Deck 17: Process Costing

Question 1

Which of the following most accurately describes the contrast between process and job costing?

A)In process costing,they include all the factors of production but job costing includes only materials and labor
B)job costing includes materials,labor and overhead while process costing only considers conversion costs
C)the main difference is the extent of averaging used to compute the unit costs
D)job costing measures the variable cost of identical jobs while process costing measures the cost of identical products using average units costs of materials and conversion costs,some of which are fixed costs

Answer 1

C

Question 2

Describe the differences between process costing and job costing.Discuss some typical products which would be more likely to use process costing as compared to some which would be more likely to use job costing.

Answer 2

When products are unique,job costing is a more appropriate method to use in collecting costs and making decisions regarding price levels,.In a job-costing system,individual jobs require differing levels of resources.Each job is treated separately and the resources used to complete the job have to be calculated separately.Construction jobs are most likely to use job costing because of their unique specifications.
In a process-costing system,the units produced as output are very similar to one another.As a result,the means by which the raw material is converted to a finished product is common among all of the products.This allows the conversion costs to be summed up and divided by the total number of units for an accurate conversion cost on a unit by unit basis.Some typical types of products which are likely to use process costing are oil refineries,ice cream,various food preparation industries,etc.This is because the raw material is processed in a similar manner for all of the units produced.

Question 3

Which if the following are not conversion costs?

A)the cost of direct laborers who assemble the parts of an automobile
B)the cost of tires on an automobile
C)the cost of depreciation on an automobile assembly plant
D)the cost of electricity to run the tools in the automobile assembly plant

Answer 3

B

Question 4

Which of the following is the costing system used for mass produced like or similar units of products?

A)inventory-costing systems
B)job-costing systems
C)process-costing systems
D)weighted-average costing systems

Question 5

Vital Industries manufactured 2400 units of its product Huge in the month of April.It incurred a total cost of $132,000 during the month.Out of this $132,000,$45,700 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process.Ryan had no opening or closing inventory.What will be the total cost per unit of the product,assuming conversion costs contained $10,000 of indirect labor?

A)$55
B)$50
C)$39
D)$35

Question 6

Process costing would most likely be used to assign costs to products produced by which of these companies?

A)Jones Flour Mill
B)Riley Automobile Dealer
C)Big Time Yacht Corporation
D)Sullivan and Murphy Law Firm LLC

Question 7

Why do we need to accumulate and calculate unit costs in process costing (and also job costing)?

Question 8

Which of the following statements is true?

A)In a job-costing system,average production cost is calculated for all units produced.
B)In a process-costing system,each unit uses approximately the same amount of resources.
C)In a job-costing system,overheads are allocated to all units equally.
D)In a process-costing system,individual jobs use different quantities of production resources.

Question 9

Which of the following statements best describes conversion costs?

A)Conversion costs are all manufacturing and nonmanufacturing costs.
B)Conversion costs are all manufacturing costs other than direct materials costs.
C)Conversion costs are all nonmanufacturing costs including marketing costs.
D)Conversion costs are all nonmanufacturing costs other than fixed selling and distribution costs.

Question 10

In a process-costing system average unit costs are calculated ________.

A)by dividing total costs in a given accounting period by total units produced in that period
B)by multiplying total costs in a given accounting period by total units produced in that period
C)by dividing total costs in a given accounting period by units started in that period
D)by multiplying total costs in a given accounting period by units started in that period

Question 11

If manufacturing labor costs are added to the process at a different time compared to other conversion costs,an additional cost category-direct manufacturing labor costs-would be needed to assign these costs to products.

Question 12

Conversion costs include direct materials and direct labor but excludes all other manufacturing and non-manufacturing costs.

Question 13

There are basically two distinct methods of calculating product costs.
Required:
Compare and contrast the two methods.

Question 14

The principal difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services.

Question 15

If two different direct materials-such as the circuit board and microphone-are added to the process at different times,a company will need two different direct-materials categories to assign direct materials cost.

Question 16

Estimating the degree of completion for the calculation of equivalent units is usually easier for conversion costs than it is for direct materials.

Question 17

Job-costing and process-costing are mutually exclusive,hence a hybrid costing system that combines elements of both job and process costing cannot be used.

Question 18

Which of the following companies is most likely to use process costing?

