Chap 004

Chapter 04 - Process Costing
LO4: WAC assignment of costs
LO5: WAC Cost reconciliation
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Question Type T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C M/C M/C M/C M/C M/C
E E E E E E E M M M M M E M M E E M E M E M M M
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ID New,5/23/97A New 7/17/94g 5/e:4-13 6/e:4-9 3/e:4-4 4/e:4-174 6/e:4-2 6/e:4-10 5/e:4-14 6/e:4-6 New,5/23/97D 3/e:4-13 7/e:4-63 7/e:4-20 7/e:4-18 7/e:4-31 7/e:4-32 7/e:4-33 7/e:4-30 5/e:4-29 New,5/25/97,A7 New,5/27/97,D7 New,5/27/97,L7 CMA CMA,5/94,TMG-40
Professional Exam Adapted
LO2: WAC equivalent units
LO3: WAC cost per EU
LO1: Cost flows
Difficulty
Origin E.N. E.N. Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors Authors E.N. E.N. E.N. CMA
CMA/CPA origin
CMA,5/94,TMG-40
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M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Problem Problem Problem Problem Problem
M M M M M M E E M E E E M M M E-M E-M M M E-M M M M E-M M M E M-H E-M E-M E E H M M
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New,5/27/97,H7 New,5/27/97,P7 7/e:4-52 4/e:4-189 New,5/25/97,B7 New,5/27/97,J7 New,5/27/97,F7 New,5/27/97,N7 New,5/27/97,S7 5/e:4-22 New,5/27/97,R7 7/12/2007 Single MC J2 7/12/2007 Single MC K2 New 7/18/94c New 11/16/00 A5 New 11/16/00 B5 New 11/17/00 C5 New 11/17/00 E5 New 11/17/00 F5 New 11/17/00 G5 New 11/17/00 H5 New 11/17/00 K5 New 11/17/00 L5 New 11/17/00 D5 New 11/17/00 I5 New 11/17/00 J5 6/e:4-45 to 46 6/e:4-52 to 53 7/12/2007 Multi MC I2 7/12/2007 Multi MC J2 8/8/2004 Problem R4 8/8/2004 Problem S4 LD9e:CH04P1 New,5/28/97,A7 New,5/28/97,B7
E.N. E.N. Authors Authors E.N. E.N. E.N. E.N. E.N. Authors E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. Authors Authors E.N. E.N. E.N. E.N. Larry Deppe E.N. E.N.
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Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem
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8/8/2004 Problem E4 8/8/2004 Problem F4 New,5/28/97,C7 8/8/2004 Problem A4 8/8/2004 Problem B4 8/8/2004 Problem I4 8/8/2004 Problem J4 8/8/2004 Problem M4 8/8/2004 Problem O4 7/12/2007 Problem T2 7/12/2007 Problem X2 7/12/2007 Problem Y2
E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
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Chapter 04 Process Costing

