Deck 11: Process Costing

Question 1

The details of Tom & Harry Inc. for a particular process are shown below:
The cost of units in beginning Work-in-Progress (WIP) Inventory is $78,000, and in the ending WIP Inventory is $60,000. During the current period, the incurred costs of Direct Materials (DM), Direct Labor (DL), and Manufacturing Overheads (MOH) were $200,000, $80,000, and $40,000 respectively. Considering the given data, what will the Cost of Goods Manufactured (COGM) be?

A) $302,000
B) $338,000
C) $350,000
D) $404,000

Answer 1

$338,000

Question 2

Syrup Sensations produces various syrups used by cafés as additives for their various caffeinated offerings. Syrup Sensations is working on compiling their costing data for the most recent year for their two best-selling syrups: Vanilla and Mint. Their accountant has gathered the following information:
Based upon the information above, what is the unit cost for each bottle of Vanilla syrup? (Round answer to nearest cent.)

A) $0.51
B) $0.52
C) $0.55
D) $0.57

Answer 2

$0.52

Question 3

Syrup Sensations produces various syrups used by cafés as additives for their various caffeinated offerings. Syrup Sensations is working on compiling their costing data for the most recent year for their two best-selling syrups: Vanilla and Mint. Their accountant has gathered the following information:
Based upon the information above, what is the unit cost for each bottle of Mint syrup? (Round answer to nearest cent.)

A) $0.47
B) $0.51
C) $0.53
D) $0.56

Answer 3

$0.51

Question 4

Yum Yum Cookies bakes, packages, and distributes a variety of delicious cookies, including their best-selling chocolate chip and oatmeal raisin cookies. John, the head accountant, is finishing his accounting recap for the year and has gathered some data about each of these treats.
Chocolate Chip:
Beginning WIP Inventory: $12,347
Ending WIP Inventory: $9,877
Oatmeal Raisin:
Beginning WIP Inventory: $8,442
Ending WIP Inventory: $3,200
John would like to take a closer look at the unit cost for each cookie to assist management in making better decisions for the upcoming year. John has compiled the following costing information:
Yum Yum has determined the unit cost of Chocolate Chip to be $2.56 and the unit cost of Oatmeal Raisin to be $2.54. How many Chocolate Chip cookies did they manufacture during the year? (Round units to whole number.)

A) 39,922 units
B) 42,836 units
C) 46,620 units
D) 50,472 units

Question 5

Yum Yum Cookies bakes, packages, and distributes a variety of delicious cookies, including their best-selling chocolate chip and oatmeal raisin cookies. John, the head accountant, is finishing his accounting recap for the year and has gathered some data about each of these popular treats.
Chocolate Chip:
Beginning WIP Inventory: $12,347
Ending WIP Inventory: $ 9,877
Oatmeal Raisin:
Beginning WIP Inventory: $8,442
Ending WIP Inventory: $3,200
John would like to take a closer look at the unit cost for each cookie to assist management in making better decisions for the upcoming year. John has compiled the following costing information:
Yum Yum has determined the unit cost of Chocolate Chip to be $1.39 and the unit cost of Oatmeal Raisin to be $1.79. How many Oatmeal Raisin cookies did they manufacture during the year? (Round units to whole number.)

A) 52,058 units
B) 56,649 units
C) 58,577 units
D) 60,369 units

Question 6

Sharon is the head cost accountant for Blindz, Inc., a factory that produces contemporary window blinds for personal residences. She is reviewing the work of Tara, a new accountant at the company. Tara has been finalizing the process costing numbers and has arrived at an ending inventory balance of $49,677. After closer review, Sharon realizes that this number included a sale in the amount of $2,400 with a cost of $989. The sale was Free on Board (FOB) shipping point and had been loaded onto the carrier by the close of the year but had not yet reached the buyer. If Sharon had not caught Tara's error, then how would this have impacted the income statement (ignoring income taxes)?

A) Net Income would be overstated by $989.
B) Net Income would be overstated by $2,400.
C) Net Income would be understated by $989.
D) Net Income would still be correctly stated.

Question 7

Sharon is the head cost accountant for Blindz, Inc., a factory that produces contemporary window blinds for personal residences. She is reviewing the work of Tara, a new accountant at the company. Tara has been finalizing the process costing numbers and has arrived at an ending inventory balance of $49,677. After closer review, Sharon realizes that this number excluded a sale in the amount of $2,400 with a cost of $989. The sale was Free on Board (FOB) destination and had been loaded onto the carrier by the close of the year but had not yet reached the buyer. If Sharon had not caught Tara's error, then how would this have impacted the income statement (ignoring income taxes)?

A) Net Income would be overstated by $989.
B) Net Income would be understated by $989.
C) Net Income would be overstated by $2,400.
D) Net Income would be understated by $2,400.

Question 8

From the following data, determine the total Cost of Goods Manufactured (COGM):

A) $251,090.90
B) $270,840.40
C) $279,000.00
D) $310,400.00

Question 9

Alex Enterprises manufactures baseball equipment. During the last quarter of 2020, the company produced 50,000 baseball bats. The company's accounting records reveal the following information about the last quarter's production:
Based on the given information, determine the company's Cost of Goods Manufactured (COGM) for the last quarter of 2020.

A) $156,000
B) $480,000
C) $516,000
D) $688,000

Question 10

Alex Enterprises manufactures baseball equipment. During the last quarter of 2020, the company produced 50,000 baseball bats. The company's accounting records reveal the following information about the last quarter's production:
In the given scenario, how much per unit cost company has incurred in producing the baseball bat?

A) $3.12 per bat
B) $9.60 per bat
C) $10.32 per bat
D) $13.76 per bat

Question 11

Kevin is the accountant for Alex Enterprises, a manufacturer of baseball bats. Kevin made an error in the accounting process. Work-In-Process (WIP) was overstated by $25,000 for the month. What impact would this error have on both the cost of goods sold (COGS) and net income?

A) COGS would be overstated by $25,000; net income would be overstated by $25,000.
B) COGS would be overstated by $25,000; net income would be understated by $25,000.
C) COGS would be understated by $25,000; net income would be overstated by $25,000.
D) COGS would be understated by $25,000; net income would be understated by $25,000.

