Chapter 009, Systems Design: Process Costing Key

Essay Questions 90. d Mcclaflin Corporation uses process costing. A number of transactions that occurred in August are listed below.

Required: Prepare journal entries for each of the transactions listed above.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy

91. During July, the following transactions were recorded at Vorwerk Corporation. The company uses process costing.

Chapter 009, Systems Design: Process Costing Key

Required: Prepare journal entries for each of the transactions listed above.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy

92. d, tng t 91 Harmon Company uses the weighted-average method in its process costing system. The Curing Department of Harmon Company reported the following information for the month of November.

Chapter 009, Systems Design: Process Costing Key

All materials are added at the beginning of the process. Required: Compute the following items using the weighted-average method: a. The equivalent units of production for materials. b. The cost per equivalent unit for conversion. c. The total cost assigned to units transferred out of the Curing Department during November. d. The cost assigned to work in process inventory as of November 30. Answer:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 3 Learning Objective: 4 Level: Medium

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Chapter 009, Systems Design: Process Costing Key

Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:

The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b. Determine the cost transferred to finished goods. c. Determine the amount of cost that should be assigned to the ending work in process inventory. Answer:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 3

Chapter 009, Systems Design: Process Costing Key

Learning Objective: 4 Level: Hard

94. Auger 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.

Chapter 009, Systems Design: Process Costing Key

Answer:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 3 Learning Objective: 4 Level: Medium

95. Baroche 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.

Chapter 009, Systems Design: Process Costing Key

Required: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department.

Chapter 009, Systems Design: Process Costing Key

Answer:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 3 Learning Objective: 4 Level: Medium

96. Mataalii Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September.

Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method.

Chapter 009, Systems Design: Process Costing Key

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Level: Easy

97. The following data have been provided by Witty Corporation, which uses the weighted-average method in its process costing. The data are for the company's Shaping Department for March.

Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for March using the weighted-average method.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Level: Easy

98. Campman 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.

Chapter 009, Systems Design: Process Costing Key

Required: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Level: Easy

99. Gaffigan Corporation uses process costing. The following data pertain to its Assembly Department for December.

Required: Determine the equivalent units of production for the Assembly Department for December using the weighted-average method.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking

Chapter 009, Systems Design: Process Costing Key

AICPA FN: Measurement Learning Objective: 2 Level: Easy

100. Burningham Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for June.

Required: Determine the equivalent units of production for the Materials Preparation Department for June using the weighted-average method.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Level: Easy

101. Vojtko Inc. uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of April.

Required: Compute the costs per equivalent unit for the Assembly Department for April. Answer:

Chapter 009, Systems Design: Process Costing Key

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Easy

102. Dugue Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of February.

Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in February. Answer:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Easy

103. Allegretti Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of January.

During the month, 8,700 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during January using the weighted-average method.

Chapter 009, Systems Design: Process Costing Key

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 4 Level: Medium

104. Twitty Inc. has provided the following data concerning the Assembly Department for the month of August. The company uses the weighted-average method in its process costing.

During the month, 6,800 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during August using the weighted-average method.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 4 Level: Medium

105. In December, one of the processing departments at Garoutte Corporation had beginning work in process inventory of $34,000 and ending work in process inventory of $29,000. During the month, $357,000 of costs were added to production and the cost of units transferred out from the department was $362,000. Required: Construct a cost reconciliation report for the department for the month of December.

Chapter 009, Systems Design: Process Costing Key

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 5 Level: Easy

106. In December, one of the processing departments at Pomainville Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $35,000. During the month, the cost of units transferred out from the department was $201,000. Required: Construct a cost reconciliation report for the department for the month of December.

Answer:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 5 Level: Medium

107. In September, one of the processing departments at Coon Corporation had beginning work in process inventory of $12,000. During the month, $136,000 of costs were added to production and the cost of units transferred out from the department was $121,000. Required: Construct a cost reconciliation report for the department for the month of September.

Chapter 009, Systems Design: Process Costing Key

Answer: *Plug figure

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 5 Level: Medium