Question 1

Which of the following are needed under weighted-average process costing to calculate the cost of goods completed during the period?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E

Question 2

Agora Company uses a process-cost system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

Accepted Answer

A)  A, 4,800; B, 0. 
B)  A, 4,800; B, 4,800. 
C)  A, 6,000; B, 0. 
D)  A, 6,000; B, 4,800. 
E)  A, 6,000; B, 6,000. 
A)  A, 4,800; B, 0. 
B)  A, 4,800; B, 4,800. 
C)  A, 6,000; B, 0. 
D)  A, 6,000; B, 4,800. 
E)  A, 6,000; B, 6,000.

Question 3

Lester Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November?

Accepted Answer

A)  16,100. 
B)  26,500. 
C)  27,100. 
D)  42,800. 
E)  None of the other answers are correct. 
A)  16,100. 
B)  26,500. 
C)  27,100. 
D)  42,800. 
E)  None of the other answers are correct.

Question 4

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22.
The cost of Chen's completed production is:

Accepted Answer

A)  $225,000. 
B)  $330,000. 
C)  $333,000. 
D)  $555,000. 
E)  None of the answers is correct. 
A)  $225,000. 
B)  $330,000. 
C)  $333,000. 
D)  $555,000. 
E)  None of the answers is correct.

Question 5

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22.
The cost of the company's ending work-in-process inventory is:

Accepted Answer

A)  $26,640. 
B)  $44,400. 
C)  $56,400. 
D)  $74,000. 
E)  None of the answers is correct. 
A)  $26,640. 
B)  $44,400. 
C)  $56,400. 
D)  $74,000. 
E)  None of the answers is correct.

Question 6

Which of the following are needed to calculate the total cost of the ending work-in-process inventory under the weighted-average process-costing method?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E

Question 7

All of the following statements about an operation-costing system are true except:

Accepted Answer

A)  direct material and conversion costs are traced to each batch of product produced. 
B)  direct-material cost is traced to each batch produced. 
C)  conversion costs are applied to products on a departmental basis using a predetermined application rate. 
D)  batches of product pass sequentially through the same processes. 
E)  conversion activities are similar across product lines but direct materials differ significantly. 
A)  direct material and conversion costs are traced to each batch of product produced. 
B)  direct-material cost is traced to each batch produced. 
C)  conversion costs are applied to products on a departmental basis using a predetermined application rate. 
D)  batches of product pass sequentially through the same processes. 
E)  conversion activities are similar across product lines but direct materials differ significantly.

Question 8

On May 1, Dawdle Company had a work-in-process inventory of 10,000 units. The units were 100% complete for material and 30% complete for conversion, with respective costs of $30,000 and $1,850.
During the month, 150,000 units were completed and transferred to finished goods. The May 31 ending work-in-process inventory consisted of 10,000 units that were 100% complete with respect to materials and 80% complete with respect to conversion.
Costs added during the month were $330,000 for materials and $503,750 for conversion.
Required:
Using the weighted-average method, calculate:
A. total equivalent units for material and conversion.
B. the cost per equivalent unit for material and conversion.
C. the cost transferred to finished goods.
D. the cost of ending work in process.

Accepted Answer

The answer of On May 1, Dawdle Company had a...

Question 9

Fedora, Inc., uses a weighted-average process-costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion cost is incurred uniformly throughout production. The company had respective work-in-process inventories on May 1 and May 31 of 62,000 units and 70,000 units, the latter of which was 40% complete. The production supervisor noted that Federal completed 100,000 units during the month.
Costs in the May 1 work-in-process inventory were subdivided as follows: materials, $40,000; conversion, $90,000. During May, Fedora charged production with $300,000 of material and $710,000 of conversion, resulting in a material cost per equivalent unit of $2.
Required:
A. Determine the number of units that Fedora started during May.
B. Compute the number of equivalent units with respect to conversion cost.
C. Determine the conversion cost per equivalent unit.
D. Compute the cost of the May 31 work-in-process inventory.
E. What account would have been credited to record Fedora's completed production?

