Oxyrom Company uses the FIFO method in its process costing system.Operating data for the Brazing Department for the month of November appear below: $\begin{array}{|l|r|r|} \hline & \text { Units } & \text { Percentage complete } \\ \hline \begin{array}{l} \text { Beginning work in process } \\ \text { inventory } \end{array} & 3,800 & 20 \% \\ \hline \begin{array}{l} \text { Transferred in from the } \\ \text { prior department during } \end{array} & 46,700 & \\ \text { November }\\ \hline\text { Completed and transferred }& 43,200 \\ \text { to the next department } \\ \text { during November } & \\ \hline \text { Ending work in process } & 7,300 & 80 \%\\ \text { inventory } \\ \hline \end{array}$ What were the equivalent units of production for conversion costs in the Brazing Department for November?

A) 49,040 units. B) 50,200 units. C) 43,200 units. D) 48,280 units. A) 49,040 units. B) 50,200 units. C) 43,200 units. D) 48,280 units.

The activity in Nolan Company's Blending Department for the month of April is given below: $\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\ \text { percentage complete } \end{array} \\ \hline \begin{array} { l r } \text { Work in process inventory, } \\ \text { April 1 } \end{array} & 8,000 & 50 \% \\ \hline \begin{array} { l } \text { Transferred in the during } \\ \text { the month } \end{array} & 50,000 & \\ \hline \begin{array} { l } \text { Work in process inventory, } \\ \text { April 30 } \end{array} & 10,000 & 70 \% \\ \hline \end{array}$ All materials are added at the beginning of processing in the Blending Department. - Using the FIFO method,what are the equivalent units of production for material for the month?

A) 50,000 units. B) 58,000 units. C) 54,000 units. D) 60,000 units. A) 50,000 units. B) 58,000 units. C) 54,000 units. D) 60,000 units.

The following information was obtained from the records of the first processing department of Keith Manufacturing Company for the month of February. The company uses the FIFO method in its process costing system. $\begin{array}{|l|r|r|} \hline & \text { Number of Units } & \begin{array}{r} \text { Labour and overhead } \\ \text { percentage complete } \end{array} \\ \hline \begin{array}{l} \text { Work in process inventory, } \\ \text { February 1 } \end{array} & 15,000 & 30 \% \\ \hline \begin{array}{l} \text { Started in assembly during } \\ \text { the month } \end{array} & 60,000 & \\ \hline \begin{array}{l} \text { Work in process inventory, } \\ \text { February 28 } \end{array} & 20,000 & 20 \% \\ \hline \end{array}$ All materials are added at the beginning of the manufacturing process. - What are the equivalent units of production for labour and overhead for the month?

A) 54,500 units. B) 59,000 units. C) 95,000 units. D) 60,000 units. A) 54,500 units. B) 59,000 units. C) 95,000 units. D) 60,000 units.

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work-in-process inventory consisted of 50,000 units that were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows: $\begin{array} {| l | r | r | } \hline & \text { Units } & \text { Conversion costs } \\ \hline \begin{array} { l } \text { Work in process inventory } \\ \text { on May 1 } \end{array} & 50,000 & \$ 30,000 \\ \hline \begin{array} { l } \text { Units started into } \\ \text { production } \end{array} & 180,000 & \\ \hline \begin{array} { l } \text { Conversion costs incurred } \\ \text { during May } \end{array} & & \$ 690,000 \\ \hline \begin{array} { l } \text { Units completed and } \\ \text { transferred out during the } \\ \text { month } \end{array} & 190,000 & \\ \hline \end{array}$ - Assuming that Cherrington Company uses the FIFO method,what is the cost per equivalent unit for conversion costs for May,rounded to the nearest cent?

A) $4.31. B) $3.49. C) $4.29. D) $4.11. A) $4.31. B) $3.49. C) $4.29. D) $4.11.

Eve Company uses the weighted-average method in its process costing system.The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): $\begin{array}{|l|r|r|} \hline& \text { Number of Units } & \text { Labour and overhead } \\ &&\text { percentage complete }\\ \hline \begin{array}{l} \text { Work in process inventory, } \\ \text { Sept. 1 } \end{array} & 60,000 & 15 \% \\ \hline \begin{array}{l} \text { Transferred in during the } \\ \text { month } \end{array} & 105,000 & \\ \hline \begin{array}{l} \text { Work in process inventory, } \\ \text { Sept. 31 } \end{array} & 40,000 & 20 \% \\ \hline \end{array}$ \[\begin{array} { | l | r | r | } \hline & \text { Materials } & \text { Labour and overhend } \\ \hline \begin{array} { l } \text { Beginning work in process } \\ \text { inventory } \end{array} & \$ 30,000 & \$ 16,000 \\ \hline \begin{array} { l } \text { Cost added during the } \\ \text { month } \end{array} & \$ 63,000 & \$ 320,000 \\ \hline \text { Total } & \$ 93,000 & \$ 336,000 \\ \hline \end{array}\] What unit cost (rounded to the nearest cent)was used in calculating the total cost of labour and overhead included in the Work-in-process inventory on September 1?

