Process Costing Review (CA)

The following information pertains to Lap Co.'s Palo Division for the month of April: Beginning WIP = 15,000 units, $5500 Started = 40,000 units, $18,000 Completed = 42,500 units Ending WIP = 12,500 units All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is

$0.43

In the computation manufacturing cost per equivalent unit, the weighted-average method of process costing considers

Current costs plus cost of beginning work in process inventory

Kew Co. had 3000 units in WIP at April 1 that were 60% complete as to conversion cost. During April, 10,000 units were completed. At April 30, the 4000 units in WIP were 40% complete as to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April?

11,000

The Wiring Department is the second stage of Flem Company's production cycle. On May 1, the beginning WIP contained 25,000 units, 60% complete as to conversion costs. During May, 100,000 units were transferred in from the first stage of Flem's production cycle. On May 31, ending WIP contained 20,000 units, 80% complete as to conversion costs. Materials were added at the end of the process. Using the weighted-average method, the EUP on May 31 were

125,000 (transferred in costs) 105,000 (materials) 121,000 (conversion costs)

On November 1, Yankee Company had 20,000 units of WIP in Department No. 1 which were 100% complete as to material costs and 20% completes to conversion costs. During November, 160,000 units were started in Department No. 1 and 170,000 units were completed and transferred to Department No. 2. WIP on November 30 was 100% complete as to material costs and 40% complete as to conversion costs. By what amount would the equivalent units for conversion costs for the month of November differ in the FIFO method were used instead of the weighted-average method?

4000 decrease

Dex Co. had the following production for the month of June: WIP June 1 = 10,000 units Started = 40,000 units Completed/transferred to FG = 33,000 units Abnormal spoilage = 2000 units WIP June 30 = 15,000 units Materials are added at the beginning of the process. As to conversion cost, the beginning WIP was 70% completed, and the ending WIP was 60% complete. Spoilage is detected at the end of the process. Using the weighted-average method, the equivalent units for June with respect to conversion costs were

44,000

A process costing system is used for a department that began operations in Year 1. Approximately the same number of physical units, at the same degree of completion, were in WIP at the end of both Jan and Feb of the current year. Monthly conversion costs are assigned to ending WIP and units completed. Compared with the FIFO method, would the weighted-average method use the same or greater number of equivalent units to calculate the monthly cost assignments?

Same/Greater number

An equivalent unit of direct materials or conversion cost is equal to

The amount of direct materials or conversion cost necessary to complete one unit of production

When is the only time EUP is the same as FIFO?

When there is no beginning WIP

In process 2, material G is added when a batch is 60% complete. Ending WIP units, which are 50% complete, would be included in the computation of equivalent units for (conversion costs/material G)

Yes/No

Forming Department is the first of a two-stage production process. Spoilage is identified when units complete the forming process. Cost of spoiled units are assigned to units completed and transferred to the second department in the period spoilage identified. The following concerns Forming's conversion costs: Beginning WIP (50% complete) = 2000 units, $10,000 Units started = 8000 units, $75,500 Spoilage-normal = 500 units Units completed & transferred = 7000 units Ending WIP (80% complete) = 2500 units What was Forming's weighted-average conversion cost transferred to the second department?

$67,500

Information for the month of January concerning Department A, the first stage of Ogden Corporation's production cycle, is as follows: Beginning WIP = $8000 materials, $6000 conversion Current costs = $40,000 materials, $32,000 conversion Total = $48,000 materials, $38,000 conversion EUP (weighted-avg) = 100,000 materials, 95,000 conversion Avg. unit costs = 0.48 materials, 0.40 conversion Goods completed = 90,000 units Ending WIP = 10,000 units Materials are added at the beginning of the process. The ending WIP is 50% complete as to conversion costs. How would the total costs accounted for be distributed, using the weighted-average method?

$79,200 (goods completed), $6800 (ending WIP)

The following data pertain to a company's cracking-department operations in December: WIP Dec. 1 = 20,000, 50% complete Units started = 170,000 Units completed & transferred to the distilling department = 180,000 WIP Dec. 31 = 10,000, 50% complete

175,000 equivalent units