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 cost per equivalent unit of production for conversion costs?

A) $4.00 B) $4.28 C) $5.08 D) $3.50 A) $4.00 B) $4.28 C) $5.08 D) $3.50

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 direct materials?

A) 47,000 B) 45,000 C) 42,000 D) 46,500 A) 47,000 B) 45,000 C) 42,000 D) 46,500

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 units in the ending work in process inventory?

A) $103,275 B) $181,140 C) $229,500 D) $175,000 A) $103,275 B) $181,140 C) $229,500 D) $175,000

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 direct materials?

A) 9,000 units B) 13,500 units C) 14,000 units D) 5,000 units A) 9,000 units B) 13,500 units C) 14,000 units D) 5,000 units

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 were the equivalent units of production for direct materials?

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

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

A) $2.34 B) $2.54 C) $2.20 D) $2.60 A) $2.34 B) $2.54 C) $2.20 D) $2.60

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 conversion costs?

A) $85.50 B) $68.75 C) $42.00 D) $70.50 A) $85.50 B) $68.75 C) $42.00 D) $70.50

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 was the cost per equivalent unit produced for direct materials?

A) $3.71 B) $2.82 C) $3.16 D) $3.31 A) $3.71 B) $2.82 C) $3.16 D) $3.31

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 the ending work in process inventory?

A) $212,355 B) $160,875 C) $143,715 D) $216,099 A) $212,355 B) $160,875 C) $143,715 D) $216,099

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 were the equivalent units of production for conversion costs?

A) 383,500 B) 325,750 C) 324,950 D) 348,400 A) 383,500 B) 325,750 C) 324,950 D) 348,400

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 units transferred to finished goods inventory?

A) $963,725 B) $805,000 C) $963,900 D) $1,035,000 A) $963,725 B) $805,000 C) $963,900 D) $1,035,000

Exam 16: Appendix: Process Costing

Oggie Company began the recent month with 5,000 units in their work in process inventory which was 70% complete with respect to conversion costs. During the month, Oggie started 18,000 units into production and ended the month with 3,000 units in their work in process inventory. Oggie's equivalent units of production for conversion costs were 22,700 for the month. What was the percentage that ending work in process had been completed?

(Multiple Choice)

4.8/5

(40)

Question 61

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 cost per equivalent unit of production for conversion costs?

(Multiple Choice)

4.8/5

(36)

Question 62

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 was the conversion cost per equivalent unit of production?

(Multiple Choice)

4.8/5

(47)

Question 63

Conversion costs include direct labor and factory overhead.

(True/False)

4.9/5

(43)

Question 64

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 direct materials?

(Multiple Choice)

4.8/5

(41)

Question 65

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 would be the total cost of units in the ending work in process inventory?

(Multiple Choice)

4.9/5

(45)

Question 66

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 direct materials?

(Multiple Choice)

4.9/5

(41)

Question 67

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 materials?

(Multiple Choice)

4.8/5

(35)

Question 68

A corporation completed 50,000 finished units during a period and had 16,000 units in ending inventory that were 35% complete; therefore the number of equivalent units was 55,600.

(True/False)

4.9/5

(34)

Question 69

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 direct materials?

(Multiple Choice)

4.7/5

(42)

Question 70

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 were the equivalent units of production for direct materials?

(Multiple Choice)

4.8/5

(36)

Question 71

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

(Multiple Choice)

4.9/5

(37)

Question 72

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 direct materials?

(Multiple Choice)

4.8/5

(37)

Question 73

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 conversion costs?

(Multiple Choice)

4.8/5

(41)

Question 74

In a process costing system, the number of partially completed units in ending inventory multiplied by the percentage of process complete equals the number of equivalent units in the ending inventory.

(True/False)

4.9/5

(33)

Question 75

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 was the cost per equivalent unit produced for direct materials?

(Multiple Choice)

4.9/5

(27)

Question 76

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 is the total cost of the ending work in process inventory?

(Multiple Choice)

4.9/5

(27)

Question 77

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 would the journal entry be to record the transfer of product from the Assembly Department to the Shaping Department during March?

(Multiple Choice)

4.9/5

(34)

Question 78

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 were the equivalent units of production for conversion costs?

(Multiple Choice)

4.8/5

(34)

Question 79

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 units transferred to finished goods inventory?

(Multiple Choice)

4.9/5

(24)

Question 80

Conversion costs include direct labor and factory overhead.

A corporation completed 50,000 finished units during a period and had 16,000 units in ending inventory that were 35% complete; therefore the number of equivalent units was 55,600.

In a process costing system, the number of partially completed units in ending inventory multiplied by the percentage of process complete equals the number of equivalent units in the ending inventory.

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