Deck 5: Process Costing

Question 1

What does JIT manufacturing emphasize?

A)continuous improvement,elimination of waste,and reduction of work-in-process inventories
B)continuous improvement,elimination of waste,and increase of work-in-process inventories
C)push inventory system,elimination of waste,and reduction of work-in-process inventories
D)continuous improvement,collect cost by job,and reduction of work-in-process inventories

Answer 1

continuous improvement,elimination of waste,and reduction of work-in-process inventories

Question 2

Speakeasy Co. manufactures podiums. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for May:
$$\begin{array} { | l | c | c | c | } \hline & \text { Cuttine } & \text { Assembly } & \text { Finishine } \\\hline \text { Direct materials } & \mathbf {\$ 7 , 0 0 0 } & \mathbf { 1 0 , 0 0 0 } & \mathbf { \$ 3 , 0 0 0 } \\\hline \text { Direct labour } & 3,000 & 14,000 & 2,000 \\\hline \text { Applied averhead } & 4,000 & 5,000 & 6,000 \\\hline\end{array}$$
There were no work in process inventories and 1,000 podiums were produced.

-Refer to the figure.What is the cost transferred out of the Assembly department?

A)$14,000
B)$29,000
C)$43,000
D)$54,000

Answer 2

$43,000

Question 3

What is the appropriate cost accounting system to use when inventory items are produced on an assembly line?

A)job-order costing
B)process costing
C)weighted average
D)perpetual method

Answer 3

B

Question 4

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows:
$\begin{array}{lr}\text { Direct materials } & 100 \\\text { CPA staff salaries } & 2,000 \\\text { Overhead } & 900 \\\text { Total } & \$ 3,000\end{array}$
Number of tax returns 200

-Refer to the figure.What is the cost of services sold?

A)$100
B)$900
C)$2,000
D)$3,000

Question 5

When products and their costs are moved from one process to the next process,what is the term for these costs?

A)unit costs
B)transferred-in costs
C)WIP inventory costs
D)equivalent unit costs

Question 6

Allen Company has the following information for the Assembly Department for October:
$\begin{array}{lr}\text { Materials purchased } & \$ 40,000 \\\text { Materials used } & 44,000 \\\text { Direct labour } & 30,000 \\\text { Actual manufacturing overhead } & 56,000 \\\text { Cost of goods completed and transferred to the Finishing Dept. } & 120,000\end{array}$
Overhead rate is 200 percent of direct labour costs.
Allen Company uses a process costing system for the Assembly Department.

-Refer to the figure.What is the total amount of debits to work in process-Assembly Department for October?

A)$120,000
B)$126,000
C)$134,000
D)$146,000

Question 7

Allen Company has the following information for the Assembly Department for October:
$\begin{array}{lr}\text { Materials purchased } & \$ 40,000 \\\text { Materials used } & 44,000 \\\text { Direct labour } & 30,000 \\\text { Actual manufacturing overhead } & 56,000 \\\text { Cost of goods completed and transferred to the Finishing Dept. } & 120,000\end{array}$
Overhead rate is 200 percent of direct labour costs.
Allen Company uses a process costing system for the Assembly Department.

-Refer to the figure.What debit or credit would the journal entry to record materials purchased include?

A)a debit to materials inventory for $40,000
B)a debit to materials inventory for $44,000
C)a credit to accounts payable for $44,000
D)a debit to accounts payable for $40,000

Question 8

As production occurs,where are materials,direct labour,and applied manufacturing overhead recorded?

A)in materials
B)in finished goods
C)in work in process
D)in cost of goods sold

Question 9

Speakeasy Co. manufactures podiums. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for May:
$$\begin{array} { | l | c | c | c | } \hline & \text { Cuttine } & \text { Assembly } & \text { Finishine } \\\hline \text { Direct materials } & \mathbf {\$ 7 , 0 0 0 } & \mathbf { 1 0 , 0 0 0 } & \mathbf { \$ 3 , 0 0 0 } \\\hline \text { Direct labour } & 3,000 & 14,000 & 2,000 \\\hline \text { Applied averhead } & 4,000 & 5,000 & 6,000 \\\hline\end{array}$$
There were no work in process inventories and 1,000 podiums were produced.