A)Crimpson Color,a company selling customized garments for niche customers
B)Effel & Associates,a consulting firm providing various audit and related services
C)Dental Bright Inc. ,a company manufacturing and selling toothpaste on a large scale
D)Grimpy Corp. ,a company manufacturing furniture for customers as per their requirements

Question 19

Job-costing systems separate costs into cost categories according to when costs are introduced into the process of manufacture.

Question 20

The president of the Gulf Coast Refining Corporation wants to know why his golfing partner,who is the chief financial officer of a large construction company,calculates his costs by the job,but his own corporation calculates costs by large units rather than by individual barrel of oil.

Question 21

The accuracy of the completion estimate of conversion costs depends on the care,skill,and experience of the estimator and also the nature of the conversion process.

Question 22

The purpose of the equivalent-unit computation is to ________.

A)convert completed units into the amount of partially completed output units that could be made with that quantity of input
B)use a common metric to estimate the amount of work done on units in a period
C)predict the future production capabilities of the organization
D)satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units

Question 23

Dessa Cabinetry,Inc. ,manufactures standard sized modular cabinet units for kitchens and other applications within the home.Its costing system utilizes two cost categories,direct materials and conversion costs.Each product must pass through the rough cut department and the finish department.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.
Data for Finishing Department for March 2017 are:

Costs for Finishing Department for March 2017 are:

How many units were completed and transferred out of the Finishing Department during March?

A)1000 units
B)1800 units
C)2300 units
D)2660 units

Question 24

The last step in a process-costing system is to compute cost per equivalent unit.

Question 25

Stefan Ceramics is in the business of selling ceramic vases.It has two departments - molding and finishing.Molding department purchases tungsten carbide and produces ceramic vases out of it.Ceramic Vases are then transferred to finishing department,which designs it as per the requirement of the customers.
During the month of July,molding department purchased 500 kgs of tungsten carbide at $60 per kg.It started manufacture of 4000 vases and completed and transferred 3900 vases during the month.It has 100 vases in the process at the end of the month.It incurred direct labor charges of $1400 and other manufacturing costs of $600,which included electricity costs of $500.Stefan had no inventory of tungsten carbide at the end of the month.It also had no beginning inventory of vases.The ending inventory was 55% complete in respect of conversion costs.
Which of the following journal entries would be correct to record direct labor for July?

Question 26

Underestimating the degree of completion of ending work in process leads to increase in operating income.

Question 27

Dessa Cabinetry,Inc. ,manufactures standard sized modular cabinet units for kitchens and other applications within the home.Its costing system utilizes two cost categories,direct materials and conversion costs.Each product must pass through the rough cut department and the finish department.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.
Data for Finishing Department for March 2017 are:

Costs for Finishing Department for March 2017 are:

What is the unit cost per equivalent unit of the beginning inventory in the Finishing Department? (Round the final answer to the nearest whole dollar. )

A)$240
B)$300
C)$988
D)$1228

Question 28

When a Bakery transfers goods from the Mixing Department to the Baking Department,the accounting entry would be ________.

A)Debit: Work in Process - Mixing Department
B)Debit: Work in Process - Baking Department
C)Debt: Work in Process - Baking Department
D)Debt: Work in Process - Mixing Department

Question 29

Charlie Chairs Inc. ,manufactures plastic moldings for car seats.Its costing system utilizes two cost categories,direct materials and conversion costs.Each product must pass through Department A and Department B.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.
Data for Department A for February 2017 are:

Costs for Department A for February 2017 are:

How many units were completed and transferred out of Department A during February?

A)440 units
B)800 units
C)760 units
D)1000 units

Question 30

Stefan Ceramics is in the business of selling ceramic vases.It has two departments - molding and finishing.Molding department purchases tungsten carbide and produces ceramic vases out of it.Ceramic Vases are then transferred to finishing department,which designs it as per the requirement of the customers.
During the month of July,molding department purchased 720 kgs of tungsten carbide at $280 per kg.It started manufacture of 4200 vases and completed and transferred 3800 vases during the month.It has 400 vases in the process at the end of the month.It incurred direct labor charges of $1500 and other manufacturing costs of $1300,which included electricity costs of $300.Stefan had no inventory of tungsten carbide at the end of the month.It also had no beginning inventory of vases.The ending inventory was 50% complete in respect of conversion costs.
Which of the following journal entry would record the tungsten carbide purchased and used in production during July?

