Exam 6: Process Costing

Figure 6-17 Quinn 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 $60,000.Materials are added uniformly in the second process.The following information is provided about the second department's operations during October: -Refer to Figure 6-17.The equivalent units for conversion using FIFO would be

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials issued to the department during the year divided by

In a process costing system, which of the following would be TRUE?

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.If a total of $11,050 in production costs were incurred, what is the unit cost in January?

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

Figure 6-4 The following information is available for Dale, Inc.: - Refer to Figure 6-4.What are the conversion costs in the Finishing Department?

When job-order costing is used to assign material costs and process costing is used to assign conversion costs, it is called

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 materials purchased would include a

Figure 6-17 Quinn 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 $60,000.Materials are added uniformly in the second process.The following information is provided about the second department's operations during October: -Refer to Figure 6-17.The equivalent units for conversion using weighted average is

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 are Ring Company's conversion costs applied to Small (Work Order 10) from the Mixing Department for each batch?

Begzy Company produces calculators on an assembly line in a single-step process.The following data pertains to November 2011: Required:

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 unit cost of Small?

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 were the total number of units to account for?

Figure 6-8 The following information is available: Materials are added at the beginning of the process. - Refer to Figure 6-8.Beginning and ending units were 60 percent complete as to conversion costs.What is the number of units started and completed?

Tyler Corporation uses JIT manufacturing.There are several manufacturing cells set up within one of its factories.One of the cells makes batteries.The cost of production for the month of July is as follows: During July, Tyler Corporation produced and sold 500 batteries. Required:

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 conversion cost per unit using FIFO would be

Zoo Company manufactures a product that passes through two departments, Assembly and Finishing.In the Finishing Department, materials are added at the end of the process.Conversion costs are incurred uniformly throughout the process.During the month of December, the Finishing Department received 60,000 units from the Assembly Department.The transferred-in cost of the 60,000 units was $69,900. Costs added by Finishing during December included the following: On December 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs.On December 30, 12,000 units were in inventory, one-third complete with respect to conversion costs.The costs associated with the 10,000 units in beginning inventory were as follows: Required: Prepare a cost of production report using the weighted average method.

Which of the following process costing methods is simpler to use?

_______________ is a unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs.

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 are the equivalent units for materials?