-Refer to the figure.What would be the journal entries to record the transfer of goods from process to process?

A) $$\begin{array} { l c c } \text { Work in Process-Assembly } & 14,000 & \\\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \\\text { Work in Process-Finishing } & 43,000 & \\\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 43,000 \\\text { Finished Goods } & 54,000 & \\\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &54,000\end{array}$$
B) $$\begin{array} { l c c } \text { Work in Process-Assembly } & 29,000 & \\\quad\quad\quad\quad\text { Work in Process-Cutting } && 29,000 \\\text { Work in Process-Finishing } & 11,000 \\\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \\\text { Finished Goods }&54,000 \\\quad\quad\quad\text { Work in Process-Finishing }&&54,000\end{array}$$
C) $$\begin{array} { l c c } \text { Work in Process-Cutting } & 14,000 \\\quad\quad\quad\quad\quad\quad\quad\text { Raw Materials } & & 14,000\\\text { Work in Process-Assembly } & 29,000 \\\quad\quad\quad\text { Raw materials }&& 29,000 \\\text { Work in Process-Finishing } & 11,000 \\\quad\quad\quad\text { Raw materials }&& 11,000\\\end{array}$$
D) $$\begin{array} { l c c } \text { Work in Process-Assembly } & 14,000 & \\\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \\\text { Work in Process-Finishing } & 11,000 & \\\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \\\text { Finished Goods } & 29,000 & \\\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &29,000\end{array}$$

Question 10

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

A)process costing
B)contract costing
C)variable costing
D)job-order costing

Question 11

Speakeasy Co. manufactures podiums. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for May:
$$\begin{array} { | l | c | c | c | } \hline & \text { Cuttine } & \text { Assembly } & \text { Finishine } \\\hline \text { Direct materials } & \mathbf {\$ 7 , 0 0 0 } & \mathbf { 1 0 , 0 0 0 } & \mathbf { \$ 3 , 0 0 0 } \\\hline \text { Direct labour } & 3,000 & 14,000 & 2,000 \\\hline \text { Applied averhead } & 4,000 & 5,000 & 6,000 \\\hline\end{array}$$
There were no work in process inventories and 1,000 podiums were produced.

-Refer to the figure.What would be the journal entry to assign costs to the Assembly process?

A) $\begin{array} { l r } \text { Raw Materials } & 10,000 \\ \text { Payroll } & 14,000 \\ \text { Overhead Control } & 5,000\\\quad\quad\quad\quad\quad\quad\text { Work in Process-Assembly}&&29,000 \end{array}$

B) $\begin{array}{ll}\text { Raw Materials } & 20,000 \\\text { Payroll } & 19,000 \\\text { Overhead Control } & 15,000\\\text { Work in Process-Assembly }&&54,000\end{array}$
C) $\begin{array}{ll}\text { Work in Process-Assembly }&29,000\\\text { Raw Materials } && 10,000 \\\text { Payroll } && 14,000 \\\text { Overhead Control } && 5,000\end{array}$
D) $\begin{array}{ccc}\text { Work in Process\_Assembly } & 54,000 & \\\text { Raw Materials } &&20,000 \\\text { Payroll } & &19,000 \\\text { Overhead Control } & & 15,000\end{array}$

Question 12

What is a difference between the job-order costing system and the process costing system?

A)One does not use a raw materials account.
B)The number of work-in-process accounts is different.
C)One does not use the finished goods account.
D)They both distribute the costs among equivalent units.

Question 13

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows:
$\begin{array}{lr}\text { Direct materials } & 100 \\\text { CPA staff salaries } & 2,000 \\\text { Overhead } & 900 \\\text { Total } & \$ 3,000\end{array}$
Number of tax returns 200

-Refer to the figure.What is the unit cost per tax return?

A)$0.50
B)$4.50
C)$10.00
D)$15.00

Question 14

Which statement is characteristic about service businesses?

A)Services can never be homogeneous and repetitively produced.
B)Some services may require that a sequence of uniform processes be performed.
C)Services cannot have work-in-process inventories.
D)All services require job-order costing.

Question 15

What costing system accumulates production costs by process and uses a work-in-process account for each process?

A)process costing
B)joint costing
C)variable costing
D)job-order costing

Question 16

Which statement is characteristic of a process costing system?

