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Exam 4: Process Costing

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Question 21

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In June,one of the processing departments at Sorto Corporation had beginning work in process inventory of $30,000.During the month,$345,000 of costs were added to production and the cost of units transferred out from the department was $346,000. Required: Construct a cost reconciliation report for the department for the month of June.

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Question 22

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When computing the cost per equivalent unit,the weighted-average method of process costing considers:

A) costs incurred during the current period only.
B) costs incurred during the current period plus cost of ending work in process inventory.
C) costs incurred during the current period plus cost of beginning work in process inventory.
D) costs incurred during the current period less cost of beginning work in process inventory.

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

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Question 23

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

Hache Corporation uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 17,000 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 $7,480.An additional 89,000 units were started into production during the month and 92,000 units were completed in the Welding Department and transferred to the next processing department.There were 14,000 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs.A total of $202,400 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:

Walker Enterprises,Inc.,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?

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. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -The cost per equivalent unit for materials for the month in the first processing department is closest to:

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: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,400 units were started and 7,500 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 70% complete with respect to materials and 60% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Lap Corporation uses the weighted-average method in its process costing system.The beginning work in process inventory in a particular department consisted of 80,000 units,100% complete with respect to materials and 25% complete with respect to conversion costs.The total dollar value of this inventory was $226,000.During the month,150,000 units were transferred out of the department.The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs.The cost of the units completed and transferred out of the department was:

Miller Corporation manufactures a product for which materials are added at the beginning of the manufacturing process.A review of the company's inventory and cost records for the most recently completed year revealed the following information: The company uses the weighted-average cost method in its process costing system.The ending inventory is 50% complete with respect to conversion costs. Required: a.Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b.Determine the cost transferred to finished goods. c.Determine the amount of cost that should be assigned to the ending work in process inventory.

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?

The following data have been provided by Cutts Corporation,which uses the weighted-average method in its process costing.The data are for the company's Shaping Department for October. Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method.

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 6,000 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:

In April,one of the processing departments at Terada Corporation had beginning work in process inventory of $21,000 and ending work in process inventory of $27,000.During the month,$244,000 of costs were added to production and the cost of units transferred out from the department was $238,000.In the department's cost reconciliation report for April,the total cost to be accounted for under the weighted-average method would be:

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,400 units were started and 7,500 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 70% complete with respect to materials and 60% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -How many units are in ending work in process inventory in the first processing department at the end of the month?

In July,one of the processing departments at Junkin Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $19,000.During the month,$193,000 of costs were added to production and the cost of units transferred out from the department was $191,000. Required: Construct a cost reconciliation report for the department for the month of July.

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:

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

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,500 units were started and 7,400 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. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. -What are the equivalent units for materials for the month in the first processing department?

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.