Question 12

Kevin, the accountant for Alex Enterprises, made an error in the accounting process for their manufacture of baseball bats. The inventory balances were understated by $10,000. What impact would this error have on both the cost of goods sold (COGS) and net income?

A) COGS would be overstated by $10,000; net income would be overstated by $10,000.
B) COGS would be overstated by $10,000; net income would be understated by $10,000.
C) COGS would be understated by $10,000; net income would be overstated by $10,000.
D) COGS would be understated by $10,000; net income would be understated by $10,000.

Question 13

Harry Chemicals Ltd is using the First-In, First-Out (FIFO) method for inventory costing and reported the following details for the month of September:
Cost details related to the above inventories are as follows: Total cost in beginning WIP inventory is $2,200 (DM, $1,230; and Conversion, $970). Costs added to WIP inventory in the given period are $4,545 (DM, $1,515; and Conversion, $3,030). Based on the given information, calculate the cost per equivalent unit for DM and Conversion?

A) Cost per equivalent unit for DM is $0.61, and for Conversion is $1.21.
B) Cost per equivalent unit for DM is $0.71, and for Conversion is $1.31.
C) Cost per equivalent unit for DM is $0.85, and for Conversion is $1.91.
D) Cost per equivalent unit for DM is $1.10, and for Conversion is $1.60.

Question 14

TradeMark Inc. began the year with a beginning inventory of $3,820 in their Sewing department. Using the Weighted-Average method, they calculated their equivalent units of production for this calendar year to be:
TradeMark calculated their cost per equivalent unit as follows: Direct Material, $84; and Conversion Costs, $43. How much cost should TradeMark assign to the units remaining in ending inventory for the current calendar year?

A) $3,397
B) $12,600
C) $15,997
D) $19,817

Question 15

Sew Lovely is a company that manufactures high-end silk scarves. These scarves are offered in several uniquely designed patterns that change seasonally. The head accountant is looking at the numbers for the month of August and is focused on the movement between the dying and sewing departments. He has compiled the following information about the dying department:
August 1 Work-in-Progress (WIP) Inventory (Dying): $703
Cost of Silk Added: $6,404
Conversion Costs (CC) Added: $8,200
August 31 WIP Inventory (Dying): $4,302
According to this information, what is the cost of units completed and transferred out from the WIP Inventory (Dying) account?

A) $11,005
B) $14,604
C) $15,307
D) $19,609

Question 16

Sew Lovely is a company that manufactures high-end silk scarves. These scarves are offered in several uniquely designed patterns that change seasonally. The head accountant is looking at the numbers for the month of August and is focused on the movement between the dying and sewing departments. He has compiled the following information about the dying department:
August 1 Work-in-Progress (WIP) Inventory (Dying): $703
Added Silk: $6,404
Conversion Costs (CC): $8,200
August 31 WIP Inventory (Dying): $4,302
According to this information, what journal entry would Sew Lovely use to recognize the transfer of costs from the Dying to the Sewing department?

Question 17

A manufacturer of fruit-flavored toaster pastries had a very busy month. After the accountant has looked over all of the production activity, they have determined that the following costs have been incurred:
Direct Materials (DM)
Dough, $8,400
Icing, $9,560
Strawberry, $1,308
Blueberry, $1,503
Raspberry, $1,018
Direct Labor (DL)
Salaries and Wages, $13,407
Manufacturing Overhead (MOH)
MOH Control, $12,706
All of the given costs were incurred within the baking department. Once units are completed, they move on to a finishing department before reaching their final destination at packaging where they packaged for sales. The baking department had a beginning balance of $1,307 and units completed and transferred of $48,469. Which of the following represents a correct portion of a journal entry to account for these costs?

A) A credit to DM Inventory-Dough to account for the use of the $8,400 of dough
B) A credit to Work-in-Progress (WIP) Inventory-Baking to account for DL and MOH.
C) A debit to DM Inventory-Strawberry to account for the use of the $1,308 of strawberries
D) A debit to MOH Control to account for the $12,706 of MOH

Question 18

A manufacturer of fruit-flavored toaster pastries had a very busy month. After the accountant has looked over all of the production activity, they have determined that the following costs have been incurred:
Direct Materials (DM)
Dough, $8,400
Icing, $9,560
Strawberry, $1,308
Blueberry, $1,503
Raspberry, $1,018
Direct Labor (DL)
Salaries and Wages, $13,407
Manufacturing Overhead (MOH)
MOH Control, $12,706
All of the given costs were incurred within the baking department. Once units are completed, they move on to a finishing department before reaching their final destination at packaging where they are packaged for sales. The baking department had a beginning balance of $1,307 and units completed and transferred of $48,469. What is the amount of ending inventory in the Work-in-Progress (WIP) Inventory- Baking account?

A) $740 credit balance
B) $740 debit balance
C) $21,789 credit balance
D) $21,789 debit balance

Question 19

Sticky Fingers Corp is a manufacturer of gluten-free cinnamon rolls that are packaged and sold in quantities of six rolls. Sticky has chosen to implement a process costing system to account for their production costs at the recommendation of the head cost accountant, Trevor. He examined their records for the most current year and compiled the following information:
Beginning Work-in-Progress (WIP) Inventory: 256 units that are 100% completed for Direct Materials (DM) and 68% completed for Conversion Costs (CC)
Units Started During the Period: 18,540
Units Completed by the End of the Period: 16,400
Ending WIP Inventory: X units that are 100% completed for Direct Materials and 60% completed for Conversion Costs
Their beginning inventory includes the following costs: Direct Materials, $343; and Conversion Costs, $652. During the most recent year, Sticky added the following costs: Direct Materials, $48,900; and Conversion Costs, $58,777. Using the First-In, First-Out (FIFO) method, how much total cost should be assigned to units completed this period? (Round units to nearest whole number and costs to two decimal places.)

A) $96,339.97
B) $97,580.00
C) $97,647.74
D) $108,716.12

Question 20

Lucky Charm is a factory that molds and assembles silver charms that are offered in a variety of themes including hearts, letters, and animals for use on charm bracelets. During the year, additional silver of $52,237 and Conversion Costs of $71,490 were added to the Molding department. During the year, the total cost of units completed by the Molding department and then transferred to Assembly amounted to $131,500. As of January 1, the beginning WIP Inventory (Molding) had a balance of $9,805. What is the ending balance of WIP Inventory (Molding)?

