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Exam 4: Process Costing

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Question 71

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

A) $304,000
B) $332,835
C) $270,706
D) $287,100

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

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Question 72

Multiple Choice

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In process costing,a separate work in process account is kept for each:

A) individual order.
B) equivalent unit.
C) processing department.
D) cost category (i.e., materials, conversion cost) .

E) A) and B)
F) A) and C)

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Question 73

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In process costing,the equivalent units computed for materials is generally the same as that computed for conversion costs.

Anders Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month. Required: a.Determine the equivalent units of production. b.Determine the costs per equivalent unit. c.Determine the cost of ending work in process inventory. d.Determine the cost of the units transferred to the next department.

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.

Saada Corporation uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March. The Fitting Department's cost per equivalent unit for conversion cost for March was $5.99. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department.The finished cases of cola are then transferred to Finished Goods Inventory.The following information relates to the company's two departments for the month of January: How many cases of cola were completed and transferred to Finished Goods Inventory during January?

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 per equivalent unit for conversion costs for the first department for the month is closest to:

A process costing system is employed in those situations where:

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

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: 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 three decimal places. -The cost per equivalent unit for materials for the month in the first processing department is closest to:

Mundes Corporation uses the weighted-average method in its process costing system.The beginning work in process inventory in its Painting Department consisted of 2,000 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 $8,800.During the period,8,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $4.00 for material and $5.00 for conversion costs.The cost of units transferred out during the month was:

The Richmond Corporation uses the weighted-average method in its process costing system.The company has only a single processing department.The company's ending work in process inventory on August 31 consisted of 18,000 units.The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead.If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead,the total cost assigned to the ending work in process inventory was:

Domingo 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 6,800 units were started and 6,100 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 75% 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 conversion costs for the month in the first processing department?

When all materials are added at the beginning of the production process,under a weighted-average process costing system the equivalent units for materials is equal to the units completed and transferred out.

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs.Under the weighted-average method,the number of equivalent units of production with respect to conversion costs 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. -What are the equivalent units for conversion costs for the month in the first processing department?

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.