FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Process-Costing Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Short Answer

Review LaterAdd Note

Review Later

A unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs.

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

Lowden Company produces one product in a process-costing system involving several departments. The first department's costs and output for the month of June are as follows: Units: Costs: Beginning WIP: ^*100 percent completed for materials, 40 percent completed for conversion costs ^#100 percent completed for materials, 30 percent completed for conversion costs Required: Compute the cost of work completed and the cost of the ending inventory of work-in-process using the weighted-average method.

Correct Answer

verified

Direct materials:
240,000 + (70,000 × 10...

View Answer

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

Chen Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows: There was no beginning inventory, and of the 200,000 units started in production 168,000 were completed and transferred to the Finishing department, while 32,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs. -The unit cost of conversion costs is

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The total of costs to account for is

A report that summarizes the manufacturing activity for a department during a period and discloses physical flow, equivalent units, total costs to account for, unit cost computation, and costs assigned to goods transferred out and to units in ending work-in-process.

Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow: -The equivalent units for conversion costs are

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The cost of the ending work-in-process inventory is

Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows: There was no beginning inventory, and of the 400,000 units started in production 336,000 were completed and transferred to the Finishing department, while 64,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs. -The total cost of units completed and transferred to Finishing is

Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow: Work-in-process, April 1. -The unit cost for conversion costs is

The key difference between the FIFO and weighted-average computations for WIP inventory is equivalent units.

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The weighted-average process-costing method adds the cost of all work done in the current period to the

Josef Company makes a variety of chemicals. Its Mixing department had the following information regarding costs and output: ^*Direct materials: 100 percent complete; Conversion costs: 30 percent complete Required: Compute the cost of work completed and the cost of the ending WIP inventory.

The degree of completion for conversion costs depends on what proportion of the total effort needed to complete one unit or one batch has been devoted to units still in process.

Bunn Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The equivalent units for materials are

Hybrid-costing systems are blends of ideas from both job costing and process costing.

Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow: -The unit cost for materials is

Lee Stevens makes frozen pizzas. All direct materials are introduced at the start of the process. Conversion costs are incurred evenly throughout the process. In January there was no beginning WIP inventory, but 690,000 units were started, completed and transferred to finished goods inventory. At January 31 there were 165,000 units still in process at the 70 percent stage of completion. Total costs incurred during January amounted to $1,068,750 for materials and $402,750 for conversion costs. Required: Prepare a production-cost report for January.

Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow: Work-in-process, April 1. -The total cost of the ending work-in-process is

Cost-accounting systems fulfill two major purposes: (1) they allocate costs to departments for planning and control, and (2) they apply costs to units of product for product costing.

Under weighted-average process costing, the unit costs used for applying costs to products are affected by the total costs incurred to date, regardless of whether those costs were incurred during or before the current period.