A) $2,032 credit balance
B) $2,032 debit balance
C) $7,773 credit balance
D) $133,532 debit balance

Question 21

Companies often find that they have partially completed units in beginning and/or ending inventory. Rather than disregarding these partially completed units or including the entirety of their costs, companies will assess the degree of completion for both Direct Materials (DM) and Conversion Costs (CC) at the reporting date. This will eventually lead to the calculation of equivalent units that have been completed. Which of the following would be considered the most relevant source for management to draw upon to create their assessments?

A) Hypothetical forecasts drawn from a manager's experience at a different factory
B) Input received from sales staff personnel
C) Quotes received from suppliers for potential purchases
D) Results supported by purchase orders and invoices, materials requisitions, and corresponding costs already applied to WIP inventory

Question 22

An organization finds that it has no beginning or ending Work-in-Progress (WIP) Inventory due to the way that it has set up its production operations. A company like this would not have to be concerned with assessing or calculating equivalent units of production. Which of the following is true for a company with no beginning or ending WIP Inventory in the production process?

A) No beginning WIP Inventory means that final units were moved to ending WIP inventory.
B) No beginning WIP Inventory means each unit worked on during the period was residual from the previous period.
C) No ending WIP Inventory means that all production costs were moved to Finished Goods.
D) No ending WIP Inventory means there could be a large number of unfinished units to count.

Question 23

As a company decides between using the First-In, First-Out (FIFO) or Weighted-Average method for their process costing, a number of factors must be considered. Management should always ensure that they have taken the proper time to consider all factors as companies are urged to apply the same method from year to year and switching between methods later on will not likely be possible. Which of the following is a rationale for selecting the Weighted-Average rather than the FIFO method?

A) The Weighted-Average method is costlier than the FIFO method.
B) The Weighted-Average method is the best fit when individual units are easy to identify separately.
C) The Weighted-Average method is the best fit when individual units are impossible to identify separately.
D) The Weighted-Average method is the more accurate method but also takes more time.

Question 24

As a company decides between using the First-In, First-Out (FIFO) or Weighted-Average method for their process costing, a number of factors must be considered. Management should always ensure that they have taken the proper time to consider all factors as companies are urged to apply the same method from year to year and switching between methods later on will not likely be possible. Which of the following is a rationale for selecting the FIFO rather than the Weighted-Average method?

A) A company produces a bleach chemical, so FIFO will be their best option.
B) FIFO is considered a simpler system to implement.
C) FIFO is less time-consuming and less expensive than the Weighted-Average method.
D) FIFO is more accurate than the Weighted-Average method.

Question 25

At the end of their first month of operations, a cookie factory has some unfinished inventory in Work-in-Progress (WIP) (Packaging). Tara, the manager of the Packaging department wants to assess the unfinished inventory's degree of completion to finalize the costing information. All Direct Materials (DM) in the process are added at the beginning of the process, and Conversion Costs (CC) are incurred evenly throughout the packaging process. If it takes two hours to complete the process and only 46 minutes elapsed, then the degree of completion for CC is which of the following?

A) 26.08%
B) 38.33%
C) 46.00%
D) 76.67%

Question 26

Which of the following is a reason that managers might select the First-In, First-Out (FIFO) method over the Weighted-Average method?

A) Individual units can be separately identified.
B) The FIFO method allows costs from the previous period and the current period to be blended, and the Weighted-Average method does not.
C) The FIFO method is the simpler of the two methods.
D) The FIFO method results in more stable margins as compared to the Weighted-Average method if selling price cannot be changed.

Question 27

A freshly started company has given the following details for a particular process: There was no beginning Work-in-Progress (WIP) Inventory. A new batch of 1,000 units was introduced for processing at the beginning of the day. The company works 8 hours on a daily basis and a batch takes 6 hours of processing no matter how many units are introduced. In the first 6 hours, the entire 1,000 units were completed and removed from WIP Inventory to Finished Goods (FG) Inventory. 750 additional units were introduced upon completion. Conversion Costs (CC) evenly throughout the process. Find out the equivalent units for conversion costs in the ending WIP Inventory.

A) 250 units
B) 750 units
C) 1,000 units
D) 5,000 units

Question 28

Totally Tasty Tortillas is about to begin their third year of operations. They planned on completing their last batch for the current year but due to inclement weather, the factory had to unexpectedly shut down which left the batch incomplete. They have compiled the following production information for the current year:
Tortillas started: 37,000 units
Already in process at the beginning of the year: 1,246 units
Complete at year-end: 35,009 units
Conversion: 73% complete at year end
Totally Tasty uses the Weighted-Average method and adds all of its Direct Materials (DM) at the beginning of the process. How many units will Totally Tasty have in their ending inventory?

A) 1,991 units
B) 2,363 units
C) 3,237 units
D) 12,689 units

Question 29

Which of the following is true for how the method described would impact the cost of ending Work-in-Progress (WIP) Inventory in the production process?

A) The First-In, First-Out (FIFO) method will strive to focus on all costs in the process regardless of the period in which they occurred.
B) The Weighted-Average method will strive to only focus on costs added during the current period.
C) Using the FIFO method, the cost of ending inventory will consist of the first costs added in the process only.
D) Using the Weighted-Average method, the costs remaining in ending inventory will be a blend of previous period's and the current period's costs.

Question 30

Devine Desserts specializes in the production of sweet plant-based bakery items. Their top seller for the past few years has been their cherry cheesecake made with a flourless crust and organic fruit topping. Devine is currently considered a boutique operation, but they are looking to increase production and to expand their offerings and customer base. In an effort to refine their spending efforts and advertising costs, they will be compiling some costing data on their cherry cheesecake. The following costing information applies to the current year:
The following production summary has also been compiled for this year's operations:
If management decides to use the Weighted-Average method, then how much cost will be reflected in the Crust (C), Cherry Toppings (CT), and Conversion (CN) with respect to the units completed and removed from WIP inventory? (Do not round intermediate calculations.)

