Deck 8: Process Costing

Question 1

If materials are only added at the beginning of the production process, then the degree of completion for materials in the ending Work-in-Process Inventory is always 100%.

Answer 1

True

Question 2

The equivalent unit concept refers to the actual amount of work during the period stated in terms of the work required to complete an equal number of whole units.

Answer 2

True

Question 3

The number of units in the beginning Work-in-Process Inventory plus the units transferred out during the period equals the number of units started during the period plus the number of units in the ending Work-in-Process Inventory.

Answer 3

False

Question 4

The degree of completion associated with prior department costs is always 100%.

Question 5

It is possible for units in the beginning Work-in-Process Inventory to also be part of the ending Work-in-Process Inventory.

Question 6

If materials are only added at the beginning of the production process, then the degree of completion for materials in the ending Work-in-Process Inventory will be the same as the degree of completion for the conversion costs.

Question 7

In a weighted-average process costing system, the costs in the beginning Work-in-Process Inventory are not used to compute the costs transferred-out.

Question 8

The more prices change, the greater the difference between the costs assigned to units transferred out using weighted-average costing and the costs assigned to units transferred out using first-in, first-out (FIFO).

Question 9

If materials are added continuously throughout the production process, then the equivalent units for materials will always equal the equivalent units for the conversion costs.

Question 10

The weighted-average approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period.

Question 11

In the weighted-average approach, the number of physical units transferred out cannot be greater than the equivalent number of units produced during the period.

Question 12

Operation costing accounts for material costs like job costing and conversion costs like process costing.

Question 13

In general, the ending Work-in-Process Inventory value computed using first-in, first-out (FIFO) will be the same as the ending value computed using weighted-average process costing.

Question 14

Process costing assumes all units are homogeneous and follow the same path through the production process.

Question 15

If materials are only added at the end of the production process, then the degree of completion for materials of units in the ending Work-in-Process Inventory is always 0%.

Question 16

In general, weighted-average costing is simpler to use while first-in, first-out (FIFO) costing provides greater decision-making benefits to managers.

Question 17

Job costing requires more detailed record keeping than process costing.

Question 18

First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.

Question 19

Operation costing is used in manufacturing goods that have some common characteristics and some individual characteristics.

Question 20

If the beginning Work-in-Process inventory is zero, first-in, first-out (FIFO) and weighted-average process costing will assign the same amount to the units transferred out.

Question 21

In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA adapted)

A) Finished goods inventory control.
B) Factory overhead control.
C) Cost of goods sold.
D) Work-in-process inventory control.

Question 22

The Phantom Corporation started 4,800 units during February. Phantom started the month with 700 units in process (40% complete) and ended the month with 400 units in process (40% complete). How many units were transferred to the Finished Goods Inventory during February?

A) 5,500 units
B) 5,380 units
C) 5,100 units
D) 4,400 units

Question 23

If the units in the beginning Work-in-Process Inventory are greater than the units in the ending Work-in-Process Inventory, then the units transferred out are:

A) more than the units started during the period.
B) equal to the equivalent units of production.
C) less than the units started during the period.
D) equal to the actual work done during the period.

Question 24

An equivalent unit of conversion costs is equal to the amount of conversion costs required to:

A) start a unit.
B) start and complete a unit.
C) transfer a unit in.
D) transfer a unit out.

Question 25

Sigman Co.'s inventories in process were at the following stages of completion at April 30:
$\begin{array}{|c|c|}\hline \text { No. of Units } & \text { Percent Complete } \\\hline 100 & 90 \\\hline 50 & 80 \\\hline 200 & 10 \\\hline\end{array}$

Equivalent units of production in ending inventory amounted to: (CPA adapted)

A) 150.
B) 180.
C) 330.
D) 350.

Question 26

The Townson Manufacturing Company has gathered the following information for the month of September:
• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).
• 60,000 units were started into production.
• 50,000 units were completed and transferred to the next department.
• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

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What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing?

