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    ACCT 311 - Exam 2 Review and Solutions

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    Summer
    The document provides an exam review that includes two practice problems testing process costing and variable versus absorption costing concepts. The first problem provides data on production quantities, beginning and ending work in process, and costs to calculate equivalent units, cost per equivalent unit, ending WIP cost, and cost of units transferred. The second problem provides data on units produced and sold, unit selling price, variable costs, and fixed costs to calculate unit product costs under each method and prepare the related income statements.

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    ACCT 311 - Exam 2 Review and Solutions

    Uploaded by

    Summer
    131 views6 pages
    The document provides an exam review that includes two practice problems testing process costing and variable versus absorption costing concepts. The first problem provides data on production quantities, beginning and ending work in process, and costs to calculate equivalent units, cost per equivalent unit, ending WIP cost, and cost of units transferred. The second problem provides data on units produced and sold, unit selling price, variable costs, and fixed costs to calculate unit product costs under each method and prepare the related income statements.

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    ACCT 311 - Exam 2 Review and Solutions

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    The document provides an exam review that includes two practice problems testing process costing and variable versus absorption costing concepts. The first problem provides data on production quantities, beginning and ending work in process, and costs to calculate equivalent units, cost per equivalent unit, ending WIP cost, and cost of units transferred. The second problem provides data on units produced and sold, unit selling price, variable costs, and fixed costs to calculate unit product costs under each method and prepare the related income statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    131 views6 pages

    ACCT 311 - Exam 2 Review and Solutions

    Uploaded by

    Summer
    The document provides an exam review that includes two practice problems testing process costing and variable versus absorption costing concepts. The first problem provides data on production quantities, beginning and ending work in process, and costs to calculate equivalent units, cost per equivalent unit, ending WIP cost, and cost of units transferred. The second problem provides data on units produced and sold, unit selling price, variable costs, and fixed costs to calculate unit product costs under each method and prepare the related income statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Exam 2 Review

    1. Assurer Inc. uses the weighted-average method in its process costing system. The following data concern the
    operations of the company's first processing department for a recent month.

    Required:

    a. Determine the equivalent units of production.


    b. Determine the costs per equivalent unit.
    c. Determine the cost of ending work in process inventory.
    d. Determine the cost of the units transferred to the next department.
    2. Maga Company, which has only one product, has provided the following data concerning its most recent
    month of operations:

    Required:

    a. What is the unit product cost for the month under variable costing?
    b. What is the unit product cost for the month under absorption costing?
    c. Prepare a contribution format income statement for the month using variable costing.
    d. Prepare an income statement for the month using absorption costing.
    Exam 2 Review Key
    1. Assurer Inc. uses the weighted-average method in its process costing system. The following data concern the
    operations of the company's first processing department for a recent month.

    Required:

    a. Determine the equivalent units of production.


    b. Determine the costs per equivalent unit.
    c. Determine the cost of ending work in process inventory.
    d. Determine the cost of the units transferred to the next department.

    Weighted-average method:
    2. Maga Company, which has only one product, has provided the following data concerning its most recent
    month of operations:

    Required:

    a. What is the unit product cost for the month under variable costing?
    b. What is the unit product cost for the month under absorption costing?
    c. Prepare a contribution format income statement for the month using variable costing.
    d. Prepare an income statement for the month using absorption costing.
    e. Reconcile the variable costing and absorption costing net operating incomes for the month.
    a. & b. Unit product costs

    c. & d. Income statements

    e. Reconciliation

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