A) C, $54,179.86; CT, $54,179.86; and CN, $54,179.86
B) C, $59,701.67; CT, $29,011.42; and CN, $73,826.49
C) C, $59,723.47; CT, $29,031.86; and CN, $73,867.16
D) C, $60,749.00; CT, $29,500.00; and CN, $75,018.00

Question 31

Maple Leaf Coffee Company has a beginning Work-in-Progress (WIP) Inventory of 4,000 units, and its degree of completion was 100% for Direct Materials (DM) and 80% for Conversion Costs (CC). During the period, Maple started 16,000 units and a total of 18,000 units were completed and removed from WIP Inventory. The ending Inventory of WIP was 2,000 units with a degree of completion as 100% of Direct Materials. The company uses the First-In, First-Out (FIFO) method, and the total equivalent units of Conversion Costs for the period was 16,000 units. Find the degree of completion for Conversion Costs of ending WIP Inventory.

A) 30%
B) 40%
C) 60%
D) 70%

Question 32

As of June 1, Jelly and Telly Company had 2,000 units that were 100% complete with respect to Direct Materials (DM) and 80% complete with respect to Conversion Costs (CC). During the month of June, Jelly and Telly started 8,000 units and a total of 9,000 units were completed and removed from Work-in-Progress (WIP) Inventory. On June 30, they had 1,000 units remaining in inventory that were 100% complete with respect to Direct Materials and 40% complete with respect to Conversion Costs. Find the total equivalent units of Conversion Costs for the month of June if the company follows the First-In, First-Out (FIFO) method.

A) 6,800 units
B) 7,800 units
C) 8,000 units
D) 8,800 units

Question 33

In the second quarter of its operation, Ding Dong Company has a beginning Work-in-Progress (WIP) Inventory of 700 units that were 100% complete for Direct Materials (DM) and 40% complete for Conversion Costs (CC). During the period, the company started 3,300 new units and a total of 3,000 units were completed and removed from WIP Inventory. At the end of the period, they had 1,000 units in ending inventory that were 100% complete with respect to Direct Materials and 60% complete with respect to Conversion Costs. If the company follows the Weighted-Average method of costing, then find the total equivalent units of Conversion Costs for the second quarter.

A) 2,600 units
B) 3,000 units
C) 3,600 units
D) 4,400 units

Question 34

Tiny Tots Inc. started the period with an opening Work-in-Progress (WIP) Inventory of 1,400 units that were 100% complete with regard to Direct Materials (DM) and 40% complete with regard to Conversion Costs (CC). During the period, they started 6,600 new units, and they had completed and removed 6,000 units from WIP inventory. 2,000 units in ending inventory were 100% complete with respect to Direct Materials and 60% complete with respect to Conversion Costs. What will the total equivalent units of Direct Materials be if the First-In, First-Out (FIFO) method is used, and what would be the answer if the Weighted-Average method is used?

A) 6,000 for FIFO and 8,000 for Weighted-Average
B) 6,600 for FIFO and 8,000 for Weighted-Average
C) 8,000 for FIFO and 6,000 for Weighted-Average
D) 8,000 for FIFO and 6,600 for Weighted-Average

Question 35

Quality Tea manufacturing company has given the following details for a particular process: During the month of June, 1,600 units were already in process, and another 10,000 units were started. At the end of the period, 8,600 units were completed. All of the Direct Materials (DM) are added at the beginning of the process; however, Conversion Costs (CC) are added evenly throughout the process. Quality follows the Weighted-Average method of inventory valuation. Ending Work-in-Progress (WIP) Inventory was two-thirds complete with respect to Conversion Costs. Find equivalent units in the ending WIP Inventory with respect to Conversion Costs. (Round units to whole number.)

A) 1,000 units
B) 2,000 units
C) 3,000 units
D) 8,600 units

Question 36

An organization follows the Weighted-Average method for inventory valuation. For a particular period, 1,000 units were already under process at the beginning of the period, and 9,000 units were started during the period. At the end of the period, 7,000 units were completed. The nature of the process was set up such that Direct Material (DM) and Conversion Costs (CC) accrue evenly throughout the process. The Ending Work-in-Progress (WIP) Inventory of the process was one-third complete with respect to both DM and Conversion Costs. Find the equivalent units of DM to be completed in the next period. (Round units to whole number.)

A) 1,000 units
B) 2,000 units
C) 3,000 units
D) 7,000 units

Question 37

Companies often find that they have partially completed units in their beginning and/or ending inventories. Rather than completely disregarding their existence or including the entirety of cost in their accounting, companies will sometimes assess the degree of completion for both Direct Materials (DM) and Conversion Costs (CC) as of the reporting date. This will eventually lead to the calculation of equivalent units that have been completed. Of the following choices, who would be the person or party most likely to provide reliable input for this process to management?

A) A new manager that insists upon using industry trends rather than historical company data
B) An operations team member who has been observing the production operation during factory hours on a regular basis
C) The top-selling sales staff member in the company
D) Third parties, such as vendors who are in the process of bidding for a contract with the organization

Question 38

Tarte Inc. started the year with 6,500 individual apple sauce containers in their Work-in-Progress (WIP) Inventory with 25% being complete overall. Tarte adds both Conversion Costs (CC) and Direct Material (DM) resources evenly throughout the process. During the year, Tarte started 105,000 more containers and had completed 90,000 in total by the end of the year. Their ending WIP Inventory units are 74% complete overall. Using the First-In, First-Out (FIFO) method of process costing, what are the equivalent units of production for the year?

A) 90,000 units
B) 104,285 units
C) 105,910 units
D) 111,500 units

Question 39

Tarte Inc. started the year with 6,500 individual apple sauce containers in their Work-in-Progress (WIP) Inventory with 25% being complete overall. Tarte adds both Conversion Costs (CC) and Direct Material (DM) resources evenly throughout the process. During the year, Tarte started 105,000 more containers and had completed 90,000 in total by the end of the year. Their ending WIP Inventory units are 74% complete overall. Using the Weighted-Average method of process costing, what are the equivalent units of production for the year?

A) 90,000 units
B) 104,285 units
C) 105,910 units
D) 111,500 units

Question 40

Jordan is a cost accountant at Barkley Inc, a factory that manufactures modern black candlesticks. Jordan is in the process of updating all of their records and has gathered the following process costing information for their Conversion Costs (CC):
Beginning Work-in-Progress (WIP) Inventory: 950 units, 23% completed
Units Started During the Period: 32,000
Units Completed by the End of the Period: 26,400
Ending WIP Inventory: 88% completed
Barkley adds both Conversion Costs and Direct Material (DM) resources evenly throughout the process. What are the equivalent units of production if Barkley employs the Weighted-Average method?

