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 was the total cost of ending work in process inventory?

A) $199,525 B) $270,500 C) $219,750 D) $199,750 A) $199,525 B) $270,500 C) $219,750 D) $199,750

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 were the equivalent units of production for direct materials?

A) 13,750 units B) 12,000 units C) 14,100 units D) 14,700 units A) 13,750 units B) 12,000 units C) 14,100 units D) 14,700 units

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 were the equivalent units of production for conversion costs?

A) 52,000 B) 42,000 C) 47,000 D) 46,000 A) 52,000 B) 42,000 C) 47,000 D) 46,000

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 total cost of the units completed and transferred out?

A) $17,025 B) $61,075 C) $43,650 D) $49,075 A) $17,025 B) $61,075 C) $43,650 D) $49,075

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 total cost of the ending work in process inventory?

A) $61,075 B) $17,425 C) $43,650 D) $29,425 A) $61,075 B) $17,425 C) $43,650 D) $29,425

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 were the equivalent units for production for conversion costs?

A) 13,750 units B) 12,000 units C) 14,700 units D) 14,100 units A) 13,750 units B) 12,000 units C) 14,700 units D) 14,100 units

The Blue Tide Company manufactures light bulbs in a single process. The following information is available: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, Jan. 1 } & 0 \text { units } \\ \hline \text { Units started in production } & 14,000 \text { units } \\ \hline \text { Units completed and transferred out } & 9,000 \text { units } \\ \hline \text { Work in process inventory, Dec. } 31 & 5,000 \text { units } \\ \hline \text { Production costs: } & \\ \hline \text { Direct materials } & \$ 38,500 \\ \hline \text { Direct labor } & \$ 13,975 \\ \hline \text { Manufacturing overhead } & \$ 8,600 \\ \hline \end{array}\] The ending work in process was 90% complete with respect to direct materials and 40% complete with respect to conversion costs. How much was the total manufacturing costs to account for?

A) $22,575 B) $61,075 C) $38,500 D) $52,475 A) $22,575 B) $61,075 C) $38,500 D) $52,475

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: \(\begin{array}{|l|l|} \hline \text { Beginning work in process inventory: } & \\ \hline \text { Number of units } & 7,000 \\ \hline \text { Transferred-in costs } & \$ 98,000 \\ \hline \text { Direct materials (100\% complete) } & \$ 24,500 \\ \hline \text { Conversion costs ( } 65 \% \text { complete) } & \$ 22,700 \\ \hline \begin{array}{l} \text { Units transferred in from Assembly Department during } \\ \text { March: } \end{array} & \\ \hline \text { Number of units } & 45,000 \\ \hline \text { Transferred-in costs } & \$ 630,000 \\ \hline \text { Units completed during March } & 42,000 \\ \hline \text { Costs added during March: } & \\ \hline \text { Direct materials } & \$ 157,500 \\ \hline \text { Conversion costs } & \$ 230,725 \\ \hline \text { Ending work in process inventory } & \\ \hline \text { Number of units } & 10,000 \\ \hline \begin{array}{l} \text { (100\% complete as to direct materials and } 45 \% \text { complete } \\ \text { as to conversion costs) } \end{array} & \\ \hline \end{array}\) How many physical units did BBC have to account for during March?

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

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 total cost of the units completed and transferred out?

A) $1,026,000 B) $999,600 C) $427,500 D) $1,183,125 A) $1,026,000 B) $999,600 C) $427,500 D) $1,183,125

The Blue Tide Company manufactures light bulbs in a single process. The following information is available: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, Jan. 1 } & 0 \text { units } \\ \hline \text { Units started in production } & 14,000 \text { units } \\ \hline \text { Units completed and transferred out } & 9,000 \text { units } \\ \hline \text { Work in process inventory, Dec. } 31 & 5,000 \text { units } \\ \hline \text { Production costs: } & \\ \hline \text { Direct materials } & \$ 38,500 \\ \hline \text { Direct labor } & \$ 13,975 \\ \hline \text { Manufacturing overhead } & \$ 8,600 \\ \hline \end{array}\] The ending work in process was 90% complete with respect to direct materials and 40% complete with respect to conversion costs. What were the equivalent units of production for conversion costs?

A) 3,600 units B) 9,000 units C) 11,000 units D) 2,000 units A) 3,600 units B) 9,000 units C) 11,000 units D) 2,000 units

Special Joe manufactures caffeinated water. Last month's total manufacturing costs were: \[\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 500,000 \\ \hline \text { Direct labor } & \$ 50,000 \\ \hline \text { Manufacturing overhead } & \$ 250,000 \\ \hline \end{array}\] What was the conversion cost for Special Joe for last month?