True / False Questions
1. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
True
False
2. In a process costing system, overhead costs are traced to units of product as they are incurred. True False
3. A process cost system would be used to account for the cost of manufacturing an oil tanker. True False
4. A process costing system would be best suited for production of a large quantity of a homogeneous product. True False
5. In process costing, costs are accumulated in processing departments, rather than by job. True False
6. Process costing would be used by companies producing the following items: bricks, bolts, pharmaceutical items, natural gas, and electricity. True False
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7. The job cost sheet is used in both job-order and process costing. True False
8. In process costing, the equivalent units computed for materials is generally the same as that computed for direct labor. True False
9. The weighted-average method of process costing can only be used if materials are added at the beginning of the production process. True False
10. Under the weighted-average method, the cost of materials in the beginning work in process inventory is not used in the computation of the cost per equivalent unit for materials. True False
11. When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method. True False
12. When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weightedaverage method. True False
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Multiple Choice Questions
13. In a process costing system, manufacturing overhead applied is usually recorded as a debit to: A. Finished goods. B. Work in process. C. Manufacturing overhead. D. Cost of goods sold.
14. A company has two processing departments: A and B. Which of the following entries or sets of journal entries would be used to record the transfer between processing departments and from the final processing department to finished goods?
A. B.
C.
D.
15. A process costing system: A. uses a separate Work in Process account for each processing department. B. uses a single Work in Process account for the entire company. C. uses a separate Work in Process account for each type of product produced. D. does not use a Work in Process account in any form.
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16. A company should use process costing, rather than job order costing, if: A. production is only partially completed during the accounting period. B. the product is manufactured in batches only as orders are received. C. the product is composed of mass-produced homogeneous units. D. the product goes through several steps of production.
17. Which of the following characteristics applies to process costing, but does not apply to job order costing? A. The need for averaging. B. The use of equivalent units of production. C. Separate, identifiable jobs. D. The use of predetermined overhead rates.
18. Equivalent units for a process costing system using the weighted-average method would be equal to: A. units completed during the period and transferred out. B. units started and completed during the period plus equivalent units in the ending work in process inventory. C. units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work in process inventory. D. units completed during the period plus equivalent units in the ending work in process inventory.
19. The cost of beginning inventory under the weighted-average method is: A. added in with current period costs in determining costs per equivalent unit for a given period. B. ignored in determining the costs per equivalent unit for a given period. C. considered separately from costs incurred during the current period. D. subtracted from current period costs in determining costs per equivalent unit for a given period.
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20. The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work in process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work in process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was: A. 24,500 units B. 23,000 units C. 27,000 units D. 21,000 units
21. The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? A. 293,000 B. 310,000 C. 324,000 D. 296,000
22. Diston Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $8.112 B. $8.300 C. $7.533 D. $6.108
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23. Loll Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:
According to the company's records, the conversion cost in beginning work in process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $8.420 B. $6.934 C. $8.530 D. $8.322
24. The following information pertains to Yap Company's Grinding Department for the month of April:
All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is closest to: A. $0.59 B. $0.55 C. $0.45 D. $0.43
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25. Hardouin Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $5.300 B. $5.458 C. $4.603 D. $5.108
26. Parmentier Company 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 $5,096 and a total of $87,668 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.) A. $1.654 B. $1.752 C. $1.490 D. $1.499
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27. Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for March was $2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in process inventory was: A. $145,000 B. $116,500 C. $101,500 D. $78,500
28. The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system:
The equivalent units for conversion costs was: A. 102,000 units B. 112,000 units C. 111,000 units D. 100,000 units
29. Borwan Company 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 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 5,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 67,400 B. 73,000 C. 72,000 D. 66,000
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30. Jastak Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:
What were the equivalent units for conversion costs in the Painting Department for April? A. 106,100 B. 91,500 C. 98,970 D. 106,270
31. Fayard Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 67,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 63,000 units were completed in the Assembly Department and transferred to the next processing department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 71,000 B. 64,000 C. 63,000 D. 67,500
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32. Nguyen Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:
What were the equivalent units for conversion costs in the Lubricating Department for October? A. 53,700 B. 52,280 C. 54,080 D. 50,100
33. Sanchez 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 $8.66. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? A. $480,630 B. $450,320 C. $444,258 D. $510,940
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34. The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 10,000 units, 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit are $4.50 for the materials and $2.00 for labor and overhead, the balance of the ending work in process inventory account would be: A. $44,500 B. $50,500 C. $59,000 D. $65,000
35. Ravalt 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 Molding Department's cost per equivalent unit for conversion cost for January was $7.90. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? A. $27,729 B. $30,810 C. $3,081 D. $5,056
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36. In February, one of the processing departments at Carpentier Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $29,000. During the month, $148,000 of costs were added to production and the cost of units transferred out from the department was $133,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be: A. $310,000 B. $162,000 C. $324,000 D. $43,000
37. In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $410,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be: A. $46,000 B. $807,000 C. $842,000 D. $421,000
Jumper Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:
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38. How many units were in the ending work in process inventory? A. 600 units B. 1,000 units C. 800 units D. 1,400 units
39. What was the cost per equivalent unit for conversion cost? A. $5.00 B. $12.30 C. $8.50 D. $14.75
40. How much cost, in total, was transferred to the next department during the month? A. $315,200 B. $306,000 C. $312,000 D. $317,100
