Healy ShenSection 3026 March 2015Q4-1, Q4-4, E4-1, E4-3, P4-15, E4A-7, P4B-6Q4-1.A process costing system should be used when a homogeneous product is produced on a continuous basis.Q4-4.A WIP account is added for each processing department.E4-1.a.Work in Progress – Molding23000Raw Materials23000Work in Progress – Firing8000Raw Materials8000b.Work in Progress – Molding12000Salaries and Wages Payable12000Work in Progress – Firing7000Salaries and Wages Payable7000c.Work in Progress – Molding25000Manufacturing Overhead25000Work in Progress – Firing37000Manufacturing Overhead37000d.Work in Progress – Firing57000Work in Progress - Molding57000e.Finished Goods103000Work in Progress - Firing103000f.Cost of Goods Sold101000Finished Goods101000E4-3.1.Materials = 256900/35000 = $7.34 per equivalent unit. Labor = $2.6. Manufacturing overhead = $13.2.Total cost per equivalent unit = 7.34 + 2.6 + 13 = $22.94 per equivalent unit.P4-15.1.In materials, there are 160000 + 1 * 40000 = 200,000 e.u. In conversion, 170,000 e.u. 2.In materials, $1.8 per e.u. In conversion, $1.55 per e.u.3.Total cost of ending WIP inventory in materials is 40000 * 1.8 + 10000 * 1.55 = $87,500.