Chapter 16: Q9QS (page 745)
Refer to QS 16-8 and compute the total equivalent units of production with respect to conversion for July using the FIFO method.
Equivalent units of production for conversion:795,000 units
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Refer to the information in Exercise 16-6. Assume that Fields uses the FIFO method of process costing.
1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
What is the main factor for a company in choosing betweenthe job order costing and process costing systems? Give two likely applications of each system.
Question: Label each item a through h below as a feature of either a job order (J) or process (P) operation.
a. Heterogeneous products and services
b. Custom orders
c. Low production volume
d. Routine, repetitive procedures
e. Focus on individual batch
f. Low product standardization
g. Low product flexibility
h. Focus on standardized units
The production department described in Exercise 16-8 had \(850,368 of direct materials and \)649,296 of conversion costs charged to it during April. Also, its beginning inventory of \(167,066 consists of \)118,472 of direct materials cost and $48,594 of conversion costs.
1. Compute the direct materials cost and the conversion cost per equivalent unit for the department.
2. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to finished goods and its ending work in process inventory.
List the four steps in accounting for production activity in a
reporting period (for process operations).
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