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Atwich 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 5,100 units were started and 4,400 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 75% complete with respect to materials and 10% 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.
41. What are the equivalent units for conversion costs for the month in the first processing department? A. 4,400 B. 4,530 C. 130 D. 5,700
42. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $21.28 B. $20.07 C. $19.29 D. $18.19
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43. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $34.18 B. $39.93 C. $43.00 D. $45.15
44. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $366,430 B. $284,600 C. $309,200 D. $282,858
45. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $26,342 B. $62,679 C. $8,357 D. $83,572
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Byklea Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:
46. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 500 B. 900 C. 300 D. 6,800
47. What are the equivalent units for conversion costs for the month in the first processing department? A. 6,925 B. 7,200 C. 6,700 D. 225
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Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:
52. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 1,100 B. 900 C. 600 D. 7,600
53. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,600 B. 825 C. 7,500 D. 8,325
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Epstein 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:
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56. What are the equivalent units for conversion costs for the month in the first processing department? A. 405 B. 6,905 C. 6,500 D. 7,400
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Froment Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:
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Grosseiller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were:
61. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 2,100 B. 1,200 C. 5,500 D. 900
62. What are the equivalent units for materials for the month in the first processing department? A. 1,365 B. 6,565 C. 7,300 D. 5,200
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Heller 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.
68. What are the equivalent units for materials for the month in the first processing department? A. 840 B. 9,140 C. 9,700 D. 8,300
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Kramer 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:
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Lothian 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:
76. What are the equivalent units for materials for the month in the first processing department? A. 5,200 B. 325 C. 5,525 D. 5,700
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Duhamel 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:
79. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 1,400 B. 7,200 C. 900 D. 800
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Ire 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
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82. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,800 B. 1,045 C. 10,700 D. 9,845
Jaderston 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:
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The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system.
All materials are added at the beginning of the process.
86. The equivalent units for materials for the month of May were: A. 60,000 units B. 74,000 units C. 64,000 units D. 69,800 units
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87. The equivalent units for labor and overhead for the month of May were: A. 60,000 units B. 69,800 units C. 65,800 units D. 73,800 units
Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data:
88. The total cost assigned to units transferred out during October was: A. $264,600 B. $316,000 C. $342,000 D. $358,400
89. The total cost assigned to ending work in process inventory was: A. $75,400 B. $101,400 C. $152,800 D. $59,000
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In January, one of the processing departments at Seidl Corporation had ending work in process inventory of $35,000. During the month, $111,000 of costs were added to production and the cost of units transferred out from the department was $86,000.
90. In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be: A. $51,000 B. $10,000 C. $76,000 D. $60,000
91. In the department's cost reconciliation report for January, the total cost accounted for would be: A. $242,000 B. $232,000 C. $121,000 D. $45,000
In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production.
92. In the department's cost reconciliation report for August, the cost of units transferred out of the department would be: A. $182,000 B. $195,000 C. $169,000 D. $165,000
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93. In the department's cost reconciliation report for August, the total cost to be accounted for would be: A. $30,000 B. $390,000 C. $195,000 D. $373,000
Essay Questions
94. Larney Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $38,200 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $36,500 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $42,100 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $112,400 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $143,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $138,500 are sold. Required: Prepare journal entries for each of the transactions listed above.
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95. During February, the following transactions were recorded at Ferrington Corporation. The company uses process costing. (1) Raw materials that cost $42,400 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $16,100 are incurred, but not yet paid, in the Assembly Department. (3) Manufacturing overhead of $30,200 is applied in the Assembly Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $76,500 finish processing in the Assembly Department and are transferred to the Painting Department for further processing. (5) Units with a carrying cost of $97,200 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $92,800 are sold. Required: Prepare journal entries for each of the transactions listed above.
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96. Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:
The company uses the weighted-average cost method in its process costing system. Required: a. Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs. (Carry calculations out to the nearest tenth of a cent.) b. Determine the cost transferred to finished goods. c. Determine the amount of cost that should be assigned to the ending work in process.
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97. Assurer 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.
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98. Barsoux 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: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department.
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99. Nygaard Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September.
Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method.
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100. The following data have been provided by Fattig Corporation, which uses the weightedaverage method in its process costing. The data are for the company's Shaping Department for October.
Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method.
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101. Canler 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: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.
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102. Garneau 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.
103. Flitter Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for November.
Required: Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method.
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104. Jeoffroy Inc. uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of November.
Required: Compute the costs per equivalent unit for the Assembly Department for November.
105. Dominick Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December.
Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December.
