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97.
Fulton Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 800 units.
The costs and percentage completion of these units in beginning inventory were:
Cost
Percent
Complete
Materials costs
$7,800
65%
Conversion
costs
$7,600
35%
A total of 9,900 units were started and 8,900 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:
Materials
costs
$128,600
Conversion
costs
$220,800
The ending inventory was 70% complete with respect to materials and 60% complete with
respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all
cases, select the answer that is the closest to the answer you computed. To reduce
rounding error, carry out all computations to at least three decimal places.
The total cost transferred from the first processing department to the next processing
department during the month is closest to:
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98.
Fulton Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 800 units.
The costs and percentage completion of these units in beginning inventory were:
Cost
Percent
Complete
Materials costs
$7,800
65%
Conversion
costs
$7,600
35%
A total of 9,900 units were started and 8,900 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:
Materials
costs
$128,600
Conversion
costs
$220,800
The ending inventory was 70% complete with respect to materials and 60% complete with
respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all
cases, select the answer that is the closest to the answer you computed. To reduce
rounding error, carry out all computations to at least three decimal places.
The cost of ending work in process inventory in the first processing department according
to the company’s cost system is closest to:
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99.
The following information relates to the Assembly Department of Jataca Corporation for
the month of November. Jataca uses a weighted-average process costing system. All
materials at Jataca are added at the beginning of the production process.
Units
Percent Complete Conversion Costs
Work in process, November 1
4,000
40%
Units started into production
317,000
Work in process, November 30
10,000
90%
Units completed and transferred out:
On November 1, the work in process inventory account contained $6,400 of material cost
and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for
materials and $2.80 for conversion costs.
What total amount of cost should be assigned to the units transferred out during
November?
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100.
The following information relates to the Assembly Department of Jataca Corporation for
the month of November. Jataca uses a weighted-average process costing system. All
materials at Jataca are added at the beginning of the production process.
Units
Percent Complete Conversion Costs
Work in process, November 1
4,000
40%
Units started into production
317,000
Work in process, November 30
10,000
90%
On November 1, the work in process inventory account contained $6,400 of material cost
and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for
materials and $2.80 for conversion costs.
What total amount of cost should be assigned to the units in work in process on
November 30?
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101.
In September, one of the processing departments at Wielgus Corporation had beginning
work in process inventory of $27,000 and ending work in process inventory of $10,000.
During the month, $296,000 of costs were added to production.
In the department’s cost reconciliation report for September, the cost of units transferred
out of the department would be:
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102.
In September, one of the processing departments at Wielgus Corporation had beginning
work in process inventory of $27,000 and ending work in process inventory of $10,000.
During the month, $296,000 of costs were added to production.
In the department’s cost reconciliation report for September, the total cost to be
accounted for would be:
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103.
In December, one of the processing departments at Rumsey Corporation had ending work
in process inventory of $21,000. During the month, $110,000 of costs were added to
production and the cost of units transferred out from the department was $99,000.
In the department’s cost reconciliation report for January, the cost of beginning work in
process inventory for the department would be:
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104.
In December, one of the processing departments at Rumsey Corporation had ending work
in process inventory of $21,000. During the month, $110,000 of costs were added to
production and the cost of units transferred out from the department was $99,000.
In the department’s cost reconciliation report for December, the total cost accounted for
would be:
Essay Questions
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105.
Zhang Corporation uses process costing. A number of transactions that occurred in June
are listed below.
(1) Raw materials that cost $41,700 are withdrawn from the storeroom for use in the
Mixing Department. All of these raw materials are classified as direct materials.
(2) Direct labor costs of $47,700 are incurred, but not yet paid, in the Mixing Department.
(3) Manufacturing overhead of $56,900 is applied in the Mixing Department using the
department’s predetermined overhead rate.
(4) Units with a carrying cost of $128,300 finish processing in the Mixing Department and
are transferred to the Drying Department for further processing.
(5) Units with a carrying cost of $133,800 finish processing in the Drying Department, the
final step in the production process, and are transferred to the finished goods warehouse.
(6) Finished goods with a carrying cost of $129,200 are sold.
Required:
Prepare journal entries for each of the transactions listed above.
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106.
During February, the following transactions were recorded at Cuenca Corporation. The
company uses process costing.
(1) Raw materials that cost $38,300 are withdrawn from the storeroom for use in the
Assembly Department. All of these raw materials are classified as direct materials.
(2) Direct labor costs of $21,700 are incurred, but not yet paid, in the Assembly
Department.
(3) Manufacturing overhead of $45,200 is applied in the Assembly Department using the
department’s predetermined overhead rate.
(4) Units with a carrying cost of $86,500 finish processing in the Assembly Department
and are transferred to the Painting Department for further processing.
(5) Units with a carrying cost of $109,100 finish processing in the Painting Department,
the final step in the production process, and are transferred to the finished goods
warehouse.
(6) Finished goods with a carrying cost of $106,100 are sold.
Required:
Prepare journal entries for each of the transactions listed above.
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107.
Lagana Corporation uses process costing. The following data pertain to its Assembly
Department for February.
Units in process, February 1: materials 75% complete, conversion 60% complete
700
Units started into production during February
5,900
Units completed and transferred to the next department
4,900
Units in process, February 28: materials 50% complete, conversion 15% complete
1,700
Work in process, ending:
production
Required:
Determine the equivalent units of production for the Assembly Department for February
using the weighted-average method.
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