Deck 4: Process Costing and Hybrid Product-Costing Systems

Question 1

When goods are sold, their costs are transferred to Finished Goods Inventory.

Answer 1

False

Question 2

Under weighted-average process costing, unit-cost figures are weighted averages of costs incurred over two or more accounting periods.

Answer 2

True

Question 3

A departmental production report under weighted-average process costing would most likely present total costs for two different processes.

Answer 3

False

Question 4

Equivalent units and physical units are the same in manufacturing inventories.

Question 5

Which method of process costing is almost always used in practice?

A)Weighted average method
B)LIFO method
C)Straight-line method
D)Accelerated method
E)None of these answers is correct.

Question 6

When computing the cost per equivalent unit under the weighted-average method of process costing, the cost per equivalent unit for direct material is computed by dividing the total direct-material cost by the total equivalent units.

Question 7

When the cutting process in a manufacturing firm has been finished and the goods are transferred into the assembly department, the journal entry to record the transfer will debit Finished Goods Inventory and credit Work in Process - Assembly.

Question 8

What is the missing amount in this physical flow of units? Work in process, August 1 9,000 tons Units started in August ? Units completed during August 19,000 Work in process, August 31 2,000 tons

A)10,000 tons
B)12,000 tons
C)8,000 tons
D)30,000 tons
E)None of these answers is correct.

Question 9

A predetermined application rate for conversion costs is based on actual conversion costs divided by a budgeted cost driver.

Question 10

What is the missing amount in this physical flow of units?

A)20,700 liters
B)23,700 liters
C)5,300 liters
D)2,300 liters
E)None of these answers is correct.

Question 11

Which of the following is a nonmanufacturing business where process costing would most likely be used?

A)A beauty shop.
B)A tailoring shop.
C)A laboratory that tests water samples for lead
D)A furniture repair shop.
E)An auto body shop.

Question 12

Only normal costing may be used in conjunction with a process-costing system.

Question 13

Operation costing tends to parallel job-order costing with respect to the treatment of conversion cost.

Question 14

The flow of costs through the manufacturing accounts is essentially the same in both process costing and job-order costing.

Question 15

Companies that use a process-cost accounting system would establish a separate Work-in-Process Inventory account for each manufacturing department.

Question 16

California Corporation 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.

Question 17

Equivalent-unit calculations are necessary to allocate manufacturing costs between units sold and ending work in process.

Question 18

When calculating equivalent units using the weighted average method, the number of equivalent units of activity is calculated without making a distinction as to whether the activity occurred in the current accounting period or the preceding period.

Question 19

Direct labor and manufacturing overhead often are combined into a single cost category termed conversion costs.

Question 20

What is the missing amount in this physical flow of units?

A)950,000 gallons
B)650,000 gallons
C)750,000 gallons
D)1,150,000 gallons
E)None of these answers is correct.

Question 21

Process costing is used to account for:

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 22

Hornsby has a single production department, and uses a process-costing system.The balance in its Work-in-Process account on January 1 was $68,000.The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year.If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes:

A)a debit to Cost of Goods Sold for $432,000.
B)a debit to Finished-Goods Inventory for $432,000.
C)a debit to Work-in-Process Inventory for $432,000.
D)a debit to Finished-Goods Inventory for $86,000.
E)a credit to Work-in-Process Inventory for $86,000.

Question 23

In a process-costing system, manufacturing costs are accumulated by:

A)batch.
B)batch and time period.
C)department, only.
D)department and time period, only.
E)department or process, and time period.

Question 24

Which of the following companies would likely use a process-costing system?

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

Question 25

Gulliver, Inc., which uses a process-costing system, transfers completed production from Department no.1 to Department no.2 for further work.Which of the following best describes the account that would be debited to record this transfer?

A)Cost of Goods Transferred.
B)Finished-Goods Inventory: Department no.1.
C)Finished-Goods Inventory: Department no.2.
D)Work-in-Process Inventory: Department no.1.
E)Work-in-Process Inventory: Department no.2.

Question 26

Which of the following data are needed to calculate total equivalent units under the weighted-average method?

A)Work-to-date on ending work in process, units started during the period.
B)Units completed during the period, work-to-date on ending work in process.
C)Work to complete beginning work in process, work-to-date on ending work in process.
D)Work to complete beginning work in process, units completed, and work done on ending work in process.
E)Units completed, work to complete beginning work in process.

Question 27

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

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

Question 28

Xin Co., had 3,000 units of work in process on April 1 that were 60% complete.During April, 10,000 units were completed and as of April 30, 4,000 units that were 40% complete remained in production.How many units were started during April?