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106. Ok Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June.
During the month, 7,100 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method.
107. Vanstraten Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing.
During the month, 4,800 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method.
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108. In July, one of the processing departments at Wrightsel Corporation had beginning work in process inventory of $22,000 and ending work in process inventory of $16,000. During the month, $225,000 of costs were added to production and the cost of units transferred out from the department was $231,000. Required: Construct a cost reconciliation report for the department for the month of July.
109. In November, one of the processing departments at Shelp Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $21,000. During the month, the cost of units transferred out from the department was $311,000. Required: Construct a cost reconciliation report for the department for the month of November.
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110. In March, one of the processing departments at Perrill Corporation had beginning work in process inventory of $31,000. During the month, $368,000 of costs were added to production and the cost of units transferred out from the department was $367,000. Required: Construct a cost reconciliation report for the department for the month of March.
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Chapter 04 Process Costing Answer Key
True / False Questions
1. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy
2. In a process costing system, overhead costs are traced to units of product as they are incurred. FALSE
3. A process cost system would be used to account for the cost of manufacturing an oil tanker. FALSE
AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy
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4. A process costing system would be best suited for production of a large quantity of a homogeneous product. TRUE
5. In process costing, costs are accumulated in processing departments, rather than by job. TRUE
6. Process costing would be used by companies producing the following items: bricks, bolts, pharmaceutical items, natural gas, and electricity. TRUE
7. The job cost sheet is used in both job-order and process costing. FALSE
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8. In process costing, the equivalent units computed for materials is generally the same as that computed for direct labor. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium
9. The weighted-average method of process costing can only be used if materials are added at the beginning of the production process. FALSE
10. Under the weighted-average method, the cost of materials in the beginning work in process inventory is not used in the computation of the cost per equivalent unit for materials. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium
11. When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium
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12. When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weightedaverage method. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium
Multiple Choice Questions
13. In a process costing system, manufacturing overhead applied is usually recorded as a debit to: A. Finished goods. B. Work in process. C. Manufacturing overhead. D. Cost of goods sold.
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14. A company has two processing departments: A and B. Which of the following entries or sets of journal entries would be used to record the transfer between processing departments and from the final processing department to finished goods?
A. B.
C.
D.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium
15. A process costing system: A. uses a separate Work in Process account for each processing department. B. uses a single Work in Process account for the entire company. C. uses a separate Work in Process account for each type of product produced. D. does not use a Work in Process account in any form.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium
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16. A company should use process costing, rather than job order costing, if: A. production is only partially completed during the accounting period. B. the product is manufactured in batches only as orders are received. C. the product is composed of mass-produced homogeneous units. D. the product goes through several steps of production.
17. Which of the following characteristics applies to process costing, but does not apply to job order costing? A. The need for averaging. B. The use of equivalent units of production. C. Separate, identifiable jobs. D. The use of predetermined overhead rates.
18. Equivalent units for a process costing system using the weighted-average method would be equal to: A. units completed during the period and transferred out. B. units started and completed during the period plus equivalent units in the ending work in process inventory. C. units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work in process inventory. D. units completed during the period plus equivalent units in the ending work in process inventory.
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19. The cost of beginning inventory under the weighted-average method is: A. added in with current period costs in determining costs per equivalent unit for a given period. B. ignored in determining the costs per equivalent unit for a given period. C. considered separately from costs incurred during the current period. D. subtracted from current period costs in determining costs per equivalent unit for a given period.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy
20. The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work in process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work in process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was: A. 24,500 units B. 23,000 units C. 27,000 units D. 21,000 units Beginning work in process inventory + Units started into production = Ending work in process inventory + Units completed and transferred out Units started into production = Ending work in process inventory + Units completed and transferred out - Beginning work in process inventory = 6,000 + 25,000 - 8,000 = 23,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium
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21. The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? A. 293,000 B. 310,000 C. 324,000 D. 296,000 Beginning work in process inventory + Units started into production or transferred in = Ending work in process inventory + Units completed and transferred out Units started into production or transferred in = Ending work in process inventory + Units completed and transferred out - Beginning work in process inventory = 14,000 + 296,000 - 14,000 = 296,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy
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22. Diston Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $8.112 B. $8.300 C. $7.533 D. $6.108 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 18,000 + 90,000 - 21,000 = 87,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium
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23. Loll Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:
According to the company's records, the conversion cost in beginning work in process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $8.420 B. $6.934 C. $8.530 D. $8.322 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000
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24. The following information pertains to Yap Company's Grinding Department for the month of April:
All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is closest to: A. $0.59 B. $0.55 C. $0.45 D. $0.43
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium Source: CMA, adapted
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25. Hardouin Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $5.300 B. $5.458 C. $4.603 D. $5.108
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26. Parmentier Company 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 $5,096 and a total of $87,668 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.) A. $1.654 B. $1.752 C. $1.490 D. $1.499
