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Exam 5: Process Costing6 Cost-Volume-Profit Relationships

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Question 71

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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) None of the above

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Question 72

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A process costing system is employed in those situations where:

A) many different products, jobs, or batches of production are being produced each period.
B) where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
C) a service is performed such as in a law firm or an accounting firm.
D) full or absorption cost approach is not employed.

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

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Question 73

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

Under the weighted-average method, the cost of ending work in process inventory is determined by dividing the equivalent units of production for ending inventory by the cost per equivalent unit for each cost category and then summing the result.

What account would Kota debit to record the transfer of dolls out of the Molding Department?

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

How many units were started into production during February?

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

Mundes Corporation uses the weighted-average method in its process costing system.The beginning work in process inventory in its Painting Department consisted of 2,000 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs.The cost of the beginning work in process inventory in the department was recorded as $8,800.During the period, 8,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $4.00 for material and $5.00 for conversion costs.The cost of units transferred out during the month was:

When all materials are added at the beginning of the production process, under a weighted-average process costing system the equivalent units for materials is equal to the units completed and transferred out.

The following data were taken from the accounting records of the Mixing Department of Kappa Corporation which uses the weighted-average method in its process costing system: The cost of units transferred out was:

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

Bims Corporation uses the weighted-average method in its process costing system.The Assembly Department started the month with 2,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs.An additional 61,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 18,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

All of the following statements are correct when referring to process costing except:

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

In process costing, the equivalent units computed for materials is generally the same as that computed for conversion costs.

A number of companies in different industries are listed below: 1.Electric utility 2.Frozen orange juice processor 3.Specialty coffee roaster (roasts small batches of specialty coffee beans) 4.Natural gas production company 5.Commercial photographer 6.Contract oil drilling company Required: For each company, indicate whether the company is most likely to use job-order costing or process costing.

Bayas Corporation uses process costing.A number of transactions that occurred in June are listed below. Required: Prepare journal entries for each of the transactions listed above.

Poirrier 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.