A) 52,000 EUPs
B) 64,500 EUPs
C) 66,000 EUPs
D) 61,500 EUPs

Question 27

The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method:

A) can be used under any cost flow assumption.
B) does not require the use of predetermined overhead rates.
C) keeps costs in the beginning inventory separate from current period costs.
D) does not consider the degree of completion of units in the beginning work-in-process inventory when computing equivalent units of production.

Question 28

Which of the following organizations would most likely use a process costing system?

A) Gasoline refinery.
B) Automobile retailer.
C) Airplane manufacturer.
D) Public accounting firm.

Question 29

In process 2, material G is added when a batch is 60% complete. Ending work-in-process units, which are 50% complete, would be included in the computation of equivalent units for: (CPA adapted)
$\begin{array} {cc } & { \text { Conversion Costs } } & { \text { Material G } } \\\end{array}$
A. $\begin{array} {cc } && & \text { Yes } &&& &&& \text { No } \\\end{array}$
B. $\begin{array} {cc } && & \text { No } &&& &&& \text { Yes } \\\end{array}$
C. $\begin{array} {cc } && & \text { No } &&& &&& \text { No } \\\end{array}$
D. $\begin{array} {cc } && & \text { Yes } &&& &&& \text { Yes } \\\end{array}$

A) Option A.
B) Option B.
C) Option C.
D) Option D.

Question 30

Which of the following statements is (are) true regarding product costing?
(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.
(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units.

A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) Neither of these is true.

Question 31

Of the following process costing steps, which must be done last?

A) Compute the equivalent units of production.
B) Compute the costs per equivalent unit of production.
C) Measure the physical flow of resources.
D) Identify the product costs to account for.

Question 32

An error was made by Marrow Company in computing the percentage-of-completion of the current year's ending Work-in-Process Inventory. The error resulted in the assignment of a lower percentage of completion to each component of the inventory than actually was the case. There was no beginning Work-in-Process Inventory. What is the effect of this error on (1) cost assigned to cost of goods completed for the period and (2) the computation of costs per equivalent unit?

A) Understated; Understated
B) Understated; Overstated
C) Overstated; Understated
D) Overstated; Overstated

Question 33

Which of the following statements concerning a process cost accounting system is false?

A) The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month.
B) If material is used evenly throughout a process, the number of equivalent material units will equal the number of equivalent units for the conversion (processing) costs.
C) Actual costing may be used in a process costing system to assign indirect overhead costs to departments.
D) The units in beginning inventory plus the units transferred in during the month should equal the units in the ending inventory plus the units transferred out during the month.

Question 34

Phantom Company has beginning and ending Work-in-Process Inventories that are 45% and 10% complete, respectively. Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units:

A) transferred out during the period.
B) started and completed during the period.
C) started into the process during the period.
D) started into the process plus the units in the ending inventory.

Question 35

Equivalent units for a process costing system, using the weighted-average method, would be equal to:

A) units completed during the period and transferred out.
B) units started and completed during the period plus equivalent units in the ending work-in-process inventory.
C) units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work-in-process inventory.
D) units completed during the period plus equivalent units in the ending work-in-process inventory.

Question 36

The following examples briefly describe the manufacture of two different products. Which costing method (job-order or process) would be the best method to use for each project?
I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the statement, "People can have any flavor of Lawless Fine Wine Coolers they want as long it's strawberry."
II. Northridge Spacetronics is manufacturing three space shuttles for the country of Xanadu. Each shuttle is slightly different and production will last approximately two years.
$\begin{array} {cc} &&&{ \text { I } } &&&&& { \text { II } } \\\end{array}$
A. $\begin{array} {cc} & \text { Process } && \text { Process } \\\end{array}$
B. $\begin{array} {cc} & \text { Job-Order } & \text { Job-Order } \\\end{array}$
C. $\begin{array} {cc} & \text { Process } && \text { Job-Order } \\\end{array}$
D. $\begin{array} {cc} & \text { Job-Order } & \text { Process } \\\end{array}$

A) Option A.
B) Option B.
C) Option C.
D) Option D.

