Deck 4: Cost Accounting Systems: Process Costing

Question 1

It is quite common for a service company to use a process costing system, given the relatively homogenous nature of the work done for all clients.

Answer 1

False

Question 2

Process costing is ideal for business situations that involve the production of a relatively standardized product, using a continuous-flow operation.

Answer 2

True

Question 3

Job order costing is ideal for business situations that involve the production of a relatively standardized product, using a continuous-flow operation.

Answer 3

False

Question 4

In process costing, all product costs are accumulated in a single Work in Process account until the goods have passed through all production departments; the costs are then transferred to Finished Goods.

Question 5

In process costing, manufacturing overhead is charged to each production department, while direct materials and direct labor are allocated directly to the specific jobs.

Question 6

In process costing, it is assumed that products physically move through the process on a FIFO basis.

Question 7

All products must go through the exact same departments and processes in order for a company to use process costing.

Question 8

In a process-costing system, per-unit costs are generally calculated on a monthly basis.

Question 9

Direct materials and conversion costs are usually tracked separately when determining equivalent units of production.

Question 10

It is not necessary to track the various product costs separately in a production process because costs are generally incurred uniformly.

Question 11

Equivalent Units must be calculated as part of the process in properly determining the per-unit costs of direct materials and conversion costs for the period.

Question 12

The sum of costs added this period and those in beginning inventory should equal the sum of the costs in ending inventory and the cost of goods transferred out.

Question 13

In a company with multiple sequential production processes, the costs transferred out of one department become "transferred in"
costs in the next sequential department.

Question 14

The journal entry to record the accrual of wages for direct labor includes a credit to Wages Payable.

Question 15

The journal entry to record the completion of the production process for a manufacturing firm includes a debit to Cost of Goods Sold.

Question 16

The journal entry to record the completion of the production process for a manufacturing firm includes a debit to Finished Goods Inventory.

Question 17

Under a FIFO process costing system, the calculation of conversion cost per-equivalent-unit includes only those costs incurred this period.

Question 18

Under a FIFO process costing system, the calculation of direct materials cost per-equivalent-unit includes both the costs incurred this period and those remaining in beginning inventory from last period.

Question 19

Under a FIFO process costing system, the costs associated with inventory produced this period are kept separate from the costs of inventory produced in other periods.

Question 20

Under a FIFO process costing system, equivalent units are calculated based only on units that were both started and completed during the current period.

Question 21

Which of the following is not an example of a type of company that would likely prefer a process costing system?

A) Oil refining
B) Electricity generation
C) Home building
D) Packaged food production

Question 22

Which of the following is an example of a type of company that would likely prefer a process costing system?

A) Oil refining
B) Home building
C) Financial statement auditing
D) Carpet cleaning

Question 23

In a process costing system, costs are generally accumulated by:

A) Job order
B) Unit
C) Department
D) Product line

Question 24

In a job order costing system:

A) Each department accumulates costs and then allocates them to all units produced.
B) The processes involved in manufacturing products are essentially identical for all products.
C) Production generally happens in a "continual flow".
D) The end products are relatively homogenous.
E) None of the above.

Question 25

Which of the following statements is true regarding process costing?

A) All costs must be assigned to individual jobs or production runs.
B) All products in a particular batch are homogenous.
C) All products must follow the same path through production to reach the Finished Goods Inventory.
D) A company must use the weighted average cost-flow assumption in tracking the ending balance in each Work in Process Inventory account.
E) All of these statements are true.

Question 26

Which of the following statements is false regarding process costing?

A) All costs must be assigned to individual jobs or production runs
B) All products must follow the same path through production to reach Finished Goods Inventory
C) The products in a single batch may differ from each other
D) A company must use the weighted average cost-flow assumption in tracking the ending balance in each Work in Process Inventory account
E) All of these statements are false.

Question 27

When a company uses a process costing system and has more than one department, which of the following types of accounts will result in multiple accounts in the general ledger?

A) Finished Goods
B) Materials
C) Wages Payable
D) Work in Process

Question 28

If direct materials are added at the beginning of a process, the equivalent units completed of direct materials will be:

A) Equal to equivalent units completed of conversion costs
B) Equal to the physical units completed
C) Less than physical units completed
D) None of the above

Question 29

If direct materials are added at the beginning of a process, the equivalent units completed of direct materials will be:

A) Equal to equivalent units completed of conversion costs
B) Equal to the units of direct materials worked on during the period
C) Equal to physical units completed
D) None of the above

Question 30

Which of the following best describes the weighted average cost flow assumption?

