the percentage of completion.

The following information is available for Painting Department for June: -Refer to the Figure.What would be Painting Department's cost per equivalent unit for conversion when using the weighted average method?

LuLu, Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for May follows: During May, 25,000 units were completed and transferred to the moulding department. The following costs were incurred by the mixing department during May: Work in process, May 1: Units (35\% complete) 5,000 Direct materials \ 24,000 Direct labour \ 30,000 Overhead \ 10,000 By May 31, 2,500 units that were 80% complete remained in the mixing department. LuLu uses the weighted average method. Direct materials \ 90,000 Direct labour 120,000 Overhead 30,000 -Refer to the Figure.What would be LuLu's total cost per equivalent unit of production?

The following information is available for Painting Department for June: -Refer to the Figure.What would be Painting Department's cost per equivalent unit for materials when using the weighted average method?

In parallel processing,two subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.

Saracha,Inc.manufactures products that pass through two or more processes.The company uses the weighted average method to compute unit costs.During October,equivalent units were computed as follows: The unit cost was computed as follows: Required: Materials \ 15.00 Conversion cost 13.00 Total cost per unit \ 28.00 A. Determine the cost of the goods transferred out. B. Determine the cost of ending work in process.