Question 37

The Fremont Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work-in-process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

A) 24,500 units.
B) 23,000 units.
C) 27,000 units.
D) 21,000 units.

Question 38

The Miracle Company had 20,000 units in process on December 31, 2020 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2021. On January 31, 2021, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production (EUPs) for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)?

A) 34,000 EUPs
B) 35,000 EUPs
C) 36,500 EUPs
D) 41,500 EUPs

Question 39

A company should use process costing, rather than job costing, if:

A) production is only partially completed during the accounting period.
B) the product is manufactured in batches only as orders are received.
C) the product is composed of mass-produced homogeneous units.
D) the product goes through several steps of production.

Question 40

Which of the following characteristics applies to process costing, but does not apply to job order costing?

A) the need for averaging.
B) the use of equivalent units of production.
C) separate, identifiable jobs.
D) the use of predetermined overhead rates.

Question 41

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning inventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200 \\\text { Labor and overhead costs } & \$ 37,400\end{array}$$



-
Cost per equivalent unit of materials is:

A) $2.20.
B) $2.07.
C) $1.85.
D) $1.76.

Question 42

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning inventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200 \\\text { Labor and overhead costs } & \$ 37,400\end{array}$$



-
Equivalent units of production for labor and overhead are:

A) 16,000.
B) 17,000.
C) 19,000.
D) 20,000.

Question 43

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning inventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200 \\\text { Labor and overhead costs } & \$ 37,400\end{array}$$


-
Equivalent units of production for materials are:

A) 16,000.
B) 17,000.
C) 19,000.
D) 20,000.

Question 44

Fanciful Structures Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work-in-process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 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 your answer to 3 decimal places.)

A) $5.300.
B) $5.458.
C) $4.603.
D) $5.108.

Question 45

The Townson Manufacturing Company has gathered the following information for the month of September:
• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).
• 60,000 units were started into production.
• 50,000 units were completed and transferred to the next department.
• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

-
What are the equivalent units of production (EUPs) for the conversion costs in the month of September assuming Townson uses weighted-average process costing?

A) 64,500 EUPs
B) 56,000 EUPs
C) 61,500 EUPs
D) 54,000 EUPs

Question 46

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning inventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200 \\\text { Labor and overhead costs } & \$ 37,400\end{array}$$



-
Total cost of the 16,000 units finished is:

A) $63,360.
B) $67,320.
C) $72,640.
D) $65,120.

Question 47

Department A had no Work-in-Process at the beginning of the period, 1,000 units were completed during the period, 200 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period:
$$\begin{array} { l r } \text { Direct materials } ( 1,200 \text { at } \$ 10 ) & \$ 12,000 \\\text { Direct labor } & 5,500 \\\text { Factory overhead } & 4,400\end{array}$$
Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

A) $3,650.
B) $2,900.
C) $2,000.
D) $1,825.

Question 48

The following information pertains to Oklahoma Co.'s Tulsa Division for the month of April:
$$\begin{array} { l c c } & \text { Units } & \text { Materials } \\\text { Begirning Work-in-Process } &15,000&\$5,500\\\text { Started in April } & 40,000 & \$ 18,000 \\\text { Units completed } &42,500 \\\text { Ending Work-in-Process } & 12,500 & \\\end{array}$$
All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit of materials is: (CPA adapted) (Round your answer to 2 decimal places.)

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

Question 49

Kansas 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:
$\begin{array}{llc}&&\text { Percent Complete with Respect to }\\&\text { Units}&\text { Conversion}\\\text { Beginning work-in-process } & 11,000 & 50 \% \\\text { inventory } && \\\text { Started into production during June } & 98,000 \\\text { Ending work-in-process inventory } & 21,000 & 80 \%\end{array}$

According to the company's records, the conversion cost in beginning work-in-process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)

A) $8.420.
B) $6.934.
C) $8.530.
D) $8.322.

Question 50

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning inventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200 \\\text { Labor and overhead costs } & \$ 37,400\end{array}$$



-
Cost per equivalent unit of labor and overhead is:

A) $2.34.
B) $2.20.
C) $1.97.
D) $1.87.

