Exam 7: Process Costing

In the department's cost reconciliation report for September, the cost of units transferred out of the department would be:

Rariton Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Costs in an operation costing system are accumulated by:

Zhang Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $41,700 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $47,700 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $56,900 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $128,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $133,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $129,200 are sold. Required: Prepare journal entries for each of the transactions listed above.

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

The cost per equivalent unit for materials for the month in the first processing department is closest to:

What are the equivalent units for conversion costs for the month in the first processing department?

In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs.

Under the weighted-average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period.

In December, one of the processing departments at Weisz Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $14,000. During the month, the cost of units transferred out from the department was $244,000. Required: Construct a cost reconciliation report for the department for the month of December.

Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account?

Lagana Corporation uses process costing. The following data pertain to its Assembly Department for February. Required: Determine the equivalent units of production for the Assembly Department for February using the weighted-average method.

Pulo Corporation uses a weighted-average process costing system. The company has two processing departments. Production starts in the Assembly Department and is completed in the Finishing Department. The units completed and transferred out of the Assembly department during April will become the:

In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values.

Operation costing is a hybrid system that employs certain aspects of both job-order and process costing.

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

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

Harker Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $29,440. An additional 59,000 units were started into production during the month and 61,000 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 inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 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.)

What are the equivalent units for conversion costs for the month in the first processing department?

When materials are purchased in a process costing system, a materials account is debited with the cost of the materials.