A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work-in-process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows: $\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 33,000 \\ \hline \text { Conversion costs } & \$ 17,000 \\ \hline \end{array}$A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work-in-process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. -What was the cost of the work-in-process inventory in the Finishing Department at the end of May?

A) $7,600. B) $10,000. C) $2,500. D) $4,000. A) $7,600. B) $10,000. C) $2,500. D) $4,000.

The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. $\begin{array} { |l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\ \text { percentage complete } \end{array} \\ \hline \begin{array} { lrr } \text { Work in process inventory, } \\ \text { July 1 } \end{array} & 20,000 & 40 \% \\ \hline \text { Started during the month } & 70,000 & \\ \hline \begin{array} { l } \text { Completed during the } \\ \text { month } \end{array} & 80,000 & \\ \hline \begin{array} { l } \text { Work in process inventory, } \\ \text { July 31 } \end{array} & ? & 25 \% \\ \hline \end{array}$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) 70,000 units. B) 90,000 units. C) 80,000 units. D) 82,500 units. A) 70,000 units. B) 90,000 units. C) 80,000 units. D) 82,500 units.

Rariton Company uses the weighted-average method in its process costing system.The Moulding Department is the second department in its production process.The data below summarize the department's operations in January: $\begin{array}{|l|r|r|} \hline&\text { Units}&\text { Percentage complete }\\ \hline \text { Beginning work in process } &4,800 & 60 \% \\ \text { inventory } & \\ \hline \begin{array}{l} \text { Transferred in from the } \\ \text { prior department during } \end{array} & 78,000 & \\ \text { January }\\ \hline \begin{array}{l} \text { Completed and transferred } \\ \text { to the next department } \\ \text { during January } \end{array} &80,900 & \\ \hline \begin{array}{l} \text { Ending work in process } \\ \text { inventory } \end{array} &1,900 & 40 \% \\ \hline \end{array}$ The Moulding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work-in-process inventory in the Moulding Department for January?

A) $4,081.20. B) $10,203.00. C) $10,310.40. D) $6,121.80. A) $4,081.20. B) $10,203.00. C) $10,310.40. D) $6,121.80.

Department 2 is the second of three sequential processes.All materials are added at the beginning of processing in Department 2.During October,Department 2 reported the following data: $\begin{array}{|l|l|l|} \hline &\text { Number of units } & \text { Conversion cost } \\ &&\text { percentage complet }\\ \hline \text { Units started } & 60,000 & \\ \hline \text { Completed and transferred } & 50,000 & \\ \hline \text { Work in process, October 1 } & 26,000 &60 \% \\ \hline \text { Work in process, October 31 } & 36,000 &20 \% \\ \hline \end{array}$ \[\begin{array} { | l | r | r | r | } \hline \text { Costs for October } & \text { Transferred In } & \text { Materials } & \text { Conversion Cost } \\ \hline \begin{array} { l } \text { Work in process, } \\ \text { October 1 } \end{array} & \$ 45,000 & \$ 25,000 & \$ 54,000 \\ \hline \text { Added during the } & 8 1 , 0 0 0 & 115,000 &3 1 5 , 0 0 0\\ \text { month } & & & \\ \hline \end{array}\] The company uses the weighted-average method in its process costing system.To the nearest cent,what is the cost per equivalent unit on the production report for conversion costs?

A) $5.51. B) $6.45. C) $6.30. D) $7.38. A) $5.51. B) $6.45. C) $6.30. D) $7.38.

Harmon Company uses the weighted-average method in its process costing system.The Curing Department of Harmon Company reported the following information for the month of November: \[\begin{array} { | l | r | r | } \hline & \text { Units } & \begin{array} { r } \text { Conversion percentage } \\ \text { complet } \end{array} \\ \hline \begin{array} { l } \text { Work in process, Novernber } \\ 1 \end{array} & 10,000 & 80 \% \\ \hline \text { Units started } & 28,000 & \\ \hline \begin{array} { l } \text { Completed and transferred } \\ \text { out } \end{array} & 30,000 & \\ \hline \begin{array} { l } \text { Work in process, November } \\ \text { 30 } \end{array} & 8,000 & 30 \% \\ \hline \end{array}\] \[\begin{array} { | l | r | r | } \hline \text { Costs for November: } & \text { Materials } & \text { Conversion } \\ \hline \begin{array} { l } \text { Work in process, November } \\ 1 \end{array} & \$ 34,500 & \$ 48,600 \\ \hline \text { Added during the month } & \$ 146,000 & \$ 194,400 \\ \hline \end{array}\] All materials are added at the beginning of the process. Required: Compute the following items for the company's monthly production report using the weighted-average method: a)The equivalent units (EUs)of production for materials. b)The cost per equivalent unit for conversion. c)The total cost assigned to units transferred out of the Curing Department during November. d)The cost assigned to work-in-process inventory as of November 30.

