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Exam 6: Process Costing

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Question 61

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Figure 6-16 Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during October: Units, beginning work in process 4,000 Units, ending work in process 5,500 -Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will

A) decrease total ending work in process.
B) change the amount of factory overhead included in the ending work in process.
C) increase total unit cost.
D) not change the dollar amount transferred out of the department.

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Question 62

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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 are Golden Ring Company's conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?

A) $35,000
B) $35
C) $175,000
D) $17,500

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Question 63

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Figure 6-16 Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during October: Units, beginning work in process 4,000 Units, ending work in process 5,500 -Refer to Figure 6-16. The number of units started in the second department during April is

In JIT manufacturing, work cells are created that produce a product from start to finish.

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 is the cost per unit for conversion?

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 conversion cost per unit using FIFO would be

The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs is called:

The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The cost of production for the month of December is as follows: During December, Tolstoy Corporation produced and sold 500 welders. Required: a. Why can process costing be used to compute the cost of the welders? b. Calculate the unit cost of a welder..

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: units, beginning work in process 0 units started 200 units completed ? units, ending work in process (40% complete) 50 -Refer to Figure 6-5. How many units were completed?

In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to assign conversion costs.

Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. The company uses FIFO inventory assumption. -Refer to Figure 6-12. What are the FIFO cost per unit for conversion?

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 amount transferred from the Bottling Department to Finished Goods for Work Order 10?

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 are the units started and completed?

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 goods completed and transferred out of the Assembly Department would include a

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 are the equivalent units for materials and conversion respectively?

Figure 6-3 Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: -Refer to Figure 6-3. What is the cost of services sold? a. $1,800 b. $4,000 c. $200 d. $6,000

Figure 6-5 Maynard Inc. manufactures desks. The following data was given for production in February: units, beginning work in process 0 units started 200 units completed ? units, ending work in process (40% complete) 50 -Refer to Figure 6-5. If a total of $11,050 in production costs were incurred, how much cost is assigned to the units completed?

A process is a series of activities or operations, which are linked to perform a specific objective.

Figure 6-4 The following information is available from the records of Diamond Cut, Inc.: -Refer to Figure 6-4. What are the "total costs to account for" in the Assembly Department?

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. -If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are