Question 1

Starting 12,000 units in the manufacturing process and completing those units 80% is equivalent to starting and completing the manufacturing process for 9,600 units.

Accepted Answer

A) True 
 B)False

Question 2

A company began its operations by starting 40,000 units in production. During the month, 22,000 were completed and transferred out while the remaining units were 45% complete. How many equivalent units of production were there with respect to conversion costs?

Accepted Answer

A)  22,000 units 
B)  30,100 units 
C)  30,000 units 
D)  25,600 units 
A)  22,000 units 
B)  30,100 units 
C)  30,000 units 
D)  25,600 units

Question 3

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 total cost of the ending work in process inventory?

Accepted Answer

A)  $427,500 
B)  $157,125 
C)  $183,660 
D)  $352,500 
A)  $427,500 
B)  $157,125 
C)  $183,660 
D)  $352,500

Question 4

XYZ Company manufactures paint. One of its plants makes a light colored base that can be tinted at the retail store to match any color chosen by the customer. At the end of the current month, XYZ had 5,000 gallons of paint still in process. All of the ingredients had been added to the vats, but they still needed to be mixed and then poured into gallon containers. Each gallon was 75% of the way through the production process and conversion costs are incurred evenly throughout the process. What are the equivalent units of conversion costs in the ending work in process inventory?

Accepted Answer

A)  5,000 
B)  0 
C)  3,750 
D)  1,250 
A)  5,000 
B)  0 
C)  3,750 
D)  1,250

Question 5

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 number ofequivalent units of production for conversion costs?

Accepted Answer

A)  3,700 
B)  3,760 
C)  3,920 
D)  3,900 
A)  3,700 
B)  3,760 
C)  3,920 
D)  3,900

Question 6

Equivalent units of production must be calculated individually for direct materials, direct labor, and factory overhead.

Accepted Answer

A) True 
 B)False

Question 7

The entry to record a $24,000 transfer from the assembly department to the finishing department would include which of the following?

Accepted Answer

A)  Credit to work in process inventory-assembly 
B)  Debit to finished goods inventory 
C)  Debit to cost of goods manufactured 
D)  Debit to cost of goods sold 
A)  Credit to work in process inventory-assembly 
B)  Debit to finished goods inventory 
C)  Debit to cost of goods manufactured 
D)  Debit to cost of goods sold

Question 8

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 is the total cost of units transferred to finished goods inventory?

Accepted Answer

A)  $1,608,750 
B)  $1,823,000 
C)  $1,769,515 
D)  $1,660,750 
A)  $1,608,750 
B)  $1,823,000 
C)  $1,769,515 
D)  $1,660,750

Question 9

SAM Corporation manufactures skateboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows:
$\begin{array}{|l|r|}
\hline \text { Work in process inventory beginning: } & \
\hline \text { Number of units } & 7,000 \
\hline \text { Transferred-in costs } & \$ 98,000 \
\hline \text { Direct materials }(100 \% \text { complete) } & \$ 24,500 \
\hline \text { Conversion costs }(65 \% \text { complete) } & \$ 22,750 \
\hline \begin{array}{l}
\text { Units transferred in from Assembly Department during } \
\text { March: }
\end{array} \
\hline \text { Number of units } & 45,000 \
\hline \text { Transferred-in costs } & \$ 630,000 \
\hline \text { Costs added during March: } & \
\hline{\text { Direct materials }} & \$ 155,040 \
\hline{\text { Conversion costs }} & \$ 230,710 \
\hline \text { Ending work in process inventory } &  \
\hline \text { Number of units } &10,000 \
\hline \begin{array}{l}
\text { (50\% complete as to direct materials and } 40 \% \text { complete as } \
\text { to conversion costs) }
\end{array} & \
\hline
\end{array}$
What would be the total cost of the units transferred to finished goods inventory?

Accepted Answer

A)  $1,032,750 
B)  $979,860 
C)  $375,900 
D)  $803,250 
A)  $1,032,750 
B)  $979,860 
C)  $375,900 
D)  $803,250

Question 10

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 $$\begin{array} { | l | l | } 
\hline \text { Beginning work in process inventory (40\% complete) } & 22,500 \text { units } \
\hline \text { Units started in current period } & 130,000 \text { units } \
\hline \text { Ending work in process inventory (60\% complete) } & 28,500 \text { units } \
\hline \text { Costs contained in beginning work in process inventory } & \
\hline \text { Direct materials } & \$ 51,900 \
\hline \text { Conversion } & \$ 20,174 \
\hline \text { Costs added during current period } & \
\hline \text { Direct materials } & \$ 430,000 \
\hline \text { Conversion } & \$ 310,000 \
\hline
\end{array}$$ What were the equivalent units of production for conversion costs?

Accepted Answer

A)  152,500 
B)  141,100 
C)  124,000 
D)  130,000 
A)  152,500 
B)  141,100 
C)  124,000 
D)  130,000

Question 11

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 ending work in process inventory?

Accepted Answer

A)  $72,074 
B)  $94,050 
C)  $156,750 
D)  $130,074 
A)  $72,074 
B)  $94,050 
C)  $156,750 
D)  $130,074

Question 12

XYZ Company manufactures paint. One of its plants makes a light colored base that can be tinted at the retail store to match any color chosen by the customer. At the end of the current month, XYZ had 5,000 gallons of paint still in process. All of the ingredients had been added to the vats, but they still needed to be mixed and then poured into gallon containers. Each gallon was 75% of the way through the production process and conversion costs are incurred evenly throughout the process. What are the equivalent units of paint ingredients in the ending work in process inventory?

