Process Costing Paper 1

1

Fact Pattern:
Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. Levittown’s production quantity schedule for November is reproduced in thenext column.
Work-in-process November 1
(60% complete as to conversion costs)1000
Units started during November5000
Total units to account for6,000
Units completed and transferred out from beginning inventory1000
Units started and completed during November3000
Work-in-process on November 30
(20% complete as to conversion costs)2000
Total units accounted for6000
Using the weighted-average method, Levittown’s equivalent units for direct materials for November are






2

Fact Pattern:
Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. Levittown’s production quantity schedule for November is reproduced in thenext column.
Work-in-process November 1
(60% complete as to conversion costs)1000
Units started during November5000
Total units to account for6,000
Units completed and transferred out from beginning inventory1000
Units started and completed during November3000
Work-in-process on November 30
(20% complete as to conversion costs)2000
Total units accounted for6000
Using the weighted-average method, Levittown’s quivalent units for conversion costs for November are






3

Fact Pattern:
Superb Hancock Company uses a process costing system in which all materials are added at Fact Pattern:
n costs are added evenly throughout the process. During the past the beginning of the first process. Conversio month, 10,000 units were started in production, and 8,000 were completed and transferred to the next at the end of ending inventories were 70% complete department. There were no beginning inventories. The average method for inventory valuation.
If Superb Hancock’s materials used in production cost $15,000 and its conversion costs incurred were $25,000, what amount of inventory (rounded) was transferred to the next department?






4

Superb Hancock Company uses a process costing system in which all materials are added at the beginning of the first process. Conversion costs are added evenly throughout the process. During the past month, 10,000 units were started in production, and 8,000 were completed and transferred to the next department. There were no beginning inventories. The ending inventories were 70% complete at the end of the month The company uses a weighted average method for inventory valuation.
If Superb Hancock’s materials used in production cost $15,000 and its conversion costs incurred were $25,000, what is the value (rounded) of the ending work -in-process inventory in the first processing department?






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