Question 1

What was the cost of the work-in-process inventory in the Finishing Department at the end of May?

Accepted Answer

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

Question 2

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):  
 
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?

Accepted Answer

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

Question 3

(Appendix 6A)Using the FIFO method,what are the equivalent units of production for material for the month?

Accepted Answer

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.

Question 4

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?

Accepted Answer

A)  $212,500. 
B)  $178,125. 
C)  $159,375. 
D)  $109,375. 
A)  $212,500. 
B)  $178,125. 
C)  $159,375. 
D)  $109,375.

Question 5

(Appendix 6A)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.

Accepted Answer

Quantity S

Question 6

(Appendix 6A)Dita Company uses a process costing system.The following information relates to one month's activity in the company's Curing Department:   
The conversion cost of the beginning inventory was $6,500.During the month,$112,000 in additional conversion cost was incurred.
Required:
a)(Appendix 6A)Assume that the company uses the FIFO method.Compute the following:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.
b)Assume that the company uses the weighted-average cost method.Compute the following:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.

Accepted Answer

The answer of (Appendix 6A)Dita Company uses a process costing...

Question 7

David Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 20,000 units that were 80% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $123,200.An additional 65,000 units were started into production during the month.There were 19,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $389,250 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. )

Accepted Answer

A)  $7.547. 
B)  $7.700. 
C)  $4.634. 
D)  $5.988.Cost/EU = (123,200 + 389,250)/67,900 = $7.547 
A)  $7.547. 
B)  $7.700. 
C)  $4.634. 
D)  $5.988.Cost/EU = (123,200 + 389,250)/67,900 = $7.547

Question 8

(Appendix 6A)Assuming that Tru-Colour Paint Company uses the FIFO method,what are the equivalent units of production for materials?

Accepted Answer

A)  42,600 units. 
B)  45,000 units. 
C)  53,000 units. 
D)  46,000 units. 
A)  42,600 units. 
B)  45,000 units. 
C)  53,000 units. 
D)  46,000 units.

Question 9

(Appendix 6A)Farwest 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:
Using the FIFO method,determine the equivalent units of production for materials and conversion costs by compiling the "Quantity Schedule and Equivalent Units" portion of the production report.

Accepted Answer

Quantity S

Question 10

For which of the following industries would it NOT be appropriate to use process costing?

Accepted Answer

A)  Custom furniture building. 
B)  Oil refining. 
C)  Grain milling. 
D)  Newsprint production. 
A)  Custom furniture building. 
B)  Oil refining. 
C)  Grain milling. 
D)  Newsprint production.

Question 11

What was the total cost of the October 31 work-in-process inventory?

Accepted Answer

A)  $41,250. 
B)  $35,000. 
C)  $43,750. 
D)  $78,750. 
A)  $41,250. 
B)  $35,000. 
C)  $43,750. 
D)  $78,750.

Question 12

Huffer Company uses the weighted-average method in its process costing system.The following information pertains to Processing Department D for the month of May:  
All materials are added at the beginning of the process.Which of the following costs is closest to the cost per equivalent unit for materials?

Accepted Answer

A)  $0.43. 
B)  $0.45. 
C)  $0.55. 
D)  $0.59. 
A)  $0.43. 
B)  $0.45. 
C)  $0.55. 
D)  $0.59.

Question 13

(Appendix 6A)Qart Company uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below:  
According to the company's records,the conversion cost in beginning work-in-process inventory was $1,656 at the beginning of March.Additional conversion costs of $129,960 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for March on the Cutting Department's production report? (Round off to three decimal places. )

Accepted Answer

A)  $1.710. 
B)  $1.677. 
C)  $1.756. 
D)  $1.840. 
A)  $1.710. 
B)  $1.677. 
C)  $1.756. 
D)  $1.840.

Question 14

(Appendix 6A)The Smith Company manufactures a product that goes through two departments prior to completion.The following information is available on work in one of these departments,the Forming Department,during March:   
Cost in the beginning work-in-process inventory and cost added during the month were as follows:   
The Forming Department is the first department in the production process;after forming has been completed,the units are transferred to the Finishing Department.
Required:
a)Assuming the company uses the weighted-average method,calculate the equivalent units and unit cost for materials and conversion costs,rounded to the nearest tenth of a cent.
b)(Appendix 6A)Assuming the company uses the FIFO method,calculate the equivalent units and unit cost for materials and conversion costs,rounded to the nearest tenth of a cent.

Accepted Answer

a)Equivalent units: @#IMG-DLM& 
Unit costs:
Materi

Question 15

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

Accepted Answer

A) True 
 B)False

Question 16

In order to use process costing,the output of a processing department must be homogeneous.

Accepted Answer

A) True 
 B)False

Question 17

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:

Accepted Answer

A) True 
 B)False

Question 18

Assuming that Cherrington Company uses the FIFO method,the conversion costs for work in process ending inventory in May is closest to which of the following? (Round your intermediate answers two decimal places)

Accepted Answer

A)  $34,480. 
B)  $27,920. 
C)  $32,880. 
D)  $34,320. 
A)  $34,480. 
B)  $27,920. 
C)  $32,880. 
D)  $34,320.

Question 19

(Appendix 6B)When normal losses are charged to good output a special journal entry is required to account for costs related to spoiled units.

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

A)  $423,200 
B)  $552,000 
C)  $975,200 
D)  $132,160.Cost/EU conv.Cost = $609,600/(92,000 + 24,000 * .4)= $6.00 
A)  $423,200 
B)  $552,000 
C)  $975,200 
D)  $132,160.Cost/EU conv.Cost = $609,600/(92,000 + 24,000 * .4)= $6.00

What was the cost of the work-in-process inventory in the Finishing Department at the end of May?

(Appendix 6A)Using the FIFO method,what are the equivalent units of production for material for the month?

(Appendix 6A)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.

(Appendix 6A)Assuming that Tru-Colour Paint Company uses the FIFO method,what are the equivalent units of production for materials?

For which of the following industries would it NOT be appropriate to use process costing?

What was the total cost of the October 31 work-in-process inventory?

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

In order to use process costing,the output of a processing department must be homogeneous.

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:

Assuming that Cherrington Company uses the FIFO method,the conversion costs for work in process ending inventory in May is closest to which of the following? (Round your intermediate answers two decimal places)

(Appendix 6B)When normal losses are charged to good output a special journal entry is required to account for costs related to spoiled units.

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?

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

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Exam 6: Systems Design: Process Costing

What was the cost of the work-in-process inventory in the Finishing Department at the end of May?

(Appendix 6A)Using the FIFO method,what are the equivalent units of production for material for the month?

(Appendix 6A)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.

(Appendix 6A)Assuming that Tru-Colour Paint Company uses the FIFO method,what are the equivalent units of production for materials?

For which of the following industries would it NOT be appropriate to use process costing?

What was the total cost of the October 31 work-in-process inventory?

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

In order to use process costing,the output of a processing department must be homogeneous.

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:

Assuming that Cherrington Company uses the FIFO method,the conversion costs for work in process ending inventory in May is closest to which of the following? (Round your intermediate answers two decimal places)

(Appendix 6B)When normal losses are charged to good output a special journal entry is required to account for costs related to spoiled units.

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?

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 Online

Filters