The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, Jan. } 1 & - 0 - \text { units } \\ \hline \text { Units started in production } & 14,000 \text { units } \\ \hline \text { Work in process inventory, Dec. } 31 & 5,000 \text { units } \\ \hline \text { Production costs: } & \\ \hline \text { Direct materials } & \$ 38,500 \\ \hline \text { Direct labor } & \$ 13,975 \\ \hline \text { Manufacturing overhead } & \$ 8,600 \\ \hline \end{array}\] as 100% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for conversion costs?

A) $2.51 B) $.80 C) $2.10 D) $1.61 A) $2.51 B) $.80 C) $2.10 D) $1.61 C

Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows: \[\begin{array} { | l | r | } \hline \text { Beginning work in process inventory } & 33,500 \text { units } \\ \hline \text { Units completed } & 325,000 \text { units } \\ \hline \text { Ending work in process inventory } & 58,500 \text { units } \\ \hline \text { Cost of direct materials added during the current period } & \$ 962,500 \\ \hline \text { Cost of conversion added during the current period } & \$ 714,890 \\ \hline \text { Cost of direct materials contained in beginning work in process inventory } & \$ 92,125 \\ \hline \text { Cost of conversion contained in beginning work in process inventory } & \$ 51,590 \\ \hline \end{array}\] What was the equivalent cost per unit of production for conversion costs?

A) $3.25 B) $2.20 C) $2.36 D) $1.86 A) $3.25 B) $2.20 C) $2.36 D) $1.86

BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows: \(\begin{array}{|l|l|} \hline \text { Beginning work in process inventory: } & \\ \hline \text { Number of units } & 7,000 \\ \hline \text { Transferred-in costs } & \$ 98,000 \\ \hline \text { Direct materials (100\% complete) } & \$ 24,500 \\ \hline \text { Conversion costs ( } 65 \% \text { complete) } & \$ 22,700 \\ \hline \begin{array}{l} \text { Units transferred in from Assembly Department during } \\ \text { March: } \end{array} & \\ \hline \text { Number of units } & 45,000 \\ \hline \text { Transferred-in costs } & \$ 630,000 \\ \hline \text { Units completed during March } & 42,000 \\ \hline \text { Costs added during March: } & \\ \hline \text { Direct materials } & \$ 157,500 \\ \hline \text { Conversion costs } & \$ 230,725 \\ \hline \text { Ending work in process inventory } & \\ \hline \text { Number of units } & 10,000 \\ \hline \begin{array}{l} \text { (100\% complete as to direct materials and } 45 \% \text { complete } \\ \text { as to conversion costs) } \end{array} & \\ \hline \end{array}\) What were the equivalent units of production for direct materials?

A) 45,000 B) 39,000 C) 42,000 D) 52,000 A) 45,000 B) 39,000 C) 42,000 D) 52,000

The USA Company manufactures flags in a single process. The following information has been provided by USA Company: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, Jan. 1 } & - 0 - \text { units } \\ \hline \text { Units started in production } & 18,000 \text { units } \\ \hline \text { Work in process inventory, Dec. } 31 & 6,000 \text { units } \\ \hline \text { Production costs: } & \\ \hline \text { Direct materials } & \$ 213,885 \\ \hline \text { Direct labor } & \$ 577,500 \\ \hline \text { Manufacturing overhead } & \$ 391,875 \\ \hline \end{array}\] The units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for direct materials?

A) $17.81 B) $14.55 C) $15.00 D) $12.57 A) $17.81 B) $14.55 C) $15.00 D) $12.57

PCS Corporation manufactures clocks using a two-department process. Direct materials are added in both the Assembly and Finishing Departments. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Finishing Department for the month of April follow: $\begin{array}{|l|r|} \hline \text { Beginning work in process inventory: } & \\ \hline \text { Number of units } & 14,000 \\ \hline \text { Transferred-in costs } & \$ 78,940 \\ \hline \text { Direct materials (100\% complete) } & \$ 22,420 \\ \hline {\text { Conversion costs (65\% complete) }} & \$ 21,385 \\ \hline \begin{array}{l} \text { Units transferred in from Assembly Department during } \\ \text { April: } \end{array} & \\ \hline \text { Number of units } & 45,000 \\ \hline \text { Transferred in costs } & \$ 540,900 \\ \hline \text { Costs added during April: } & \\ \hline \text { Direct materials } & \$ 157,500 \\ \hline \text { Conversion costs } & \$ 230,837 \\ \hline \text { Ending work in process inventory } & \\ \hline \text { Number of units } &17,000 \\ \hline(100 \% \text { complete as to direct materials and } 45 \% \text { complete } & \\ \text { as to conversion costs) } & \\ \hline \end{array}$ What was the total number of physical units to account for during April?