Question 31

When a company has no opening or ending inventory during the month,the cost per unit is calculated by dividing the total costs incurred in the period by the total units produced during the period.

Question 32

Stefan Ceramics is in the business of selling ceramic vases.It has two departments - molding and finishing.Molding department purchases tungsten carbide and produces ceramic vases out of it.Ceramic Vases are then transferred to finishing department,which designs it as per the requirement of the customers.
During the month of July,molding department purchased 720 kgs of tungsten carbide at $280 per kg.It started manufacture of 4200 vases and completed and transferred 3200 vases during the month.It has 1000 vases in the process at the end of the month.It incurred direct labor charges of $1900 and other manufacturing costs of $500,which included electricity costs of $900.Stefan had no inventory of tungsten carbide at the end of the month.It also had no beginning inventory of vases.The ending inventory was 45% complete in respect of conversion costs.What is the cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing department for the month of July?

A)$201,600
B)$156,900
C)$189,280
D)$153,600

Question 33

Which of the following statements is true of conversion costs?

A)Estimating the degree of completion is usually easier for direct material costs than for conversion costs.
B)The calculation of equivalent units is relatively easy for the textile industry.
C)The conversion cost needed for a completed unit and the conversion cost in a partially completed unit can be measured accurately.
D)If conversion costs are added evenly during the assembly we can conclude that there are more than one indirect-cost category.

Question 34

Stefan Ceramics is in the business of selling ceramic vases.It has two departments - molding and finishing.Molding department purchases tungsten carbide and produces ceramic vases out of it.Ceramic Vases are then transferred to finishing department,which designs it as per the requirement of the customers.
During the month of July,molding department purchased 720 kgs of tungsten carbide at $280 per kg.It started manufacture of 4200 vases and completed and transferred 3800 vases during the month.It has 400 vases in the process at the end of the month.It incurred direct labor charges of $1700 and other manufacturing costs of $600,which included electricity costs of $700.Stefan had no inventory of tungsten carbide at the end of the month.It also had no beginning inventory of vases.The ending inventory was 40% complete in respect of conversion costs.What is the total conversion costs for the month of July?

A)$3000
B)$2300
C)$1600
D)$1700

Question 35

Which of the following is true regarding estimates of completion of units in a process costing system?

A)estimating the degree of completion with regards to conversion costs is more of a science than an art
B)estimating the degree of completion with regards to conversion costs is usually easier and more accurate than estimating the degree of completion with regards to direct materials
C)estimating the degree of completion with regards to direct materials is usually easier and more accurate than estimating the degree of completion with regards to conversion costs
D)when estimating degree of completion,the degree of completion with regards to conversion costs is usually a portion similar to the degree of completion with regards to direct materials

Question 36

Serile Pharma places 800 units in production during the month of January.All 800 units are completed during the month.It had no opening inventory.Direct material costs added during January was $74,000 and conversion costs added during January was $8400.What is the total cost per unit of the product produced during January?

A)$103
B)$10
C)$80
D)$93

Question 37

Charlie Chairs Inc. ,manufactures plastic moldings for car seats.Its costing system utilizes two cost categories,direct materials and conversion costs.Each product must pass through Department A and Department B.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.
Data for Department A for February 2017 are:

Costs for Department A for February 2017 are:

What is the unit cost per equivalent unit of beginning inventory in Department A? (Round the final answer to the nearest whole dollar. )

A)$750
B)$2717
C)$3735
D)$4217

Question 38

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

A)Debit: Work in Process-Assembly
B)Debit: Accounts Payable Control
C)Debit: Work in Process-Assembly
D)Debit: Accounts Payable Control

Question 39

Equivalent units is a derived measure of output calculated by converting the quantity of inputs into the amount of completed output that could be produced with that quantity of input.

Question 40

In a process-costing system,there is always a separate Work-in-Process account for each different process.or department in the process.

Question 41

The accounting entry to record the conversion cost of the Assembly Department is:
Work in Process-Assembly Department

Question 42

In the computation of the cost per equivalent unit,the weighted-average method of process costing considers all the costs ________.