A) 0.27 B) 0.31 C) 1.78 D) 2.73 A) 0.27 B) 0.31 C) 1.78 D) 2.73

Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): $\begin{array}{l} \begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\ \text { percentage complete } \end{array} \\ \hline \begin{array} { l } \text { Work in process inventory, } \\ \text { Sept. 1 } \end{array} & 60,000 & 15 \% \\ \hline \begin{array} { l } \text { Transferred in the during } \\ \text { the month } \end{array} & 105,000 & \\ \hline \begin{array} { l } \text { Work in process inventory, } \\ \text { Sept. 30 } \end{array} & 40,000 & 20 \% \\ \hline \end{array}\\\\\\\\ \begin{array} { |l | r | r | r | } \hline & \text { Transferred In } & \text { Materials } & \begin{array} { r } \text { Labour and } \\ \text { overhead } \end{array} \\ \hline \begin{array} { l } \text { Beginning work-in- } \\ \text { process inventory } \end{array} && \$ 30,000 & \$ 16,000 \\ \hline \begin{array} { l } \text { Cost added during } \\ \text { the month } \end{array} & &\$ 63,000 & \$ 320,000 \\ \hline \end{array} \end{array}$ -What are the equivalent units of production for material for the month?

A) 105,000 units. B) 145,000 units. C) 122,000 units. D) 165,000 units. A) 105,000 units. B) 145,000 units. C) 122,000 units. D) 165,000 units.

The activity in Nolan Company's Blending Department for the month of April is given below: $\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\ \text { percentage complete } \end{array} \\ \hline \begin{array} { l r } \text { Work in process inventory, } \\ \text { April 1 } \end{array} & 8,000 & 50 \% \\ \hline \begin{array} { l } \text { Transferred in the during } \\ \text { the month } \end{array} & 50,000 & \\ \hline \begin{array} { l } \text { Work in process inventory, } \\ \text { April 30 } \end{array} & 10,000 & 70 \% \\ \hline \end{array}$ All materials are added at the beginning of processing in the Blending Department. -Using the weighted-average method,what are the equivalent units of production for labour and overhead for the month?

A) 50,000 units. B) 51,000 units. C) 47,000 units. D) 55,000 units. A) 50,000 units. B) 51,000 units. C) 47,000 units. D) 55,000 units.

Exam 6: Systems Design: Process Costing

Oxyrom Company uses the FIFO method in its process costing system.Operating data for the Brazing Department for the month of November appear below: Units Percentage complete Beginning work in process inventory 3,800 20\% Transferred in from the prior department during 46,700 November Completed and transferred 43,200 to the next department during November Ending work in process 7,300 80\% inventory What were the equivalent units of production for conversion costs in the Brazing Department for November?

(Multiple Choice)

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Question 61

Overland,Inc.,uses the weighted-average method in its process costing system.The company's work-in-process inventory on April 30 consists of 25,000 units.The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs.If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs,what is the total cost in the April 30 work-in-process inventory?

(Multiple Choice)

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Question 62

The activity in Nolan Company's Blending Department for the month of April is given below: Number of Units Labour and overhead percentage complete Work in process inventory, April 1 8,000 50\% Transferred in the during the month 50,000 Work in process inventory, April 30 10,000 70\% All materials are added at the beginning of processing in the Blending Department. - Using the FIFO method,what are the equivalent units of production for material for the month?

(Multiple Choice)

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Question 63

Strap Company uses the weighted-average method in its process costing system.The company has only one processing department.The ending work-in-process inventory consists of 10,000 units,60% complete with respect to materials.The total dollar value of this inventory is $38,000.The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period.With respect to conversion costs,what is the ending work-in-process inventory?

(Multiple Choice)

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Question 64

Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Units Beginning work in process inventory 16,000 Started into production during May 100,000 Completed during May 92,000 Ending work in process inventory 24,000 The beginning work-in-process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work-in-process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs. The costs were as follows: Materials Conversion Beginning work-in-process inventory \ 54,560 \ 35,560 Costs incurred during May \ 468,000 \ 574,040 - Using the FIFO method,what are the equivalent units of production for materials for May?

(Multiple Choice)

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Question 65

The following information was obtained from the records of the first processing department of Keith Manufacturing Company for the month of February. The company uses the FIFO method in its process costing system. Number of Units Labour and overhead percentage complete Work in process inventory, February 1 15,000 30\% Started in assembly during the month 60,000 Work in process inventory, February 28 20,000 20\% All materials are added at the beginning of the manufacturing process. - What are the equivalent units of production for labour and overhead for the month?

(Multiple Choice)

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Question 66

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work-in-process inventory consisted of 50,000 units that were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows: Units Conversion costs Work in process inventory on May 1 50,000 \ 30,000 Units started into production 180,000 Conversion costs incurred during May \ 690,000 Units completed and transferred out during the month 190,000 - Assuming that Cherrington Company uses the FIFO method,what is the cost per equivalent unit for conversion costs for May,rounded to the nearest cent?