A)8,600.
B)9,800.
C)11,000.
D)12,200.
E)None of the answers is correct.

Question 29

Which of the following statements is false?

A)In job-order costing, costs are accumulated by job order.
B)In process costing, costs are accumulated by department.
C)In process costing, the cost per unit in a department is found by spreading the period's manufacturing costs over the
D)In process costing, the total cost of each unit is found by dividing the total factory costs by the number of units completed.
E)In job-order costing, the unit cost is found by dividing the job's total cost by the job's total units.

Question 30

Breight, Inc., which uses a process-costing system, transfers completed production from Department no.1 to Department no.2 for further work.Which of the following best describes the account that would be credited to record this transfer?

A)Cost of Goods Transferred.
B)Finished-Goods Inventory: Department no.1.
C)Finished-Goods Inventory: Department no.2.
D)Work-in-Process Inventory: Department no.1.
E)Work-in-Process Inventory: Department no.2.

Question 31

Which of the following manufacturers would most likely not use a process-cost accounting system?

A)A producer of computer monitors.
B)A paint manufacturer.
C)A producer of frozen orange juice.
D)A builder of customized yachts.
E)A lumber mill.

Question 32

Bratton Corporation had 6,500 units of work in process on April 1.During April, 19,100 units were completed and as of April 30, 5,100 units remained in production.How many units were started during April?

A)11,600.
B)17,700.
C)20,500.
D)30,700.
E)None of the answers is correct.

Question 33

Companies that use a process-cost accounting system would:

A)establish a separate Work-in-Process Inventory account for each manufacturing department.
B)establish a separate Finished-Goods Inventory account for each manufacturing department.
C)pass completed production directly to Cost of Goods Sold.
D)charge goods produced with actual overhead amounts rather than applied overhead amounts.
E)eliminate the need for the Finished-Goods Inventory account.

Question 34

Harrington Industries, which uses a process-costing system, had a balance in its Work-in-Process account of $68,000 on January 1. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year.If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Harrington should make a journal entry on December 31 that includes:

A)a debit to Cost of Goods Sold for $432,000.
B)a credit to Finished-Goods Inventory for $432,000.
C)a credit to Work-in-Process Inventory for $432,000.
D)a debit to Finished-Goods Inventory for $86,000.
E)a credit to Work-in-Process Inventory for $86,000.

Question 35

Forte 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?

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

Question 36

Unit costs in a process-costing system are derived by using:

A)in-process units.
B)completed units.
C)physical units.
D)equivalent units.
E)a measure of activity other than those listed above.

Question 37

Which of the following statements about similarities between process costing and job-order costing are true? I.Both systems assign production costs to units of output. II.Both systems require extensive knowledge of financial accounting. III.The flow of costs through the manufacturing accounts is essentially the same.

A)I only.
B)I and III.
C)II and III.
D)III only.
E)I, II, and III.

Question 38

Which of the following choices correctly shows how costs are accumulated in a process-costing system?

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

Question 39

Linder 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?

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

Question 40

Oxford, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year.The company incurs conversion cost evenly throughout manufacturing.If Oxford started work on 3,000 units during the period and these units were 70% of the way through manufacturing, it would be correct to say that the company has:

A)3,000 physical units in production.
B)2,100 completed units.
C)900 in-process units.
D)900 equivalent units of production.
E)3,000 equivalent units of production.

Question 41

Norton Textile Co.manufactures a variety of fabrics.All materials are introduced at the beginning of production; conversion cost is incurred evenly through manufacturing.The Weaving Department had 2,000 units of work in process on April 1 that were 30% complete as to conversion costs.During April, 9,000 units were completed and on April 30, 4,000 units remained in production, 40% complete with respect to conversion costs. The equivalent units of direct materials for April total:

A)9,000.
B)13,000.
C)13,600.
D)14,400.
E)15,000.

Question 42

St.Onge, Inc.uses a process-costing system.A newly-hired accountant identified the following procedures that must be performed by the close of business on Friday: 1-Calculation of equivalent units 2-Analysis of physical flows of units 3-Assignment of costs to completed units and units still in process 4-Calculation of unit costs Which of the following choices correctly expresses the proper order of the preceding tasks?

A)1, 2, 3, 4.
B)1, 2, 4, 3.
C)1, 4, 3, 2.
D)2, 1, 4, 3.
E)2, 1, 3, 4.