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27. Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for March was $2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in process inventory was: A. $145,000 B. $116,500 C. $101,500 D. $78,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium
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28. The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system:
The equivalent units for conversion costs was: A. 102,000 units B. 112,000 units C. 111,000 units D. 100,000 units Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 30,000 + 90,000 - 20,000 = 100,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium
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29. Borwan Company 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 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 5,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 67,400 B. 73,000 C. 72,000 D. 66,000 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 8,000 + 69,000 - 5,000 = 72,000
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30. Jastak Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:
What were the equivalent units for conversion costs in the Painting Department for April? A. 106,100 B. 91,500 C. 98,970 D. 106,270 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 1,000 + 98,800 - 8,300 = 91,500
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31. Fayard Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 67,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 63,000 units were completed in the Assembly Department and transferred to the next processing department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 71,000 B. 64,000 C. 63,000 D. 67,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy
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32. Nguyen Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:
What were the equivalent units for conversion costs in the Lubricating Department for October? A. 53,700 B. 52,280 C. 54,080 D. 50,100
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33. Sanchez 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 $8.66. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? A. $480,630 B. $450,320 C. $444,258 D. $510,940 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 7,000 + 52,000 - 3,500 = 55,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium
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34. The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 10,000 units, 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit are $4.50 for the materials and $2.00 for labor and overhead, the balance of the ending work in process inventory account would be: A. $44,500 B. $50,500 C. $59,000 D. $65,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Easy
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35. Ravalt 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 Molding Department's cost per equivalent unit for conversion cost for January was $7.90. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? A. $27,729 B. $30,810 C. $3,081 D. $5,056
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Easy
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36. In February, one of the processing departments at Carpentier Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $29,000. During the month, $148,000 of costs were added to production and the cost of units transferred out from the department was $133,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be: A. $310,000 B. $162,000 C. $324,000 D. $43,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Easy
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37. In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $410,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be: A. $46,000 B. $807,000 C. $842,000 D. $421,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium
Jumper Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:
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38. How many units were in the ending work in process inventory? A. 600 units B. 1,000 units C. 800 units D. 1,400 units Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 400 + 15,000 - 14,400 = 1,000
39. What was the cost per equivalent unit for conversion cost? A. $5.00 B. $12.30 C. $8.50 D. $14.75
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium
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40. How much cost, in total, was transferred to the next department during the month? A. $315,200 B. $306,000 C. $312,000 D. $317,100
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Atwich 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:
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41. What are the equivalent units for conversion costs for the month in the first processing department? A. 4,400 B. 4,530 C. 130 D. 5,700 Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300
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42. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $21.28 B. $20.07 C. $19.29 D. $18.19 Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300
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43. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $34.18 B. $39.93 C. $43.00 D. $45.15 Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300
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Byklea Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:
46. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 500 B. 900 C. 300 D. 6,800 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 200 + 7,000 - 6,700 = 500
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Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:
52. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 1,100 B. 900 C. 600 D. 7,600 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 500 + 8,100 -7,500 = 1,100
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53. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,600 B. 825 C. 7,500 D. 8,325
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Epstein 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:
56. What are the equivalent units for conversion costs for the month in the first processing department? A. 405 B. 6,905 C. 6,500 D. 7,400
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Froment Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:
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AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium
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Weighted-average method:
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Grosseiller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were:
61. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 2,100 B. 1,200 C. 5,500 D. 900 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 900 + 6,400 -5,200 = 2,100
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62. What are the equivalent units for materials for the month in the first processing department? A. 1,365 B. 6,565 C. 7,300 D. 5,200
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Heller 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:
68. What are the equivalent units for materials for the month in the first processing department? A. 840 B. 9,140 C. 9,700 D. 8,300
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Kramer 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:
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Lothian 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:
76. What are the equivalent units for materials for the month in the first processing department? A. 5,200 B. 325 C. 5,525 D. 5,700
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Duhamel 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:
79. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 1,400 B. 7,200 C. 900 D. 800 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 600 + 7,800 -7,000 = 1,400
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Ire 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
82. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,800 B. 1,045 C. 10,700 D. 9,845
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Jaderston 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:
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The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system.
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86. The equivalent units for materials for the month of May were: A. 60,000 units B. 74,000 units C. 64,000 units D. 69,800 units
