Assignment 3 Process Costing.pdf - ASSIGNMENT 3 – PROCESS COSTING Part 1 THEORIES AND CONCEPTS 1 In a process costing system overhead is allocated to

# Assignment 3 Process Costing.pdf - ASSIGNMENT 3 – PROCESS...

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1 ASSIGNMENT 3 PROCESS COSTING Part 1. THEORIES AND CONCEPTS 1. In a process costing system, overhead is allocated to departments before being applied to units of product. 2. In order to use process costing, the output of a processing department should be homogeneous. 3. In process costing, the same equivalent units figure is used for both materials and conversion costs. 4. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of ending work in process inventory. 5. The "costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of units transferred out. 6. Process costing would be appropriate for each of the following except: A. custom furniture manufacturing. B. oil refining. C. grain milling. D. newsprint production. 7. Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: 8 Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: 9. Equivalent-unit calculations are necessary to allocate manufacturing costs between:
2 PART II. APPLICATION OF CONCEPTS

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