A) Direct materials are added evenly throughout the process
B) Equivalent units of production for conversion costs do not match the physical flow of units
C) Inventory cost layers are kept separate based on the period of production
D) Cost per equivalent unit is calculated by combining costs from both the current and previous periods
E) None of the above

Question 31

Which of the following items are determined based on the per-unit cost that is calculated using equivalent units of production?

A) Ending Work in Process Inventory
B) Costs incurred during the period
C) Cost of Goods transferred out of the department
D) A and C only
E) All of the above

Question 32

Which of the following are steps in process costing?

A) Visualize the physical flow of units
B) Calculate the equivalent units
C) Determine the per-unit costs
D) Calculate the Cost of Goods Manufactured and the Ending WIP Inventory
E) All of the above

Question 33

Of the following four cost categories, the sum of which pairs should be equal?
1) Beginning Inventory
2) Costs added this period
3) Ending Inventory
4) Cost of Goods Manufactured

A) 1 + 2 = 3 + 4
B) 2 + 3 = 4 + 1
C) 3 + 1 = 2 + 4
D) All of the above are correct.
E) None of the above are correct.

Question 34

Which of the following is/are included in the journal entry to record the application of manufacturing overhead?

A) DEBIT to Manufacturing
B) CREDIT to Wages Payable
C) DEBIT to Work in Process Inventory
D) CREDIT to Cash
E) All except B.

Question 35

Which of the following is/are included in the journal entry(ies) to record manufacturing overhead costs?

A) DEBIT to Manufacturing Overhead
B) DEBIT to Work Process Inventory
C) CREDIT to Wages Payable
D) CREDIT to Cash
E) All except B.

Question 36

Which of the following is/are included in the entry to record the completion of the manufacturing process?

A) DEBIT to Work in Process Inventory
B) DEBIT to Cost of Goods Sold
C) CREDIT to Manufacturing Overhead
D) DEBIT to Finished Goods Inventory
E) None of the above

Question 37

Which of the following is/are used to determine overall per-unit cost under a FIFO process costing system?

A) Direct Materials costs incurred THIS period
B) Direct Materials costs incurred LAST period
C) Conversion Costs incurred THIS period
D) Conversion Costs incurred LAST period
E) A and C only

Question 38

Which of the following is/are not used to determine overall per-unit cost under a FIFO process costing system?

A) Direct Materials costs incurred LAST period
B) Conversion Costs incurred LAST period
C) Selling costs incurred or accrued THIS period
D) Selling costs allocated LAST period
E) All of the above

Question 39

Which of the following costs are always transferred out of the last Work in Process account at the end of the period under a FIFO process costing system?

A) All costs associated with beginning inventory
B) All costs associated with ending inventory
C) All costs associated with items that were transferred out this period
D) All costs incurred this period
E) None of the above

Question 40

Which of the following costs are never assigned to ending Work in Process Inventory during the current period under a FIFO process costing system?

A) Direct materials costs incurred this period
B) Costs incurred last period on beginning inventory
C) Conversion costs incurred this period
D) Overhead costs applied this period
E) Both A and D

Question 41

Use the following information for Multiple Choice Questions below:
Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, beginning work in process was 3,000 pounds (70% processed), 37,000 pounds were started in process, 35,000 pounds transferred out, and ending work in process was 60% processed.

-Calculate equivalent units of materials during May for the Mixing Department.

A) 30,000
B) 32,000
C) 5,000
D) 38,000
E) 40,000

Question 42

Use the following information for Multiple Choice Questions below:
Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, beginning work in process was 3,000 pounds (70% processed), 37,000 pounds were started in process, 35,000 pounds transferred out, and ending work in process was 60% processed.

-Calculate equivalent units of conversion costs during May for the Mixing Department.

A) 26,000
B) 33,800
C) 35,600
D) 38,000
E) 40,000

Question 43

Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, the beginning work in process was 70% processed, 37,000 pounds were started in process, 35,000 pounds transferred out, and ending work in process was 60% processed. Assume that during May the equivalent units completed with respect to materials is 40,000 and the equivalent units completed with respect to conversion costs is 38,000.
How many pounds were in beginning inventory?

