Process Costing

Question 1

Process Costing

Answer 1

costing method used in companies that produce homogeneous products on a continuous basis. These costs are accumulated by dept/process & assgined uniformly to all physical units that pass through the dept/process during the period.

Question 2

Total Inventory Value

Answer 2

cost per e.u * e.u completed units or WIP:EB

Question 3

Cost per E.U unit

Answer 3

BB + AD / WD (100%) + EB (% of completetion)

Question 4

Inventory Value of completed units (WD)

Answer 4

= Cost per E.U * 100% of physical units

Question 5

Inventory Value of WIP ending (EB)

Answer 5

Cost per E.U * certain % of physical units

Question 6

Equivalent Unit of Products

Answer 6

a equivalent unit is a measure used to convert partially complete units into the equivalent of one whole complete unit using no of partially completed units * % completion of those units

Question 7

Rationale of E.U of productions

Answer 7

dept usually has some partially completed units at the end of each period. Partially completed units is not = 100% completed units

Question 8

Table Format for WA

Answer 8

Unit Completed & Transferred Out of Dept
WIP, at Date
Equivalent Units of Production in Dept during June

Question 9

Schedule with cost & equivalent unit information

Answer 9

Costs for accounted for 
WIP at 1st date 
Costs added 
Total Cost 
Equivalent Units 
Cost Per Unit (Total Costs/Equivalent Units)

Question 10

Applying Costs

Answer 10

Ending WIP
E.U 
Cost per EU
Cost of Edning WIP Inventory 
Units Completed & Transferred out: 
Units Transferred 
Cost Per E.U
Cost of units Transferred out