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Exam 4: Process Costing

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Question 151

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Dorman Music Corporation manufactures guitars and uses a first-in, first-out process costing system. The following information relates to September production: The amount of conversion cost that should be assigned to the guitars in work in process on September 30 is closest to:

A) $48,600
B) $874,400
C) $842,400
D) $48,000

E) A) and B)
F) All of the above

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Question 152

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Anders Incorporated 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.

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Question 153

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The information below was obtained from the records of one of the departments of Cushing Corporation for the month of August. The company uses the first-in, first-out method in its process costing system. All materials are added at the beginning of the process.The equivalent units for materials for the month of August are:

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.

San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. SJM does not distinguish between variable and fixed overhead costs.Assuming that SJM allocates service department costs using the direct method, the total cost allocated from Cafeteria to Mining would be closest to:

Reddicks 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 Pediatrics. 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 Pediatrics 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.The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

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.

Laurant Corporation uses the first-in, first-out method in its process costing system. Department A is the first stage of the company's production process. The following information is available for conversion costs for the month of May for Department A: The equivalent units of production for conversion costs for the month is closest to:

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

Activity in Saggers Corporation's Assembly Department for the month of March follows: The equivalent units for materials for March, using the weighted-average method, are:

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:

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: The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Poirrier Corporation uses process costing. The following data pertain to its Assembly Department for February. Required:Determine the equivalent units of production for the Assembly Department for February using the weighted-average method.

Lucas Corporation uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows: What was the materials cost of work in process at October 31?

Under the first-in, first-out method, in addition to the cost of units started and completed during the period, the cost of the units transferred out of the department includes:

Vitro Corporation has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. The company uses the step-down method to allocate service department costs to operating departments. 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.Required:Allocate the service department costs to the operating departments using the step-down method.

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: The cost per equivalent unit for conversion costs for the first department for the month 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:

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