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CH 5 Process Costing Questions Answers
CH 5 Process Costing Questions Answers
5 Process Costing
The Assembly Department started the month with 14,000 units in its beginning work
in
process inventory. An additional 296,000 units were transferred in from the prior
department during the month to begin processing in the Assembly Department. There
were
14,000 units in the ending work in process inventory of the Assembly Department.
How many units were transferred to the next processing department during the month?
Answer:
Units completed and transferred to the next processing department = Beginning work
in
process inventory + Units started into production or transferred in - Ending work
in
process inventory
= 296,000
1
Exercise – 2:
Y Company uses the weighted-average method in its process costing system. Operating
data for the first processing department for the month of June appear below:
What was the cost per equivalent unit for conversion costs for the month?
Answer:
2
Exercise – 3:
Z Company uses the weighted-average method in its process costing system. The
company's work in process inventory on March 31 consisted of 20,000 units. The
units in
the ending work in process inventory were 100% complete with respect to materials
and
70% complete with respect to labor and overhead. The cost per equivalent unit for
March
was $2.50 for materials and $4.75 for labor and overhead.
Answer:
3
Exercise – 4:
X Corporation uses the weighted-average method in its process costing system. The
beginning inventory in the first processing department consisted of 600 units. The
costs and
percentage completion of these units in beginning inventory during the month were:
A total of 5,100 units were started and 4,400 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 75% complete with respect to materials and 10% complete
with
respect to conversion costs.
a. What are the equivalent units for conversion costs for the month in the first
processing
department?
Answer:
4
b. What is the cost per equivalent unit for materials for the month in the first
processing
department?
Answer:
c. What is the cost per equivalent unit for conversion costs for the first
department?
Answer:
5
d. What is the total cost of units transferred from the first processing department
to the
next processing department during the month?
Answer:
6
e. What is the cost of ending work in process inventory in the first processing
department
according to the company's cost system?
Answer:
f. What is the total cost of ending work in process inventory& units transferred
from the
first processing department to the next processing department during the month?
Answer:
The total cost of ending work in process inventory& units transferred from the
first
processing department to the next processing department during the month = Total
Cost of
units transferred from the first processing department to the next processing
department
during the month + Total Cost of ending work in process inventory in the first
processing
department
= 26,342.16 + 282,858.40
= 309,200.56