A) 31,214 units
B) 31,907 units
C) 32,164 units
D) 32,950 units

Question 41

Jordan is a cost accountant at Barkley Inc, a factory that manufactures modern black candlesticks. Jordan is in the process of updating all of their records and has gathered the following process costing information for their Conversion Costs (CC):
Beginning Work-in-Progress (WIP) Inventory: 950 units, 23% completed
Units Started During the Period: 32,000
Units Completed by the End of the Period: 26,400
Ending WIP Inventory: 88% completed
Barkley adds both Conversion Costs and Direct Material (DM) resources evenly throughout the process. What are the equivalent units of production if Barkley employs the First-In, First-Out (FIFO) method? (Round your final answer to the nearest whole unit.)

A) 26,443 units
B) 26,929 units
C) 31,421 units
D) 31,946 units

Question 42

The management for Zero Corp. has asked their cost accountant Alec to compile some data about their process costing. Zero Corp. is a regional factory that manufactures peach-scented soy candles that are sold in glass mason jars. During their most recent year, Zero started 49,600 candles and completed a total of 37,450 by the end of the year. They began the year with 3,480 candles in their Work-in-Progress (WIP) Inventory, about 28% incomplete, and their ending WIP Inventory units are 19% incomplete overall. Zero adds both Conversion Costs (CC) and Direct Material (DM) resources evenly throughout the process. Alec has decided to use First-In, First-Out (FIFO) for their process costing and has determined their equivalent units to be (Round your final answer to the nearest whole unit.)

A) 37,914 units
B) 47,605 units
C) 49,136 units
D) 50,110 units

Question 43

The management for Zero Corp. has asked their cost accountant Alec to compile some data about their process costing. Zero Corp. is a regional factory that manufactures peach-scented soy candles that are sold in glass mason jars. During their most recent year, Zero started 49,600 candles and completed a total of 37,450 by the end of the year. They began the year with 3,480 candles in their Work-in-Progress (WIP) Inventory with 28% being incomplete, and their ending WIP Inventory units are 19% incomplete overall. Zero adds both Conversion Costs (CC) and Direct Material (DM) resources evenly throughout the process. Alec has decided to use the Weighted-Average method for their process costing and has determined their equivalent units to be (Round your final answer to the nearest whole unit.)

A) 47,605 units
B) 49,600 units
C) 50,110 units
D) 53,080 units

Question 44

Humbert Inc., a factory that manufactures plastic ice cube trays, has opened a new department as of May 1 of this year. As of June 1, Humbert had 4,200 units that were 100% complete with respect to Direct Materials (DM) and 64% complete with respect to Conversion Costs (CC). During the year, Humbert started and completed 76,420 units. On June 30, they had 9,870 units remaining in inventory that were 100% complete with respect to Direct Materials and 42% complete with respect to Conversion Costs. What are the equivalent units of production for Direct Materials and Conversion Costs using the First-In, First-Out (FIFO) method? (Round to the nearest unit)

A) DM, 82,077 units; and CC, 90,490 units
B) DM, 86,290 units; and CC, 82,077 units
C) DM, 87,802 units; and CC, 83,253 units
D) DM, 90,490 units; and CC, 90,490 units

Question 45

Humbert Inc., a factory that manufactures plastic ice cube trays, has opened a new department as of May 1 of this year. As of June 1, Humbert had 4,200 units that were 100% complete with respect to Direct Materials (DM) and 64% complete with respect to Conversion Costs (CC). During the year, Humbert started and completed 76,420 units. On June 30, they had 9,870 units remaining in inventory that were 100% complete with respect to Direct Materials and 42% complete with respect to Conversion Costs. What are the equivalent units of production for Direct Materials and Conversion Costs using the Weighted-Average method? (Round answer to the nearest unit)

A) DM, 90,490 units; and CC, 84,765 units
B) DM, 90,490 units; and CC, 90,490 units
C) DM, 94,635 units; and CC, 90,490 units
D) DM, 94,635 units; and CC, 96,215 units

Question 46

Tina is a cost accountant for Fey Industries, a factory that produces lemon-scented alcohol wipes that it distributes by the container. With cold and flu season right around the corner, Fey would like to make sure they have all of their process cost accounting information configured as soon as possible. Tina has gathered the following information about their inventory:
Using the Weighted-Average method of process costing, what are the equivalent units of production for the year for both Conversion Costs and Direct Materials? (Round to the nearest unit)

A) CC, 40,758 units; and DM, 45,096 units
B) CC, 41,297 units; and DM, 42,104 units
C) CC, 46,442 units; and DM, 42,104 units
D) CC, 46,442 units; and DM, 46,442 units

Question 47

Tina is a cost accountant for Fey Industries, a factory that produces lemon-scented alcohol wipes that it distributes by the container. With cold and flu season right around the corner, Fey would like to make sure they have all of their process cost accounting information configured as soon as possible. Tina has gathered the following information about their inventory:
Using the First-In, First-Out (FIFO) method of process costing, what are the equivalent units of production for the year for both Conversion Costs and Direct Materials? (Round final answer to the nearest unit)

A) CC, 39,951 units; and DM, 43,750 units
B) CC, 41,566 units; and DM, 42,104 units
C) CC, 41,566 units; and DM, 46,442 units
D) CC, 46,442 units; and DM, 42,104 units

Question 48

Tater Company produces tater tots that it packages in one pound bags and sells to vendors around the region. Management is compiling its cost information after August, its second month of operation. July ended with 8,600 packages in inventory that are 35% complete overall. They started 116,800 packages and completed 84,338 units during the month. Their ending Work-in-Progress (WIP) packages are 79% complete overall for August. What are the equivalent units of production if Tater uses the First-In, First-Out (FIFO) method? (Round to the nearest unit.)

