Cost Accounting

Dept. A's beginning work in process for materials cost totaled $15,000. Current material costs for the month equal $90,000 and there are 5,000 equivalent units. Material cost per equivalent units using FIFO costing is $

$18. $90,000/5000

Dept. A's beginning work in process conversion costs were $6,675. During the month, total conversion cost were $32,700. Total equivalent units total 10,000 for materials and 7,500 for conversion costs. The cost per equivalent unit for conversion costs using the FIFO method equals ______.

$4.36 Reason: $32,700/7,500 = $4.36

Dept. A's beginning work in process conversion costs were $6,675. During the month, total conversion cost were $32,700. Total equivalent units total 10,000 for materials and 7,500 for conversion costs. The cost per equivalent unit for conversion costs using the weighted-average method equals ______.

$5.25 ($6,675 + $32,700)/7,500 = $5.25

Prior department costs are ______.

-conceptually equivalent to raw materials costs -also called transferred-in costs

Dept. 1 started the month with no work in process. During the month, 10,000 units were started and 8,000 units were completed and transferred to Dept. 2. The ending work in process units in Dept. 1 are 100% complete as to materials and 70% complete as to conversion costs. Equivalent units of production for Dept. 1 using weighted-average costing equals

10,000 units for materials and 9,400 units for conversion costs Reason: The materials are 100% complete as to both the transferred units and the work in process. The conversion costs are 100% complete as to the transferred units (8,000) + 70% complete as to the ending inventory (2,000 x 70% = 1,400).

Dept. XY started the month with 1,000 units in work in process that were 100% complete as to materials and 70% complete as to conversion costs. During the month, 12,000 units were started and 9,000 units were completed and transferred to Dept. ZT. The ending work in process units in Dept. XY are 100% complete as to materials and 40% complete as to conversion costs. Equivalent units of production for Dept. XY using FIFO costing equals

12,000 units for materials and 9,900 units for conversion costs. Reason: The materials are 100% complete as to both the started and completed units (12,000 - 4,000 in ending inventory) and the ending work in process (4,000). The conversion costs are 100% complete as to the started and completed units (8,000) + 40% complete as to the ending inventory (4,000 x 40%). The beginning inventory required 30% to complete (1,000 x 30%) making the total equivalent units 8,000 + 1,600 + 300 or 9,900.

Which of the following statements is true? Costs in beginning inventory are ignored when computing costs to be accounted for under weighted-average costing. Current costs are accounted for when using weighted-average costing but ignored when using FIFO costing. Costs in beginning inventory plus current costs are accounted for under both weighted-average and FIFO costing. Costs in beginning inventory are ignored when computing costs to be accounted for under FIFO costing.

Costs in beginning inventory plus current costs are accounted for under both weighted-average and FIFO costing.

When using FIFO costing, the costs to be accounted for on the production report (Section 3) is ______ the total cost accounted for in Section 5.

always equal to

The final step in the costing process is to ______.

assign product costs to batches of work

Process costing can ______.

be adapted to reflect production flows that are not totally homogeneous

The key difference between operations costing and job order and process costing is ______ are different.

direct materials

Total costs to be accounted for ______.

is always the same under both FIFO and weighted-average costing

Equivalent units computed under FIFO are always ______ equivalent units computed under weighted-average.

less than or equal to

Sections 1 and 2 of the production cost report relate to managing the ______ units.

physical flow of