A)entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period
B)that have entered work in process from the units started or transferred in during the current accounting period
C)that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory
D)that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory

Question 43

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What are the equivalent units for direct materials and conversion costs,respectively,for June? (Round final answers to the nearest unit. )

A)1340 units;1050 units
B)1340 units;1290 units
C)1220 units;1220 units
D)1248 units;1120 units

Question 44

The Esther Valve Corporation was recently formed to produce a brass valve that forms an essential part of a compressor manufactured by a major corporation.The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process.September is Parson's first month of operations,and therefore,there was no beginning inventory.Direct materials cost for the month totaled $2,800,000,while conversion costs equaled $3,600,000.Accounting records indicate that 1,600,000 valves were started in September and 1,400,000 valves were completed.
Ending inventory was 20% complete as to conversion costs.
Required:
a.What is the total manufacturing cost per valve for September?
b.Allocate the total costs between the completed valves and the valves in ending inventory.

Question 45

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What is the total amount debited to the Work-in-Process account during the month of June?

A)$229,500
B)$1,006,000
C)$1,144,000
D)$1,235,500

Question 46

The weighted-average process-costing method calculates the equivalent units by ________.

A)considering only the work done during the current period
B)the units started during the current period minus the units in ending inventory
C)the units started during the current period plus the units in ending inventory
D)the equivalent units completed during the current period plus the equivalent units in ending inventory

Question 47

Sodius Chemical Inc.placed 220,000 liters of direct materials into the mixing process.At the end of the month,5,000 liters were still in process,30% converted as to labor and factory overhead.All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process.Sodius uses weighted-average costing.
Required:
a.Determine the equivalent units in process for direct materials and conversion costs,assuming there was no beginning inventory.
b.Determine the equivalent units in process for direct materials and conversion costs,assuming that 12,000 liters of chemicals were 40% complete prior to the addition of the 220,000 liters.

Question 48

Jordana Woolens is a manufacturer of wool cloth.The information for March is as follows:

Beginning work in process was half converted as to labor and overhead.Direct materials are added at the beginning of the process.All conversion costs are incurred evenly throughout the process.Ending work in process was 60% complete.
Required:
Prepare a production cost worksheet using the weighted-average method.Include any necessary supporting schedules.

Question 49

Which of the following is not true of the weighted-average process-costing method?

A)the method calculates the cost per equivalent unit of all work done to date regardless of the accounting period in which the work was done
B)the costs in work in process (beginning work in process)when the period starts are not considered when calculating the weighted-average cost per equivalent unit
C)the weighted-average cost is the total of all costs entering the Work in Process account divided by the total equivalent units in ending work-in-process inventory
D)the costs to account for are equal to the beginning work in process plus the costs added to work in process during the same period

Question 50

Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month.These units were 45% complete.It has 300 units which are 25% complete at the end of the month.During the month,it completed and transferred 600 units.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Zahra uses weighted-average process-costing method.What is the number of equivalent units of work done during the month with regards to direct materials?

A)700 units
B)1100 units
C)900 units
D)600 units

Question 51

When calculating the equivalent units,we should only focus on dollar amounts of inventory.

Question 52

Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month.These units were 45% complete.It has 200 units which are 20% complete at the end of the month.During the month,it completed and transferred 500 units.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Zahra uses weighted-average process-costing method.What is the total equivalent units in ending inventory for assignment of direct materials cost?

A)100 units
B)40 units
C)160 units
D)200 units

Question 53

A production cost worksheet is used to summarize total costs to account for,compute cost per equivalent unit,and assign total costs to units completed and to units in ending work-in-process.

Question 54

Bright Colors Company placed 315,000 gallons of direct materials into the mixing process.All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process.Bright Colors uses weighted-average costing.The initial forecast for the end of the month was to have 75,000 gallons still in process,15% converted as to labor and factory overhead.
Required:
a.Determine the total equivalent units (in process and transferred out)for direct materials and for conversion costs,assuming there was no beginning inventory.
b.With the installation of a new paint processing filtration device,the forecast for the end of the month was to have 50,000 gallons still in process,70% converted as to labor and factory overhead.In this event,determine the equivalent units (in process and transferred out)for direct materials and for conversion costs,assuming there was no beginning inventory.

