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Exam 4: Process Costing

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Question 161

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Sandven Corporation uses the direct method to allocate its two service department costs to its two operating departments. Data concerning those departments follow: Service Department A costs are allocated on the basis of allocation base A and Service Department B costs are allocated on the basis of allocation base B.Required:Allocate the service department costs to the operating departments using the direct method.

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Question 162

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

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Question 163

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Carver Corporation uses the first-in, first-out method in its process costing system. The Assembly Department started the month with 2,400 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 70,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9,400 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 of production for conversion costs in the Assembly Department for the month?

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,700 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 $10,500. During the period, 9,700 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $5.70 for material and $6.70 for conversion costs. The cost of units transferred out during the month was:

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,200 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $21,700. An additional 95,000 units were started into production during the month. There were 28,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $847,880 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:

Rondo Children's Clinic allocates service department costs to operating departments using the step-down method. The clinic has two service departments, Administration and Information Technology (IT) , and two operating departments, Prenatal and Pediatric. Data concerning those departments follow: Administration costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatric Department cost after allocations is closest to:

Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs 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: What are the equivalent units for conversion costs for the month in the first processing department?

Watts Corporation has a Custodial Services Department that services the company's Maintenance Department and its two operating departments. Costs of the Custodial Services Department are allocated to other departments on the basis of square feet of space occupied. The amount of space occupied by each department is given below: Budgeted costs in the Custodial Services Department total $43,200.Suppose the company uses the direct method of allocation. The amount of Custodial Services Department cost allocated to Operating Department 2 would be:

Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow: Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.The total Operating Department Y cost after allocations is closest to:

Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:1. Flour mill2. Dairy farm3. Electric utility4. Custom boat builder5. Management consulting firm6. Aluminum refiner that makes aluminum ingots from bauxite oreRequired:For each company, indicate whether the company is most likely to use job-order costing or process costing.

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 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?

Tabet Corporation uses the first-in, first-out method in its process costing system. Operating data for the Curing Department for the month of March appear below: According to the company's records, the conversion cost in beginning work in process inventory was $20,349 at the beginning of March. The cost per equivalent unit for conversion costs for March was $5.00. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations 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.How many units are in ending work in process inventory in the first processing department at the end of the month?

Gaba Corporation uses the first-in, first-out method in its process costing system. The Grinding Department started the month with 18,800 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 78,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 88,000 units were completed in the Grinding Department and transferred to the next processing department. There were 8,800 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month?

Lucas 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 conversion costs for the first department for the month is closest to:

Holling Incorporated uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December. Required:Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. (Round your answers to 2 decimal places.)

In February, one of the processing departments at Brandstetter Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $18,000. During the month, the cost of units transferred out from the department was $249,000. The company uses the first-in, first-out method in its process costing system.In the department's cost reconciliation report for February, the total cost accounted for would be:

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: