Exam 8: Process Costing

In a process costing system,the application of factory overhead usually would be recorded as an increase in: (CPA adapted)

Sussex Corporation's production cycle starts in the Mixing Department.The following information is available for April: Materials are added at the beginning of the process in the Mixing Department.What are the equivalent units of production for the month of April,assuming Sussex uses the weighted-average method?

RST Company incurred $126,000 in material costs during July.Additionally,the 12,000 units in the Work-in-Process Inventory on July 1 had materials assigned to them of $32,000,even though they were only 5% complete as to materials.No additional units were started during July,and there were no unfinished units on hand on July 31.What is the material cost per unit for July,assuming RST uses weighted-average process costing?

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. The unit cost of Product X started in the prior period and completed in the current period is:

Under which of the following conditions will the FIFO method produce the same cost of goods manufactured as the weighted-average method?

The weighted-average approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period.This is the basic concept of weighted-average.

The following examples briefly describe the manufacture of two different products.Which costing method (job-order or process)would be the best method to use for each project? I.Fred Puetz manufactures Fred's Wine Cooler.Fred once made the statement,"People can have any flavor of Fred's Wine Cooler they want as long it's boysenberry." II)Ahmad Aerondonetics is manufacturing three space shuttles for the country of Kricherra.Each shuttle is slightly different and production will last approximately two years.

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. The cost of the ending Work-in-Process Inventory is:

The WISCO Company uses a weighted-average process costing system.The following data are available: Total cost of the 4,000 units of the ending inventory:

Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry.The following information pertains to operations for November.(CMA Exam adapted) The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs.The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.Costs pertaining to November are as follows: Beginning inventory: direct materials,$54,560;direct labor,$20,320;manufacturing overhead,$15,240.Costs incurred during the month: direct materials,$468,000;direct labor,$182,880;manufacturing overhead,$391,160.What is the equivalent unit cost for materials assuming Kimbeth uses first-in,first-out (FIFO)process costing?

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. The cost of goods transferred to finished goods is:

The equivalent unit concept refers to the actual amount of work during the period stated in terms of the work required to complete an equal number of whole units.This is a definition of equivalent units.

The WISCO Company uses a weighted-average process costing system.The following data are available: Unit cost of material is:

In general,the ending Work-in-Process Inventory value computed using first-in,first-out (FIFO)will be the same as the ending value computed using weighted-average process costing.The two approaches will have different unit costs,so the costs assigned to ending WIP will differ.

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. What are the total costs to be accounted for on the production cost report for Department #2 for the period?

Which of the following statements regarding first-in,first-out (FIFO)process costing is (are)true? (A)First-in,first-out (FIFO)process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.(B)First-in,first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.

A form prepared periodically for each processing department summarizing (1)the units for which the department is accountable and the disposition of these units and (2)the costs charged to the department and the allocation of these costs is called a:

Hardouin Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 22,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $23,320.An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department.There were 18,000 units in the ending work-in-process inventory of the Welding Department that were 40% complete with respect to conversion costs.A total of $529,380 in conversion costs were incurred in the department during the month.What would be the cost per equivalent unit for conversion costs for the month? (Round to three decimal places. )

The number of units in the beginning Work-in-Process Inventory plus the units transferred out during the period equals the number of units started during the period plus the number of units in the ending Work-in-Process Inventory.Beginning WIP + started = Transferred out + Ending WIP

Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry.The following information pertains to operations for November.(CMA Exam adapted) The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs.The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.Costs pertaining to November are as follows: Beginning inventory: direct materials,$54,560;direct labor,$20,320;manufacturing overhead,$15,240.Costs incurred during the month: direct materials,$468,000;direct labor,$182,880;manufacturing overhead,$391,160.What are the total costs in the ending Work-in-Process Inventory assuming Kimbeth uses first-in,first-out (FIFO)process costing?