Exam 5: Process Costing and Operation Costing

Raphael's Refining uses a FIFO process costing system.For a particular period,its opening inventory consisted of 100 items (60 per cent complete as to conversion costs)whose costs were $1600 made up of material $300 and conversion cost $1300.During the month,1000 items were started and 950 were completed.Ending inventory of WIP was complete.There was no spoilage.Costs placed in process during the month were materials $1785 and conversion costs $13 865.Materials are added at the halfway point.What is the amount of cost that would be allocated to goods completed in the period?

Heara Ltd manufactures metal sheets,and uses the weighted average method process costing.On 1 May the Rolling Department had 3000 units work in progress,which were 50 per cent completed as to conversion costs.During May 8000 units were completed and transferred out.The remaining work in progress on 30 May was 2000 units,at 50 per cent complete in terms of conversion rate.What is the equivalent unit of conversion?

Which of the following firms are more likely to use operational costing techniques? i.Oil refineries ii.Food processors iii.Large scale clothing manufacturers iv.Tourist operators

Equivalent unit calculations are necessary to allocate manufacturing costs between:

Softcloth Textile Pty Ltd manufactures a variety of fabrics.The Weaving Department had 1000 units in work in process on April 1,which were 20 per cent complete as to conversion costs.During April,8000 units were completed and transferred.On April 30,4000 units remained in work in process 50 per cent complete as to conversion costs.Using the weighted average method process costing,calculate the equivalent units of conversion for the month of April.

Abnormal spoilage costs assist management to:

Which of the following inventory valuation method/s is/are less suited to cost control?

For a firm,which produces its product through two processes,the costs transferred into Process 2 from Process 1 can be described as:

South River Chemicals Pty Ltd manufactures a product called Zybek.Direct materials are added at the end of the process and conversion activity occurs uniformly throughout the process.The following data pertain to the month of May.Using the weighted average method of process costing,calculate the equivalent units of direct materials and conversion costs for the month of May.

Which of the following statement/s is/are true?

Costs are accumulated by a responsibility centre for control purposes when using: Job order costing Process costing

South River Chemicals Pty Ltd manufactures a product called Zybek.Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout the process.The following data pertain to the month of May.Using the weighted average method of process costing,calculate the equivalent units of direct materials and conversion costs for the month of May.

Conversion costs are generally added at specific points throughout a process.