A) 59,000 B) 42,000 C) 45,000 D) 52,000 A) 59,000 B) 42,000 C) 45,000 D) 52,000

The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, Jan. } 1 & - 0 - \text { units } \\ \hline \text { Units started in production } & 14,000 \text { units } \\ \hline \text { Work in process inventory, Dec. } 31 & 5,000 \text { units } \\ \hline \text { Production costs: } & \\ \hline \text { Direct materials } & \$ 38,500 \\ \hline \text { Direct labor } & \$ 13,975 \\ \hline \text { Manufacturing overhead } & \$ 8,600 \\ \hline \end{array}\] The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for direct materials?

A) $7.70 B) $2.75 C) $4.28 D) $3.58 A) $7.70 B) $2.75 C) $4.28 D) $3.58

Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows: \[\begin{array} { | l | r | } \hline \text { Beginning work in process inventory } & 33,500 \text { units } \\ \hline \text { Units completed } & 325,000 \text { units } \\ \hline \text { Ending work in process inventory } & 58,500 \text { units } \\ \hline \text { Cost of direct materials added during the current period } & \$ 962,500 \\ \hline \text { Cost of conversion added during the current period } & \$ 714,890 \\ \hline \text { Cost of direct materials contained in beginning work in process inventory } & \$ 92,125 \\ \hline \text { Cost of conversion contained in beginning work in process inventory } & \$ 51,590 \\ \hline \end{array}\] What was the equivalent cost per unit of production for direct materials?

A) $2.75 B) $3.25 C) $3.01 D) $2.20 A) $2.75 B) $3.25 C) $3.01 D) $2.20

Forsyth Company produces calendars in a one-process department. Materials are introduced at the beginning of the process. Conversion is applied uniformly throughout the process. Data for the current period is as follows: \[\begin{array} { | l | l | } \hline \text { Beginning work in process inventory (40\% complete) } & 22,500 \text { units } \\ \hline \text { Units started in current period } & 130,000 \text { units } \\ \hline \text { Ending work in process inventory (60\% complete) } & 28,500 \text { units } \\ \hline \text { Costs contained in beginning work in process inventory } & \\ \hline \text { Direct materials } & \$ 51,900 \\ \hline \text { Conversion } & \$ 20,174 \\ \hline \text { Costs added during current period } & \\ \hline \text { Direct materials } & \$ 430,000 \\ \hline \text { Conversion } & \$ 310,000 \\ \hline \end{array}\] What is the total cost of the units transferred to finished goods?

A) $740,000 B) $715,000 C) $682,000 D) $650,000 A) $740,000 B) $715,000 C) $682,000 D) $650,000

Exam 16: Appendix: Process Costing

The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company: Work in process inventory, Jan. 1 -0- units Units started in production 14,000 units Work in process inventory, Dec. 31 5,000 units Production costs: Direct materials \ 38,500 Direct labor \ 13,975 Manufacturing overhead \ 8,600 as 100% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for conversion costs?

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

C

The Rugger Company uses a process costing system. During the period, 1,400 were started and 1,000 units were completed and transferred out. The units at the end of the period were 60% complete regarding materials and 40% complete regarding conversion. The cost of materials added during the current period amounted to $31,930; the conversion costs added during the current period amounted to $34,800. What were the equivalent units of production for materials?

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

A

The Rugger Company uses a process costing system. During the period, 1,400 were started and 1,000 units were completed and transferred out. The units at the end of the period were 60% complete regarding materials and 40% complete regarding conversion. The cost of materials added during the current period amounted to $31,930; the conversion costs added during the current period amounted to $34,800. What were the equivalent units of production for conversion costs?

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

A

The conversion cost per equivalent unit is always calculated by dividing the conversion costs incurred during the period by the number of equivalent units for conversion costs.

(True/False)

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Question 4

Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows: Beginning work in process inventory 33,500 units Units completed 325,000 units Ending work in process inventory 58,500 units Cost of direct materials added during the current period \ 962,500 Cost of conversion added during the current period \ 714,890 Cost of direct materials contained in beginning work in process inventory \ 92,125 Cost of conversion contained in beginning work in process inventory \ 51,590 What was the equivalent cost per unit of production for conversion costs?

(Multiple Choice)

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Question 5

BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows: Beginning work in process inventory: Number of units 7,000 Transferred-in costs \ 98,000 Direct materials (100\% complete) \ 24,500 Conversion costs ( 65\% complete) \ 22,700 Units transferred in from Assembly Department during March: Number of units 45,000 Transferred-in costs \ 630,000 Units completed during March 42,000 Costs added during March: Direct materials \ 157,500 Conversion costs \ 230,725 Ending work in process inventory Number of units 10,000 (100\% complete as to direct materials and 45\% complete as to conversion costs) What were the equivalent units of production for direct materials?

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Question 6

In a process costing system, the cost per equivalent unit is determined after calculating the number of equivalent units of production.

(True/False)

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Question 7

Assuming that there was no beginning work in process inventory, and the ending work in process inventory is 30% complete as to direct materials costs, the number of equivalent units for direct materials costs would be which of the following?