Question 55

Marv and Vicki own and operate a vegetable canning plant.In recent years,their business has grown tremendously and,at any point in time,they may have 30 to 35 different vegetables being processed.Also,during the peak summer months there are several thousand bushels of vegetables in some stage of processing at any one time.With the company's growth during the past few years,the owners decided to employ an accountant to provide cost estimations on each vegetable category and prepare monthly financial statements.Although the accountant is doing exactly as instructed,Marv and Vicki are confused about the monthly operating costs.Although they process an average of 50,000 canned units a month,the monthly production report fluctuates wildly.
Required:
Explain how the production report can fluctuate wildly if they process a constant amount of vegetables each month.

Question 56

Under the weighted-average method,how would you calculate the cost per equivalent units with regards to conversion costs?

A)conversion costs for work done in the current period/units completed and transferred out in the current period
B)(total conversion costs in beginning work in process)/(units completed and transferred out during the period + equivalent units in ending inventory)
C)(total conversion costs in beginning work in process + conversion cost for work done in the current period)/(units completed and transferred out during the period + equivalent units in ending inventory)
D)(total direct labor costs in beginning work in process + conversion cost for work done in the current period)/(units completed and transferred out during the period + equivalent units in ending inventory)

Question 57

Big Bernard Corporation was recently formed to produce a semiconductor chip that forms an essential part of the personal computer manufactured by a major corporation.The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process.June is Big Bernard's first month of operations,and therefore,there was no beginning inventory.Direct materials cost for the month totaled $950,000,while conversion costs equaled $4,625,000.Accounting records indicate that 475,000 chips were started in June and 425,000 chips were completed.
Ending inventory was 50% complete as to conversion costs.
Required:
a.What is the total manufacturing cost per chip for June?
b.Allocate the total costs between the completed chips and the chips in ending inventory.

Question 58

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What is the direct materials cost per equivalent unit during June?

A)$679.51
B)$519.40
C)$504.71
D)$409.86

Question 59

List and describe the five steps in process costing.

Question 60

Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month.These units were 45% complete.It has 300 units which are 35% complete at the end of the month.During the month,it completed and transferred 500 units.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Zahra uses weighted-average process-costing method.Calculate the total equivalent units in ending inventory for assignment of conversion costs?

A)200 units
B)105 units
C)195 units
D)300 units

Question 61

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the total amount debited to the Work-in-Process account during the month of March?

A)$2,540,500
B)$2,194,000
C)$1,831,000
D)$707,000

Question 62

An assumption of the FIFO process-costing method is that ________.

A)the units in beginning inventory are not necessarily assumed to be completed by the end of the period
B)the units in beginning inventory are assumed to be completed first
C)ending inventory will always be completed in the next accounting period
D)no calculation of conversion costs is possible

Question 63

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What amount of conversion costs is assigned to the ending Work-in-Process account for March?
(Round intermediary dollar amounts to the nearest cent and unit amounts to the nearest whole unit. )

A)$182,343
B)$122,792
C)$109,406
D)$270,629

Question 64

The Swivel Chair Company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 145,000 chairs.During the month,the firm completed 183,000 chairs and transferred them to the Finishing Department.The firm ended the month with 24,000 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle.Weighted-average costing is used by Swivel.Of the 145,000 units Swivel started during February,how many were finished during the month?

A)183,500
B)218,200
C)121,000
D)217,000

Question 65

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What is the conversion cost per equivalent unit in June?

A)$482.99
B)$659.27
C)$387.14
D)$354.51

Question 66

The Swivel Chair Company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 147,000 chairs.During the month,the firm completed 180,000 chairs and transferred them to the Finishing Department.The firm ended the month with 21,000 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle.Weighted-average costing is used by Swivel.How many chairs were in inventory at the beginning of the month? Conversion costs are incurred uniformly over the production cycle.

A)42,000 chairs
B)21,000 chairs
C)39,900 chairs
D)54,000 chairs

Question 67

Comfort chair company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 73,100 chairs.During the month,the firm completed 78,000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10,800 chairs in ending inventory.There were 15,700 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Comfort.Beginning work in process was 30% complete as to conversion costs,while ending work in process was 75% complete as to conversion costs.
Beginning inventory:

Manufacturing costs added during the accounting period:

What were the equivalent units for conversion costs during February?