A)It is more expensive because it has more work-in-process accounts.
B)There is no need to track materials to processes.
C)There is no need to use time tickets to assign costs to processes.
D)It is used for businesses that produce unique products.

Question 17

Allen Company has the following information for the Assembly Department for October:
$\begin{array}{lr}\text { Materials purchased } & \$ 40,000 \\\text { Materials used } & 44,000 \\\text { Direct labour } & 30,000 \\\text { Actual manufacturing overhead } & 56,000 \\\text { Cost of goods completed and transferred to the Finishing Dept. } & 120,000\end{array}$
Overhead rate is 200 percent of direct labour costs.
Allen Company uses a process costing system for the Assembly Department.

-Refer to the figure.What debit or credit would the journal entry to record goods completed and transferred out of the Assembly Department include?

A)a debit to finished goods inventory for $120,000
B)a credit to materials inventory for $120,000
C)a debit to work in process-Assembly Department for $120,000
D)a debit to work in process-Finishing Department for $120,000

Question 18

JIT firms are usually structured so they can use a particular type of costing system to determine product costs.What is the system?

A)process costing
B)job-order costing
C)joint costing
D)variable costing

Question 19

How are costs accounted for in process costing?

A)by year
B)by batch
C)by process
D)by job

Question 20

Which is a feature of a process costing system?

A)Unique products pass through individualized processes.
B)Each unit is treated uniquely in receiving a process.
C)Manufacturing costs are accumulated by a process for a given time period.
D)Unit costs are calculated for each job.

Question 21

Pelosi Company manufactures chairs. The following information was given for the company:
$\begin{array}{lr}\text { Units, beginning work in process } & 0 \\\text { Units started } & 20,000 \\\text { Units completed } & ?\\\text { Units, ending work in process } & 5,000 \\\text { Cost of direct materials } & \$ 440,000 \\\text { Cost of conversion } & \$ 64,000\end{array}$

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.

-Refer to the figure.What are the units started and completed?

A)10,000
B)15,000
C)20,000
D)40,000

Question 22

"Total costs to account for" does NOT include which of the following costs?

A)direct materials requisitioned for the department
B)prior department costs transferred in
C)ending work-in-process balance
D)beginning work-in-process balance

Question 23

Pelosi Company manufactures chairs. The following information was given for the company:
$\begin{array}{lr}\text { Units, beginning work in process } & 0 \\\text { Units started } & 20,000 \\\text { Units completed } & ?\\\text { Units, ending work in process } & 5,000 \\\text { Cost of direct materials } & \$ 440,000 \\\text { Cost of conversion } & \$ 64,000\end{array}$

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.

-Refer to the figure.What cost is assigned to ending work in process?

A)$110,000
B)$114,000
C)$126,000
D)$130,000

Question 24

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr} \text { Units, beginning work in process } &0\\ \text { Units staited } &200\\ \text { Units completed } &?\\ \text { Units, ending work in process ( \( 40 \% \) complete) } &50\end{array}$


-Refer to the figure.If a total of $11,050 in production costs were incurred,how much cost would be assigned to the units completed?

A)$3.250
B)$8,287.50
C)$9,750
D)$11,050

Question 25

The following information is available for Dale, Inc.:
$\begin{array}{ll}\text { Direct Materials -Assembly Department } & \$ 10,000 \\\text { Direct Materials -Finishing Department } & 15,000 \\\text { Direct Labour -Assembly Department } & 11,000 \\\text { Direct Labour -Finishing Department } & 20,000 \\\text { Applied Overhead-Assembly Department } & 11,000 \\\text { Applied Overhead-Finishing Department } & 20,000 \\\text { Actual Overhead-Assembly Department } & 12,500 \\\text { Actual Overhead-Finishing Department } & 17,500\end{array}$

-Refer to the figure.What are the conversion costs in the Finishing Department?

A)$35,000
B)$37,500
C)$40,000
D)$57,500

Question 26

Pelosi Company manufactures chairs. The following information was given for the company:
$\begin{array}{lr}\text { Units, beginning work in process } & 0 \\\text { Units started } & 20,000 \\\text { Units completed } & ?\\\text { Units, ending work in process } & 5,000 \\\text { Cost of direct materials } & \$ 440,000 \\\text { Cost of conversion } & \$ 64,000\end{array}$

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.