87. The equivalent units for labor and overhead for the month of May were: A. 60,000 units B. 69,800 units C. 65,800 units D. 73,800 units
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Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data:
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88. The total cost assigned to units transferred out during October was: A. $264,600 B. $316,000 C. $342,000 D. $358,400
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Hard
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89. The total cost assigned to ending work in process inventory was: A. $75,400 B. $101,400 C. $152,800 D. $59,000
In January, one of the processing departments at Seidl Corporation had ending work in process inventory of $35,000. During the month, $111,000 of costs were added to production and the cost of units transferred out from the department was $86,000.
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90. In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be: A. $51,000 B. $10,000 C. $76,000 D. $60,000 Cost of beginning work in process inventory = Cost of ending work in process inventory + Cost of units transferred out - Costs added to production = $35,000 + $86,000 - $111,000 = $10,000
91. In the department's cost reconciliation report for January, the total cost accounted for would be: A. $242,000 B. $232,000 C. $121,000 D. $45,000 Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out = $35,000 + $86,000 = $121,000
In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production.
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92. In the department's cost reconciliation report for August, the cost of units transferred out of the department would be: A. $182,000 B. $195,000 C. $169,000 D. $165,000 Cost of units transferred out = Cost of beginning work in process inventory + Cost added to production - Cost of ending work in process inventory = $17,000 + $178,000 - $13,000 = $182,000
93. In the department's cost reconciliation report for August, the total cost to be accounted for would be: A. $30,000 B. $390,000 C. $195,000 D. $373,000 Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out = $17,000 + $178,000 = $195,000
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Essay Questions
94. Larney Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $38,200 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $36,500 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $42,100 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $112,400 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $143,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $138,500 are sold. Required: Prepare journal entries for each of the transactions listed above.
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95. During February, the following transactions were recorded at Ferrington Corporation. The company uses process costing. (1) Raw materials that cost $42,400 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $16,100 are incurred, but not yet paid, in the Assembly Department. (3) Manufacturing overhead of $30,200 is applied in the Assembly Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $76,500 finish processing in the Assembly Department and are transferred to the Painting Department for further processing. (5) Units with a carrying cost of $97,200 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $92,800 are sold. Required: Prepare journal entries for each of the transactions listed above.
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96. Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:
The company uses the weighted-average cost method in its process costing system. Required: a. Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs. (Carry calculations out to the nearest tenth of a cent.) b. Determine the cost transferred to finished goods. c. Determine the amount of cost that should be assigned to the ending work in process.
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AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Hard
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97. Assurer 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.
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98. Barsoux 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: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department.
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99. Nygaard Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September.
Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method. Weighted-average method
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100. The following data have been provided by Fattig Corporation, which uses the weightedaverage method in its process costing. The data are for the company's Shaping Department for October.
Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method. Weighted-average method
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101. Canler 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: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs. Weighted-average method
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102. Garneau 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. Weighted-average method:
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103. Flitter Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for November.
Required: Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method. Weighted-average method:
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104. Jeoffroy Inc. uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of November.
Required: Compute the costs per equivalent unit for the Assembly Department for November. Weighted-average method:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy
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105. Dominick Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December.
Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. Weighted-average method:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy
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106. Ok Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June.
During the month, 7,100 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method. Weighted-average method:
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107. Vanstraten Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing.
During the month, 4,800 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method. Weighted-average method:
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108. In July, one of the processing departments at Wrightsel Corporation had beginning work in process inventory of $22,000 and ending work in process inventory of $16,000. During the month, $225,000 of costs were added to production and the cost of units transferred out from the department was $231,000. Required: Construct a cost reconciliation report for the department for the month of July.
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109. In November, one of the processing departments at Shelp Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $21,000. During the month, the cost of units transferred out from the department was $311,000. Required: Construct a cost reconciliation report for the department for the month of November.
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110. In March, one of the processing departments at Perrill Corporation had beginning work in process inventory of $31,000. During the month, $368,000 of costs were added to production and the cost of units transferred out from the department was $367,000. Required: Construct a cost reconciliation report for the department for the month of March.
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Chapter 04 - Process Costing

LO4: WAC assignment of costs

LO5: WAC Cost reconciliation

Professional Exam Adapted

LO2: WAC equivalent units

LO3: WAC cost per EU

LO1: Cost flows

Chapter 04 - Process Costing

M M M M M M E E M E E E M M M E-M E-M M M E-M M M M E-M M M E M-H E-M E-M E E H M M

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Multiple Choice Questions

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

All materials are added at the beginning of the process.

Chapter 04 - Process Costing

All materials are added at the beginning of the process.

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing

Chapter 04 - Process Costing