Process Costing Report

Which of the following items is NOT characteristic of a process costing system?

• Once production begins, it continues until the finished product emerges

• The products produced are heterogeneous in nature

• The focus is on continually producing homogeneous products

• When the finished product emerges, all units have precisely the same amount of materials, labour and overhead

In a process cost system, the flow of cost is:

• work in process, cost of goods sold, finished goods

• finished goods, work in process, cost of goods sold

• finished goods, cost of goods sold, work in process

• work in process, finished goods, cost of goods sold

The Mixing Department's output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production for conversion costs are:

• 22,600

• 23,000

• 24,000

• 25,000

In RXZ Company, there are zero units in beginning work in process, 7,000 units started into production, and 500 units in ending work in process 20% completed. The physical units to be accounted for are:

• 7,000

• 7,360

• 7,500

• 7,340

Kayu Pine Sdn Bhd has 2,000 units in beginning work in process, 20% complete as to conversion costs, 23,000 units transferred out to finished goods, and 3,000 units in ending work in process 30% complete as to conversion costs.

The beginning and ending inventory is fully complete as to materials costs. Equivalent units for materials and conversion costs are, respectively:

• 22,000; 23,900

• 24,000; 26,000

• 26,000; 23,900

• 26,000; 26,000

Lan Largo Sdn Bhd has unit costs of RM10 for materials and RM30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

• RM45,000

• RM55,000

• RM75,000

• RM100,000

Conversion costs are the sum of:

• Fixed and variable overhead costs

• labour costs and overhead costs

• Direct material costs and overhead costs

• Direct labour and indirect labour costs

Kayu Cengal Sdn Bhd has 20,000 units in beginning work in process including the cost of material is RM15,000 and conversion costs is RM8,000.

30,000 units transferred out to finished goods, and 6,000 units in ending work in process 30% complete as to conversion costs.

The beginning and ending inventory is fully complete as to materials costs. Cost incurred for the month is RM28,200 for material and RM 17,440 for conversion costs.

The cost per equivalent units for materials and conversion costs are, respectively:

• RM1.00; RM0.90

• RM1.20; RM0.80

• RM1.20; RM0.90

• RM1.00; RM0.80

REFER TO QUESTION 8

Kayu Cengal Sdn Bhd has 20,000 units in beginning work in process including the cost of material is RM15,000 and conversion costs is RM8,000.

30,000 units transferred out to finished goods, and 6,000 units in ending work in process 30% complete as to conversion costs.

The beginning and ending inventory is fully complete as to materials costs. Cost incurred for the month is RM28,200 for material and RM 17,440 for conversion costs.

The value of finished goods and ending work in process costs are, respectively:

• RM30,000; RM9,400

• RM25,000; RM8,640

• RM30,000; RM8,640

• RM25,000; RM9,400

Indicate which of the following statement is NOT correct?

• both a job order and process cost system track the same three manufacturing cost elements - Direct material, Direct labour and manufacturing overhead

• A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process account

• Manufacturing costs are accumulated the same way in a job order and in a process cost system

• Manufacturing costs are assigned the same way in a job order and in a process cost system