Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
155
156
128) 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.
Work in process, beginning:
Units in process
800
Percent complete with respect to materials
70
%
Percent complete with respect to conversion
10
%
Costs in the beginning inventory:
Materials cost
$
1,736
Conversion cost
$
2,288
Units started into production during the month
18,000
Units completed and transferred out
18,400
Costs added to production during the month:
Materials cost
$
59,908
Conversion cost
$
520,696
Work in process, ending:
Units in process
400
Percent complete with respect to materials
70
%
Percent complete with respect to conversion
20
%
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.
158
129) Holling Inc. uses the weighted-average method in its process costing. The following data
concern the company's Mixing Department for the month of December.
Materials
Conversion
Work in process, December 1
$
7,530
$
8,528
Cost added to production in the Mixing
Department during December
$
225,900
$
283,632
Equivalent units of production for December
9,300
8,800
Required:
Compute the cost per equivalent unit for materials and conversion for the Mixing Department in
December.
159
130) Jahncke Inc. uses the weighted-average method in its process costing. The following data
concern the company's Assembly Department for the month of November.
Materials
Conversion
Work in process, November 1
$
3,600
$
1,902
Cost added to production in the Assembly
Department during November
$
103,882
$
278,010
Equivalent units of production for November
8,810
8,720
Required:
Compute the costs per equivalent unit for the Assembly Department for November.
160
131) Lorona Inc. has provided the following data concerning the Assembly Department for the
month of April. The company uses the weighted-average method in its process costing.
Materials
Conversion
Cost per equivalent unit
$
8.10
$
28.50
Equivalent units in ending work in process
1,330
1,235
During the month, 7,400 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 April using the weighted-average method.
161
132) Hutchcroft Corporation uses the weighted-average method in its process costing. The
following data concern the company's Assembly Department for the month of June.
Materials
Conversion
Cost per equivalent unit
$
24.30
$
27.10
Equivalent units in ending work in process
630
225
During the month, 6,200 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 June using the weighted-average method.
162
133) In June, one of the processing departments at Sorto Corporation had beginning work in
process inventory of $30,000. During the month, $345,000 of costs were added to production and
the cost of units transferred out from the department was $346,000.
Required:
Construct a cost reconciliation report for the department for the month of June.
163
134) In July, one of the processing departments at Junkin Corporation had beginning work in
process inventory of $17,000 and ending work in process inventory of $19,000. During the
month, $193,000 of costs were added to production and the cost of units transferred out from the
department was $191,000.
Required:
Construct a cost reconciliation report for the department for the month of July.
164
135) In August, one of the processing departments at Khatak Corporation had beginning work in
process inventory of $34,000 and ending work in process inventory of $30,000. During the
month, the cost of units transferred out from the department was $374,000.
Required:
Construct a cost reconciliation report for the department for the month of August.
165
136) A number of companies in different industries are listed below:
1. Electric utility
2. Frozen orange juice processor
3. Specialty coffee roaster (roasts small batches of specialty coffee beans)
4. Natural gas production company
5. Commercial photographer
6. Contract oil drilling company
Required:
For each company, indicate whether the company is most likely to use job-order costing or
process costing.
137) Walker Enterprises, Inc., uses a job-order costing system and sets a predetermined overhead
rate at the beginning of each year based on estimated manufacturing overhead costs and
estimated direct labor-hours for the upcoming year.
Required:
If the company sets its prices to cover actual direct materials costs, actual direct labor costs, and
applied manufacturing overhead costs, will the company at least avoid a loss during the year?
167
138) 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.
168
139) Whether a company uses process costing or job-order costing depends on its industry. A
number of companies in different industries are listed below:
1. Flour mill
2. Dairy farm
3. Electric utility
4. Custom boat builder
5. Management consulting firm
6. 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.