a) b)($48,600 + $194,400)/32,400 EUs =

Narver Company uses the weighted-average method in its process costing system.Conversion costs are added equally throughout the production process.Operating data for the Lubricating Department for the month of October appear below: $\begin{array}{|l|r|r|} \hline&\text { Units}&\text { Percentage complete }\\ \hline \text { Beginning work in process } &6,600 & 60 \% \\ \text { inventory } & \\ \hline \begin{array}{l} \text { Transferred in from the } \\ \text { prior department during } \end{array} & 40,100 & \\ \text { January }\\ \hline \begin{array}{l} \text { Completed and transferred } \\ \text { to the next department } \\ \text { during January } \end{array} &37,100 & \\ \hline \begin{array}{l} \text { Ending work in process } \\ \text { inventory } \end{array} & 9,600 & 80 \% \\ \hline \end{array}$ What were the equivalent units of production for conversion costs in the Lubricating Department for October?

A) 43,100 units. B) 37,100 units. C) 44,780 units. D) 47,780 units. A) 43,100 units. B) 37,100 units. C) 44,780 units. D) 47,780 units.

Karmen Company uses the FIFO method in its process costing system.Operating data for the Enamelling Department for the month of May appear below: \[\begin{array} { | l | r | r | } \hline & \text { Units } & \text { Percentage complete } \\ \hline \text { Beginning work in process } & 2,400 & 40 \% \\ \text { inventory } & & \\ \hline \text { Transferred in from the } & 87,000 & \\ \text { prior department during } & & \\ \text { May } & & \\ \hline \begin{array} { l } \text { Ending work in process } \\ \text { inventory } \end{array} &8,600 &60\% \\ \hline \end{array}\] What were the equivalent units of production for conversion costs in the Enamelling Department for May?

A) 85,000 units. B) 85,960 units. C) 93,200 units. D) 80,800 units. A) 85,000 units. B) 85,960 units. C) 93,200 units. D) 80,800 units.

Exam 6: Systems Design: Process Costing

The Richmond Company uses the weighted-average method in its process costing system.The company has only a single processing department.The company's ending work-in-process inventory on August 31 consisted of 18,000 units.The units in the ending work-in-process inventory were 100% complete with respect to materials and 60% complete with respect to labour and overhead.If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labour and overhead,what was the total cost assigned to the ending work-in-process inventory?

(Multiple Choice)

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Question 81

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 conversion costs for May?

(Multiple Choice)

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Question 82

A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work-in-process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows: Direct materials \ 33,000 Conversion costs \ 17,000 A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work-in-process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. -What was the cost of the work-in-process inventory in the Finishing Department at the end of May?

(Multiple Choice)

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Question 83

Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process.A review of the company's inventory and cost records for the most recently completed year revealed the following information: Number of Units Materials Conversion Work in process, Jan. 180\% complete with respect to conversion costs 100,000 \ 100,000 \ 157,500 Units started into production 500,000 Costs added during the year Materials \ 650,000 Conversion \ 997,500 Units completed 450,000 during the year The company uses the weighted-average method in its process costing system.The ending inventory is 50% complete with respect to conversion costs. Required: a)Compute the equivalent units of production and the cost per equivalent units 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 inventory.

(Essay)

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Question 84

Trapp Company uses the weighted-average method in its process costing system.The beginning work-in-process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs.The cost of the beginning work-in-process inventory in the department was recorded as $10,000.During the period,9,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs.What was the cost of units transferred out during the month?

(Multiple Choice)

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Question 85

The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. Number of Units Labour and overhead percentage complete Work in process inventory, July 1 20,000 40\% Started during the month 70,000 Completed during the month 80,000 Work in process inventory, July 31 ? 25\% 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 86

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 there was no separate breakdown of the total cost of the beginning work-in-process inventory of $90,120 into materials ($54,560)and conversion ($35,560).Which method of accounting would not have been possible to use?