Question 51

The Chart Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished. The equivalent units for the conversion costs in September were:

A) 40,000.
B) 45,000.
C) 48,000.
D) 50,000.

Question 52

The Lakeside Company uses a weighted-average process costing system. The following data are available:
$$\begin{array} { l r } \text { Beginning irventory } & - 0 - \\\text { Units started in production } & 20,000 \\\text { Units finished during the period } & 16,000 \\\text { Units in process at the end of the period } & \\\text { (complete as to materials, } & 4,000 \\1 / 4 \text { complete as to labor and overhead) } & \\\text { Cost of materials used } & \$ 35,200\\\text { Labor and overhead costs } & \$ 37,400\end{array}$$


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Total cost of the 4,000 units of the ending inventory:

A) $15,840.
B) $14,520.
C) $9,240.
D) $8,910.

Question 53

DriveTrain, Inc. instituted a new process in October 2020. During October, 10,000 units were started in Department A. Of the units started, 8,000 were transferred to Department B, and 2,000 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $27,000 and conversion costs of $36,000 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing?

A) $46,900.
B) $53,600.
C) $56,000.
D) $57,120.

Question 54

Haberdashery Company has a beginning Work-in-Process Inventory of 25,000 units (40% complete). During the period, 110,000 units were started and the ending Work-in-Process Inventory consisted of 20,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing?

A) 110,000 EUPs
B) 115,000 EUPs
C) 121,000 EUPs
D) 131,000 EUPs

Question 55

Seaside Company uses the weighted-average method in its process costing system. The Sanding Department started the month with 8,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Sanding Department. There were 5,000 units in the ending work-in-process inventory of the Sanding Department that were 20% complete with respect to conversion costs.
What were the equivalent units of production (EUPs) for conversion costs in the Sanding Department for the month?

A) 67,400 EUPs
B) 73,000 EUPs
C) 72,000 EUPs
D) 66,000 EUPs

Question 56

Madison Corporation's production cycle starts in the Processing Department. The following information is available for April:
$$\begin{array} { | l | r | } \hline & \text { Units } \\\hline \text { Work-in-process, April l (25\% complete) } & 40,000 \\\hline \text { Total units in process during April } & 280,000 \\\hline \text { Work-in-process, April } 30 ( 60 \% \text { complete) } & 25,000 \\\hline\end{array}$$
Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method?
$\begin{array} {cc } & \text { Materials } & \text { Conversion Costs } \\\end{array}$
A. $\begin{array} {cc } & 240,000 &&& 260,000 \\\end{array}$
B. $\begin{array} {cc } & 255,000 &&& 235,000 \\\end{array}$
C. $\begin{array} {cc } & 280,000 &&& 270,000 \\\end{array}$
D. $\begin{array} {cc } & 315,000 &&& 285,000 \\\end{array}$

A) Option A.
B) Option B.
C) Option C.
D) Option D.

Question 57

Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed, and received 900 units during the period from Department A. What were the equivalent units of production of Department B, assuming weighted-average process costing?

A) 800 equivalent units.
B) 900 equivalent units.
C) 1,100 equivalent units.
D) 1,200 equivalent units.

Question 58

In a process costing system, manufacturing overhead applied is usually recorded as a debit to:

A) Finished goods.
B) Work-in-process.
C) Manufacturing overhead.
D) Cost of goods sold.

Question 59

Nebraska Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work-in-process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 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 your answer to 3 decimal places.)

A) $8.112.
B) $8.300.
C) $7.533.
D) $6.108.

Question 60

The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished. The equivalent units of material in September were:

A) 40,000.
B) 45,000.
C) 48,000.
D) 50,000.

Question 61

Which of the following statements regarding first-in, first-out (FIFO) process costing is(are) true?
(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.
(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.

A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) Neither of these is true.

Question 62

Morgenstern Company had Work-in-Process Inventories that were 45% complete at the start of the month. Work-in-Process at the end of the month was 10% complete. Materials were added at the beginning of the process. If weighted-average process costing is used, the total equivalent units for materials will equal the number of units:

A) transferred out during the period.
B) started and completed during the period.
C) started into the process during the period.
D) transferred out during the process plus the units in the ending inventory.