(Multiple Choice)

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Question 67

Eve Company uses the weighted-average method in its process costing system.The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): Number of Units Labour and overhead percentage complete Work in process inventory, Sept. 1 60,000 15\% Transferred in during the month 105,000 Work in process inventory, Sept. 31 40,000 20\% Materials Labour and overhend Beginning work in process inventory \ 30,000 \ 16,000 Cost added during the month \ 63,000 \ 320,000 Total \ 93,000 \ 336,000 What unit cost (rounded to the nearest cent)was used in calculating the total cost of labour and overhead included in the Work-in-process inventory on September 1?

(Multiple Choice)

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Question 68

Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): Number of Units Labour and overhead percentage complete Work in process inventory, Sept. 1 60,000 15\% Transferred in the during the month 105,000 Work in process inventory, Sept. 30 40,000 20\% Transferred In Materials Labour and overhead Beginning work-in- process inventory \ 30,000 \ 16,000 Cost added during the month \ 63,000 \ 320,000 -What are the equivalent units of production for material for the month?

(Multiple Choice)

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Question 69

If all units go through all processing departments,then the processing departments are arranged in a parallel,rather than sequential,fashion.

(True/False)

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Question 70

Production and cost data for the month of February for Process A of the Packer manufacturing Company follow: Production record: Units in process, February 1(100\% complete with respect to materials; 25\% complete with respect to conversion cost) 2,000 New units started in process 8,000 Units completed 7,000 Units in process, February 28(100\% complete with respect to materials; 1/3 3,000 complete with respect to conversion cost) Cost record: Work in process inventory, February 1: Materials \ 600 Conversion 100 700 Costs far February: Materials issued 2,560 Corversion 1,500 Total cost to be accounted for \4 ,760 The company uses the weighted-average method in its process costing system. Required: a)Calculate the equivalent units and unit costs for February for materials and for conversion costs. b)Determine the cost transferred to finished goods. c)Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories.

(Essay)

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Question 71

Which of the following statements best defines an operation costing system?

(Multiple Choice)

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Question 72

Selah Manufacturing makes a quality-improvement device for the aeronautical industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: Number of Units Beginning work in process inventory 16,000 Units started into production during May 100,000 Units completed during May 92,000 Ending work in process inventory 24,000 The beginning work-in-process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work-in-process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs. The costs were as follows: Materials Conversion Total Beginning work-in- process inventory \ 54,560 \ 35,560 \ 90,120 Costs incurred during May \ 468,000 \ 574,040 \ 1,042,040 Total \ 522,560 \ 609,600 \ 1,132,160 -Suppose the company used the weighted-average method.What amount would have been credited to the Work-in-process inventory for the units completed and transferred out during the month of May?

(Multiple Choice)

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Question 73

The activity in Nolan Company's Blending Department for the month of April is given below: Number of Units Labour and overhead percentage complete Work in process inventory, April 1 8,000 50\% Transferred in the during the month 50,000 Work in process inventory, April 30 10,000 70\% All materials are added at the beginning of processing in the Blending Department. -Using the weighted-average method,what are the equivalent units of production for labour and overhead for the month?

(Multiple Choice)

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Question 74

Activities in the Challenger Company's Assembly Department for the month of March follow: -Using the weighted-average method,what are the equivalent units of production for materials for March?

(Multiple Choice)

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Question 75

(Appendix 6A)On November 1,Yankee Company had 20,000 units of work in process in Department No.1 that were 100% complete with respect to material costs and 20% complete with respect to conversion costs.During November,160,000 units were started in Department No.1,and 170,000 units were completed and transferred to Department No.2.The work in process on November 30 was 100% complete with respect to material costs and 40% complete with respect to conversion costs.By what amount would the equivalent units of production for conversion costs for the month of November differ if the FIFO method were used instead of the weighted-average method?

(Multiple Choice)

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Question 76

Darver Inc.uses the FIFO method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Prepare a production report for the department using the FIFO method.

(Essay)

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Question 77

Black Company uses the weighted-average method in its process costing system.The company's ending work-in-process inventory consists of 5,000 units,80% complete with respect to materials and 50% complete with respect to labour and overhead.If the total dollar value of the inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00,what is the cost per equivalent unit for materials?

(Multiple Choice)

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Question 78

Able Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Prepare a production report for the department using the weighted-average method.

(Essay)

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Question 79

The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work-in-process inventory plus the costs added during the period,all divided by the equivalent units of production for the period.

(True/False)

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Question 80

If all units go through all processing departments,then the processing departments are arranged in a parallel,rather than sequential,fashion.

Which of the following statements best defines an operation costing system?

Activities in the Challenger Company's Assembly Department for the month of March follow: -Using the weighted-average method,what are the equivalent units of production for materials for March?

Darver Inc.uses the FIFO method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Prepare a production report for the department using the FIFO method.

Able Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month: Required: Prepare a production report for the department using the weighted-average method.

The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work-in-process inventory plus the costs added during the period,all divided by the equivalent units of production for the period.

Managerial Accounting and the Business Environment

Cost Terms,concepts,and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Activity-Based Costing: A Tool to Aid Decision Making

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis

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