A) 2,000
B) 3,000
C) 3,500
D) 5,000
E) None of the above

Question 44

Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, the beginning work in process was 3,000 pounds (70% processed), 35,000 pounds were transferred out, and ending work in process was 60% processed.
Assume that during May the equivalent units completed with respect to materials is 40,000 and the equivalent units completed with respect to conversion costs is 38,000.
How many pounds were started in the Mixing process during May?

A) 26,000
B) 32,000
C) 35,000
D) 37,000
E) 40,000

Question 45

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Mixing Department for the month of March.
Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to materials during the month of March using the weighted average method.

A) 52,000
B) 52,500
C) 53,000
D) 57,000
E) 61,000

Question 46

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Mixing Department for the month of March.
Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to conversion costs during the month of March using the weighted average method.

A) 50,000
B) 52,000
C) 52,500
D) 57,000
E) 59,500

Question 47

The following information summarizes the activities in the Mixing Department for the month of March:
Assume that the company uses the weighted average method and that, during March, the equivalent units completed with respect to materials is 57,000 and the equivalent units completed with respect to conversion costs is 52,500.
What was the beginning inventory?

A) 2,000
B) 3,000
C) 4,000
D) 6,000
E) None of the above

Question 48

The following information summarizes the activities in the Mixing Department for the month of March:
Assume that the company uses the weighted average method and that during March, the equivalent units completed with respect to materials is 57,000 and the equivalent units completed with respect to conversion costs is 52,500.
How many units were started and completed?

A) 47,000
B) 49,000
C) 53,000
D) 55,000
E) None of the above

Question 49

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Sewing Department for the month of October.

Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to materials during the month of October using the weighted average method.

A) 82,400
B) 84,000
C) 92,000
D) 95,000
E) 96,000

Question 50

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Sewing Department for the month of October.

Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to conversion costs during the month of October using the weighted average method.

A) 46,400
B) 80,400
C) 82,400
D) 91,200
E) 92,000

Question 51

The following information summarizes the activities in the Sewing Department for the month of October.
Assume that the company uses the weighted average method and that during October, the equivalent units completed with respect to materials is 92,000, and the equivalent units completed with respect to conversion costs is 82,400.
What was the beginning inventory?

A) 6,000
B) 8,000
C) 12,000
D) 16,000
E) None of the above

Question 52

The following information summarizes the activities in the Sewing Department for the month of October.
Assume that the company uses the weighted average method and that during October, the equivalent units completed with respect to materials is 92,000, and the equivalent units completed with respect to conversion costs is 82,400.
How many units were started and completed?

A) 68,000
B) 70,000
C) 76,000
D) 84,000
E) None of the above

Question 53

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month. During the month of November, current costs included $157,460 of materials and $193,335 of conversion costs.

-Calculate the average cost per equivalent unit for materials for the month of November.

A) $0.13
B) $0.67
C) $6.85
D) $7.52
E) $8.34

Question 54

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month. During the month of November, current costs included $157,460 of materials and $193,335 of conversion costs.

-Calculate the average cost per equivalent unit for conversion costs for the month of November.

A) $0.10
B) $0.46
C) $8.82
D) $9.32
E) $9.78

Question 55

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month.
Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.

-Calculate the current costs incurred for direct materials during the month of November.

A) $25,100
B) $38,500
C) $157,460
D) $188,460
E) None of the above

Question 56

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month.
Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.

-Calculate the current costs incurred for conversion costs during the month of November.

A) $25,100
B) $30,350
C) $193,335
D) $212,535
E) None of the above

Question 57

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that current costs included $157,460 of materials and $193,335 of conversion costs. Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.

-Calculate the dollar amount accumulated in the beginning inventory of direct materials from the prior period.

A) $ 15,500
B) $180,460
C) $330,420
D) $350,795
E) None of the above

Question 58

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that current costs included $157,460 of materials and $193,335 of conversion costs. Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.

-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

A) $ 9,600
B) $214,085
C) $350,795
D) $396,270
E) None of the above

Question 59

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $34,998 of materials and $97,412 of conversion costs.

-Calculate the average cost per equivalent unit for materials costs for the month of July.

A) $0.15
B) $0.50
C) $6.14
D) $6.64
E) $6.97

Question 60

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $34,998 of materials and $97,412 of conversion costs.

-Calculate the average cost per equivalent unit for conversion costs for the month of July.

A) $0.05
B) $1.46
C) $17.94
D) $18.48
E) $19.40

Question 61

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.

-Calculate the current costs incurred for direct materials during the month of July.

A) $8,550
B) $10,780
C) $34,998
D) $40,698
E) None of the above

Question 62

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.

