COST ACCOUNTING 2 QUIZ 1 ON PROCESS COSTING 1.

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process. The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production. At the beginning of June, 2009, 4,000 diamonds were in process. During June, an additional 8,000 diamonds were started. 7,000 diamonds were completed and transferred to finished goods. As of the beginning of the month, work in process was 60% complete with respect to conversion costs. As of the end of the month, work in process was 40% complete with respect to conversion costs. Materials are added at the beginning of the process. REQUIRED: Compute for the equivalent unit production for materials and conversion cost under a. FIFO method b. Weighted Average Method

2. Micro Labs uses a processing costing system. The following data are available for the mixing department for October. The department started 175,000 gallons into production during the month. Materials are added at the end of the process. Percent Complete Gallons Conversion Costs Work-in-process, October 1 30,000 30% Work-in-process, October 31 15,000 40% REQUIRED: Determine the equivalent units of production for the month under the following methods: a. FIFO b. Weighted Average

3.

Stone Company had the following department information about physical units and percentage of completion: Physical Units 36,000 90,000 30,000

Work in process, May 1 (60% incomplete) Completed and transferred out Work in process, May 31 (40% incomplete)

If materials are added at the beginning of the production process, what is the total number of equivalent units for materials and conversion costs during May using the FIFO method?

Use the following information for questions 46. In the month of June, department X had 10,000 units in beginning work in process that were 70% complete. During June, 40,000 units were transferred into production from another department. At the end of June, there were 5,000 units in ending work in process that were 40% complete. Materials are added at the end of the process, while conversion costs are incurred uniformly throughout the process 4. How many units were transferred out of the process in June?

5. The equivalent units of production for materials for June were (using FIFO method)

6. The equivalent units of production for conversion costs for June were (using Weighted Average Method)

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