Exam 4: Costvolumeprofit Cvp Analysis

The job cost sheet is used in both job-order and process costing.

Norfolk Engineering uses the weighted-average method in its process costing system. This month, the beginning stock in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning stock were: Percent cost complete Materials costs £12,000 65\% Conversion costs £2,000 10\% A total of 9,200 units were started and 8,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs ............ £200,800 Conversion costs ......... £225,500 The ending stock was 75% complete with respect to materials and 15% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -The cost per equivalent unit for materials for the month in the first processing department is closest to:

Leeds Electronics uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month is listed below: -Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for materials for the month in the first processing department is closest to:

If a production process is set up in a parallel manner, all units will be processed through all production centers

The equivalent units in the ending work in process stock will be the same under both the FIFO and the weighted-average methods of process costing.

Hache Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process stock that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process stock was £7,480. An additional 89,000 units were started into production during the month and 92,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process stock of the Welding Department that were 90% complete with respect to conversion costs. A total of £202,400 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 off to three decimal places.)