A) 113,767 units
B) 125,377 units
C) 130,990 units
D) 134,000 units

Question 49

Tater Company produces tater tots that it packages in one pound bags and sells to vendors around the region. Management is compiling its cost information after August, its second month of operation. July ended with 8,600 packages in inventory that are 35% complete overall. They have started 116,800 packages and completed 84,338 units during the month. Their ending Work-in-Progress (WIP) packages are 79% complete overall for August. What are the equivalent units of production if Tater uses the Weighted-Average method? (Round answer to the nearest unit)

A) 92,938 units
B) 116,777 units
C) 119,787 units
D) 125,376 units

Question 50

The following are the details of Star Beer Co. for the month of July:
The cost per equivalent unit for Direct Materials (DM) is $5.00. The total equivalent units of DM are 28,400. The total costs to account for DM during the period are $148,000.
Find out the cost of DM in beginning Work-in-Progress (WIP) Inventory assuming company follows the First-In, First-Out (FIFO) method for inventories.

A) $6,000
B) $8,000
C) $9,000
D) $16,000

Question 51

The following are the details of Jennifer Corp. with respect to Inventories and Conversion Costs (CC):
If the Jennifer Corp. follows the First-In, First-Out (FIFO) method, then find the total equivalent cost per unit for Conversion Costs.

A) $7.33
B) $8.15
C) $8.50
D) $9.67

Question 52

The cost per equivalent unit of Direct Materials (DM) of a company for a particular process for June is $0.49. DM costs in beginning Work-in-Progress (WIP) Inventory is $260, and DM costs added to WIP Inventory during the period is $6,600. Assuming the company follows the Weighted-Average method of process costing, find the total equivalent units of DM for the above process.

A) 12,000 units
B) 14,000 units
C) 16,000 units
D) 18,500 units

Question 53

A company that follows the Weighted-Average method for inventory valuation has determined the Direct Materials (DM) cost per equivalent unit of $5.00 for a particular period. For the same period, the company has reported 15,000 equivalent units of DM. If the DM costs added to Work-in-Progress (WIP) Inventory during the period is twice the DM costs in the beginning WIP Inventory, then find the DM costs added to WIP Inventory during the period.

A) $25,000
B) $35,000
C) $50,000
D) $65,000

Question 54

An organization in which Mr. Smith is in charge of the manufacturing department follows the First-In, First-Out (FIFO) method of inventory valuation. The following are the estimates for the next processing department:
Units in Beginning Work-in-Progress (WIP) Inventory Completed: 3,000 units
Total Estimated Costs of Units Completed and Removed from WIP Inventory: $18,806
Per Unit Estimated Cost: $1.71
In order to make the actuals meet the estimates, what should be Mr. Smith's target, to the nearest thousand, for units started and completed in the process be?

A) 2,000 units
B) 4,000 units
C) 8,000 units
D) 16,000 units

Question 55

A company is engaged in manufacturing a product that passes through two Work-in-Progress (WIP) processes or departments. The nature of the product is such that Direct Materials (DM) and Conversion Costs (CC) accrue evenly throughout the process. The company uses imported DM in its product, but now import is altogether banned, and this company has 5 kg left in raw materials inventory with no further procurement possible.
On June 30, there were 12 units that were incomplete and had consumed 9 kg of raw materials. The degree of completion of WIP Inventory as of June 30 was 75%. In the given scenario, how many units could be started and completed on July 1?

A) 1 unit
B) 2 units
C) 3 units
D) 12 units

Question 56

Some companies create products whose completion may be in various stages at the end of a given time period which then leaves those same unit as incomplete at the beginning of the next period. Companies that find themselves having incomplete products in both their beginning and ending inventory will have to decide between using the First-In, First-Out (FIFO) and Weighted-Average methods to track both the physical units and their associated costs. Which of the following would be added to determine the finished goods inventory costs if using the FIFO method?

A) Costs added to units in beginning Work-in-Progress (WIP) Inventory
B) Costs added to units in beginning WIP Inventory - Costs of units in beginning WIP Inventory
C) Costs of units in ending WIP Inventory
D) Costs of units started but not yet completed

Question 57

Some companies create products whose completion may be in various stages at the end of a given time period and that leaves those same units as incomplete at the beginning of the next period. Companies that find themselves having incomplete products in both their beginning and their ending inventories have to decide between using the First-In, First-Out (FIFO) method and Weighted-Average method to track both the physical units and their costs. Which of the following would be added to finished goods inventory costs while using the Weighted-Average method?

A) Costs of units completed and removed
B) Costs of units completed and removed from Work-in-Progress (WIP) Inventory + costs of units in ending WIP Inventory
C) Only costs added during the current period
D) Only costs assigned to beginning inventory

Question 58

Devine Desserts specializes in the production of sweet plant-based bakery items. Their top seller for the past few years has been their cherry cheesecake made with a flourless crust and organic fruit toppings. Devine is currently considered a boutique operation, but they are looking to increase production and to expand their offerings and customer base. In an effort to refine their spending efforts and advertising costs, they will be compiling some costing data on their cherry cheesecake. The following costing information applies to the current year:
The following production summary has also been compiled for this year's operations:
If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the units completed and transferred out of the manufacturing process? (Do not round intermediate calculations.)

A) $155,862.58
B) $162,539.57
C) $162,620.10
D) $165,267.00

Question 59

Devine Desserts specializes in the production of sweet plant-based bakery items. Their top seller for the past few years has been their cherry cheesecake made with a flourless crust and organic fruit topping. Devine is currently considered a boutique operation, but they are looking to increase production and to expand their offerings and customer base. In an effort to refine their spending efforts and advertising costs, they will be compiling some costing data on their cherry cheesecake. The following costing information applies to the current year:
The following production summary has also been compiled for this year's operations:
If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the ending inventory in Crust (C), Cherry Toppings (CT), and Conversion (CN)? (Do not round intermediate calculations.)

A) C, $921.36; CT, $884.51; and CN, $847.65
B) C, $1,025.53, CT, $468.14; and CN, $1,153.23
C) C, $1,025.53, CT, $487.65; and CN, $1,250.91
D) C, $1,950.00, CT, $1,560.00; CN, and $2,678.00

Question 60

Java Express is a coffee bean roaster who specializes in dark roasting beans grown in California. During the month, Java added the following costs: Conversion Costs (CC), $5,350; and Direct Materials (DM), $4,800. Their Beginning Work-in-Progress (WIP) Inventory includes the following costs: CC, $950; and DM, $760. Their accountant calculated the following equivalent units for CC to be 6,787, and the equivalent units completed for this month for DM were 7,400. Using the First-In, First-Out (FIFO) method, how much total cost will be included in the calculation for cost per equivalent unit for both Conversion Costs and Direct Materials?