Question 63

Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 900 \\\text { Materials costs } & \$ 17,100 \\\text { Conversion costs } & \$ 10,200 \\\text { Percent complete with respect to materials } & 70 \% \\\text { Percent complete with respect to conversion } & 25 \% \\\text { Units started into production during the month } & 7,300 \\\text { Units transferred to the next department during the month }& 6,100 \\\text { Materials costs added during the month } & \$ 148,200 \\\text { Conversion costs added during the month }&\$247,500 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 2,100 \\\text { Percent completewith respect to materials } & 80 \% \\\text { Percent complete with respect to conversion } & 35 \%\end{array}$


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The cost per equivalent unit for conversion costs for the first department for the month is closest to: (Round your answer to 2 decimal places.)

A) $40.57.
B) $45.33.
C) $39.31.
D) $37.44.

Question 64

In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:

A) completed during the period and units in ending inventory.
B) started during the period and units transferred out during the period.
C) completed from beginning inventory, started and completed during the month, and units in ending inventory.
D) processed during the period and units completed during the period.

Question 65

Cranford Company completed and transferred out 2,300 units in May 2020. There were 200 units in the Work-in-Process Inventory on May 31, 2020, 30% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $9,440 and $6,250, respectively. There was no beginning inventory on May 1, 2020. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

A) $8,510.
B) $14,950.
C) $15,690.
D) $16,250.

Question 66

In the computation of the manufacturing cost per equivalent unit, the weighted-average method of process costing considers:

A) current costs only.
B) current costs plus cost of beginning Work-in-Process Inventory.
C) current costs plus cost of ending Work-in-Process Inventory.
D) current costs less cost of beginning Work-in-Process Inventory.

Question 67

A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the disposition of these units and (2) the costs charged to the department and the allocation of these costs is called a:

A) schedule of Cost of Goods Manufactured.
B) production cost report.
C) job order cost sheet.
D) schedule of Cost of Goods Sold.

Question 68

Sarfina Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:
$\begin{array}{ll} &&\text { Percent Complete with Respect }\\ & \text { Units } &\text { to Conversion}\\\text { Beginning work-in-process } & 15,000 &20\%\\\text { inventory } & \\\text { Transferred in from the prior } &\\\text { department } & 89,000 \\\text { during September } & \\\text { Ending work-in-process inventory } & 24,000&90\%\end{array}$

According to the company's records, the conversion cost in beginning work-in-process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for September? (Round your answer to 3 decimal places.)

A) $5.916.
B) $5.340.
C) $5.220.
D) $5.213.

Question 69

The computation of equivalent units under the FIFO method:

A) treats units in the beginning work-in-process inventory as if they were started and completed during the current period.
B) treats units in the beginning work-in-process inventory as if they represent a batch of goods separate and distinct from goods started and completed during the current period.
C) treats units in the ending work-in-process inventory as if they were started and completed during the current period.
D) ignores units in the beginning and ending work-in-process inventories.

Question 70

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

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What are the equivalent units of production for materials during the period?

A) 12,000.
B) 13,000.
C) 14,000.
D) 15,000.

Question 71

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

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How many units were transferred-out during the period?

A) 12,000.
B) 13,000.
C) 18,000.
D) 20,000.

Question 72

Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for materials are:

A) beginning inventory this period for this process.
B) units started this period in this process.
C) units started this period in this process plus the beginning inventory.
D) units started this period in this process plus 70% of the beginning inventory this period.

Question 73

Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 600 \\\text { Materials costs } & \$ 6,600 \\\text { Conversion costs } & \$ 2,700 \\\text { Percent complete with respect to materials } & 60 \% \\\text { Percent complete with respect to conversion } & 10 \% \\\text { Units started into production during the month } & 7,000 \\\text { Materials costs added during the month } & \$ 102,200 \\\text { Conversion costs added during the month } & \$ 259,200 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 1,500 \\\text { Percent completewith respect to materials } & 55 \% \\\text { Percent complete with respect to conversion } & 10 \%\end{array}$

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How many units were started AND completed during the month in the first processing department?