Question 43

Norton Textile Co.manufactures a variety of fabrics.All materials are introduced at the beginning of production; conversion cost is incurred evenly through manufacturing.The Weaving Department had 2,000 units of work in process on April 1 that were 30% complete as to conversion costs.During April, 9,000 units were completed and on April 30, 4,000 units remained in production, 40% complete with respect to conversion costs. The equivalent units of conversion for April total:

A)9,000.
B)10,600.
C)11,200.
D)12,000.
E)12,600.

Question 44

Fulton Corporation adds all materials at the beginning of production and incurs conversion cost evenly throughout manufacturing. The company completed 70,000 units during the year and had 12,000 units in process at year end, 20% complete with respect to conversion cost.Equivalent units for the year total:

A)materials, 70,000; conversion, 70,000.
B)materials, 70,000; conversion, 2,400.
C)materials, 72,400; conversion, 72,400.
D)materials, 82,000; conversion, 72,400.
E)materials, 82,000; conversion, 82,000.

Question 45

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the equivalent units of conversion activity total:

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

Question 46

Ashley Corporation uses a process-cost accounting system.The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing.The firm has no beginning work-in-process inventory; its ending work in process is 40% complete.Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

A)Materials, 100%; labor, 100%; overhead cost, 40%.
B)Materials, 100%; labor, 100%; overhead cost, 100%.
C)Materials, 100%; labor 40%; overhead cost, 40%.
D)Materials, 40%; labor, 40%; overhead cost, 60%.
E)Materials, 40%; labor, 40%; overhead cost, 100%.

Question 47

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the equivalent units of direct materials total:

A)68,000.
B)69,400.
C)74,000.
D)75,000.
E)None of the answers is correct.

Question 48

Mohawk Machining, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing.The following selected information was taken from the company's accounting records: Total equivalent units of materials: 8,000 Total equivalent units of conversion: 7,400 Units started and completed during the period: 6,500 On the basis of this information, the ending work-in-process inventory's stage of completion is:

A)80%.
B)70%.
C)60%.
D)40%.
E)some other percentage

Question 49

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the cost per unit of conversion activity is:

A)$2.50.
B)$2.53.
C)$2.70.
D)$2.76.
E)None of the answers is correct.

Question 50

Warren Industries uses a process-costing system for its single product, which is manufactured from Material X and Material Y.X and Y are introduced to the product as follows: Material X: Added at the beginning of manufacturing Material Y: Added at the 75% stage of completion The company started and completed 40,000 units during the period, and had an ending work-in-process inventory amounting to 8,000 units, 20% complete.Which of the following choices correctly expresses the total equivalent units of production for Material X and Material Y?

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

Question 51

Domkowski began operations on January 1 of the current year.The company uses a process-costing system, and conversion cost is incurred evenly throughout manufacturing.By January 31, the firm had completed 56,000 units.Which of the following statements is true about the ending work-in-process inventory if equivalent units for conversion cost totaled 59,000 units?

A)There is no ending work-in-process inventory.
B)The ending work-in-process inventory totaled 3,000 physical units.
C)The ending work-in-process inventory of 10,000 physical units was 30% complete.
D)The ending work-in-process inventory of 20,000 physical units was 85% complete.
E)More than one of the other answers is true.

Question 52

Corrigan, Inc.overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured, respectively?

A)Overstated, overstated.
B)Overstated, understated.
C)Overstated, none.
D)None, overstated.
E)None, none.

Question 53

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the total costs remaining in work in process on May 31 are:

A)$17,480.
B)$0.
C)$25,640.
D)$12,040.
E)None of the answers is correct.

Question 54

Covington Corporation uses a process-cost accounting system.The company adds direct materials at the start of its production process; conversion cost, on the other hand, is incurred evenly throughout manufacturing.The firm has no beginning work-in-process inventory; its ending work in process is 40% complete.Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

A)Materials, 40%; conversion cost, 40%.
B)Materials, 40%; conversion cost, 100%.
C)Materials, 100%; conversion cost, 40%.
D)Materials, 100%; conversion cost, 60%.
E)Materials, 100%; conversion cost, 100%.

Question 55

Gutierrez, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing.The information that follows relates to the period just ended: Units started and completed: 75,000 Units in ending work-in-process inventory: 15,000, 60% complete Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost?

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

Question 56

Alton Company uses a process-costing 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?

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 57

Agee Company uses a process-costing 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 50% complete.The firm's ending work-in-process inventory consists of 4,000 units that are 75% 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?