(Multiple Choice)

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Question 87

In process costing,costs are accumulated in processing departments,rather than by job.

(True/False)

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Question 88

Baker Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 8,000 units in its beginning work-in-process inventory that were 90% complete with respect to conversion costs.An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 11,000 units in the ending work-in-process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

(Multiple Choice)

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Question 89

(Appendix 6A)The "Quantity Schedule and Equivalent Units" section of the production report is the same for the weighted-average method and the FIFO method of process costing.

(True/False)

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Question 90

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,the cost per equivalent unit of materials for May is closest to which of the following?

(Multiple Choice)

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Question 91

Harker Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 16,000 units in its beginning work-in-process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $29,440.An additional 59,000 units were started into production during the month,and 61,000 units were completed in the Welding Department and transferred to the next processing department.There were 14,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $246,400 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

(Multiple Choice)

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Question 92

Rariton Company uses the weighted-average method in its process costing system.The Moulding Department is the second department in its production process.The data below summarize the department's operations in January: Units Percentage complete Beginning work in process 4,800 60\% inventory Transferred in from the prior department during 78,000 January Completed and transferred to the next department during January 80,900 Ending work in process inventory 1,900 40\% The Moulding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work-in-process inventory in the Moulding Department for January?

(Multiple Choice)

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Question 93

Department 2 is the second of three sequential processes.All materials are added at the beginning of processing in Department 2.During October,Department 2 reported the following data: Number of units Conversion cost percentage complet Units started 60,000 Completed and transferred 50,000 Work in process, October 1 26,000 60\% Work in process, October 31 36,000 20\% Costs for October Transferred In Materials Conversion Cost Work in process, October 1 \ 45,000 \ 25,000 \ 54,000 Added during the 81,000 115,000 315,000 month The company uses the weighted-average method in its process costing system.To the nearest cent,what is the cost per equivalent unit on the production report for conversion costs?

(Multiple Choice)

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Question 94

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 weighted-average method,the total cost of the units in ending work-in-process inventory is closest to which of the following?

(Multiple Choice)

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Question 95

Harmon Company uses the weighted-average method in its process costing system.The Curing Department of Harmon Company reported the following information for the month of November: Units Conversion percentage complet Work in process, Novernber 1 10,000 80\% Units started 28,000 Completed and transferred out 30,000 Work in process, November 30 8,000 30\% Costs for November: Materials Conversion Work in process, November 1 \ 34,500 \ 48,600 Added during the month \ 146,000 \ 194,400 All materials are added at the beginning of the process. Required: Compute the following items for the company's monthly production report using the weighted-average method: a)The equivalent units (EUs)of production for materials. b)The cost per equivalent unit for conversion. c)The total cost assigned to units transferred out of the Curing Department during November. d)The cost assigned to work-in-process inventory as of November 30.

(Essay)

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Question 96

The equivalent units of production (weighted-average method)for a department are:

(Multiple Choice)

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Question 97

Narver Company uses the weighted-average method in its process costing system.Conversion costs are added equally throughout the production process.Operating data for the Lubricating Department for the month of October appear below: Units Percentage complete Beginning work in process 6,600 60\% inventory Transferred in from the prior department during 40,100 January Completed and transferred to the next department during January 37,100 Ending work in process inventory 9,600 80\% What were the equivalent units of production for conversion costs in the Lubricating Department for October?

(Multiple Choice)

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Question 98

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: Work in process, department Y Work in process, departmentZ

(True/False)

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Question 99

Karmen Company uses the FIFO method in its process costing system.Operating data for the Enamelling Department for the month of May appear below: Units Percentage complete Beginning work in process 2,400 40\% inventory Transferred in from the 87,000 prior department during May Ending work in process inventory 8,600 60\% What were the equivalent units of production for conversion costs in the Enamelling Department for May?

(Multiple Choice)

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Question 100

In process costing,costs are accumulated in processing departments,rather than by job.

(Appendix 6A)The "Quantity Schedule and Equivalent Units" section of the production report is the same for the weighted-average method and the FIFO method of process costing.

The equivalent units of production (weighted-average method)for a department are:

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: Work in process, department Y Work in process, departmentZ

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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