A) 6,100.
B) 5,500.
C) 7,600.
D) 7,000.

Question 74

Tori Company uses the FIFO method in its process costing system. The first processing department, the Soldering Department, started the month with 17,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $101,150. An additional 68,000 units were started into production during the month. There were 23,000 units in the ending work-in-process inventory of the Soldering Department that were 80% complete with respect to conversion costs. A total of $565,125 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs? (Round your answer to 3 decimal places.)

A) $8.500.
B) $8.311.
C) $8.250.
D) $7.839.

Question 75

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

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How many units were started and completed during the period?

A) 12,000.
B) 13,000.
C) 18,000.
D) 20,000.

Question 76

Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 600 \\\text { Materials costs } & \$ 6,600 \\\text { Conversion costs } & \$ 2,700 \\\text { Percent complete with respect to materials } & 60 \% \\\text { Percent complete with respect to conversion } & 10 \% \\\text { Units started into production during the month } & 7,000 \\\text { Materials costs added during the month } & \$ 102,200 \\\text { Conversion costs added during the month } & \$ 259,200 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 1,500 \\\text { Percent completewith respect to materials } & 55 \% \\\text { Percent complete with respect to conversion } & 10 \%\end{array}$


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The cost per equivalent unit for conversion costs for the first department for the month is closest to: (Round your answer to 2 decimal places.)

A) $42.49.
B) $43.96.
C) $45.00.
D) $41.87.

Question 77

Holcomb Company uses the weighted-average method in its process costing system. The Shaping Department is the second department in its production process. The data below summarize the department's operations in January.
$\begin{array}{lrc}&&\text {Percent Complete with}\\&\text {Units}&\text { Respect to Conversion}\\\text { Beginning work-in-process inventory } & 3,800 & 90 \% \\\text { Transferred in from the prior } && \\\text { department } & 53,000 & \\\text { during January } & & \\\text { Completed and transferred to the next } & & \\\text { department } &&\\\text { during January } & 51,300 &\\\text { Ending work-in-process inventory }&5,500& 30 \% \end{array}$

The accounting records indicate that the conversion cost that had been assigned to beginning work-in-process inventory was $5,096 and a total of $87,668 in conversion costs were incurred in the department during January.
What was the cost per equivalent unit for conversion costs for January in the Shaping Department? (Round your answer to 3 decimal places.)

A) $1.654.
B) $1.752.
C) $1.490.
D) $1.499.

Question 78

The FIFO method provides a major advantage over the weighted-average method in that:

A) the calculation of equivalent units is less complex under the FIFO method.
B) the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.
C) the FIFO method provides measurements of work done during the current period.
D) the weighted-average method ignores units in the beginning and ending work-in-process inventories.

Question 79

Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 900 \\\text { Materials costs } & \$ 17,100 \\\text { Conversion costs } & \$ 10,200 \\\text { Percent complete with respect to materials } & 70 \% \\\text { Percent complete with respect to conversion } & 25 \% \\\text { Units started into production during the month } & 7,300 \\\text { Units transferred to the next department during the month }& 6,100 \\\text { Materials costs added during the month } & \$ 148,200 \\\text { Conversion costs added during the month }&\$247,500 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 2,100 \\\text { Percent completewith respect to materials } & 80 \% \\\text { Percent complete with respect to conversion } & 35 \%\end{array}$


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What are the equivalent units for materials for the month in the first processing department?

A) 1,680.
B) 7,150.
C) 8,200.
D) 5,200.

Question 80

Parkway Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory on July 1 had materials assigned to them of $32,000, even though they were only 5% complete as to materials. No additional units were started during July, and there were no unfinished units on hand on July 31. What is the material cost per equivalent unit for July, assuming Parkway uses weighted-average process costing?

A) $10.50.
B) $11.59.
C) $13.17.
D) $15.49.