Lanen 3e: Chapter 8 Process Costing Practice Quiz
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1 7 WA Lanen 3e: Chapter 8 Process Costing Practice Quiz he Clarke Chemical Company produces a special f body oil that is widely used by professional orts trainers. The oil is produced in three processes. Refinin Blend in an. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed. The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process nventory contains $1,500 in material costs. Work-in-Process Refinincr Beginning balance(), gal, 80% complete) Materials (30,000 gal. ) Direct labor Overhead Ending balance (6,000 gal., 2/3 complete) ~ 12,300 14,500 2L750 ~ The Clarke Chemical Company uses wei hted-average costin. Required (use 4 decimal places for compu at1ons : (a) Compute the equivalent units of production for Refining for July. (b) Compute the material cost per unit and the conversion cost per unit for July. (c) Compute the costs transferred to the Blending Department for July. (d) Compute the July 31 Work-in-Process nventory balance.
2 :f. q.:;::::::::::;- Cl~~(~ {_ (J) A- /Vle{Jtt.c 6{) - MeJu;,.,._ PRCCESS COSTNG i1hj ii.--~e~ff~=. ~~~~~~n ~~~~D~~ft~.A~A--~~~~~~-~ ~. - - ~" ~ -----~ S~eJ~J~ jol ~ 2--~oaV /6bl d-gtot, DD1 2~ _. l 2~ffi ~c::r, orro /:;6TYO t.f6's'u.s; ~ &.r ~ '1, ~[,(_ Drvt C.tnl\ v ~ J; ~ om r-cl ' MOH ' WPeoS!S $ / J,5""t5'D. ~ fit"l'b 56D ~ --- ~2-i ~6\) -t-~=-*'f~~t;;o \ '4-7/~-g[;. = - f : "fi n~'j (c.) if/1 '6GV 1 & + ~ Lj-1 1 "2bD "0> ~~ os<> 1 7 ~b~ (J) ~~v' 7 '\ -l7 /_,' "'- f> L~-~ - ) ::: f 1 );~ ;_{JJJA- f31.{, ~""'J ~ ~ l~l fdl) f lf/ 1 "1/)u l ~ ~s 6))0 3 ~~?NO l 1\ l{ r (). '>qlf.-3 ( b i w~/. ~ ~ ~om t ----~... ~ ~6)\,v ~ ~/ 21, ()l5u $/. 6 'flf 3 S+-e i-- ~ a1a.-
3 (a) Mat EUP: 35,000; Conv EUP: 33,000 (b) Mat: $0.3943; Conv: $1.25 (c) $47,685 (d) $7,366 Feedback: transferred out: 5, ,000-6,000 = 29,000 (a) Mat EUP = (100% x 29,000) + (100% x 6,000) = 35,000 Conv EUP: (100% x 29,000) + (2/3 x 6,000) = 33,000 (b) Mat: ($1, ,300)/35,000 = $0.3943; Conv: [($6,500-1,500) + $14, ,750]/33,000 = $1.25 (c) 29,000 x ($ = 1.25) = $47,685 (d) Ending WP Mat (6,000 x.3943) Conv: (4,000 x 1. 25) 2,366 5,000 7,366 AACSB: Analytic A/CPA: FN-Measurement Bloom's: Application Difficulty: Medium Learning Objective: 3 Topic Area: Using Product Costing in a Process ndustry
4 ('{e ~ / FF--o Clark~: mical specia l~ ~ Company produces a... ~~~trainers. The oil is produced in three processes. efinin Blend in and Mixin. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed. The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process nventory contains $1,500 in material costs. Work-in-Process: ~iji) Beginning balance (5,000 gal, 80% complete) Materials (30,000 gal.) Direct labor Overhead Ending balance (6,000 gal., 2/3 complete) The Clarke Chemical Company use first-in first-out (FFO) costin. Required (use 4 decimal places for computations : (a) Compute the equivalent units of production for Refining for July. (b) Compute the material cost per unit and the conversion cost per unit for July. (c) Compute the costs transferred to the Blending Department for July. (d) Compute the July 31 Work-in-Process nventory balance.