A)A, 3,000; B, 0.
B)A, 3,000; B, 3,000.
C)A, 4,000; B, 0.
D)A, 4,000; B, 4,000.
E)A, 4,000; B, 3,000.

Question 58

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the cost per unit of direct materials is:

A)$1.17.
B)$1.18.
C)$1.20.
D)$1.28.
E)None of the answers is correct.

Question 59

Mortensen Industries, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing.The following selected information was taken from the company's accounting records: Total equivalent units of materials: 5,000 Total equivalent units of conversion: 4,400 Units started and completed during the period: 3,500 On the basis of this information, the ending work-in-process inventory's stage of completion is:

A)40%.
B)60%.
C)70%.
D)80%.
E)some other percentage not listed.

Question 60

Lakeland Chemical manufactures a product called Zing.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: Using the weighted-average method of process costing, the cost of goods completed and transferred during May is:

A)$249,560.
B)$250,240.
C)$258,400.
D)$263,840.
E)None of the answers is correct.

Question 61

Forrest 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 Forrest's completed production is:

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

Question 62

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?

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

Question 63

Peach Company uses a weighted-average process-costing system.Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end, 20% complete.Conversion costs associated with the beginning work-in-process inventory amounted to $231,000, and amounts that relate to the current month totaled $966,000.If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:

A)$23.00.
B)$23.94.
C)$24.15.
D)$28.50.
E)None of the answers is correct.

Question 64

Claremore Industries uses a weighted-average process-costing system.All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production.The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion.Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is:

A)$54,000.
B)$78,000.
C)$114,000.
D)$195,000.
E)None of the answers is correct.

Question 65

Which of the following statements about operation costing is (are) true? I.Conversion costs are accumulated by department. II.Direct material costs are accumulated by batch. III.Operation costing is a hybrid product-costing system.

A)I only.
B)I and II only.
C)I and III only.
D)II and III only.
E)I, II, and III.

Question 66

Claremore Industries uses a weighted-average process-costing system.All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production.The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion.Total material costs amounted to $220,000; conversion costs were $414,000. The cost of goods completed is:

A)$312,000.
B)$414,000.
C)$520,000.
D)$634,000.
E)None of the answers is correct.

Question 67

Which of the following is true concerning cost drivers for the predetermined overhead rate in a process-costing system?

A)Predetermined overhead rates are not used in a process-costing system.
B)If direct material cost is the cost driver, direct labor and direct materials may be combined into the single element of prime
C)If direct labor hours is the cost driver, direct labor and manufacturing overhead may be combined into the single element of
D)If direct labor cost is the cost driver, direct labor and manufacturing overhead may be combined into the single element of
E)Cost drivers are irrelevant in process-costing systems.

Question 68

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

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

Question 69

Operation costing:

A)tends to parallel job-order costing with respect to the treatment of conversion cost.
B)tends to parallel process costing with respect to the treatment of conversion cost.
C)tends to parallel process costing with respect to the treatment of direct materials.
D)would likely be used by a manufacturing plant that produces one model of a single product.
E)is commonly known as a joint-costing system.

Question 70

Frankenberger 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:

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

Question 71

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

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

Question 72

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:

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

Question 73

Equivalent-unit calculations are necessary to allocate manufacturing costs between:

A)units completed and ending work in process.
B)beginning work in process and units completed.
C)units sold and ending work in process.
D)cost of goods manufactured and beginning work in process.
E)cost of goods manufactured and cost of goods sold.

Question 74

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

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

Question 75

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

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 76

Barton Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system.Consider the data that follow. The company's cost per equivalent unit for materials is:

A)$1.24.
B)$1.66.
C)$1.67.
D)$2.05.
E)None of the answers is correct.

Question 77

Gambino Construction adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing. Consider the data that follow. Conversion cost in the beginning work-in-process inventory totaled $120,000, and August conversion cost totaled $270,000. Assuming use of the weighted-average method, which of the following choices correctly depicts the number of equivalent units for conversion cost and the conversion cost per equivalent unit?

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

Question 78

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 materials is:

A)$4.50.
B)$6.00.
C)$8.00.
D)$9.60.
E)None of the answers is correct.

Question 79

When computing the conversion cost per equivalent unit under the weighted-average method of process costing, all of the following information would be needed except:

A)the number of units completed during the current accounting period.
B)the conversion work performed during the current period on the ending work-in-process inventory.
C)the conversion work performed during the current period on the beginning work-in-process inventory.
D)the conversion cost in the beginning work-in-process inventory.
E)the conversion cost incurred during the current accounting period.

Question 80

Forrest 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:

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