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Exam 4: Process Costing

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Question 81

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The Werner Corporation uses the weighted-average method in its process costing system. The company recorded 24,400 equivalent units for conversion costs for November in a particular department. There were 4,000 units in the ending work in process inventory on November 30 which were 60% complete with respect to conversion costs. The November 1 work in process inventory consisted of 5,000 units which were 40% complete with respect to conversion costs. A total of 22,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

A) 22,000 units
B) 17,000 units
C) 26,000 units
D) 21,000 units

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

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Question 82

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Malmedy Corporation uses the first-in, first-out method in its process costing system. The following data pertain to operations in the first processing department for a recent month: How many units were in the beginning work in process inventory?

A) 600 units
B) 1,000 units
C) 800 units
D) 1,400 units

E) A) and B)
F) None of the above

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Question 83

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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 conversion costs for July?

Zubris Corporation uses the first-in, first-out method in its process costing. The following data concern the company's Assembly Department for the month of January. Required:Compute the costs per equivalent unit for the Assembly Department for January using the first-in, first-out method.

Alpha Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow: Required: a. Prepare a schedule to allocate service department costs to the production departments by the direct method. b. Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first.

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 18,000 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 $52,200. An additional 55,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $284,160 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to:

Muckenfuss Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Information Technology (IT) , and two operating departments, Family Medicine and Geriatric Medicine. 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 Geriatric Medicine Department cost after allocations is closest to:

In December, one of the processing departments at Bonine Corporation had ending work in process inventory of $32,000. During the month, $264,000 of costs were added to production and the cost of units transferred out from the department was $257,000. The company uses the first-in, first-out method in its process costing system.Required:Construct a cost reconciliation report for the department for the month of December.

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

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

A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing.

Lenning Corporation uses the first-in, first-out method in its process costing. The following data pertain to its Assembly Department for August. Required:Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the first-in, first-out method.

DaostaIncorporated uses the first-in, first-out method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required:Using the first-in, first-out method:a. Determine the equivalent units of production for materials and conversion costs.b. Determine the cost per equivalent unit for materials and conversion costs.c. Determine the cost of ending work in process inventory.d. Determine the cost of units transferred out of the department during the month.

Muckenfuss Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Information Technology (IT) , and two operating departments, Family Medicine and Geriatric Medicine. 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 Medicine Department is closest to:

Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.The total Surgery Department cost after service department allocations is closest to:

The order in which the costs of service departments are allocated will affect the amounts allocated to an operating department when the direct method is used.

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 materials for January?

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,800 units were started and 7,100 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 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?

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

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