Accepted Answer

A. Since Fedora had accounted for 170,00

Question 10

When calculating unit costs under the weighted-average process-costing method, the unit cost is based on:

Accepted Answer

A)  only the current period's manufacturing costs. 
B)  only costs in the period's beginning work-in-process inventory. 
C)  a summation of the costs in the beginning work-in-process inventory plus costs incurred in the current period. 
D)  only costs incurred in previous accounting periods. 
E)  a summation of the costs in the beginning work-in-process inventory plus costs to be incurred in the upcoming period. 
A)  only the current period's manufacturing costs. 
B)  only costs in the period's beginning work-in-process inventory. 
C)  a summation of the costs in the beginning work-in-process inventory plus costs incurred in the current period. 
D)  only costs incurred in previous accounting periods. 
E)  a summation of the costs in the beginning work-in-process inventory plus costs to be incurred in the upcoming period.

Question 11

Process costing would likely be used in all of the following industries except:

Accepted Answer

A)  petroleum refining. 
B)  chemicals. 
C)  truck tire manufacturing. 
D)  wood pulp production. 
E)  automobile repair. 
A)  petroleum refining. 
B)  chemicals. 
C)  truck tire manufacturing. 
D)  wood pulp production. 
E)  automobile repair.

Question 12

EnviroSmart Chemical Company refines a variety of petrochemical products. The following data pertain to the firm's Baton Rouge plant: $\begin{array}{cl}
\text { Work in process, August 1: } & 100,000 \text { gallons } \
\text { Direct material } & 100 \% \text { complete } \
\text { Conversion } & 25 \% \text { complete }\\text { Units started into production } & 1,375,000 \text { gallons } \
\text { Work in process, August 31: } & 120,000 \text { gallons } \
\text { Direct material } & 100 \% \text { complete } \
\text { Conversion } & 80 \% \text { complete }
\end{array}$ 
Required:
Compute the equivalent units of direct materials and conversion for August.

Accepted Answer

The answer of EnviroSmart Chemical Company refines a variety of...

Question 13

CFF, Inc. overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. This overstatement caused conversion-cost equivalent units to be overstated.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a key document in a typical process-costing system?

Accepted Answer

A)  Departmental production report. 
B)  Master schedule. 
C)  Production budget. 
D)  Sequential product report. 
E)  Materials requirement report. 
A)  Departmental production report. 
B)  Master schedule. 
C)  Production budget. 
D)  Sequential product report. 
E)  Materials requirement report.

Question 15

Process costing is used to account for:

Accepted Answer

A)  large numbers of identical products that are produced in a continuous manufacturing environment. 
B)  small numbers of products that are produced in batches. 
C)  raw materials that are converted directly to finished goods. 
D)  finished goods that are refined and processed further. 
E)  large numbers of products that are produced in a non-repetitive process. 
A)  large numbers of identical products that are produced in a continuous manufacturing environment. 
B)  small numbers of products that are produced in batches. 
C)  raw materials that are converted directly to finished goods. 
D)  finished goods that are refined and processed further. 
E)  large numbers of products that are produced in a non-repetitive process.

Question 16

Yes! Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as of April 30, 4,000 units that were 40% complete remained in production. How many units were completed during April?

Accepted Answer

A)  10,000. 
B)  9,800. 
C)  11,000. 
D)  12,200. 
E)  None of the other answers are correct. 
A)  10,000. 
B)  9,800. 
C)  11,000. 
D)  12,200. 
E)  None of the other answers are correct.