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Question 8

Which of the following statements is incorrect?

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Question 9

A single plant-wide overhead rate should be used to allocate overhead to the manufacturing process in process costing systems with more than one department.

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Question 10

The Made Rite Shoe Corporation uses a process costing system. In the Cutting Department, 4,000 units were started and by the end of the period, all but 400 units had been completed. The 400 units were 80% complete regarding materials and 40% complete regarding conversion costs. Costs added during the current period include $66,640 for materials and $70,312 for conversion. What was the cost perequivalent unit of production for conversion costs?

(Multiple Choice)

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Question 11

The USA Company manufactures flags in a single process. The following information has been provided by USA Company: Work in process inventory, Jan. 1 -0- units Units started in production 18,000 units Work in process inventory, Dec. 31 6,000 units Production costs: Direct materials \ 213,885 Direct labor \ 577,500 Manufacturing overhead \ 391,875 The units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for direct materials?

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Question 12

Which of the following is unique to a process costing system?

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Question 13

PCS Corporation manufactures clocks using a two-department process. Direct materials are added in both the Assembly and Finishing Departments. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Finishing Department for the month of April follow: Beginning work in process inventory: Number of units 14,000 Transferred-in costs \ 78,940 Direct materials (100\% complete) \ 22,420 Conversion costs (65\% complete) \ 21,385 Units transferred in from Assembly Department during April: Number of units 45,000 Transferred in costs \ 540,900 Costs added during April: Direct materials \ 157,500 Conversion costs \ 230,837 Ending work in process inventory Number of units 17,000 (100\% complete as to direct materials and 45\% complete as to conversion costs) What was the total number of physical units to account for during April?

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Question 14

Rae Company began the recent month with 3,000 units in their work in process inventory. During the month Rae started 12,000 units into production and ended the month with 2,000 units in their work in process inventory which were 20% complete. Rae's equivalent units of production for conversion costs were 13,400 units for the month. What was the percentage that that beginning work in process had been completed as of the beginning of the month?

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Question 15

Ferrell Glass Company uses a process costing system. The company reported a beginning inventory of 18,000 units that were 40% complete with respect to direct materials. During the month, 90,000 units were started and the ending work in process inventory amounted to 12,000 units that were 20% complete with respect to direct materials. What were the equivalent units of production for direct materials?

(Multiple Choice)

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Question 16

The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company: Work in process inventory, Jan. 1 -0- units Units started in production 14,000 units Work in process inventory, Dec. 31 5,000 units Production costs: Direct materials \ 38,500 Direct labor \ 13,975 Manufacturing overhead \ 8,600 The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs. What was the cost per equivalent unit of production for direct materials?

(Multiple Choice)

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Question 17

Winter Corporation uses a process costing system. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. Work in process inventory at the beginning of the period is 70% complete and 40% complete at the end of the period. Additional data is as follows: Beginning work in process inventory 33,500 units Units completed 325,000 units Ending work in process inventory 58,500 units Cost of direct materials added during the current period \ 962,500 Cost of conversion added during the current period \ 714,890 Cost of direct materials contained in beginning work in process inventory \ 92,125 Cost of conversion contained in beginning work in process inventory \ 51,590 What was the equivalent cost per unit of production for direct materials?

(Multiple Choice)

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Question 18

Forsyth Company produces calendars in a one-process department. Materials are introduced at the beginning of the process. Conversion is applied uniformly throughout the process. Data for the current period is as follows: Beginning work in process inventory (40\% complete) 22,500 units Units started in current period 130,000 units Ending work in process inventory (60\% complete) 28,500 units Costs contained in beginning work in process inventory Direct materials \ 51,900 Conversion \ 20,174 Costs added during current period Direct materials \ 430,000 Conversion \ 310,000 What is the total cost of the units transferred to finished goods?

(Multiple Choice)

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Question 19

Doodle's beginning work in process was 900 units on October 1. 3,200 units were completed during the month of October, and ending work in process was 500 units on October 31. How many units did Doodle start manufacturing during October?

(Multiple Choice)

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Question 20

The conversion cost per equivalent unit is always calculated by dividing the conversion costs incurred during the period by the number of equivalent units for conversion costs.

In a process costing system, the cost per equivalent unit is determined after calculating the number of equivalent units of production.

Assuming that there was no beginning work in process inventory, and the ending work in process inventory is 30% complete as to direct materials costs, the number of equivalent units for direct materials costs would be which of the following?

Which of the following statements is incorrect?

A single plant-wide overhead rate should be used to allocate overhead to the manufacturing process in process costing systems with more than one department.

Which of the following is unique to a process costing system?

Doodle's beginning work in process was 900 units on October 1. 3,200 units were completed during the month of October, and ending work in process was 500 units on October 31. How many units did Doodle start manufacturing during October?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

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Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities, Payroll, and Long-Term Liabilities

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

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Activity-Based Costing and Other Cost Management Tools

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Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

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