Exam 6: Process Costing

Figure 6-20 CUPORAMA Corp.manufactures cups.The company's manufacturing operations and costs applied to products for April were: Three types of cups were produced in April.The quantities and direct materials costs were: Casts are produced in the Molding Department.Cups pass through the Molding and Finishing Departments.Mugs pass through all three departments.An operations costing system is used. - Refer to Figure 6-20.What is CUPORAMA's conversion cost per unit for the heat-treat operation, rounded to two decimal places?

Which of the following would NOT be true when there is spoilage?

The following information pertains to North Company: Materials are added at the beginning of the process. If equivalent units of production for conversion using the weighted average method was 39,000, ending work in process at January 31 must have been

Beginning inventory consisted of 1,000 units with costs of $21,000.All materials and 60 percent of labor and overhead were added in the prior period.In addition, another 8,000 units were started and completed.Unit costs are materials, $6.00; labor, $15.00; overhead, $9.00.What is the total cost of goods transferred out using FIFO?

Lee Company began making lipstick in October 2011 using a single-step process.Lee incurred $42,000 for materials and $48,640 for conversion during the month.There were 21,000 cases of lipstick started in October and 3,000 cases unfinished (40 percent complete) at the end of the period.All materials were added at the beginning of the production process. What is the unit cost for materials for Lee using the FIFO method?

When conversion costs are uniform,

Figure 6-3 Bill Berry, CPA, prepares tax returns.The production costs and the number of tax returns prepared for the month of August are as follows: Number of tax returns 200 - What is the unit cost per tax return?

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

Abnormal spoilage is treated differently from normal spoilage in what way?

Figure 6-14 The following information is available for Department A for the month of January: Materials are added at the beginning of the process.Round unit costs to two decimal places. - Refer to Figure 6-14.The cost of goods transferred out using the weighted average method is

Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted).In addition, 60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

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 Mixing Department to the Bottling Department for Work Order 10?

Figure 6-6 Pelosi Company manufactures chairs.The following information was given for the company: Units, beginning work in process 0 Units started 20,000 Units completed ? Units, ending work in process 5,000 Cost of direct materials $440,000 Cost of conversion $ 64,000 Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. - Refer to Figure 6-6.What are the equivalent units for materials and conversion respectively?

Figure 6-16 Peck Corporation produces a product that passes through two processes.During October, the first department transferred 20,000 units to the second department.The cost of the units transferred was $30,000.Materials are added uniformly in the second process.The following information is provided about the second department's operations during October: - Refer to Figure 6-16.The number of units started and completed in the second department during October is

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

JIT manufacturing emphasizes

Activity-based costing might have a role in process costing settings under what conditions?

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.Rounded to two decimal places, Takon's cost per equivalent units for transferred-in costs using weighted average would be

_______________ is the cost assigned to goods from a prior process.

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.Rounded to two decimal places, Takon's costs transferred out using weighted average would be