Chapter 04 – Process Costing
Essay Questions
94. Larney Corporation uses process costing. A number of transactions that occurred in June
are listed below.
(1) Raw materials that cost $38,200 are withdrawn from the storeroom for use in the Mixing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 $36,500 are incurred, but not yet paid, in the Mixing Department.
(3) Manufacturing overhead of $42,100 is applied in the Mixing Department using the
department’s predetermined overhead rate.
(4) Units with a carrying cost of $112,400 finish processing in the Mixing Department and are
transferred to the Drying Department for further processing.
(5) Units with a carrying cost of $143,800 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 $138,500 are sold.
Required:
Prepare journal entries for each of the transactions listed above.
Chapter 04 – Process Costing
95. During February, the following transactions were recorded at Ferrington Corporation. The
company uses process costing.
(1) Raw materials that cost $42,400 are withdrawn from the storeroom for use in the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 $16,100 are incurred, but not yet paid, in the Assembly Department.
(3) Manufacturing overhead of $30,200 is applied in the Assembly Department using the
department’s predetermined overhead rate.
(4) Units with a carrying cost of $76,500 finish processing in the Assembly Department and
are transferred to the Painting Department for further processing.
(5) Units with a carrying cost of $97,200 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 $92,800 are sold.
Required:
Prepare journal entries for each of the transactions listed above.
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96. Production and cost data for the month of February for Process A of the Packer
manufacturing Company follow:
The company uses the weighted-average cost method in its process costing system.
Required:
a. Calculate the equivalent units and cost per equivalent unit for February for materials and
for conversion costs. (Carry calculations out to the nearest tenth of a cent.)
b. Determine the cost transferred to finished goods.
c. Determine the amount of cost that should be assigned to the ending work in process.
Chapter 04 – Process Costing
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97. Assurer 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 04 – Process Costing
Weighted-average method:
Chapter 04 – Process Costing
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98. Barsoux 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:
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 04 – Process Costing
Chapter 04 – Process Costing
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99. Nygaard 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.
Weighted-average method
100. The following data have been provided by Fattig Corporation, which uses the weighted-
average method in its process costing. The data are for the company’s Shaping Department for
October.
Required:
Compute the equivalent units of production for both materials and conversion costs for the
Shaping Department for October using the weighted-average method.
Chapter 04 – Process Costing
101. Canler 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:
Using the weighted-average method, determine the equivalent units of production for
materials and conversion costs.
Chapter 04 – Process Costing
102. Garneau Corporation uses process costing. The following data pertain to its Assembly
Department for February.
Required:
Determine the equivalent units of production for the Assembly Department for February using
the weighted-average method.
Chapter 04 – Process Costing
103. Flitter Corporation uses the weighted-average method in its process costing. The
following data pertain to its Materials Preparation Department for November.
Required:
Determine the equivalent units of production for the Materials Preparation Department for
November using the weighted-average method.
Chapter 04 – Process Costing
104. Jeoffroy Inc. uses the weighted-average method in its process costing. The following
data concern the company’s Assembly Department for the month of November.
Required:
Compute the costs per equivalent unit for the Assembly Department for November.
Chapter 04 – Process Costing
105. Dominick Inc. uses the weighted-average method in its process costing. The following
data concern the company’s Mixing Department for the month of December.
Required:
Compute the cost per equivalent unit for materials and conversion for the Mixing Department
in December.
Chapter 04 – Process Costing
106. Ok Corporation uses the weighted-average method in its process costing. The following
data concern the company’s Assembly Department for the month of June.
During the month, 7,100 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.
Chapter 04 – Process Costing
107. Vanstraten 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.
During the month, 4,800 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 April using the weighted-average method.
Chapter 04 – Process Costing
108. In July, one of the processing departments at Wrightsel Corporation had beginning work
in process inventory of $22,000 and ending work in process inventory of $16,000. During the
month, $225,000 of costs were added to production and the cost of units transferred out from
the department was $231,000.
Required:
Construct a cost reconciliation report for the department for the month of July.
Chapter 04 – Process Costing
109. In November, one of the processing departments at Shelp Corporation had beginning
work in process inventory of $27,000 and ending work in process inventory of $21,000.
During the month, the cost of units transferred out from the department was $311,000.
Required:
Construct a cost reconciliation report for the department for the month of November.
Chapter 04 – Process Costing
110. In March, one of the processing departments at Perrill Corporation had beginning work
in process inventory of $31,000. During the month, $368,000 of costs were added to
production and the cost of units transferred out from the department was $367,000.
Required:
Construct a cost reconciliation report for the department for the month of March.