A)81,390
B)83,900
C)73,100
D)77,810

Question 68

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What amount of conversion costs is assigned to the ending Work-in-Process account for June? (Round any intermediary calculations to the nearest cent. )

A)$81,588.24
B)$46,709.60
C)$289.71
D)$404,000.00

Question 69

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the conversion cost per equivalent unit in March? (Round to the nearest cent)

A)$940.83
B)$1321.81
C)$1310.28
D)$1000.89

Question 70

A distinct feature of the FIFO process-costing method is that the ________.

A)work done on beginning inventory before the current period is blended with the work done during the current period in the calculation of equivalent units
B)work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units
C)work done on ending inventory is kept separate from the work done during the current period in the calculation of equivalent units and is usually not included in the calculation
D)FIFO process-costing method is only minimally different from the weighted-average process-costing method

Question 71

The Swivel Chair Company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 145,000 chairs.During the month,the firm completed 184,000 chairs and transferred them to the Finishing Department.The firm ended the month with 19,000 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle.Weighted-average costing is used by Swivel.What were the equivalent units for materials for February?

A)203,000 chairs
B)184,000 chairs
C)164,000 chairs
D)191,250 chairs

Question 72

Comfort chair company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 73,700 chairs.During the month,the firm completed 78,500 chairs,and transferred them to the Finishing Department.The firm ended the month with 11,200 chairs in ending inventory.There were 16,000 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Comfort.Beginning work in process was 20% complete as to conversion costs,while ending work in process was 80% complete as to conversion costs.
Beginning inventory:

Manufacturing costs added during the accounting period:

What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of February?
(Round intermediary calculations to the nearest cent. )

A)$21,760
B)$25,536
C)$27,200
D)$28,800

Question 73

Which of the following steps are part of the first-in,first-out (FIFO)process-costing method?

A)assignment of costs of the current period's equivalent units to the first units completed and transferred out of the process
B)assumes as part of its first step that the most recently worked on units are completed and transferred out first
C)assumes as part of its first step that there is no beginning work-in-process
D)assignment of costs of the previous period's equivalent units in beginning work-in-process inventory to the first units completed and transferred out of the process

Question 74

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What are the equivalent units for direct materials and conversion costs,respectively,for March?

A)1230 units;1230 units
B)1180 units;1230 units
C)1230 units;1180 units
D)1130 units;1180 units

Question 75

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What amount of direct materials costs is assigned to the ending Work-in-Process account for March?
(Round intermediary calculations to the nearest whole dollar. )

A)$47,931
B)$96,621
C)$104,632
D)$144,480

Question 76

Comfort chair company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 73,900 chairs.During the month,the firm completed 78,400 chairs,and transferred them to the Finishing Department.The firm ended the month with 11,200 chairs in ending inventory.There were 15,700 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Comfort.Beginning work in process was 25% complete as to conversion costs,while ending work in process was 70% complete as to conversion costs.
Beginning inventory:

Manufacturing costs added during the accounting period:

How many of the units that were started and completed during February?

A)85,100
B)78,400
C)73,900
D)62,700

Question 77

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What amount of direct materials costs is assigned to the ending Work-in-Process account for June?
(Round intermediary calculations to the nearest whole dollar. )

A)$108,000
B)$77,389
C)$108,076
D)$55,779

Question 78

The Swivel Chair Company manufacturers a standard recliner.During February,the firm's Assembly Department started production of 155,000 chairs.During the month,the firm completed 185,000 chairs and transferred them to the Finishing Department.The firm ended the month with 18,000 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle.Weighted-average costing is used by Swivel.What were the equivalent units for conversion costs for February if the beginning inventory was 70% complete as to conversion costs and the ending inventory was 45% complete as to conversion costs?

A)193,100
B)163,100
C)185,000
D)171,200

Question 79

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)

A)$903
B)$857
C)$575
D)$281

Question 80

Weighty Steel processes a single type of steel.For the current period the following information is given:

All materials are added at the beginning of the production process.The beginning inventory was 50% complete as to conversion,while the ending inventory was 25% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period? (Round intermediary dollar amounts to the nearest cent and total costs to the nearest whole dollar. )

A)$91,200
B)$115,050
C)$112,761
D)$121,600