5 ~qo c{cv-ju.- ~- PROCESS COSTNG - - -~A, oe~~~p~v --~~~' rl' ~~~~~~~~~-~ - ~ ~m_.-:j_ ---~~- : 11 - ( $7 q -- - D ( c:5t) Lo ~0 (_ '-.:C/ '-"!-tj u.l 5. '!J7S7::> ' <; ~ej_...;.._ :J._ (}.. --') 70 6J5D 2/l; J?f5D-., { frb% ~ t' j'~ (_ <;.rc. _g.. 'b~ 67.50,, O?S'O '. V!;JUO GB t~ 'a. t6b"4 1 3) ~ ~~()VD - - tf:ocjd -== ~0 ~ (a.) "2-rCf 6lfD t. l>m "" t- ~V. {<tftm~, Wl~ hv. D.M DL T -MDH 1 WP CostS$ ~. ~\!1;);: ~5"'r5D -t- ~ 6 ~ -:::. 7, 5io ~ + <5S:~=- >t 1/-'6, 5"~ --- tt 13 'l?gd..r lf 2,z.so ::.!>, D ~ o b ~pfv1 to.t.f-1 -pj..-~0 LjocSD )(. eu...~ tl,~ ~5-6\50::::::: w -.,-~-1}-b_o...'J- ' --- -td) tlr~ (.c) ~.4; l 2, ~ <S1) ~ 0 c~m <{; '3k.l~ ~ ~ 2. '? 6'7J"O ~~~. J} -t ~~r f a, ~ eu (b)l.' 1 ~etl fp'.. l>m "-1 tfl ~b H, 67Sb X ~ evt - ~<(-C.
6 (a) Mat EUP: 30,000; Conv EUP: 29,000 (b) Mat: $0.41 ; Conv: $1.25 (c) $48,590 (d) $7,460 Feedback: started & completed: 30,000-6,000 = 24,000; transferred out: 5, ,000-6,000 = 29,000 (a) Mat EUP = (0% x 5,000) + (100% x 24,000) + (100% x 6,000) = 30,000 Conv EUP: (20% x 5,000) + (100% x 24,000) + (2/3 x 6,000) = 29,000 (b) Mat: $12,300/30,000 = $0.41; Conv: ($14, ,750)/29,000 = $1.25 (c) Beginning WP Conversion cost to complete ( 1,000 x $1.25) Stm1ed & completed (24,000 x ($ ) Total trm1sferred out (d) Ending WP Mat (6,000 x.41) $ 7,500 L250 $ 8, $48,590 2,460 Conv: (4,000 x 1.25) ,460 AACSB: Analytic A/CPA: FN-Measurement Bloom's: Application Difficulty: Medium Learning Objective: 5 Topic Area: Assigning Costs Using FFO
7 «Clarke tx~7 ~~:~rainers. vja Chemical Company produces a special kind of bo at is widely used by professional The oil is produced in three processes: Refining Blending and Mixin. Raw oil materials are introduced at the beginning of the refining process. A "moun am-a1r scent material is added in the blending process when processing is 50% completed. The following Work-in-Process account for ding Department is a the month of July. The vj h,~ July 1 Work-in-Process inventory contain $5,920 material costs, and 1.56/unit i costs tra f Av~~ ~-n ~m the Refining Department. ><- r6l:::jq... l l-,,~~ r' ~ Work-in-Process: Blendin Beginning balance (8,000 gal, 30% complete) Costs transferred in from Refining (29,000 gal. ) Materials Direct labor Overhead Endip.g balance ( 4,000 gal., 40% complete) a~-~ The Clarke Chemical Company use weighted average costing. Required (use 4 decimal places for computa 1ons : (a) Compute the equivalent units of production for Blending. (b) Compute the unit costs in the Blending Department for the month of July. (HNT: There are three!!) (c) Compute the costs transferred out to the Mixing Department for July. (d) Compute the July 31 Work-in-Process nventory balance. <..l
8 CL~ ~~u.jl {w4 1./t~) H ()A_c PROCESS COSTNG T ~ferred '" ~ Re ~,~ Dept.?7,~/ Lfjo,l {6b l ole CS\) la 'fo La 3~ 01Sb 3 3,6'1S'iJ e- ;,& , 6l)l) c~x~ t; b 6U 6U t;;().pm \. ~~ ll_j ~5o +J7'fY+f1b ( Lf, OM BletJ,~ W l~!r..v. <f- c) O \!{:0 \. _, \ rmts+ured S> auf (5,1 '2o -f- "W 1 <6/ v) d;2b l 3o j f 2/ 1 7Cf<i! ~ ~'3,6Db ~ ~*b60 ~ ~ ~ i 0? (_b Jl 0 b 3 ~ gapfv1 ' ~6~~mtl ~ : ~ ~M 4-~ " -- '1 J}f 0,\ ~c;i.d + ~ c <SV"v i) rboo y._ o.'3 --- QO( ~ t ~~O'U 'K 3,oi' ~<t-g ~ t ~ ~ /,b'f + /t./4- fb't'gu ~BU. 5 rr.