-Calculate the current costs incurred for conversion costs during the month of July.

A) $10,780
B) $13,360
C) $97,412
D) $113,272
E) None of the above

Question 63

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that current costs included $34,998 of materials and $97,412 of conversion costs. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.

-Calculate the dollar amount accumulated in the beginning inventory for direct materials from the prior period.

A) $2,850
B) $40,698
C) $72,846
D) $132,410
E) None of the above

Question 64

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that current costs included $34,998 of materials and $97,412 of conversion costs. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.

-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

A) $7,930
B) $102,242
C) $132,410
D) $202,754
E) None of the above

Question 65

Use the following information for Multiple Choice Questions below:
Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the FIFO method of process costing. In the Mixing Department for the month of March, beginning work in process was 3,000 pounds (70% processed), 37,000 pounds were started in process, 35,000 pounds transferred out, and ending work in process was 60% processed.

-Calculate equivalent units of materials during March for the Mixing Department.

A) 35,000
B) 35,900
C) 37,000
D) 37,900
E) 40,000

Question 66

Use the following information for Multiple Choice Questions below:
Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the FIFO method of process costing. In the Mixing Department for the month of March, beginning work in process was 3,000 pounds (70% processed), 37,000 pounds were started in process, 35,000 pounds transferred out, and ending work in process was 60% processed.

-Calculate equivalent units of conversion costs during March for the Mixing Department.

A) 35,000
B) 35,900
C) 37,000
D) 37,900
E) 40,000

Question 67

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Mixing Department for the month of August.


-Calculate the equivalent units completed with respect to materials during the month of August using the FIFO method.

A) 49,000
B) 50,500
C) 50,900
D) 55,000
E) 55,500

Question 68

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Mixing Department for the month of August.


-Calculate the equivalent units completed with respect to conversion costs during the month of August using the FIFO method.

A) 44,900
B) 50,500
C) 50,900
D) 55,000
E) 55,500

Question 69

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Sewing Department for the month of August.
Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to materials during the month of August using the FIFO method.

A) 68,000
B) 74,400
C) 76,800
D) 84,000
E) 86,000

Question 70

Use the following information for Multiple Choice Questions below:
The following information summarizes the activities in the Sewing Department for the month of August.
Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

-Calculate the equivalent units completed with respect to conversion costs during the month of August using the FIFO method.

A) 65,000
B) 74,400
C) 76,800
D) 84,000
E) 86,000

Question 71

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the FIFO method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month. During the month of November, current costs included $157,500 of materials and $193,500 of conversion costs.

-Calculate the average cost per equivalent unit for materials for the month of November.

A) $0.13
B) $0.74
C) $7.50
D) $8.24
E) $8.14

Question 72

Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the FIFO method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that the beginning inventory had accumulated $15,500 of materials and $9,600 of conversion costs in the previous month. During the month of November, current costs included $157,500 of materials and $193,500 of conversion costs.

-Calculate the average cost per equivalent unit for conversion costs for the month of November.

A) $0.10
B) $0.50
C) $9.21
D) $10.00
E) $10.49

Question 73

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the FIFO method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $51,100 of materials and $79,310 of conversion costs.

-Calculate the average cost per equivalent unit for materials costs for the month of July.

A) $0.14
B) $0.57
C) $6.80
D) $7.57
E) $10.22

Question 74

Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the FIFO method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $51,100 of materials and $79,310 of conversion costs.

-Calculate the average cost per equivalent unit for conversion costs for the month of July.

A) $0.05
B) $1.54
C) $15.40
D) $19.48
E) $20.45

Question 75

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-How many units were started in the Weaving Department during the month of November?

Question 76

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-How many equivalent units of direct materials were produced during November?

Question 77

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-How many equivalent units of conversion costs were produced during November?

Question 78

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-What is the average cost per equivalent unit of direct materials during November?

Question 79

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-What is the average cost per equivalent unit of conversion costs during November?

Question 80

Use the following information to complete Exercises :
Porter Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each "unit" refers to a square yard of carpet:
• Beginning Work in Process Inventory: 600 units, 40% complete with respect to conversion.
• Ending Work in Process Inventory: 800 units, 25% complete with respect to conversion.
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.
During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 10,200 units were completed and transferred out of the Weaving Department to the Finishing Department.
NOTE: Round all per-unit costs to the nearest penny
-What is the journal entry to record the Cost of Goods Manufactured for the Weaving Department in the month of November?