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Managerial Accounting
6th Edition Brewer
Chapter 4
Process Costing
Solutions to Questions
4-1 A process costing system should be 4-2 Job-order and processing costing are
used in situations where a homogeneous similar in the following ways:
product is produced on a continuous basis. 1. Job-order costing and process costing have
the same basic purposes—to assign
4. and 5.
The equivalent units of production for materials and conversion are
computed as follows:
Equivalent Units
Materials Conversion
Units transferred out ............................. 34,500 34,500
Work in process, ending:
8,000 units × 100% ............................ 8,000
8,000 units × 40% .............................. 3,200
Equivalent units of production ................. 42,500 37,700