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Exam 4: Process Costing

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Question 71

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Hutchcroft Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. During the month, 8,200 units were completed and transferred from the Assembly Department to the next department. Required:Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method. (Round your answers to 2 decimal places.)

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Question 72

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During August, the following transactions were recorded at Goyer Corporation. The company uses process costing.(1) Raw materials that cost $24,500 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials.(2) Direct labor costs of $29,000 are incurred, but not yet paid, in the Assembly Department.(3) Manufacturing overhead of $58,900 is applied in the Assembly Department using the department's predetermined overhead rate.(4) Units with a carrying cost of $101,200 finish processing in the Assembly Department and are transferred to the Painting Department for further processing.(5) Units with a carrying cost of $106,100 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse.(6) Finished goods with a carrying cost of $95,100 are sold.Required:Prepare journal entries for each of the transactions listed above.

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Question 73

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Intask Corporation uses the first-in, first-out method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:

All production costs have been steadily rising in the Donner Company for several periods. The company maintains large work in process inventories. Donner Company's cost per equivalent unit computed using the first-in, first-out method would be:

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of:

Activities in the Sargent Corporation's Assembly Department for the month of March follow: Using the first-in, first-out method, the equivalent units for materials for March would be:

Kurtulus 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 total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

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

Details of the manufacturing activity in Amy Corporation's Assembly Department for the month of December is given below: All materials are added at the beginning of processing in the Assembly Department.The equivalent units for labor and overhead for the month, using the weighted-average method, is:

Ibarra Corporation uses the first-in, first-out method in its process costing system. The first processing department, the Forming Department, started the month with 16,100 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $20,250. An additional 98,000 units were started into production during the month and 101,000 units were completed and transferred to the next processing department. There were 13,100 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $594,123 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

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.The total Corporate Law Department cost after allocations is closest to:

Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October: All materials at Bettie are added at the beginning of the production process.What total amount of cost should be assigned to the units in work in process on October 31?

Janner Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: What were the equivalent units for conversion costs in the Painting Department for April?

In the cost reconciliation report under the first-in, first-out method, the costs to be accounted for equals the cost of ending work in process inventory plus the costs added during the period.

Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,000 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $36,000. During the month, 40,000 units were transferred out. The equivalent unit cost was computed to be $2.50 for materials and $3.00 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:

The direct method is used by Kurpinski Clinic to allocate its service department costs to its operating departments. Data concerning those departments follow: Information Technology costs are allocated on the basis of computers and Personnel costs are allocated on the basis of employees. Required: Allocate the service department costs to the operating departments using the direct method.

When comparing the two process costing methods for the same company, equivalent units computed under the first-in, first-out method will always be less than or equal to equivalent units computed under the weighted-average method.

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production.In the department's cost reconciliation report for August, the total cost to be accounted for would be:

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: What was the cost per equivalent unit for conversion during the month?

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