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Exam 3: Process Costing

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Question 51

Multiple Choice

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To determine how much cost should be transferred out of Work in Process Inventory:

A) multiply costs per equivalent unit by the number of equivalent units associated with units completed.
B) multiply costs per equivalent unit by the number of equivalent units associated with ending inventory.
C) subtract cost of beginning inventory from current period costs.
D) add cost of beginning inventory and current period costs.

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

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Question 52

Multiple Choice

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Bildy Corp.uses a process costing system.During January,14,000 units were started,and 18,000 units were completed.On January 31,the inventory consisted of 500 units that were 70% completed.How many units were in beginning inventory on January 1?

A) 0
B) 500
C) 3,500
D) 4,500

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

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Question 53

Multiple Choice

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Heathcoat Co.uses process costing to account for the production of canned vegetables.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.On April 1,there were 2,000 units in beginning inventory (80% complete) .During April 10,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,40% for conversion) .The cost per equivalent unit for materials using the FIFO method would be closest to:

How is the ending balance in Work in Process Inventory calculated for a firm that uses the weighted average method of process costing?

Rathburn,Inc.is a service firm that uses process costing.The firm worked on a total of 1,000 cases this month,800 of which were completed during the period.The remaining cases were 40% complete.The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period,and had $4,800 in direct labor and manufacturing costs in beginning inventory.Using the weighted average method,what was the total cost of cases still in process at the end of the period?

Nettle Co.uses process costing to account for the production of rubber balls.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The cost per unit for conversion costs using the FIFO method would be:

Kramer Corp.began the current period with 4,000 units in process that were 100% complete as to materials and 60% complete as to conversion.Costs of $7,500 in direct materials and $4,700 in conversion costs were incurred in manufacturing those units in the previous period.Kramer ended the current period with 20,000 units completed and 5,000 units still in process.Work in process was 100% complete as to materials and 70% complete as to conversion costs.Kramer incurred $67,500 in direct materials costs,$7,000 in direct labor costs,and $40,000 in manufacturing overhead costs during the period. Required: Using the weighted average method,compute the following: a.Equivalent units of production for materials. b.Equivalent units of production for conversion. c.Cost per equivalent unit for materials. d.Cost per equivalent unit for conversion.

Sierra Co.has provided the following information: Using the FIFO method of process costing,complete each of the following: a.How many units were completed and transferred to Finished Goods? b.Calculate equivalent units. c.Calculate cost per equivalent unit. d.What is the dollar amount transferred to Finished Goods? e.Calculate the cost of the ending Work in Process.

Ridgeway Co.has provided the following information: Using the weighted average method of process costing,complete each of the following: a.How many units were completed and transferred to Finished Goods? b.Calculate equivalent units. c.Calculate cost per equivalent unit.Round your answers to four decimal places. d.What is the dollar amount transferred to Finished Goods? Round your answer to a whole dollar amount. e.Calculate the cost of the ending Work in Process.Round your answer to a whole dollar amount.

Tripper Corp.uses a FIFO process costing system.Beginning inventory for January consisted of 1,000 units that were 60% completed.10,000 units were started into the process during January.During January,9,500 units were started and completed.How many units were in ending inventory on January 31?

Under the weighted average method of process costing,the cost per equivalent unit is calculated for which of the following categories?

Braden Corp.uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 60% completed.13,000 units were started into the process during January.During January,12,000 units were completed.How many units were in ending inventory on January 31?

Sanger Corp.uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,000 units that were 40% completed.10,000 units were started into the process during January.On January 31,the inventory consisted of 500 units that were 70% completed.What would be the equivalent units for conversion cost using the FIFO method?

The journal entry to record the issuance of direct material into production includes:

Macadam Corp.uses the weighted average method of process costing.Its cost per equivalent unit for direct materials was $5.00 this period,and it had 25,000 equivalent units for direct materials.Beginning inventory costs were 25% of current costs.How much were current costs?

Hamilton,Inc.manufactures units in two processes: Production and Finishing.All direct materials are added at the beginning of the Production process,while conversion costs are incurred evenly throughout the period for both Production and Finishing.Hamilton employs three inspectors: Kasey,Chad,and Lexi.Kasey inspects direct materials before they are added to Production (two pieces of direct materials per unit).Chad inspects units when the Production process is finished,after which they are immediately transferred to Finishing.Lexi inspects units at the end of the Finishing process.This period,none of the materials or units failed inspection.At the beginning of the period,5,000 units had only "Inspected by Kasey" tags on them (these units were 70% complete),and 2,000 units had "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 60% complete).At the end of the period,7,000 units had only "Inspected by Kasey" tags on them (these units were 50% complete).1,000 units had only "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 90% complete),and 19,000 units had tags from all three inspectors on them (these units were 100% complete). Required: Determine the number of physical units using the weighted average method: a.in beginning Work in Process in Production during the period. b.started in Production during the period. c.transferred from Production to Finishing during the period. d.in ending Work in Process in Production during the period. e.in beginning Work in Process in Finishing during the period. f.in ending Work in Process in Finishing during the period. g.completed in Finishing during the period. Determine the number of equivalent units h.for direct materials for Production i.for conversion for Production j.for direct materials for Finishing k.for conversion for Finishing

Gatlin Manufacturing adds direct materials at the beginning of the production process,while conversion costs are incurred uniformly throughout the process.At the end of the period,equivalent units for direct materials were 250 more than equivalent units for conversion costs.1,000 units were started during the period,and 1,000 units were also completed.Ending Work in Process Inventory was 50% complete.How many physical units were in ending Work in Process Inventory?

Frost,Inc.is a service firm that uses process costing.The firm worked on a total of 1,600 cases this month,800 of which were completed during the period.The remaining cases were 40% complete.The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period,and had $4,800 in direct labor and manufacturing costs in beginning inventory.Using the weighted average method,what was the total number of equivalent units?

Hamilton,Inc.manufactures units in two processes: Production and Finishing.All direct materials are added at the beginning of the Production process,while conversion costs are incurred evenly throughout the period for both Production and Finishing.Hamilton employs three inspectors: Kelsey,Chad,and Lexi.Kelsey inspects direct materials before they are added to Production (two pieces of direct materials per unit).Chad inspects units when the Production process is finished,after which they are immediately transferred to Finishing.Lexi inspects units at the end of the Finishing process.During the current period,none of the materials or units failed inspection.At the beginning of the period,5,000 units had only "Inspected by Kelsey" tags on them (these units were 70% complete),and 2,000 units had "Inspected by Kelsey" and "Inspected by Chad" tags on them (these units were 60% complete).At the end of the period,7,000 units had only "Inspected by Kelsey" tags on them (these units were 50% complete).1,000 units had only "Inspected by Kelsey" and "Inspected by Chad" tags on them (these units were 90% complete),and 19,000 units had tags from all three inspectors on them (these units were 100% complete). Required: Determine the number of physical units: a.in beginning Work in Process in Production during the period. b.started in Production during the period. c.transferred from Production to Finishing during the period. d.in ending Work in Process in Production during the period. e.in beginning Work in Process in Finishing during the period. f.in ending Work in Process in Finishing during the period. g.completed in Finishing during the period.

Livingston Co.uses process costing to account for the production of elastic bands.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.During April 8,000 units were completed.Ending work in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The equivalent cost per unit for materials using the weighted average method would be closest to: