Exam 6: Process Costing

The appropriate cost accounting system to use when inventory items are produced on an assembly line is

York, Inc., manufactures a product that passes through two processes: Mixing and Packaging.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for December follows: During December, 150,000 units were completed and transferred to Packaging.The following costs were incurred by the Mixing Department during December: There were 12,000 units that were 70 percent complete remaining in the Mixing Department at December 30.Use the weighted average method and round unit costs to two decimal places. Required:

Figure 6-10 Irvin Corporation's mixing department began January 2011 with 10,000 gallons of product (40 percent completed) in process.During January, Irvin 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 Irvin using the FIFO costing method?

Figure 6-7 Ely Company had the following data for 2011: Materials are added at the beginning of the process.Beginning work in process was 40 percent complete as to conversion.Ending work in process was 70 percent complete as to conversion. - Refer to Figure 6-7.How many equivalent units for materials would there be using the FIFO method?

Figure 6-19 Takon 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.Takon's equivalent units for transferred-in units using FIFO would be

JIT firms are usually structured so they can use _______________ to determine product costs.

_______________ represents the number of completed units that is equal, in terms of production inputs, to a given number of partially completed units.

Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials.45,000 units were completed and transferred out during the month.4,500 units were in ending inventory, 10 percent complete with respect to materials.The weighted average equivalent units of production for materials for the month would be

Figure 6-22 The following information is available for Department A for the month of January: 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 A's conversion cost per unit using the weighted average method is

The following information is available: Materials are added at the beginning of the process. How many equivalent units for conversion would there be in November using the weighted average method?

Figure 6-5 Baynor Inc.manufactures desks.The following data was given for production in January: Units, beginning work in process 0 Units started 200 Units completed ? Units, ending work in process (40% complete) 50 - Refer to Figure 6-5.What are the equivalent units?

Figure 6-21 Ring Company produces two types of product: Small and Large.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. Small (Work Order 10) and Large (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. - Refer to Figure 6-21.What is Ring Company's amount transferred from the Bottling Department to Finished Goods for Work Order 10?

Figure 6-11 Champ 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 October follows: During October, 26,750 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October: -Refer to Figure 6-11.The cost of October's ending work in process for the Mixing Department using the FIFO method is

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

Figure 6-5 Baynor Inc.manufactures desks.The following data was given for production in January: Units, beginning work in process 0 Units started 200 Units completed ? Units, ending work in process (40% complete) 50 - Refer to Figure 6-5.How many units were completed?

Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011: 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 goods completed and transferred out of the Assembly Department would include a

Cap Corporation produces two types of product: Regular and Super.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 $200,000 for labor and $600,000 for overhead.Budgeted direct labor hours were 5,000.It takes 6 minutes to mix the ingredients needed for each bottle. Regular and Super flow through the Mixing Department, followed by the Cooking and Bottling departments. Required:

Figure 6-18 Square Deal Company makes carpenter's squares and uses a process costing system.There is no spoilage.Manufacturing goes through three departments: Forming, Finishing, and Packing.Unit data for these departments are given below: The Finishing Department adds materials at the point where processing is 50 percent complete. - Refer to Figure 6-18.The equivalent units for materials in the Finishing Department is

Urban Company manufactures a product through a continuous single-step process.All materials are added at the beginning of processing.Production and cost data for the company for February 2011 are as follows: Required: Prepare a cost of production report for February 2006.Use FIFO process costing.

Figure 6-15 The Dodd Company uses a weighted average process costing system.The following information was reported for the Assembly Process for July.Materials are added at the beginning of the process and are 100%. -Refer to Figure 6-15.What is the cost per unit for materials?