Exam 7: Process Costing

Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs.

Sarver Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. The Fitting Department's cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

Sydnor Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing. During the month, 7,000 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method.

Health Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Health's two departments for the month of January: How many cases of cola were completed and transferred to Finished Goods Inventory during January?

The total cost transferred from the first processing department to the next processing department during the month is closest to:

Gupta Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December. Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December.

How many units are in ending work in process inventory in the first processing department at the end of the month?

How many units were completed and transferred to the next department during the month?

The "costs to be accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the costs added during the period.

Carver Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

In July, one of the processing departments at Gulbranson Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $18,000. During the month, $165,000 of costs were added to production and the cost of units transferred out from the department was $161,000. Required: Construct a cost reconciliation report for the department for the month of July.

Oleksy Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. During the month, 4,900 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method.

What are the Blending Department's equivalent units related to conversion costs for May?

Which of the following journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing departments, department A and department B?

In the department's cost reconciliation report for December, the total cost accounted for would be:

Both job-order and process costing systems use averaging to compute unit product costs.

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was:

In February, one of the processing departments at Manger Corporation had beginning work in process inventory of $25,000 and ending work in process inventory of $34,000. During the month, $290,000 of costs were added to production and the cost of units transferred out from the department was $281,000. In the department's cost reconciliation report for February, the total cost to be accounted for under the weighted-average method would be:

Able Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work in process inventory. d. Determine the cost of the units transferred to the next department.

For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system?