-Refer to the figure.What are the costs per unit for materials and conversion,respectively?

A)$11; $1.60
B)$22; $4
C)$29.33; $4.27
D)$88; $64

Question 27

What happens when conversion costs are uniform?

A)Materials,labour,and overhead are applied at different rates throughout the process.
B)Materials,labour,and overhead are added throughout the process at the same rate.
C)Labour and overhead are added at the same rate but different materials are added at a different point.
D)Materials and labour are added at the same rate but overhead is applied uniformly.

Question 28

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr} \text { Units, beginning work in process } &0\\ \text { Units staited } &200\\ \text { Units completed } &?\\ \text { Units, ending work in process ( \( 40 \% \) complete) } &50\end{array}$


-Refer to the figure.If a total of $11,050 in production costs was incurred,what would the unit cost be in January?

A)$55.25
B)$65
C)$73.67
D)$221

Question 29

The following information pertains to Fry Corporation: $\begin{array}{llr}& \text {Units } &\\ \text { Work in process, December 1 (20\% complete) } &3,000\\ \text { Staited in December } &24,000\end{array}$

Materials are added at the beginning of the process.
If 18,000 units were completed during the month,what would be the ending work in process at December 31?

A)9,000 units
B)6,000 units
C)3,000 units
D)15,000 units

Question 30

What are the two methods used to determine equivalent units of production?

A)weighted average and FIFO
B)weighted average and LIFO
C)FIFO and specific identification
D)LIFO and specific identification

Question 31

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr} \text { Units, beginning work in process } &0\\ \text { Units staited } &200\\ \text { Units completed } &?\\ \text { Units, ending work in process ( \( 40 \% \) complete) } &50\end{array}$


-Refer to the figure.How many units were completed?

A)50
B)150
C)200
D)400

Question 32

What do equivalent units express all activity of the period in terms of?

A)direct labour hours
B)partially completed units
C)fully completed units
D)units of input

Question 33

What is the term for the number of completed units that is equal,in terms of production inputs,to a given number of partially completed units?

A)units completed
B)equivalent units
C)units started and completed
D)total units in production

Question 34

Under what conditions might activity-based costing have a role in process costing settings?

A)when there are products produced with little diversity
B)when there are products produced with homogeneous processes
C)when multiple products are being produced
D)when only one product is being produced

Question 35

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr} \text { Units, beginning work in process } &0\\ \text { Units staited } &200\\ \text { Units completed } &?\\ \text { Units, ending work in process ( \( 40 \% \) complete) } &50\end{array}$


-Refer to the figure.What are the equivalent units?

A)150
B)170
C)180
D)200

Question 36

The following information is available for Dale, Inc.:
$\begin{array}{ll}\text { Direct Materials -Assembly Department } & \$ 10,000 \\\text { Direct Materials -Finishing Department } & 15,000 \\\text { Direct Labour -Assembly Department } & 11,000 \\\text { Direct Labour -Finishing Department } & 20,000 \\\text { Applied Overhead-Assembly Department } & 11,000 \\\text { Applied Overhead-Finishing Department } & 20,000 \\\text { Actual Overhead-Assembly Department } & 12,500 \\\text { Actual Overhead-Finishing Department } & 17,500\end{array}$

-Refer to the figure.What are the "total bottling costs to account for" in the Assembly Department?

A)$10,000
B)$21,000
C)$32,000
D)$44,500

Question 37

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr} \text { Units, beginning work in process } &0\\ \text { Units staited } &200\\ \text { Units completed } &?\\ \text { Units, ending work in process ( \( 40 \% \) complete) } &50\end{array}$


-Refer to the figure.What was the total number of units to account for?

A)50
B)150
C)200
D)400

Question 38

Pelosi Company manufactures chairs. The following information was given for the company:
$\begin{array}{lr}\text { Units, beginning work in process } & 0 \\\text { Units started } & 20,000 \\\text { Units completed } & ?\\\text { Units, ending work in process } & 5,000 \\\text { Cost of direct materials } & \$ 440,000 \\\text { Cost of conversion } & \$ 64,000\end{array}$

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.

