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1. State the possible effects on a department's unit costs when materials are added to work in process.
2. When materials added to work in process cause an increase in units, an adjustment must be made to unit costs. This adjustment is computed in a manner comparable to the lost unit calculation. Explain.
3. How is opening work in process accounted for using average costing?
4. Units completed and on hand in a processing department are included in the department's work in process. Why?
2. When materials added to work in process cause an increase in units, an adjustment must be made to unit costs. This adjustment is computed in a manner comparable to the lost unit calculation. Explain.
3. How is opening work in process accounted for using average costing?
4. Units completed and on hand in a processing department are included in the department's work in process. Why?
5. Why do firms use the first-in, first-out method of computing unit costs?
6. How is opening work in process accounted for when fifo costing is used?Why must the completion stage of opening work in process be known?
7. How are equivalent production figures computed when fifo costing is used?
6. How is opening work in process accounted for when fifo costing is used?Why must the completion stage of opening work in process be known?
7. How are equivalent production figures computed when fifo costing is used?
8. A certain factory transferred out 8,800 completed units during its second period of operation. The period was begun with 400 units 75% completed and ended with 800 units 50% completed. What was the equivalent production for the period? Assume the fifo costing method is used.
9. In another factory, the equivalent production (using the fifo costing method) was 7,000 units during a period which saw 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were completed ?
10. What are some of the disadvantages of the FIFO costing method?
11. Enumerate several of the basic difficulties frequently encountered in a process cost system.
12. Express an opinion as to the usefulness of data derived from a process cost system for the control of costs.
13. Select the answer which best completes the following statement. During 19B, Marconi Company had total manufacturing costs of $180,000. The business completed 14,000 units of product, of which 4,000 units were half completed in 19A, and started production on an additional 6,000 units that were half completed at the end of 19B. For 19B the production cost per unit was (a) $18; (b) $16.36; (c) $12; or (d) $9.
9. In another factory, the equivalent production (using the fifo costing method) was 7,000 units during a period which saw 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were completed ?
10. What are some of the disadvantages of the FIFO costing method?
11. Enumerate several of the basic difficulties frequently encountered in a process cost system.
12. Express an opinion as to the usefulness of data derived from a process cost system for the control of costs.
13. Select the answer which best completes the following statement. During 19B, Marconi Company had total manufacturing costs of $180,000. The business completed 14,000 units of product, of which 4,000 units were half completed in 19A, and started production on an additional 6,000 units that were half completed at the end of 19B. For 19B the production cost per unit was (a) $18; (b) $16.36; (c) $12; or (d) $9.
