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Exam 7: Process Costing

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Question 61

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Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

A) 94,700
B) 101,900
C) 98,000
D) 92,000

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

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Question 62

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The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out.

A) True
B) False

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Question 63

Multiple Choice

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

The cost per equivalent unit for materials for the month in the first processing department is closest to:

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

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

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Paxton Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.)

What are the equivalent units for materials for the month in the first processing department?

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added to production during the period.

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

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

The units in beginning work in process inventory plus the units in ending work in process inventory must equal the units transferred out of the department plus the units started into production.

In May, one of the processing departments at Stitzel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be:

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

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

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

The cost per equivalent unit for conversion costs for the first department for the month 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. Contract printer that produces posters, books, and pamphlets to order 2. Asparagus cannery 3. Brick manufacturer 4. Contract oil drilling company 5. Custom boat builder 6. Flour mill Required: For each company, indicate whether the company is most likely to use job-order costing or process costing.