-Refer to the figure.What are the equivalent units for materials and conversion,respectively?

A)15,000; 14,000
B)15,000; 15,000
C)20,000; 16,000
D)20,000; 20,000

Question 39

What is the term for the whole units that could have been produced in a period given the amount of manufacturing inputs used?

A)FIFO units
B)transferred-in units
C)weighted average units
D)equivalent units of output

Question 40

Which of the following determines whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process plus the manufacturing costs incurred in the current period?

A)equivalent unit of output
B)cost reconciliation
C)batch production process
D)transferred-in costs

Question 41

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}\text { Wark in pracess, Octaber 1 : } &\\\text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour} &\$45,000\\ \text { Overhead } &\$15,000\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 133,050 \\\text { Direct labour } & 180,000 \\\text { Overhead (applied) } & 45,000\end{array}$

-Refer to the figure.What is the cost of October's ending work in process for the Mixing Department using the FIFO method?

A)$26,250
B)$50,400
C)$63,000
D)$49,500

Question 42

Beginning inventory consisted of 1,000 units with costs of $21,000.All materials and 60 percent of labour and overhead were added in the prior period.In addition,another 8,000 units were started and completed.Unit costs are materials,$6.00; labour,$15.00; overhead,$9.00.What is the total cost of goods transferred out using FIFO?

A)$240,000
B)$262,200
C)$270,000
D)$270,600

Question 43

If beginning inventory contained 2,000 units of product that were judged to be 40 percent complete as to labour,what would be the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units?

A)400 units
B)800 units
C)1,200 units
D)2,000 units

Question 44

Ely Company had the following data for the current year:
$\begin{array}{llr} \text {Units in process at the begmning of the month } &4,000\\ \text { Units in process at the end of the month } &10,000\\ \text { Units started during the month} &40,000\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.

-To find the unit cost of materials for a department using the FIFO method of process costing,by what figure would you divide the total cost of materials issued to the department during the year?

A)units in process
B)units started and completed
C)total units manufactured
D)equivalent units of output

Question 45

Ely Company had the following data for the current year:
$\begin{array}{llr} \text {Units in process at the begmning of the month } &4,000\\ \text { Units in process at the end of the month } &10,000\\ \text { Units started during the month} &40,000\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.

-Refer to the figure.How many equivalent units for materials would there be using the FIFO method?

A)30,000 units
B)39,400 units
C)40,000 units
D)44,000 units

Question 46

Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows:
$$\begin{array} { | l | c | c | c | } \hline & & { \text { Costs } } \\\hline & \text { Units } & \text { Materials } & \text { Conversion } \\\hline \text { Work in process, March 1 } & 25,000 & \$ 68,750 & \$ 167,650 \\\hline \text { Started during March } & 100,000 & 300,000 & 903,350 \\\hline \text { Work in process, March 31 } & 10,000 & & \\\hline\end{array}$$
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.

-Refer to the figure.How many equivalent units for conversion costs would there be for Gill Corporation in March using the FIFO method?

A)100,000 units
B)101,500 units
C)111,500 units
D)125,000 units

Question 47

Which of the following process costing methods is simpler to use?

A)weighted average
B)LIFO
C)FIFO
D)specific identification

Question 48

Ely Company had the following data for the current year:
$\begin{array}{llr} \text {Units in process at the begmning of the month } &4,000\\ \text { Units in process at the end of the month } &10,000\\ \text { Units started during the month} &40,000\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.

-Refer to the figure.What is the number of units completed and transferred out during the period?

A)34,000 units
B)40,000 units
C)44,000 units
D)54,000 units

Question 49

Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows:
$$\begin{array} { | l | c | c | c | } \hline & & { \text { Costs } } \\\hline & \text { Units } & \text { Materials } & \text { Conversion } \\\hline \text { Work in process, March 1 } & 25,000 & \$ 68,750 & \$ 167,650 \\\hline \text { Started during March } & 100,000 & 300,000 & 903,350 \\\hline \text { Work in process, March 31 } & 10,000 & & \\\hline\end{array}$$
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.

-Refer to the figure.How many equivalent units for materials would there be for Gill Corporation in March using the FIFO method?

