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Exam 3: Process Costing

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Question 41

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In process costing, a transferred-in cost is handled in the same manner as a material cost added at the beginning of the process.

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Question 42

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Hair Shine Company produces Shine Bright shampoo and uses a process costing system.Conversion costs are added evenly throughout the production process.Materials are added at the beginning of the process.The following information is available for March for the Mixing Department: $\begin{array}{lr}\text { Units in process, March } 1 \text { ( } 40 \% \text { complete }) & 200 \\\text { Units started in March } & 1,000 \\\text { Units in process, March } 31 \text { (80\% complete) } & 250\\\text { Conversion costs in Work in Process, March } 1 \text { : }\\\text { Labor } & 38,000 \\\text { Overhead } & 8,000 \\\text { Labor costs during March }(5,100 \text { hours) } & 102,780 \\\text { Overhead applied during March } & 49,020\end{array}$ What is the cost per equivalent unit for conversion costs in March?

A) $132.00
B) $164.82
C) $172.00
D) $367.25

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Question 43

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In the manufacturing operations of a company using process costing, a product must typically pass through two or more departments.

Transferred-in costs are the costs of the direct materials that are transferred into the company when materials are purchased from a supplier.

Which one of the following is true of the manufacturing operations of a company using process costing?

How are equivalent units calculated in a process costing system?

Mickler Productions uses process costing.Its Mixing Department incurred conversion costs of $650,820 during January, and had a beginning Work in Process inventory of $30,430 for conversion costs.54,000 units were transferred out of the department, and the ending inventory consisted of 2,500 units that are 20% complete with respect to conversion costs.What is the conversion cost per equivalent unit during January?

Wilson Inc.uses process costing.Its Sanitizing Department had no beginning Work in Process inventory, though it added materials of $120,000 and conversion costs totaling $160,000 during May.Materials are added at the beginning of the process and conversion costs are added evenly throughout the process.During May, 75,000 units were completed.The May 31 Work in Process inventory balance consisted of 25,000 units that were 20% complete.What is the cost of the ending Work in Process inventory for May?

The number of units to account for is calculated as:

Heinz Bottling Company produces various glass and plastic containers and uses a process costing system.The following information relates to production in the Formulating Department during January for the company's 2-quart size glass jars: -Beginning Work in Process inventory: 4,500 units, 85% complete as to conversion costs -Beginning Work in Process inventory-cost of direct materials, $18,000 -Beginning Work in Process inventory-costs of conversion, $14,000 -Number of jars started in January: 270,000 units -Ending Work in Process inventory: 2,000 units, 35% complete as to conversion -Direct materials added during January: $78,075 -Conversion costs incurred during January: $40,700 Direct materials are added at the beginning of the Formulating process, and conversion costs are incurred uniformly throughout production.How much is the total cost accounted for during January for the Forming Department?

In which of the following industries are companies least likely to use a process costing system?

If beginning Work in Process inventory in the Assembly Department consists of 2,200 units, ending inventory is 1,400 units, and 17,000 units were started during the period, how many units were completed and transferred out of the Assembly Department?

Assuming no units are lost, the number of "units accounted for" should be the same as

The Packaging Department is the final processing department in Hector Manufacturing, which uses process costing.During March, 5,100 units were transferred into the Packaging Department from the Finishing Department and 4,700 units were transferred out to Finished Goods.There were 900 units in ending inventory in the Packaging Department.How many equivalent units are used to calculate the cost per equivalent unit for transferred-in costs in the Packaging Department?

If materials are entered into a production process at the beginning of the process, the number Of units accounted for is

Hanover Glassware produces crystal serve ware and uses process costing.At the start of May, 2,300 units were in process.During May, 11,000 units were completed and 2,000 units were in process at the end of May.These units in process were 80% complete with respect to material and 30% complete with respect to conversion costs.Other information is as follows: $\begin{array}{l}\text { Work in process, May } 1:\\\text { Direct material } & \$ 28,800 \\\text { Conversion costs } & 48,000\\\text { Costs incurred during May: }\\\text { Direct material } & \$ 198,000 \\\text { Conversion costs } & 242,000\end{array}$ Calculate the cost per equivalent unit for conversion costs during May.

HTC Calculators uses process costing.At the beginning June, there were 1,100 units in Process, 70% complete with respect to material and 60% complete with respect to conversion costs.During June, 24,000 units were started and 23,600 units were completed.The units in ending Work in Process inventory were 90% complete with respect to material and 30% complete with respect to conversion costs.How many equivalent units will be used in calculating the cost per unit for materials during June?

America Productions uses a process costing system.Its Belting Department's Work in Process inventory account at March 31 consists of 7,000 units that are 100% complete with respect to materials and 70% complete with respect to conversion costs.If the total conversion cost in the Work in Process inventory account is $552,000 at March 31 and the cost per equivalent unit for conversion costs is $6.00, how many units were completed and transferred out during March?

Material is generally added evenly throughout the production process.

Sullivan Company uses process costing.Its Sewing Department had an equivalent cost per unit for direct materials of $0.75 and for conversion costs of $0.50 during May.There were 20,000 units completed and transferred to Finished Goods, and 8,000 units in ending Work in Process inventory that were 100% complete with respect to direct material and 75% complete with respect to conversion costs.What was the amount transferred to Finished Goods during May?