104.
An operations costing system is:
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105.
Predetermined manufacturing overhead rates can be used in all of the following costing
systems except:
Essay Questions
106.
107.
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108.
Manning Corporation uses the weighted-average method in its process costing. The
following data pertain to its Processing Department for September.
Percent Complete
Units
Materials
Conversion
Work-in-process,
September 1
700
65%
45%
Units started into
production during
September
8,300
Units completed
during September
and transferred to
the next
department
7,300
Work-in-process,
September 30
1,700
90%
40%
Materials
Conversion
next department
Work-in-process,
1,700 units × 90%
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109.
The following data have been provided by Florrisant Corporation, which uses the
weighted-average method in its process costing. The data are for the company’s Assembly
Department for October.
Percent Complete
Units
Materials
Conversion
Work-in-process,
October 1
900
55%
50%
Units started into
production during
October
8,200
Units completed
during October and
transferred to the
next department
7,100
Work-in-process,
October 31
2,000
85%
35%
Materials
Conversion
next department
Work-in-process, October
2,000 units × 35%
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110.
Markov Inc. uses the weighted-average method in its process costing system. The
following data concern the operations of the company’s first processing department,
Sculpting, for a recent month.
Work-in-process, beginning:
Units in process
200
Percent complete with respect to
materials
50%
Percent complete with respect to
conversion
40%
Units started into production during the
month
11,000
Work-in-process, ending:
Units in process
500
Percent complete with respect to
materials
80%
Percent complete with respect to
conversion
10%
Transferred to next
department
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111.
Roubideaux Corporation uses process costing. The following data pertain to its Packing
Department for February.
Units in process, February 1: materials
85% complete, conversion 70% complete
500
Units started into production during
February
6,900
Units completed and transferred to the
next department
6,200
Units in process, February 28: materials
50% complete, conversion 20% complete
1,200
Transferred to next
Conversion: 1,200 units
Equivalent units of
production
112.
Highlite Corporation uses the weighted-average method in its process costing. The
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following data pertain to its Formulation Department for November.
Units in process, November 1: materials
85% complete, conversion 75% complete
700
Units started into production during
November
5,500
Units completed and transferred to the
next department
4,700
Units in process, November 30: materials
70% complete, conversion 25% complete
1,500
Transferred to next
Materials: 1,500 units
Conversion: 1,500 units
Equivalent units of
production
113.
Everglades Furniture uses a process cost system to account for its chair factory. Beginning
inventory consisted of 5,000 units (100% complete as to material, 55% complete as to
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114.
Toxo Chemicals produces a solvent in its Glendale plant. Three chemicals are combined at
the start of the process and blended under pressure for a period of time. At the 75% point
of completion, an additional chemical is added. The following information has been
gathered:
Chemical
Mix
Additional
Chemical
Conversion
Cost
Gallons
BWIP
$5,000
-0-
$3,000
10,000
Added
65,000
15,000
35,000
100,000
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115.
Tracker Sports is a manufacturer of sportswear. Tracker produces its products in two
departments.
The information for the current month for Department #2 is as follows:
Beginning work-in-process
20,000
units
Units transferred in from Dept #1
40,000
units
Units completed
50,000
units
Ending work-in-process
10,000
units
Beginning WIP transferred in
costs
$50,000
Beginning WIP direct materials
$12,000
Beginning WIP direct labor
$3,200
Beginning WIP overhead
$1,600
Costs transferred in from Dept #1
$100,000
Direct material added during
month
$60,000
Direct manufacturing labor during
month
$20,000
Manufacturing overhead applied
???
Beginning WIP was half complete as to conversion costs. Direct materials for Department
#2 are added when the process is 25% complete. Factory overhead is applied at a rate
equal to 50 percent of direct manufacturing labor. Ending WIP was 60 percent complete.
Tracker Sports uses weighted-average costing.
Required:
(
HINT:
use 4 decimal places in your calculations)
a. Compute the equivalent units of production for each input.
b. Compute the cost per unit.
c. Compute the cost transferred out to finished goods.
d. Compute the ending work–in-process inventory balance.
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116.
Malcom Industries manufactures a silicone paste wax that goes through three processing
departments: cracking, blending, and packing. All raw materials are introduced at the start
of work in the cracking department, with conversion costs being incurred uniformly in each
department. The Work–in-Process T-account for the cracking department for July is:
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Work-in-Process Inventory (Cracking
Department)
Balance, July 1 (35,000 lbs, 4/5 done)
$63,700
Direct materials (280,000 lbs)
397,600
Conversion costs
189,700
Balance, July 31 (45,000 lbs, 2/3 done)
??
Costs transferred to Blending Dept
??
117.
The Safety Chemical Company produces a special kind of body oil that is widely used by
professional sports trainers. The oil is produced in three processes: Refining, Blending,
and Mixing. Raw oil materials are introduced at the beginning of the refining process. A
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“mountain-air scent” material is added in the blending process when processing is 50%
completed.
The following Work–in-Process account for the Blending Department is available for the
month of July. The July 1 Work–in-Process inventory contains $5,920 in material costs, and
$1.56/unit in costs transferred in from the Refining Department.
Work-in-Process: Blending
Beginning balance (8,000 gal, 30%
complete)
$22,850
Costs transferred in from Refining
(29,000 gal.)
48,200
Materials
20,810
Direct labor
5,748
Overhead
11,600
Ending balance (4,000 gal, 40%
complete)
