Question :
51) Process-costing FIFO usually applied to both the units entering : 1217019
51) Process-costing FIFO is usually applied to both the units entering a department and the units leaving a department.
52) The weighted average method of process costing assigns the cost of equivalent units worked on during the current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process inventory.
53) A major advantage of the weighted-average process costing is that it provides managers with information about changes in the costs per unit from one period to the next.
54) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities:
Beginning work in process inventory
4,500 items, 1/4 complete
Units placed in production
15,000 units
Units completed
17,500 units
Ending work in process inventory
2,000 items, 3/4 complete
Cost of beginning work in process
$5,250
Direct material costs, current
$16,500
Conversion costs, current
$23,945
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
Prepare a production cost worksheet using the FIFO method.
55) Four Seasons Company makes snow blowers. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September, work in process is 40% complete and at the end of the month it is 60% complete. Other data for the month include:
Beginning work-in-process inventory
1,600 units
Units started
2,000 units
Units placed in finished goods
3,200 units
Conversion costs
$200,000
Cost of direct materials
$260,000
Beginning work-in-process costs:
Materials
$154,000
Conversion
$ 82,080
Required:
a.Prepare a production cost worksheet with supporting schedules using the weighted-average method of process costing.
b.Prepare journal entries to record transferring of materials to processing and from processing to finished goods.
56) Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities:
Beginning work in process inventory
3,000 items, 1/3 complete
Units placed in production
12,000 units
Units completed
9,000 units
Ending work in process inventory
6,000 items, 1/2 complete
Cost of beginning work in process
$2,500
Direct material costs, current
$9,000
Conversion costs, current
$7,700
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
Prepare a production cost worksheet using the FIFO method.
