Process Cost Practice Quiz $-$ Part $1$

The following information is related to the blending department:

$1.1,900$ units in beginning WIP, $60\%$ completed as to conversion costs

$2.$ Direct Materials added: $22,000$ units

$3.$ Goods completed and transferred total $21,800$ units

$4.$ All materials are added at the beginning of the process.

$5.$ Beginning WIP was $$7,657$

$6.$ Cost of DM added during the month: $$77,000$

$7.$ Cost of DL added during the month: $$14,200$

$8.$ Factory overhead applied during the month: $$6,880$

$9.$ Ending WIP inventory is $20\%$ completed as to conversion costs

Required: $($Use Separare Worksheet for items $1-4)$

$1.$ Compute total units to be assigned costs

$2.$ Compute Group $1-3$ whole units and equivalent units

$3.$ Compute cost per equivalent unit for materials and conversion costs

$4.$ Using cost per equivalent unit above, determine $($A$)$ cost transferred

out of WIP to next department and $($B$)$ cost assigned to ending WIP

$5.$ Answer the following questions:

$1.$ Process costing is essentially allocating costs incurred during the period to work performed during

the period. We know costs incurred; how do we determine work performed during the period?

$2.$ We treat DM and Conversion Costs differently in process costing. What is the assumption as to how

each is consumed during the production process?

The following T$-$account may be helpful in organizing the information:

WIP$-$ Blending Dept.

Units $ Units $

Group $1$

Beginning $1,900$ $ $7,657$ Beginning

Cost to Complete

Total

DM

Group $2$

DL Start $+$ Compl.

FOH Total

Completed

Total

Units $

Group $3$

Ending