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Practice Exam 1 Process Costing

# Practice Exam 1 Process Costing - Accounting 102 Summer...

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- 1 - Accounting 102 Summer 2009 – Practice Exam 1 Process Costing Part I The Comfort Glide Rocker (CGR) Company manufactures rocking chairs. Its costing system uses two cost categories, direct materials and conversion costs. Direct materials are added at the beginning of the process. The following data are available for the CGR for the month of March: Materials costs incurred – \$38,875 Conversion costs incurred - \$20,615 Units started (1,300 units) Beg. WIP (600 units): DM \$21,000 CC \$4,255 (40% complete) End. WIP (1,100 units – 70% complete with respect to Conversion Costs) In order to receive ANY credit, you must show supporting calculations. Round to 2 decimal places. Place answers in space provided.

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- 2 - 1. What are the costs of End. WIP and the costs of Units completed (and transferred out) during March under the Weighted Average Method ? DM Conversion Costs Total Cost of Units Completed Cost of Units in Ending WIP
- 3 - 2. For the following question, assume that direct materials are added at the end of the process, and that the following data are available for the CGR for the month of March: Materials costs incurred – \$38,875 Conversion costs incurred - \$20,615 Units started (1,300 units) Beg. WIP (600 units): DM \$ ? CC \$4,255 (40% complete) End. WIP (1,100 units – 70% complete with respect to Conversion Costs) What are the costs of End. WIP and the costs of Units completed (and transferred out) under the FIFO Method ? DM Conversion Costs Total Cost of Units Completed Cost of Units in Ending WIP

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- 4 - Part II Enron Industries manufactures an industrial solvent using two departments: blending and finishing. This problem focuses on the Finishing Department. Production in the finishing department begins with the transfer of solvent from the blending department. Direct materials are added at the end of the process. Conversion costs are incurred evenly throughout the process. During June, 2007, 45 tons of solvent were transferred into the finishing department from the blending department and 50 tons of solvent were completed and transferred out. The following additional information is available for June 2007: Physical Units Transferred-in Direct Materials Conversion (tons) Costs Costs Costs Work in process – beginning inventory (June 1) 25 \$50,000 \$ 0 \$20,000 Degree of completion – beginning work in process ? ? 60% Work in process, ending inventory (June 30) 20 Degree of completion – ending work in process ? ? 75% Total costs incurred during June \$95,000 \$25,000 \$52,000
- 5 - Required: 1. Assume that Enron Industries uses the

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Practice Exam 1 Process Costing - Accounting 102 Summer...

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