Question 2.2. (TCO 3) James Company uses process costing to track its costs in two sequential production departments
| Question 2.2. (TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department: Forming Department Month Ended June 30 Unit information Beginning work in process, June 1 — 4,000 Started into production during June — 22,000 Completed and transferred to Finished Department during June — 20,000 Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) — 6,000 Cost information: Beginning work in process as of June 1 consists of $1,000 of direct materials costs and $4,500 of conversion costs — $5,500 Direct materials used in June — $7,268 Conversion costs incurred in June — $32,990 Required: (a) Calculate the equivalent units for direct materials. (Show your work) (b) Calculate the cost per equivalent unit for direct materials. (Show your work) (Points : 30) |
| Question 3.3. (TCO 6) Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level. (a) Cost to inspect each product as it is finished (b) Factory depreciation (c) Machine setup (d) Costs to hire human resource personnel (e) Salary for a product-line manager (f) Receiving raw materials from vendors (Points : 30) |
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