A) $300,000 B) $800,000 C) $250,000 D) $500,000 A) $300,000 B) $800,000 C) $250,000 D) $500,000

Exam 16: Appendix: Process Costing

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 was the cost per equivalent unit of production for conversion costs?

(Multiple Choice)

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Question 41

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 was the total cost of ending work in process inventory?

(Multiple Choice)

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Question 42

The equivalent units of production are calculated by subtracting the number of units in ending work in process from the number of units started during the period.

(True/False)

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Question 43

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 were the equivalent units of production for direct materials?

(Multiple Choice)

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Question 44

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: Work in process inventory beginning: Number of units 7,000 Transferred-in costs \ 98,000 Direct materials (100\% complete) \ 24,500 Conversion costs (65\% complete) \ 22,750 Units transferred in from Assembly Department during March: Number of units 45,000 Transferred-in costs \ 630,000 Costs added during March: Direct materials \ 155,040 Conversion costs \ 230,710 Ending work in process inventory Number of units 10,000 (50\% complete as to direct materials and 40\% complete as to conversion costs) What were the equivalent units of production for conversion costs?

(Multiple Choice)

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Question 45

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 total cost of the units completed and transferred out?

(Multiple Choice)

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Question 46

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 total cost of the ending work in process inventory?

(Multiple Choice)

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Question 47

The cost per equivalent unit must be computed for direct materials, conversion costs, and transferred in costs in a subsequent department.

(True/False)

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Question 48

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 were the equivalent units for production for conversion costs?

(Multiple Choice)

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Question 49

The Blue Tide Company manufactures light bulbs in a single process. The following information is available: Work in process inventory, Jan. 1 0 units Units started in production 14,000 units Units completed and transferred out 9,000 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 90% complete with respect to direct materials and 40% complete with respect to conversion costs. How much was the total manufacturing costs to account for?

(Multiple Choice)

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Question 50

The Martin Rubber Company produces tires. The following information is available for Martin: Beginning work in process inventory: 2,000 tires, 100% complete for direct materials, 60% complete for conversion costs, cost of direct materials = $12,000, cost of direct labor and manufacturing overhead allocated = $10,000 Current period activity: 12,600 tires completed, cost of direct materials added = $300,950, cost of direct labor and manufacturing overhead allocated = $232,980 Ending work in process inventory: 4,500 units, 100% complete for direct materials, 40% complete for conversion costs What were the equivalent units of production for conversion costs?

(Multiple Choice)

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Question 51

Spring Corporation's beginning work in process contained 12,000 units that were 20% complete. During the period Spring started production of 40,000 units and had 8,000 units in the ending work in process. How complete was the ending work in process assuming that Spring's equivalent units of production were 48,800 units?

(Multiple Choice)

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Question 52

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 ending inventory amounted to 12,000 units that were 100% complete with respect to direct materials. What were the equivalent units of production for direct materials?

(Multiple Choice)

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Question 53

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) How many physical units did BBC have to account for during March?

(Multiple Choice)

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Question 54

CJ Company reported that during the last month 50,000 units were completed and 3,600 units were in work in process at the end of the month. If the ending work in process inventory was 75% complete as to direct materials and 25% complete as to conversion costs, how much would the equivalent units of production for conversion costs be for the last month?

(Multiple Choice)

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Question 55

CJ Company reported that during the last month 50,000 units were completed and 3,600 units were in work in process the end of the month. If the ending work in process inventory was 75% complete as to direct materials and 25% complete as to conversion costs, how much would the equivalent units of production for direct materials be for the last month?

(Multiple Choice)

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Question 56

Conversion costs are usually assumed to be added evenly throughout the process.

(True/False)

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Question 57

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 total cost of the units completed and transferred out?

(Multiple Choice)

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Question 58

The Blue Tide Company manufactures light bulbs in a single process. The following information is available: Work in process inventory, Jan. 1 0 units Units started in production 14,000 units Units completed and transferred out 9,000 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 90% complete with respect to direct materials and 40% complete with respect to conversion costs. What were the equivalent units of production for conversion costs?

(Multiple Choice)

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Question 59

Special Joe manufactures caffeinated water. Last month's total manufacturing costs were: Direct materials \ 500,000 Direct labor \ 50,000 Manufacturing overhead \ 250,000 What was the conversion cost for Special Joe for last month?

(Multiple Choice)

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Question 60

The equivalent units of production are calculated by subtracting the number of units in ending work in process from the number of units started during the period.

The cost per equivalent unit must be computed for direct materials, conversion costs, and transferred in costs in a subsequent department.

Conversion costs are usually assumed to be added evenly throughout the process.

Special Joe manufactures caffeinated water. Last month's total manufacturing costs were: Direct materials \ 500,000 Direct labor \ 50,000 Manufacturing overhead \ 250,000 What was the conversion cost for Special Joe for last month?

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

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