Accepted Answer

A)  1,250 
B)  5,000 
C)  0 
D)  3,750 
A)  1,250 
B)  5,000 
C)  0 
D)  3,750

Question 13

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 number of equivalent units of production for direct materials?

Accepted Answer

A)  324,950 
B)  350,000 
C)  383,500 
D)  325,000 
A)  324,950 
B)  350,000 
C)  383,500 
D)  325,000

Question 14

In a multi-process costing system, cost of work in process-department 1 is transferred where?

Accepted Answer

A)  To finished goods inventory 
B)  To cost of goods sold 
C)  To manufacturing overhead 
D)  To the next manufacturing process 
A)  To finished goods inventory 
B)  To cost of goods sold 
C)  To manufacturing overhead 
D)  To the next manufacturing process

Question 15

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 were the equivalent units of production for conversion costs?

Accepted Answer

A)  49,650 
B)  52,000 
C)  42,000 
D)  45,450 
A)  49,650 
B)  52,000 
C)  42,000 
D)  45,450

Question 16

The Steamboat Company began the month with 2,000 units in work in process which were 25% complete with respect to conversion costs. During the month, 10,000 units were started and the ending work in process consisted of 1,000 units which were 40% complete with respect to conversion costs. What was the number of equivalent units of production for conversion costs?

Accepted Answer

A)  11,900 
B)  9,900 
C)  11,400 
D)  10,900 
A)  11,900 
B)  9,900 
C)  11,400 
D)  10,900

Question 17

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 were the equivalent units of production for direct materials?

Accepted Answer

A)  45,000 
B)  59,000 
C)  42,000 
D)  38,000 
A)  45,000 
B)  59,000 
C)  42,000 
D)  38,000

Question 18

Assume that 12,000 units were in the beginning work in process, 50,000 units were started during the period, 6,000 units were in the ending work in process, and direct materials are added at the beginning of the period. What are the equivalent units of production for direct materials?

Accepted Answer

A)  50,000 
B)  38,000 
C)  62,000 
D)  56,000 
A)  50,000 
B)  38,000 
C)  62,000 
D)  56,000

Question 19

Assume an ending work in process of inventory of 100 units, 80% complete regarding materials and 30% complete regarding conversion costs. What is the number ofequivalent unit for materials and conversion?

Accepted Answer

A)  100 units for materials and 100 units for conversion costs. 
B)  30 units for materials and 90 units for conversion costs. 
C)  80 units for materials and 30 units for conversion costs. 
D)  100 units for materials and 70 units for conversion costs. 
A)  100 units for materials and 100 units for conversion costs. 
B)  30 units for materials and 90 units for conversion costs. 
C)  80 units for materials and 30 units for conversion costs. 
D)  100 units for materials and 70 units for conversion costs.

Question 20

Which of the following companies would use process costing?

Accepted Answer

A)  DBA Management Consultants 
B)  Special Speedy Printing 
C)  APlus Advertising 
D)  PepsiCo, producer of Pepsi products 
A)  DBA Management Consultants 
B)  Special Speedy Printing 
C)  APlus Advertising 
D)  PepsiCo, producer of Pepsi products

Starting 12,000 units in the manufacturing process and completing those units 80% is equivalent to starting and completing the manufacturing process for 9,600 units.

A company began its operations by starting 40,000 units in production. During the month, 22,000 were completed and transferred out while the remaining units were 45% complete. How many equivalent units of production were there with respect to conversion costs?

Equivalent units of production must be calculated individually for direct materials, direct labor, and factory overhead.

The entry to record a $24,000 transfer from the assembly department to the finishing department would include which of the following?

In a multi-process costing system, cost of work in process-department 1 is transferred where?

Assume that 12,000 units were in the beginning work in process, 50,000 units were started during the period, 6,000 units were in the ending work in process, and direct materials are added at the beginning of the period. What are the equivalent units of production for direct materials?

Assume an ending work in process of inventory of 100 units, 80% complete regarding materials and 30% complete regarding conversion costs. What is the number ofequivalent unit for materials and conversion?

Which of the following companies would use process costing?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

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

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Filters

Exam 16: Appendix: Process Costing

Starting 12,000 units in the manufacturing process and completing those units 80% is equivalent to starting and completing the manufacturing process for 9,600 units.

A company began its operations by starting 40,000 units in production. During the month, 22,000 were completed and transferred out while the remaining units were 45% complete. How many equivalent units of production were there with respect to conversion costs?

Equivalent units of production must be calculated individually for direct materials, direct labor, and factory overhead.

The entry to record a $24,000 transfer from the assembly department to the finishing department would include which of the following?

In a multi-process costing system, cost of work in process-department 1 is transferred where?

Assume that 12,000 units were in the beginning work in process, 50,000 units were started during the period, 6,000 units were in the ending work in process, and direct materials are added at the beginning of the period. What are the equivalent units of production for direct materials?

Assume an ending work in process of inventory of 100 units, 80% complete regarding materials and 30% complete regarding conversion costs. What is the number ofequivalent unit for materials and conversion?

Which of the following companies would use process costing?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

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

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Filters