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Exam 4: Process Costing

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Question 91

Multiple Choice

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Normand 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 cost per equivalent unit for conversion costs for the first department for the month is closest to:

A) $45.66
B) $52.86
C) $47.94
D) $48.14

E) All of the above
F) A) and D)

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Question 92

Multiple Choice

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Fabert Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 65,000 units were completed in the Assembly Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

A) 65,000
B) 70,500
C) 64,100
D) 55,000

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

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Question 93

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Jublot 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 conversion costs for the first department for the month is closest to:

Under the first-in, first-out method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period.

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 $34,558 and a total of $559,254 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:

Annenbaum 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 6,500 units were started and 5,900 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 of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Onyemah Corporation uses the first-in, first-out method in its process costing system. Operating data for the Brazing Department for the month of November appear below: What were the equivalent units of production for conversion costs in the Brazing Department for November?

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,500 units. The costs and percentage completion of these units in beginning inventory were: A total of 10,650 units were started and 9,000 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 70% 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?

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

Lucas 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 of ending work in process inventory in the first processing department according to the company's cost system is closest to:

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,800 and ending work in process inventory of $13,800. During the month, $291,000 of costs were added to production.In the department's cost reconciliation report for August, the total cost to be accounted for would be:

Owens Corporation uses a process costing system. For March, the beginning work in process inventory consisted of 60,000 units that were 60% complete with respect to processing. The ending work in process inventory for the month consisted of units that were 20% complete with respect to processing. A summary of unit and cost data for the month follows: Assuming that Owens Corporation uses the first-in, first-out method, which of the following is closest to the cost per equivalent unit for processing cost for March?

Sumter Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: How much cost, in total, was assigned to the units transferred out to the next department during the month?

Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect costs in both departments.On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost.What are the Molding Department's equivalent units related to conversion costs for January?

Walker Enterprises, Incorporated, uses a job-order costing system and sets a predetermined overhead rate at the beginning of each year based on estimated manufacturing overhead costs and estimated direct labor-hours for the upcoming year. Required:If the company sets its prices to cover actual direct materials costs, actual direct labor costs, and applied manufacturing overhead costs, will the company at least avoid a loss during the year?

Under the step-down method of cost allocation, the service department that provides the least amount of service to the other departments should be allocated first.

In May, one of the processing departments at Messerli Corporation had beginning work in process inventory of $18,000 and ending work in process inventory of $39,000. During the month, $152,000 of costs were added to production and the cost of units transferred out from the department was $131,000. The company uses the first-in, first-out method in its process costing system. In the department's cost reconciliation report for May, the total cost to be accounted for would be:

Marston Corporation uses the first-in, first-out method in its process costing system. The equivalent units of production for March for conversion costs totaled 37,500 units. The beginning work in process inventory in March consisted of 15,000 units, 60% complete with respect to conversion costs. The ending work in process inventory in March consisted of 10,000 units, 75% complete with respect to conversion costs. The number of units started during the month was:

The direct method is used by Marrero Publishing, Incorporated, to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Prepress and Printing. Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to:

The step-down method ultimately results in less total cost being allocated to operating departments than the direct method.