A) CC, $950; and DM, $760
B) CC, $5,350; and DM, $4,800
C) CC, $5,350; and DM, $5,560
D) CC, $6,300; and DM, $5,560

Question 61

Java Express is a coffee bean roaster who specializes in dark roasting beans grown in California. During the month, Java added the following costs: Conversion Costs (CC), $5,350; and Direct Materials (DM), $4,800. Their Beginning Work-in-Progress (WIP) Inventory includes the following costs: CC, $950; and DM, $760. Their accountant calculated the following equivalent units for CC to be 6,787, and the equivalent units completed for this month for DM were 7,400. Using the Weighted-Average method, how much total cost will be included in the calculation for cost per equivalent unit for both Conversion Costs and Direct Materials?

A) CC, $950; and DM, $760
B) CC, $5,350; and DM, $4,800
C) CC, $5,350; and DM, $5,560
D) CC, $6,300; and DM, $5,560

Question 62

Jennifer is the head cost accountant for Pure Inc., a factory that produces hand sanitizer. Pure has recently experienced an uptick in sales and has been refining their accounting policies. Jennifer has been tasked with gathering data pertaining to their costs for the most recent month, June. She has gathered the following information:
Costs in Beginning Work-in-Progress (WIP)
What amount of the cost of Antimicrobial Solution will be included in the calculation of equivalent cost per unit under First-In, First-Out (FIFO) and Weighted-Average (WA), respectively?

A) FIFO, $19,678; and WA, $19,678
B) FIFO, $19,678; and WA, $25,355
C) FIFO, $25,355; and WA, $5,677
D) FIFO, $25,355; and WA, $19,678

Question 63

Jennifer is the head cost accountant for Pure Inc., a factory that produces hand sanitizer. Pure has recently experienced an uptick in sales and has been refining their accounting policies. Jennifer has been tasked with gathering data pertaining to their costs for the most recent month, June. She has gathered the following information:


What amount of the cost of Conversion Costs will be included in the calculation of equivalent cost per unit using First-In, First-Out (FIFO) and the Weighted-Average (WA) method, respectively?

A) FIFO, $19,678; and WA, $25,355
B) FIFO, $24,389; and WA, $8,232
C) FIFO, $24,389; and WA, $32,621
D) FIFO, $32,621; and WA, $24,389

Question 64

The management for Funfetti Corp. has decided to analyze their first two years of operations. Funfetti specializes in the creation of organic sprinkles that it sells to specialty bakeries. Tom, the chief financial officer (CFO), is very interested in obtaining more insight into how their costs compare year-to-year. Tom has gathered the following information about last year. Beginning Work-in-Progress (WIP) Inventory: Direct Materials (DM), $1,600; and Conversion Costs (CC), $2,340. Costs Added Last Year: DM, $11,258; and CC, $15,609. Tom also gathered the following data pertaining to the current year. Beginning WIP Inventory: DM, $1,765; and CC, $2,220. Costs Added This Year: DM, $13,467; and CC, $18,996. Using horizontal analysis, how have total equivalent costs of DM changed using the First-In, First-Out (FIFO) method?

A) 16.40% decrease
B) 16.40% increase
C) 19.62% decrease
D) 19.62% increase

Question 65

The management for Funfetti Corp. has decided to analyze their first two years of operations. Funfetti specializes in the creation of organic sprinkles that it sells to specialty bakeries. Tom, the CFO, is very interested in obtaining more insight into how their costs compare year-to-year. Tom has gathered the following information about last year. Beginning Work-in-Progress (WIP) Inventory: Direct Materials (DM), $1,600; and Conversion Costs (CC), $2,340. Costs Added Last Year: DM, $11,258; and CC, $15,609. Tom also gathered the following data pertaining to this year. Beginning WIP Inventory: DM, $1,765; and CC, $2,220. Costs Added This Year: DM, $13,467; and CC, $18,996. Using horizontal analysis, how have total equivalent costs of the Conversion Costs changed using the Weighted-Average method?

A) 15.40% decrease
B) 15.40% increase
C) 18.20% decrease
D) 18.20 % increase

Question 66

Frosty Corp. produces gluten-free vanilla cake icing that it sells in small containers. Their accountant is performing some process costing calculations and has gathered the following information for the current month of October:
The accountant must decide whether they will use the FIFO or Weighted-Average method for their costing. In order to facilitate this process, they have collected data from both perspectives. What is the cost per equivalent unit for icing using the FIFO method?

A) $0.61
B) $0.65
C) $0.74
D) $1.00

Question 67

Frosty Corp. produces gluten-free vanilla cake icing which it sells in small containers. Their accountant is performing some process costing calculations and has gathered the following information for the current month of October:
The accountant must decide whether they will select the FIFO or Weighted-Average method. In order to facilitate this process, they have collected data from both perspectives. What is the cost per equivalent unit for Conversion Costs using the Weighted-Average method?

A) $1.02
B) $1.15
C) $1.17
D) $1.32

Question 68

Fuji Corp. manufactures and sells apple pie filling that it sells to its vendors in aluminum containers. Fuji just completed their first month of operations, and they are excited to be planning for their second month. Fuji believes that reviewing their process costing results for their first month will be a crucial piece in preparing for their second month. Fuji would like to utilize the Weighted-Average method as they are producing homogeneous items that are difficult to distinguish from one another. Their costing information for their first month is as follows:
Based upon the information given, what is the cost per equivalent unit for the Direct Material(s)?

A) Aluminum, $3.20; and Pie Filling, $2.94
B) Aluminum, $3.34
C) Aluminum, $3.34; and Pie Filling, $3.04
D) Pie Filling, $2.94

Question 69

Fuji Corp. manufactures and sells apple pie filling that it sells to its vendors in aluminum containers. Fuji just completed their first month of operations, and they are excited to be planning for their second month. Fuji believes that reviewing their process costing results for their first month will be a crucial piece in preparing for their second month. Fuji would like to utilize the First-In, First-Out (FIFO) method as they believe it will produce the most accurate results. Their costing information for their first month is as follows:
Based upon the information given, what is the cost per equivalent unit for the Direct Material(s) using the FIFO method?