A)100,000 units
B)110,000 units
C)119,000 units
D)125,000 units

Question 50

Irvin Corporation’s Mixing Department began January with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).

-Refer to the figure.If materials were added when the units were 50 percent complete,how many equivalent units of production for materials would there be for Irvin Corporation using the FIFO costing method?

A)85,000 units
B)101,500 units
C)105,500 units
D)110,000 units

Question 51

The following information is available:
$\begin{array}{lr}\text { Units in process at the beginning of the month } & 2,000 \\\text { Units in process at the end of the month } & 4,000 \\\text { Units started during the month } & 30,000\end{array}$

Materials are added at the beginning of the process.

-Refer to the figure.Beginning and ending units were 60 percent converted.How many equivalent units for materials would there be using the FIFO method?

A)29,200 units
B)30,000 units
C)34,000 units
D)36,000 units

Question 52

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}\text { Wark in pracess, Octaber 1 : } &\\\text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour} &\$45,000\\ \text { Overhead } &\$15,000\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 133,050 \\\text { Direct labour } & 180,000 \\\text { Overhead (applied) } & 45,000\end{array}$

-Refer to the figure.There were 3,750 units that were 80 percent complete remaining in Mixing at October 31.What is total cost per equivalent unit of production using the FIFO method?

A)$9.76
B)$12.16
C)$13.20
D)$14.50

Question 53

Kent Company adds materials to production at the beginning of the process in the Production Department.It uses a single-step process.Data on material for this department for October are as follows: $\begin{array}{ll}\text { Production data (units): }\\\text { In process, beginning of October } & 10,000 \\\text { Started during October } & 60,000 \\\text { Completed and transferred out during October } & 55,000\\\text { Manufacturing cost: } &\\ \text { Work in process, beginning} &\$39,000\\ \text { Materials used in October } &\$186,000\end{array}$
The company uses the FIFO inventory method.
What is the materials cost in work in process on October 31?

A)$31,000
B)$37,500
C)$39,000
D)$46,500

Question 54

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}\text { Wark in pracess, Octaber 1 : } &\\\text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour} &\$45,000\\ \text { Overhead } &\$15,000\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 133,050 \\\text { Direct labour } & 180,000 \\\text { Overhead (applied) } & 45,000\end{array}$

-Refer to the figure.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.What is the amount of total costs to account for?

A)$360,000
B)$396,000
C)$454,050
D)$545,505

Question 55

The following information is available:
$\begin{array}{lr}\text { Units in process at the beginning of the month } & 2,000 \\\text { Units in process at the end of the month } & 4,000 \\\text { Units started during the month } & 30,000\end{array}$

Materials are added at the beginning of the process.

-Refer to the figure.Beginning and ending units were 60 percent complete as to conversion costs.What is the number of units started and completed?

A)26,000 units
B)28,000 units
C)30,000 units
D)36,000 units

Question 56

The following information pertains to Jones Company: $$\begin{array} { l r } & \text {Units } &\\\text { Wark-in-process inventory, March } 1 \text { (30\% complete) } & \text { 20,000 } \\\text { Units tranferred in } & 50,000 \\\text { Wark-in-process inventory, March } 31 \text { (60\% complete) } & 16,000\end{array}$$ Materials are added at the start of the process.
How many equivalent units for conversion costs would there be using the FIFO method?

A)49,600 units
B)50,000 units
C)57,600 units
D)70,000 units

Question 57

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}\text { Wark in pracess, Octaber 1 : } &\\\text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour} &\$45,000\\ \text { Overhead } &\$15,000\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 133,050 \\\text { Direct labour } & 180,000 \\\text { Overhead (applied) } & 45,000\end{array}$

-Refer to the figure.There were 3,750 units that were 80 percent complete remaining in Mixing at October 31.What is the cost of goods transferred to the Moulding Department during October using the FIFO method?

A)$323,400
B)$391,575
C)$414,450
D)$583,050

Question 58

Lee Company began making lipstick in October using a single-step process.Lee incurred $42,000 for materials and $48,640 for conversion during the month.There were 21,000 cases of lipstick started in October and 3,000 cases unfinished (40 percent complete)at the end of the period.All materials were added at the beginning of the production process. What is the unit cost for materials for Lee using the FIFO method?

