Process Costing HW(please use the templates available online)
1. Ringstar Company makes pliers in a single process and uses process costing.All material is added at the start of the process. The following information is available for March production:
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Units
|
|
Beginning Work in Process
|
2,000
|
|
Plus: Units Started
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20,000
|
|
Total to Account for
|
22,000
|
|
Less: Ending Work in Process (50% complete for Conversion Costs)
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6,000
|
|
Units Completed
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16,000
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The following costs are available for March:
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Material
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Conversion Cost
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Total Cost
|
|
Beginning Work in Process
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$7,800
|
$7,000
|
$14,800
|
|
Costs Added in March
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52,200
|
66,000
|
118,200
|
|
Total Cost
|
$60,000
|
$73,000
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$133,000
|
a. Calculate the Equivalent Cost Per Unit for Material and Conversion Costs.
b. What is the value pliers that were completed and transferred out in March?
c. What is the value of pliers that were left in ending inventory on March 31st?
2. Round Core Company uses process costing. Data for the processing department for June is as follows:
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Units
|
Cost of Materials
|
|
Beginning work in process inventory
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20,000
|
$21,000
|
|
Started in June
|
77,000
|
$42,000
|
|
Units Completed
|
75,000
|
|
|
Ending work in process inventory
|
22,000
|
|
All materials are added at the beginning of the manufacturing process. What is the cost per equivalent unit for materials?
3. Department Alpha had no beginning inventory. The department added direct materials of $100,000 and conversion costs of $150,000 during the month of July. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the period, 40,000 units were completed. At the end of the period 40,000 units remained which were 10% complete in regards to conversion costs. What is the cost per equivalent unit of materials and conversion costs, respectively in July?
4. Lakes Co utilizes a process costing system. The beginning work in process inventory consisted of 16,000 units. The ending work in process inventory consisted of 12,000 units which were 100% complete with respect to materials and 50% complete with respect to conversion costs.
The total cost in beginning inventory was $65,000 broken down of $30,000DM and $35,000 Conversion Costs. An additional $324,000 of costs were added during the period, with $194,400 consisting of DM costs and $129,600 of Conversion Costs.
During the month 62,000 units were transferred out to the next department.
a. How many units were started during the period?
b. Compute the Cost per E.U. for Direct Materials and Conversion.
c. How much is the total cost of the inventory transferred out during the period?
d. How much is the total cost of ending inventory.