9 (a) Trans-in EUP: 37,000; Mat EUP: 33,000; Conv EUP: 34,600 (b) Trans-in: $1.64; Mat: $0.81 ; Conv: $0.63 (c) $101,640 (d) $7,568 Feedback: transferred out: 8, ,000-4,000 = 33,000 (a) Trans-in EUP: (100% x 33,000) + (100% x 4,000) = 37,000 Mat EUP: (100% x 33,000) + (0% x 4,000) = 33,000 Conv EUP: (100% x 33,000) + (40% x 4,000) = 34,600 (b) Trans-in: [($1.56 x 8,000) + 48,200]/37,000 = $1.64 Mat: ($5, ,810)/33,000 = $0.81 Conv: [($22,850-5, 9~ ) + 5, ,600]/34,600 = $0.63 (c) 33,000 x ($ ) = $101,640 - (d) EWP: Trans-in: (4,000 x $1.64) Mat: Conv: (1,600 x $0.63) $6, L008 $7,568 AACSB: Analytic A/CPA: FN-Measurement Bloom's: Application Difficulty: Hard Learning Objective: 3 Topic Area: Using Product Costing in a Process ndustry
10 FlFO rainers. The oil is produced in three processes: R finin Blend in and Mixi. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed. The following Work-in-Process account for ing Department is availabl month of July. The July 1 Work-in-Process inventory contain $10,370 i conversion costs, and $.56/unit 1 costs transferred in from e Refinin D. Tor -in-process: Blendinu Beginning balance (8,000 gal, 30% complete) Costs transferred in fi om Refining (29,000 gal. ) Materials X t.; ~~~ Direct labor t ~ Overhead '(# 4-5j J,;'f'a Ending balance ( 4,000 gal., 40% complete) c ortv O, M tt:f.e~ '\ $22,850 - ot '> 7o ~ ) ~ 0 ( pl~~ed) t 20,810.../' ~<i?, {'rt 5,748 11,600 The Clarke Chemical Company use(fi'iit-jn. first-out (FFO) costin:i) Required (use 4 decimal places for computations): (a) Compute the equivalent units of production for Blending. (b) Compute the unit costs in the Blending Department for the month of July. (HNT: There are three!!) (c) Compute the costs transferred out to the Mixing Department for July. (d) Compute the July 31 Work-in-Process nventory balance.
11
12 (a) Trans-in EUP: 29,000; Mat EUP: 33,000; Conv EUP: 32,200 (b) Trans-in: $ ; Mat: $0.6306; Conv: $ (c) $101,700 (d) $7,510 Feedback: Blended started & completed: 29,000-4,000 = 25,000; transferred out: 8, ,000-4,000 = 33,000 (a) Tran-in EUP = (0% x 8,000) + (100% x 25,000) + (100% x 4,000) = 29,000 Mat EUP = (100% x 8,000) + (100% x 25,000) + (0% x 4,000) = 33,0QO Conv EUP: (70% x 8,000) + (100% x 25,000) + (40% x 4,000) = 32,200 (b) Trans-in: $48,200/29,000 = $ ; Mat: $20,810/33,000 = $0.6306; Conv: ($5, ,600)/32,200 = $ (c) Beginning \\TJP $22,850 Materials to complete (8,000 x $0.6306) 5,045 Conversion cost to complete ( 5,600 x $ ) Statied & completed (25,000 x ($ ) Total transfen ed out (d) Ending WP Trans-in (4,000 x $1.6621) Conv: (1,600 x ) $30,912 70,788 $101,700 $6, ,510 AACSB: Analytic A/CPA: FN-Measurement Bloom 's: Application Difficulty: Hard Learning Objective: 5 Topic Area: Assigning Costs Using FFO
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