A)$2.00
B)$2.03
C)$4.03
D)$4.53

Question 59

Ely Company had the following data for the current year:
$\begin{array}{llr} \text {Units in process at the begmning of the month } &4,000\\ \text { Units in process at the end of the month } &10,000\\ \text { Units started during the month} &40,000\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.

-What unit-costing method excludes prior-period work and costs in computing current-period unit work and costs?

A)FIFO costing method
B)transferred-in costing method
C)weighted average method
D)LIFO costing method

Question 60

Irvin Corporation’s Mixing Department began January with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).

-Refer to the figure.If materials were added at the beginning of the process,how many equivalent units of production for conversion costs would there be for Irvin using the FIFO costing method?

A)101,500 units
B)105,500 units
C)110,000 units
D)116,500 units

Question 61

Which is an advantage of the weighted average costing assumption in process costing?

A)There is a possibility of errors when input costs are changing significantly from one period to the next.
B)The cumulative effect of an error might produce a significant distortion in the cost of the final product.
C)The performance of the current period is combined with the performance of the current period,making it difficult to compare costs between periods.
D)Unit costs are simpler to calculate.

Question 62

Beginning inventory consisted of 10,000 units (20 percent converted)and ending inventory consisted of 20,000 units (40 percent converted).In addition,60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

A)50,000 units
B)56,000 units
C)58,000 units
D)70,000 units

Question 63

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.

-Refer to the figure.What is the cost per equivalent unit of production for conversion using the weighted average method?

A)$2.19
B)$2.55
C)$3.06
D)$3.54

Question 64

What costs are included in the cost per equivalent unit using the weighted average method?

A)cost of goods sold and current costs
B)beginning work in process and ending work in process
C)current costs and ending work in process
D)current costs and beginning work in process

Question 65

The following information is available: $\begin{array}{llr} \text { Unts in process, November 1 ( \( 60 \% \) converted) } &2,000 \text {units}\\ \text {Units in process, November 30 ( \( 60 \% \) converted) } &4,000 \text {units}\\ \text { Units started during the month} &30,000 \text {units}\end{array}$
Materials are added at the beginning of the process.
How many equivalent units for conversion would there be in November using the weighted average method?

A)30,400 units
B)32,000 units
C)33,200 units
D)36,000 units

Question 66

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.

-Refer to the figure.What is the cost of goods transferred out using the weighted average method?

A)$241,500
B)$273,240
C)$273,600
D)$309,800

Question 67

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%.
$\begin{array}{|l|c|l|}\hline{\text { Units: }} & \text { Units } &{\begin{array}{c}\text { \% Complete for } \\\text { Conversions }\end{array}} \\\hline \text { Work in process, } 7 / 1 & 60,000 & 15 \% \\\hline \text { Started } & 105,000 & \\\hline \text { Work in process, } 7 / 31 & 40,000 & 20 \%\\\hline & & \\\hline \text { Costs: } & & \\\hline & \text { Materials } & \text { Conversion } \\\hline \text { Beginning work in process } & \$ 16,500 & \$ 33,250 \\\hline \text { Current costs } & \$ 643,500 & \$ 332,500\\\hline \end{array}$

-Refer to the figure.What are the equivalent units for materials?

A)100,000
B)125,000
C)133,000
D)165,000

Question 68

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.

-Refer to the figure.What is the cost per equivalent unit of production for materials using the weighted average method?

A)$2.70
B)$2.88
C)$3.12
D)$3.60

Question 69

The following information pertains to Mack Company: $\begin{array}{ll}\text { Work-in-process inventory, December } 1 \text { (30\% complete) } & 20,000 \text { units } \\\text { Units transferred in } & 50,000 \text { units } \\\text { Work-in-process inventory, December } 31(60 \% \text { complete }) & 16,000 \text { units }\end{array}$ Materials are added at the start of the process.
How many equivalent units for materials would there be using the weighted average method?