Question 17

Southern Lake Chemical manufactures a product called Zubek. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May: $\begin{array}{lr}&\text { Units }\
\text { Work in process, May 1 } & 15,000 \
\text { Units started during May } & 60,000 \
\text { Units completed and transferred out } & 68,000 \
\text { Work in process, May } 31 & 7,000
\end{array}$

$\begin{array}{llll}&& \text { Direct } & \text { Conversion } \
&\text { Total } & \text { Materials } & \text { Costs }\
\text { Work in process, May 1 } & \$ 41,250 & \$ 16,500 & \$ 24,750 \
\text { Costs incurred during May } & \underline{234,630} & \underline{72,000} & \underline{162,630} \
\text { Totals } & \underline{\$ 275,880} & \underline{\underline{\$ 88,500}} & \underline{\$ 187,380} \
\end{array}$ Using the weighted-average method of process costing, the equivalent units of conversion activity total:

Accepted Answer

A)  60,400. 
B)  68,000. 
C)  69,400. 
D)  74,000. 
E)  None of the answers is correct. 
A)  60,400. 
B)  68,000. 
C)  69,400. 
D)  74,000. 
E)  None of the answers is correct.

Question 18

Operation costing might be used to determine the cost of all of the following products except:

Accepted Answer

A)  sweaters. 
B)  automobiles. 
C)  living-room sofas. 
D)  dishwashing detergent. 
E)  high-definition (H
D)  and surround-sound cables. 
A)  sweaters. 
B)  automobiles. 
C)  living-room sofas. 
D)  dishwashing detergent. 
E)  high-definition (H
D)  and surround-sound cables.

Question 19

Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000
Universal's equivalent-unit cost for conversion cost is:

Accepted Answer

A)  $13.71. 
B)  $18.00. 
C)  $21.00. 
D)  $25.20. 
E)  None of the answers is correct. 
A)  $13.71. 
B)  $18.00. 
C)  $21.00. 
D)  $25.20. 
E)  None of the answers is correct.

Question 20

Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current period that were 60% complete. Material A is introduced at the beginning of the process; material B is introduced at the end of the process; and conversion cost is introduced evenly throughout manufacturing. Equivalent-unit production costs follow.
Material A: $12.50
Material B: $2.00
Conversion cost: $6.60
The cost of the company's ending work-in-process inventory is:

Accepted Answer

A)  $88,620. 
B)  $115,220. 
C)  $123,620. 
D)  $147,700. 
E)  None of the answers is correct. 
A)  $88,620. 
B)  $115,220. 
C)  $123,620. 
D)  $147,700. 
E)  None of the answers is correct.

Which of the following are needed under weighted-average process costing to calculate the cost of goods completed during the period?

Lester Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November?

Which of the following are needed to calculate the total cost of the ending work-in-process inventory under the weighted-average process-costing method?

All of the following statements about an operation-costing system are true except:

When calculating unit costs under the weighted-average process-costing method, the unit cost is based on:

Process costing would likely be used in all of the following industries except:

CFF, Inc. overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. This overstatement caused conversion-cost equivalent units to be overstated.

Which of the following is a key document in a typical process-costing system?

Process costing is used to account for:

Yes! Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as of April 30, 4,000 units that were 40% complete remained in production. How many units were completed during April?

Operation costing might be used to determine the cost of all of the following products except:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 4: Process Costing and Hybrid Product-Costing Systems

Which of the following are needed under weighted-average process costing to calculate the cost of goods completed during the period?

Lester Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November?

Which of the following are needed to calculate the total cost of the ending work-in-process inventory under the weighted-average process-costing method?

All of the following statements about an operation-costing system are true except:

When calculating unit costs under the weighted-average process-costing method, the unit cost is based on:

Process costing would likely be used in all of the following industries except:

CFF, Inc. overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. This overstatement caused conversion-cost equivalent units to be overstated.

Which of the following is a key document in a typical process-costing system?

Process costing is used to account for:

Yes! Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as of April 30, 4,000 units that were 40% complete remained in production. How many units were completed during April?

Operation costing might be used to determine the cost of all of the following products except:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

Filters