Deck 18: Process Costing

Question 1

The beginning inventory of Department No. 3 was zero. During May, 2,500 units were processed in the department at a cost of $5 per unit. All 2,500 of these units were transferred to Department No. 4 in May at a total cost of $17,500. The unit cost of goods transferred to Department No. 4 in May was:

A) $5.00.
B) $6.00.
C) $7.00.
D) $1.00.

Answer 1

$7.00.

Question 2

In a given department, the beginning inventory of 8,000 units was 60% complete as to material, labor, and overhead. A total of 9,000 units were started and completed during the period, and the ending inventory of 10,000 units was 40% complete as to material, labor and overhead. The equivalent production for the period in units is:

A) 12,200.
B) 16,200.
C) 17,800.
D) 18,200.

Answer 2

16,200.

Question 3

Department A started 3,000 units in February. Department A completed and transferred 3,100 units to Department B in February. On February 28, Department A had 300 units remaining in Work in Process. The number of units in Work in Process on February 1 was:

A) 6,300.
B) 400.
C) 100.
D) 0.

Answer 3

400.

Question 4

The assembly department has 750 units in work-in-process at the beginning of November. By the end of November, it had completed and transferred 2,800 units to the paint department. On November 30, there were 400 units remaining in work-in-process. How many units were started in production in the assembly department during November?

A) 3,650.
B) 3,050.
C) 2,450.
D) 1,750.

Question 5

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:


-Refer to the above data. The unit cost of a case processed in the Mixing Department in May was:

A) $230.
B) $57.50.
C) $73.50.
D) Some other amount.

Question 6

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:


-Refer to the above data. The unit cost of a case incurred by the Packing Department in May was:

A) $73.50.
B) $57.50.
C) $28.75
D) Some other amount.

Question 7

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:


-Refer to the above data. The total cost of all cases transferred to finished goods in May was:

A) $74,200.
B) $69,000.
C) $63,600.
D) Some other amount.

Question 8

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:


-Refer to the above data. The gross profit (sales minus cost of goods sold) on chemicals sold in May was:

A) $64,000.
B) $70,000.
C) $111,000.
D) Some other amount.

Question 9

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:


-Refer to the above data. The unit cost of a case charged to cost of goods sold in May was:

A) $80.
B) $65.50.
C) $86.25.
D) Some other amount.

Question 10

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:


-Refer to the above data. The unit cost per gallon of mustard processed by the Mixing Department in May was $__________.

Question 11

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:

-Refer to the above data. The unit cost per case of mustard incurred by the Bottling Department in May was $__________.

Question 12

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:


-Refer to the above data. The total cost of the 10,000 cases transferred to finished goods in May was $__________.

Question 13

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:

-Refer to the above data. Assume that 9,500 cases of mustard were sold in May. The amount charged to cost of goods sold in May $__________.

Question 14

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:

-Refer to the above data. Assume that $9,000 of finished goods were on hand at May 1. Under the LIFO method of inventory valuation, finished goods inventory at May 31 was $__________ if 9,500 cases of mustard were sold in May.