Question 1

Process costing would be appropriate for each of the following except:

Accepted Answer

A)  custom furniture manufacturing. 
B)  oil refining. 
C)  grain milling. 
D)  newsprint production. 
A)  custom furniture manufacturing. 
B)  oil refining. 
C)  grain milling. 
D)  newsprint production.

Question 2

In a process costing system, overhead is allocated to departments before being applied to units of product.

Accepted Answer

A) True 
 B)False

Question 3

Ivenson Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:   Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-What are the equivalent units for conversion costs for the month in the first processing department?

Accepted Answer

A)  6,425 
B)  6,200 
C)  225 
D)  7,700 
A)  6,425 
B)  6,200 
C)  225 
D)  7,700

Question 4

Yimron Corporation uses the weighted-average method in its process costing system. Information for the month of March concerning Department A, the first stage of the company's production process, follows:  
Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. What cost would be recorded for the ending work in process inventory?

Accepted Answer

A)  $3,400 
B)  $1,700 
C)  $4,400 
D)  $2,200 
A)  $3,400 
B)  $1,700 
C)  $4,400 
D)  $2,200

Question 5

Bosril Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:   A total of 5,600 units were started and 4,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:   The ending inventory was 85% complete with respect to materials and 45% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for materials for the month in the first processing department is closest to:

Accepted Answer

A)  $15.73 
B)  $17.09 
C)  $16.62 
D)  $16.18 
A)  $15.73 
B)  $17.09 
C)  $16.62 
D)  $16.18

Question 6

Bosril Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:   A total of 5,600 units were started and 4,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:   The ending inventory was 85% complete with respect to materials and 45% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Accepted Answer

A)  $24,812 
B)  $17,294 
C)  $32,666 
D)  $38,431 
A)  $24,812 
B)  $17,294 
C)  $32,666 
D)  $38,431

Question 7

Belegorsk Corporation uses a weighted-average process costing system to collect costs related to production in its Milling Department. The following information relates to Milling Department production for August:  
-What are the Milling Department's equivalent units related to materials for August?

Accepted Answer

A)  37,000 
B)  51,000 
C)  42,000 
D)  46,000 
A)  37,000 
B)  51,000 
C)  42,000 
D)  46,000

Question 8

Chabud Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:   A total of 8,100 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:   The ending inventory was 70% complete with respect to materials and 40% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:

Accepted Answer

A)  $332,037 
B)  $301,000 
C)  $309,000 
D)  $281,846 
A)  $332,037 
B)  $301,000 
C)  $309,000 
D)  $281,846

Question 9

Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows:  
What was the materials cost of work in process at October 31?

Accepted Answer

A)  $3,060 
B)  $5,520 
C)  $6,000 
D)  $6,120 
A)  $3,060 
B)  $5,520 
C)  $6,000 
D)  $6,120

Question 10

Jam Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:  
What were the equivalent units for conversion costs in the Painting Department for April?

Accepted Answer

A)  78,680 
B)  77,500 
C)  72,300 
D)  81,280 
A)  78,680 
B)  77,500 
C)  72,300 
D)  81,280

Question 11

Burningham Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for June.   
Required:
Determine the equivalent units of production for the Materials Preparation Department for June using the weighted-average method.

Accepted Answer

The answer of Burningham Corporation uses the weighted-average method in...

Question 12

Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:  
According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Accepted Answer

A)  $8.070 
B)  $7.891 
C)  $5.928 
D)  $4.584 
A)  $8.070 
B)  $7.891 
C)  $5.928 
D)  $4.584

Question 13

Fryer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were:   A total of 7,300 units were started and 6,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:   The ending inventory was 80% complete with respect to materials and 45% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Accepted Answer

A)  $66,571 
B)  $53,257 
C)  $41,897 
D)  $29,957 
A)  $66,571 
B)  $53,257 
C)  $41,897 
D)  $29,957

Question 14

Fryer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were:   A total of 7,300 units were started and 6,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:   The ending inventory was 80% complete with respect to materials and 45% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:

Accepted Answer

A)  $229,301 
B)  $295,872 
C)  $249,700 
D)  $271,200 
A)  $229,301 
B)  $295,872 
C)  $249,700 
D)  $271,200

Question 15

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.   All materials are added at the beginning of the manufacturing process.
-The equivalent units for material for the month is:

Accepted Answer

A)  70,000 
B)  90,000 
C)  80,000 
D)  82,500 
A)  70,000 
B)  90,000 
C)  80,000 
D)  82,500

Question 16

Hanson Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:   Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:

Accepted Answer

A)  $447,600 
B)  $450,800 
C)  $423,316 
D)  $464,953 
A)  $447,600 
B)  $450,800 
C)  $423,316 
D)  $464,953

Question 17

The following data have been provided by Witty Corporation, which uses the weighted-average method in its process costing. The data are for the company's Shaping Department for March.   
Required:
Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for March using the weighted-average method.

Accepted Answer

The answer of The following data have been provided by...

Question 18

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be:

Accepted Answer

A)  the same as the units completed. 
B)  less than the units completed. 
C)  the same as the units started during the period. 
D)  less than the units started during the period. 
A)  the same as the units completed. 
B)  less than the units completed. 
C)  the same as the units started during the period. 
D)  less than the units started during the period.

Question 19

Lowler Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:   Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-What are the equivalent units for materials for the month in the first processing department?

Accepted Answer

A)  1,050 
B)  8,450 
C)  8,900 
D)  7,400 
A)  1,050 
B)  8,450 
C)  8,900 
D)  7,400

Question 20

Jemsen Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:   Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Accepted Answer

A)  $19.28 
B)  $21.23 
C)  $22.29 
D)  $20.53 
A)  $19.28 
B)  $21.23 
C)  $22.29 
D)  $20.53

Process costing would be appropriate for each of the following except:

In a process costing system, overhead is allocated to departments before being applied to units of product.

Belegorsk Corporation uses a weighted-average process costing system to collect costs related to production in its Milling Department. The following information relates to Milling Department production for August: -What are the Milling Department's equivalent units related to materials for August?

Jam Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: What were the equivalent units for conversion costs in the Painting Department for April?

Burningham Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for June. Required: Determine the equivalent units of production for the Materials Preparation Department for June using the weighted-average method.

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Cost Behavior Analysis and Use

Cost-Volume-Profit Relationship

Variable Costing: a Tool for Management

Activity Based Costing: a Tool to Aid Decision-Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting, Decentralization, and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Pricing Products and Services

Profitability Analysis

Further Classification of Labor Costs

Cost of Quality

the Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Least-Squares Regression Computations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to

Predetermined Overhead Rates and Overhead Analysis

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by

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Exam 4: Systems Design: Process Costing

Process costing would be appropriate for each of the following except:

In a process costing system, overhead is allocated to departments before being applied to units of product.

Belegorsk Corporation uses a weighted-average process costing system to collect costs related to production in its Milling Department. The following information relates to Milling Department production for August: -What are the Milling Department's equivalent units related to materials for August?

Jam Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: What were the equivalent units for conversion costs in the Painting Department for April?

Burningham Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for June. Required: Determine the equivalent units of production for the Materials Preparation Department for June using the weighted-average method.

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Cost Behavior Analysis and Use

Cost-Volume-Profit Relationship

Variable Costing: a Tool for Management

Activity Based Costing: a Tool to Aid Decision-Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting, Decentralization, and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Pricing Products and Services

Profitability Analysis

Further Classification of Labor Costs

Cost of Quality

the Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Least-Squares Regression Computations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to

Predetermined Overhead Rates and Overhead Analysis

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by

Filters