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Exam 6: Process Costing

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Question 31

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Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. -Refer to Figure 6-15. What are the equivalent units for materials?

A) 133,000
B) 100,000
C) 165,000
D) 125,000
E) none of the above

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Question 32

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Figure 6-6 Mannassass Company manufactures chairs. The following information was given for the company: Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. -Refer to Figure 6-6. What cost is assigned to ending work in process? a. $110,000 b. $126,000 c. $130,000 d. $114,000 e. none of the above

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Question 33

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FIFO follows the principle.

That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:

Figure 6-6 Mannassass Company manufactures chairs. The following information was given for the company: Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. -The two methods used to determine equivalent units of production are

Figure 6-4 The following information is available from the records of Diamond Cut, Inc.: -When conversion costs are uniform,

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000 -Refer to Figure 6-17. The equivalent units for conversion using weighted average is

Figure 6-17 Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000 -Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using FIFO would be

Figure 6-9 Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2016 are as follows: Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. -Layla Company began making mascara in November 2016 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

Figure 6-11 Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: -Refer to Figure 6-11. The cost of January's ending work in process for the Mixing Department using the FIFO method is

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. -Refer to Figure 6-19. Rounded to two decimal places, Mountainside's cost per equivalent units for transferred-in costs using weighted average would be

Figure 6-18 The Round Table Company makes carpenter's squares and uses a process costing system. There is no spoilage. Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are given below: Beginning inventory units Forming Finishing Packing (80% complete) 1,000 2,000 3,000 Units started 8,000 ? ? Ending inventory units (20% complete) 3,000 4,000 1,000 The Finishing Department adds materials at the point where processing is 50 percent complete. -Refer to Figure 6-18. The equivalent units for materials in the Finishing Department is Weighted Average FIFO E) none of the above

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. -Refer to Figure 6-19. Rounded to two decimal places, Mountainside's cost per equivalent unit for conversion using weighted average would be

Figure 6-21 Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. -Refer to Figure 6-21. What is Golden Ring Company's journal entry to record materials used in the Mixing Department for Work Order 10?

Figure 6-13 Wonder Paints Corporation's Mixing Department began August 2016 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed) . -The following information pertains to Mcintosh Company: Work-in-process inventory, February 1 (30% complete) 20,000 units Units transferred in 50,000 units Work-in-process inventory, February 29 (60% complete) 16,000 units Materials are added at the start of the process. How many equivalent units for materials would there be using the weighted average method?

Figure 6-1 The Allen Company has the following information for the Assembly Department for October 2016: -Refer to Figure 6-1. The journal entry to record materials purchased would include a

The documents used to collect production costs for each batch in operation costing are called .

Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in- process inventories.

Figure 6-20 Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were: Three types of cups were produced in April. The quantities and direct materials costs were: Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used. -Refer to Figure 6-20. What is Outrageous Cups' total cost per unit for Cups in April?

For the receiving department, transferred in goods are added at the of the process.