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Exam 4: Process Costing

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Question 171

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Roger Corporation uses the first-in, first-out method in its process costing system. The following data are taken from the accounting records of a particular department for June: The cost of the 75,000 units transferred out of the department during June is closest to:

A) $302,500
B) $263,000
C) $335,500
D) $337,500

E) A) and B)
F) B) and D)

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Question 172

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Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 70 canoes and transferred them to the Waterproofing Department.What are the Fabrication Department's equivalent units of production related to materials for July?

A) 78
B) 62
C) 100
D) 90

E) A) and D)
F) A) and C)

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Question 173

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Paceheco 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 accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $34,958 and a total of $559,654 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

Steven Corporation uses the first-in, first-out method in its process costing system. The following data were taken from the accounting records of a particular department for last month: The cost of units transferred out of the department during the month is:

Eban Corporation uses the first-in, first-out method in its process costing system. The first processing department, the Welding Department, started the month with 24,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $72,200. An additional 75,000 units were started into production during the month. There were 20,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $324,160 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to:

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.The cost per equivalent unit for materials for the month in the first processing department is closest to:

When computing the cost per equivalent unit, it is necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

Tript Corporation has a process costing system and uses the weighted-average method. The company had 3,000 units in work in process on February 1 that were 60% complete with respect to conversion costs. During the month, 10,000 units were completed. At the end of the month, 4,000 units remained in work in process that were 40% complete with respect to conversion costs. Materials are added at the beginning of the process.The equivalent units for February for conversion costs were:

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: The cost per equivalent unit for materials for the month in the first processing department is closest to:

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.The cost per equivalent unit for materials for the month in the first processing department is closest to:

Billings Corporation uses the first-in, first-out method in its process costing system. On July 1, Department A had 10,000 units in process that were 80% complete with respect to conversion. On July 31 the department had 8,000 units in process that were 60% complete with respect to conversion. The department transferred 40,000 units out during the month, of which 10,000 units came from the beginning work in process inventory, and 30,000 units were started and completed during the month. All materials are added at the beginning of the process in Department A. What are the equivalent units of production for the month for materials and conversion, respectively?

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: A total of 6,800 units were started and 6,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.How many units are in ending work in process inventory in the first processing department at the end of the month?

Claus Corporation manufactures a single product and uses process costing. As of the beginning of January, the company successfully implemented lean production. As a result, no work in process inventories were on hand at the end of January, as indicated by the data below: Required:a. Assume the company uses the weighted-average method. Compute the equivalent units of production for January.b. Assume that the company uses the first-in, first-out method. Compute the equivalent units of production for January.c. If the company starts 450,000 units into production during the following month (February) has no ending work in process inventory in that month, what would be the equivalent units of production under the weighted-average method? The first-in, first-out method?

Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow: Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.In the first step of the allocation, the amount of Service Department A cost allocated to the Operating Department X is closest to:

Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round equivalent units to the nearest whole number and round all other intermediate calculations to 3 decimal places.)

Tabet Corporation uses the first-in, first-out method in its process costing system. Operating data for the Curing Department for the month of March appear below: According to the company's records, the conversion cost in beginning work in process inventory was $21,849 at the beginning of March. The cost per equivalent unit for conversion costs for March was $6.50. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

Marlow Corporation uses the first-in, first-out method in its process costing system. Department A's beginning work in process inventory consisted of 12,000 units, 100% complete with respect to materials and 60% complete with respect to conversion costs. The total cost of this inventory was $76,400. A total of 25,000 units were transferred out during the month. The costs per equivalent unit were computed to be $3.40 for materials and $4.70 for conversion costs. The cost of the units completed and transferred out was closest to:

In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $31,000 and ending work in process inventory of $36,000. During the month, the cost of units transferred out from the department was $166,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:

Blondell Legal Services, Limited Liability Company, uses the step-down method to allocate service department costs to operating departments. The firm has two service departments, Personnel and Information Technology (IT) , and two operating departments, Family Law and Corporate Law. Data concerning those departments follow: Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs.In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Law Department is closest to:

The equivalent units in beginning work in process inventory plus the equivalent units in ending work in process inventory equals the units transferred out plus the equivalent units for the work done during the period.