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Exam 5: Process Costing6 Cost-Volume-Profit Relationships

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Question 61

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Some companies use process costing and some use job-order costing.Which method a company uses depends on its industry.A number of companies in different industries are listed below: 1.Construction company that builds office buildings 2.Winery that produces a number of varietal wines 3.Cement manufacturer 4.Mushroom farm that produces the standard button mushroom in caves 5.Aluminum refiner that makes aluminum ingots from bauxite ore Required: For each company, indicate whether the company is most likely to use job-order costing or process costing.

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1.Construction company that builds offic...

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Question 62

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Cadot Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

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Question 63

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Anders Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month. Required: a.Determine the equivalent units of production. b.Determine the costs per equivalent unit. c.Determine the cost of ending work in process inventory. d.Determine the cost of the units transferred to the next department.

The following data have been provided by Cutts Corporation, which uses the weighted-average method in its process costing.The data are for the company's Shaping Department for October. Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method.

In the department's cost reconciliation report for August, the total cost to be accounted for would be:

The cost reconciliation report has two sections: "Costs to be accounted for" followed by "Costs accounted for".The "Costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of beginning work in process inventory.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

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

Whiston Corporation uses the weighted-average method in its process costing system.The following data were taken from the records of the first processing department for a recent month. Required: a.How many units were transferred to the next department during the month? b.What were the equivalent units of production for materials and for conversion costs for the month? c.What were the costs per equivalent unit of production for materials and for conversion costs for the month? d.What was the cost of the ending work in process inventory in the department at the end of the month? e.What was the cost of the units completed and transferred to the next department during the month?

The total cost transferred from the first processing department to the next processing department during the month is closest to:

How many units are in ending work in process inventory in the first processing department at the end of the month?

When computing the cost per equivalent unit, it is necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

The following journal entry would be made in a processing costing system when units that have been completed in the final processing department are transferred to the finished goods warehouse:

In process costing, a separate work in process account is kept for each:

The Werner Corporation uses the weighted-average method in its process costing system.The company recorded 24,400 equivalent units for conversion costs for November in a particular department.There were 6,000 units in the ending work in process inventory on November 30 which were 60% complete with respect to conversion costs.The November 1 work in process inventory consisted of 5,000 units which were 40% complete with respect to conversion costs.A total of 22,000 units were completed and transferred out of the department during the month.The number of units started during November in the department was:

A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing.

In the department's cost reconciliation report for June, the total cost accounted for would be:

Greenham Corporation uses the weighted-average method in its process costing.The following data pertain to its Materials Preparation Department for November. Required: Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method.

In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?

What journal entry should Arona make to record the completion of the production process by the Waterproofing Department?