A) Aluminum, $3.20; and Pie Filling, $2.94
B) Aluminum, $3.34; and Pie Filling, $3.04
C) Aluminum, $3.89
D) Pie Filling, $5.56

Question 70

Yummy Gummies, Co. is a company that produces organic gluten-free gummy vitamins and sells them in packs. Their management has decided that would like to expand operations from a few local grocery stores to include all health food stores in the state. They know that they will need to have a firm handle on all of their costs, including their actual product costs. Their accountant Savannah has already implemented process costing and will be completing a year-to-year comparison for management. Aside from expansion, management would like to identify any increases in costs that they find concerning and address them as soon as possible. The process costing information for last year:
Process costing information for the current year:
What would Savannah note as the change in cost per equivalent units for the Direct Materials using horizontal analysis? (Round intermediate calculation to two decimal places.)

A) 17.24% decrease
B) 17.24% increase
C) 20.83% decrease
D) 20.83% increase

Question 71

Yummy Gummies, Co. is a company that produces organic gluten-free gummy vitamins and sells them in packs. Their management has decided that would like to expand operations from a few local grocery stores to include all health food stores in the state. They know that they will need to have a firm handle on all of their costs, including the actual product costs. Their accountant Savannah has already implemented process costing and will be completing a year-to-year comparison for management. Aside from expansion, management would like to identify any increases in costs that they find concerning and address them as soon as possible. The process costing information for last year:
Process costing information for the current year:
What would Savannah note as the change in cost per equivalent unit for the conversion using horizontal analysis? (Round intermediate calculation to two decimal places.)

A) 15.06% decrease
B) 15.06% increase
C) 17.73% decrease
D) 17.73% increase

Question 72

Scrappy Company is preparing their costing data for their most recent year which is their fourth year of operations. Scrappy creates booklets of metallic scrapbook paper that it sells via an online platform to customers all around the world. They started the year with 980 units with Direct Materials (DM) 100% completed and Conversion Costs (CC) 37% completed. During the year, Scrappy started 56,780 units and completed 56,526 units, and at year-end they had 1,234 units with DM 100% completed and CC 78% completed. Their equivalent costs for DM are $27,890, and their equivalent costs for CC are $33,568. Scrappy has chosen the First-In, First-Out (FIFO) method for its process costing. What is the equivalent cost per unit for Direct Materials?
(Round units to whole number and cost to the nearest cent.)

A) $0.49
B) $0.64
C) $0.65
D) $1.44

Question 73

Scrappy Company is preparing their costing data for their most recent year which is the fourth year of operations. Scrappy creates booklets of metallic scrapbook paper that it sells via an online platform to customers all around the world. They started the year with 980 units with Direct Materials (DM) 100% completed and Conversion Costs (CC) 37% completed. During the year, Scrappy started 56,780 units and completed 56,526 units, and at year-end they had 1,234 units with DM 100% completed and CC 78% completed. Their equivalent costs for DM are $27,890, and their equivalent costs for CC are $33,568. Scrappy has chosen the First-In, First-Out (FIFO) method for its process costing. What is the equivalent cost per unit for Conversion Costs? (Round units to whole number and cost to two decimal places.)

A) $0.58
B) $0.59
C) $0.77
D) $0.79

Question 74

Almondz Co. has equivalent costs for Direct Materials (DM) of $77,626 and equivalent costs for Conversion Costs (CC) of $86,777 for the month of July. They reported the following information for July:
Almondz uses the Weighted-Average method for their process costing. What is the equivalent cost per unit for Conversion Costs?
(Round units to whole number and cost to two decimal places.)

A) $1.21
B) $1.25
C) $1.40
D) $1.53

Question 75

Almondz Co. has equivalent costs for Direct Materials (DM) of $77,626 and equivalent costs for Conversion Costs (CC) of $86,777 for the month of July. They reported the following information for July:
Almondz uses the Weighted-Average method for their process costing. What is the equivalent cost per unit for Direct Materials? (Round units to whole number and cost two decimal places.)

A) $1.10
B) $1.12
C) $1.25
D) $1.37

Question 76

Pete's Gold Co. is a factory that produces gold plastic coins that are sold at party stores around the country. They are attempting to determine whether they would prefer to use the First-In, First-Out (FIFO) or Weighted-Average method for their process costing. Their unit production information for the most recent year is as follows:
The units above produced the following costs:
If Pete's chooses to use the FIFO method, then what is their equivalent cost per unit for Conversion Costs? (Round units to whole number and cost to two decimal places.)

A) $0.51
B) $0.52
C) $0.53
D) $0.57

Question 77

Pete's Gold Co. is a factory that produces gold plastic coins that are sold at party stores around the country. They are attempting to determine whether they would prefer to use the First-In, First-Out (FIFO) or Weighted-Average method for their process costing. Their unit production information for the most recent year is as follows:
The units above produced the following costs:
If Pete's chooses the Weighted-Average method, then what is their equivalent cost per unit for Direct Materials? (Round units to whole number and cost to two decimal places.)

A) $0.40
B) $0.41
C) $0.44
D) $0.45

Question 78

The sewing process used by TradeMark Inc. began the year with an inventory of $3,820 (Direct Materials were 100% complete). Using First-In, First-Out (FIFO), they calculated their equivalent units of production for this year to be:
TradeMark has calculated their cost per equivalent unit as follows: Direct Material (DM) $84 and Conversion Costs (CC) $43. How much cost should TradeMark assign to the units completed and removed from WIP Inventory in the current year?

A) $101,600
B) $105,420
C) $106,796
D) $107,176

Question 79

The sewing process used by TradeMark Inc. began the year with an inventory of $3,820 (Direct Materials were 100% complete). Using First-In, First-Out (FIFO), they calculated their equivalent units of production for this calendar year to be:
TradeMark has calculated their cost per equivalent unit as follows: Direct Material $84 and Conversion Costs $43. How much cost should TradeMark assign to ending WIP inventory for the current year?

A) $3,820
B) $15,997
C) $101,600
D) $117,597

Question 80

The sewing process used by TradeMark Inc. began the year with an inventory of $3,820. Using the Weighted-Average method, they calculated their equivalent units of production for this calendar year to be:
TradeMark has calculated their cost per equivalent unit as follows: Direct Material $84 and Conversion Costs $43. How much cost should TradeMark assign to the units completed and removed from WIP inventory in the current year using the Weighted-Average method?

A) $89,080
B) $109,855
C) $113,675
D) $125,852