"The standard-costing method is particularly applicable to process-costing situations." Do you agree? Why?

Zero beginning inventory, materials introduced in middle of process. Dot and Ken Ice Cream uses a mixing department and a freezing department in producing its ice cream. Its process-costing system in the mixing department has two direct materials cost categories (ice cream mix and flavorings) and one conversion cost pool. The following data pertain to the mixing department for April 2017 : The ice cream mix is introduced at the start of operations in the mixing department, and the flavorings are added when the product is \(40 \%\) completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is \(30 \%\) complete. 1\. Compute the equivalent units in the mixing department for April 2017 for each cost category. 2\. Compute (a) the cost of goods completed and transferred to the freezing department during April and (b) the cost of work in process as of April 30,2017

The following information concerns Westheimer Corporation's equivalent units in May \(20 \times 1\) : $$\begin{array}{lr} & \text { Units } \\ \hline \text { Beginning work-in-process (50\% complete) } & 4,000 \\ \text { Units started during May } & 16,000 \\ \text { Units completed and transferred } & 14,000 \\ \text { Ending work-in-process (80\% complete) } & 6,000 \end{array}$$ Using the weighted-average method, what were Westheimer's May 20X1 equivalent units? 1\. 14,000 2\. 18,800 3\. 20,000 4\. 39,000

Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is \(10 \%\) complete. Conversion costs are added evenly during the assembly department's process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017: $$\begin{array}{lcccc} & \begin{array}{c} \text { Physical Unit } \\ \text { (Frames) } \end{array} & \begin{array}{c} \text { Direct } \\ \text { Materials } \end{array} & \begin{array}{c} \text { Conversion } \\ \text { costs } \end{array} \\ \hline \text { Work in process, April 1 }^{\text {a }} & 60 & \$ 1,530 & \text { S } & 156 \\ \text { Started during April 2017 } & 510 & & & \\ \text { Completed during April 2017 } & 450 & & & \\ \text { Work in process, April 30 }^{\text {b }} & 120 & & & \\ \text { Total costs added during April 2017 } & & \text { \$17,850 } & \text { S11,544 } \end{array}$$ 1\. Summarize the total assembly department costs for April 2017 , and assign them to units completed (and transferred out) and to units in ending work in process. 2\. What issues should a manager focus on when reviewing the equivalent units calculation?

Kimberly Manufacturing uses a process-costing system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May, Year 5 $$\begin{array}{lr} & \text { Units } \\ \hline \text { Beginning work-in-process inventory, May 1 } & 16,000 \\ \text { Started in production during May } & 100,000 \\ \text { Completed production during May } & 92,000 \\ \text { Ending work-in-process inventory, May 31 } & 24,000 \end{array}$$ The beginning inventory was \(60 \%\) complete for materials and \(20 \%\) complete for conversion costs. The ending inventory was \(90 \%\) complete for materials and \(40 \%\) complete for conversion costs. costs pertaining to the month of May are as follows. \(\cdot\) Beginning inventory costs are: materials, \$54, 560; direct labor $\$ 20,320 ;\( and factory overhead, \)\$ 15,240$. \(\cdot\) costs incurred during May are: materials used, \(\$ 468,000 ;\) direct labor, \(\$ 182,880 ;\) and factory overhead, \(\$ 391,160\) Using the weighted-average method, the equivalent-unit conversion cost for May is: 1\. \(\$ 5.65\) 2\. \(\$ 5.83\) 3\. \(\$ 6.00\) 4\. \(\$ 6.41\)

Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of process costing. The following information for June 2017 is available. $$\begin{array}{|l|l|c|c|c|c|} \hline & \multicolumn{1}{|c|} {\text { A }} & \multicolumn{1}{c|} {\text { B }} & \multicolumn{1}{c|} {\text { C }} & \multicolumn{1}{c|} {\text { D }} & \multicolumn{1}{c|} {\text { E }} \\ \hline & & \begin{array}{c} \text { Physical Units } \\ \text { (tons) } \end{array} & \begin{array}{c} \text { Transferred-In } \\ \text { costs } \end{array} & \begin{array}{c} \text { Direct } \\ \text { Materials } \end{array} & \begin{array}{c} \text { Conversion } \\ \text { costs } \end{array} \\ \hline 2 & \text { Work in process, beginning inventory (June 1) } & 60 & \$ 60,000 & \$ & 0 & \$ 24,000 \\ \hline 3 & \text { Degree of completion, beginning work in process } & & 100 \% & 0 \% & 50 \% \\ \hline 4 & \text { Transferred-in during June } & 100 & & & \\ \hline 5 & \text { Completed and transferred out during June } & 120 & & & \\ \hline 6 & \text { Work in process, ending inventory (June 30) } & 40 & & & \\\ \hline 7 & \text { Degree of completion, ending work in process } & & 100 \% & 0 \% & 75 \% \\ \hline 8 & \text { Total costs added during June } & \$ 117,000 & \$ 27,000 & \$ 62,400 \\ \hline \end{array}$$ 1\. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs. 2\. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. 3\. Assign costs to units completed (and transferred out) and to units in ending work in process.