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Exam 4: Process Costing

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Question 101

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Ozdemir Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: What are the equivalent units for conversion costs for the month in the first processing department?

A) 1,015
B) 5,050
C) 6,920
D) 7,450

E) A) and D)
F) C) and D)

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Question 102

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Seidell Corporation has two service departments, Administrative and Facilities, and two operating departments, Assembly and Customer Solutions. The company uses the direct method to allocate service department costs to operating departments. Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied.The total amount of Administrative Department cost allocated to the Assembly Department is closest to:

A) $26,730
B) $25,568
C) $42,414
D) $23,522

E) B) and D)
F) A) and D)

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Question 103

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

Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.The total amount of Information Technology Department cost allocated to the two operating departments is closest to:

Overboard Corporation uses the first-in, first-out method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow: The cost per equivalent unit for conversion cost is closest to:

Domingo 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: A total of 6,800 units were started and 6,100 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 85% complete with respect to materials and 75% complete with respect to conversion costs.The cost per equivalent unit for materials for the month in the first processing department is closest to:

Annenbaum 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: A total of 6,500 units were started and 5,900 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 50% complete with respect to materials and 35% complete with respect to conversion costs.The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Kalyan Corporation uses the first-in, first-out method in its process costing system. Operating data for the Enameling Department for the month of May appear below: What were the equivalent units of production for conversion costs in the Enameling Department for May?

Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 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 $7,480. An additional 89,000 units were started into production during the month and 92,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $202,400 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

The step-down method of service department cost allocation ignores interdepartmental services provided from one service department to another service department and allocates all service department costs directly to operating departments.

Domingo 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: A total of 6,800 units were started and 6,100 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 85% complete with respect to materials and 75% complete with respect to conversion costs.What are the equivalent units for conversion costs for the month in the first processing department?

Maccari Corporation uses the first-in, first-out method in its process costing system. Operating data for the Casting Department for the month of September appear below: According to the company's records, the conversion cost in beginning work in process inventory was $61,824 at the beginning of September. Additional conversion costs of $206,412 were incurred in the department during the month.The cost per equivalent unit for conversion costs for September is closest to: (Round off to three decimal places.)

Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to:

San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. San Juan Minerals does not distinguish between variable and fixed overhead costs.Assume that San Juan Minerals uses the step-down method to allocate service department costs, starting with Maintenance. The total overhead allocated from Cafeteria to Processing would be closest to:

The Dover Corporation uses the first-in, first-out method in its process costing system. The following information relates to one month's activity in the Cooking Department of the company: There was $23,600 of conversion cost in the beginning work in process inventory. During the month, $327,000 in additional conversion cost was incurred.Required:a. Determine the equivalent units of production for conversion for the month.b. Determine the cost per equivalent unit of production for conversion for the month.c. Determine the total cost assigned to the ending work in process inventory.d. Determine the total cost transferred out during the month.

The following data has been provided by Glasco Incorporated, a company that uses the first-in, first-out method in its process costing system. The data concern the company's Shaping Department for the month of March. Required:Determine the cost of ending work in process inventory and the cost of the units transferred out of the department during March using the first-in, first-out method.

The following data pertain to the Milling Department of Malmberg Corporation for July. The company uses the first-in, first-out method in its process costing. Required:Compute the equivalent units of production for both materials and conversion costs for the Milling Department for July using the first-in, first-out method.

Saada 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 $5.99. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

The equivalent units in the ending work in process inventory will be different under the first-in, first-out and the weighted-average methods of process costing.

Activities in the Sargent Corporation's Assembly Department for the month of March follow: Using the weighted-average method, the equivalent units for conversion for March would be: