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Exam 6: Process Costing

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Question 41

Multiple Choice

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A producer of ____ would not use a process costing system.

A) gasoline
B) potato chips
C) blank videotapes
D) stained glass windows

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

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Question 42

Multiple Choice

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Weston Company makes small metal containers. The company began April with 250 containers in process that were 30 percent complete as to material and 40 percent complete as to conversion costs. During the month, 5,000 containers were started. At month end, 1,700 containers were still in process (45 percent complete as to material and 80 percent complete as to conversion costs) . Using the weighted average method, what are the equivalent units for conversion costs?

A) 3,450
B) 4,560
C) 4,610
D) 4,910

E) None of the above
F) All of the above

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Question 43

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Crafton Corporation Crafton Corporation has the following information for the current month: All materials are added at the start of the production process. Crafton Corporation inspects goods at 75 percent completion as to conversion. Refer to Crafton Corporation. What are equivalent units of production for material, assuming FIFO?

The FIFO costing method assumes that units in beginning inventory are the first units transferred.

Crafton Corporation Crafton Corporation has the following information for the current month: All materials are added at the start of the production process. Crafton Corporation inspects goods at 75 percent completion as to conversion. Refer to Crafton Corporation. Assume that the costs per EUP for material and conversion are $1.00 and $1.50, respectively. What is the amount of the period cost for July using FIFO?

Process costing is most appropriate when manufacturing large batches of homogenous products.

Which of the following is(are) the same between the weighted average and FIFO methods of calculating EUPs?

Smithfield Company manufactures a specialized product. Department 2 adds new material to the units received from Department 1 at the end of process. A normal loss occurs early in processing. Production and cost data for Department 2 for the month of April are as follows: Required: Determine the following for Department 2 under (a) weighted average the method of costing and (b) the FIFO method of costing: (1) unit costs for each cost component, (2) cost of production transferred to finished goods, (3) cost of work in process inventory of April 30.

Guthrie Corporation The following information is available for Guthrie Corporation for the current year: All materials are added at the start of production. Refer to Guthrie Corporation. Using weighted average, what are equivalent units for conversion costs?

The number of completed units that could have been produced from the inputs applied is referred to as ______________________________.

List and explain the six steps of cost assignment when using process costing. How does cost assignment differ between the weighted average and FIFO methods?

Chapman Corporation The following information is available for Chapman Corporation for the current month: All materials are added at the start of production and the inspection point is at the end of the process. Refer to Chapman Corporation. What is the cost assigned to ending inventory using FIFO?

The cost of abnormal discrete units must be assigned to

A discrete loss is assumed to occur at a specific point in the production process.

Guthrie Corporation The following information is available for Guthrie Corporation for the current year: All materials are added at the start of production. Refer to Guthrie Corporation. Using FIFO, what are equivalent units for material?

Guthrie Corporation The following information is available for Guthrie Corporation for the current year: All materials are added at the start of production. Refer to Guthrie Corporation. Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75, respectively. Using FIFO what is the total cost assigned to the units transferred out?

The weighted average method separates beginning inventory and current production to compute cost per unit of production.

Simpson Company Simpson Company adds material at the start of production. The following production information is available for September: Refer to Simpson Company. What is the conversion cost per equivalent unit using the weighted average method?

The first step in determining the cost per EUP per cost component under the weighted average method is to

Brewer Corporation Brewer Corporation. has the following information for August: All material is added at the start of the process and all finished products are transferred out. Refer to Brewer Corporation. How many units were transferred out in August?