A)50,000 units
B)57,600 units
C)70,000 units
D)86,000 units

Question 70

Franklin Company manufactures a product that passes through two processes: Mixing and Moulding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows: $\begin{array}{llr}\text { Work in process, October 1: } &\\ \text { Units ( \( 35 \% \) complete)} &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour } &\$45,000\\ \text {Overhead } &\$15,000\\\end{array}$
During October,37,500 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 135,000 \\\text { Direct labour } & 180,000 \\\text { Overhead } & 45,000\end{array}$ There were 3,750 units that were 80 percent complete remaining in Mixing at October 30.What are the equivalent units of production using the weighted average method?

A)30,000 units
B)34,500 units
C)40,500 units
D)43,125 units

Question 71

The following information pertains to North Company: $\begin{array}{lr}&\text { Units }\\\text { Work in process, January } 1 \text { (20\% complete) } & 8,000 \\\text { Started in January } & 40,000 \\\text { Work in process, January } 31 & 12,000\end{array}$
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method was 39,000,how complete was ending work in process at January 31?

A)15.0% complete
B)25.0% complete
C)30.0% complete
D)97.5% complete

Question 72

Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials; 45,000 units were completed and transferred out during the month; 4,500 units were in ending inventory,10 percent complete with respect to materials.What would be the weighted average equivalent units of production for materials for the month?

A)45,000 units
B)45,450 units
C)46,800 units
D)47,250 units

Question 73

Irvin Corporation’s Mixing Department began January 2011 with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).

-Refer to the figure.If materials were added when the units were 80 percent complete,how many equivalent units of production for materials would there be for Irvin using the weighted average costing method?

A)95,000 units
B)105,500 units
C)107,000 units
D)110,000 units

Question 74

How is the material cost per equivalent unit calculated using the weighted average method?

A)total material costs to account for/equivalent units for materials
B)material costs added during the period/equivalent units for materials
C)total material costs to account for/number of partially completed units for materials
D)material costs added during the period/number of partially completed units for materials

Question 75

What is the term for a unit-costing method that merges prior-period work and costs with current-period work and costs?

A)FIFO costing method
B)transferred-in cost
C)weighted average method
D)operating costing

Question 76

Irvin Corporation’s Mixing Department began January 2011 with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).

-Refer to the figure.If materials were added at the beginning of the process,how many equivalent units of production for conversion costs would there be for Irvin using the weighted average costing method?

A)99,500 units
B)105,500 units
C)110,000 units
D)120,500 units

Question 77

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.

-Refer to the figure.What is the cost of ending work in process using the weighted average method?

A)$16,992
B)$21,312
C)$23,760
D)$28,760

Question 78

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%.
$\begin{array}{|l|c|l|}\hline{\text { Units: }} & \text { Units } &{\begin{array}{c}\text { \% Complete for } \\\text { Conversions }\end{array}} \\\hline \text { Work in process, } 7 / 1 & 60,000 & 15 \% \\\hline \text { Started } & 105,000 & \\\hline \text { Work in process, } 7 / 31 & 40,000 & 20 \%\\\hline & & \\\hline \text { Costs: } & & \\\hline & \text { Materials } & \text { Conversion } \\\hline \text { Beginning work in process } & \$ 16,500 & \$ 33,250 \\\hline \text { Current costs } & \$ 643,500 & \$ 332,500\\\hline \end{array}$

-Refer to the figure.What are the equivalent units for conversion?

A)100,000
B)125,000
C)133,000
D)165,000

Question 79

When computing equivalent units of production,what is the method that combines partially completed units in beginning inventory with current-period production?

A)the FIFO method
B)the LIFO method
C)the weighted average method
D)the specific identification method

Question 80

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%.
$\begin{array}{|l|c|l|}\hline{\text { Units: }} & \text { Units } &{\begin{array}{c}\text { \% Complete for } \\\text { Conversions }\end{array}} \\\hline \text { Work in process, } 7 / 1 & 60,000 & 15 \% \\\hline \text { Started } & 105,000 & \\\hline \text { Work in process, } 7 / 31 & 40,000 & 20 \%\\\hline & & \\\hline \text { Costs: } & & \\\hline & \text { Materials } & \text { Conversion } \\\hline \text { Beginning work in process } & \$ 16,500 & \$ 33,250 \\\hline \text { Current costs } & \$ 643,500 & \$ 332,500\\\hline \end{array}$

-Refer to the figure.What is the cost per unit for conversion?

A)$2.22
B)$2.50
C)$2.75
D)$2.79