Question 1

The following information is available for the month of August from the First department of the Twigg Corporation:  Materials are added at the end of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of August? Materials
Conversion

Accepted Answer

A) 192,000 160,000 
B) 160,000 192,000 
C) 160,000 208,000 
D) 240,000 192,000

Question 2

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows:  Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?

Accepted Answer

A) $7,154 
B) $6,200 
C) $7,750 
D) $6,417

Question 3

Material is added at the beginning of a process in a process costing system. The beginning work in process inventory for this process this period was 30 percent complete as to conversion costs. Using the first-in, first-out method of costing, the total equivalent units for material for this process during this period are equal to the:

Accepted Answer

A) Units started this period in this process. 
B) Beginning inventory this period for this process. 
C) Units started this period in this process plus the beginning inventory. 
D) Units started this period in this process plus 70 percent of the beginning inventory.

Question 4

Regina Manufacturing uses the FIFO method of process costing. The production report for the Curing Department, where the materials are added at the beginning of the period, for September was as follows:  The number of units started and completed during the period was:

Accepted Answer

A) 12,000 
B) 9,000 
C) 15,000 
D) 6,000

Question 5

The following information is available for the month of April from the First department of the Armque Corporation:  Materials are added in the beginning of the process in the First department. Using the first-in, first-out method, what are the equivalent units of production for the month of April?

Accepted Answer

The answer of The following information is available for the...

Question 6

If a company produces two products, A and B, from a joint process, and B requires additional processing after the split-off in order to be salable, how is the joint cost allocated to B determined?

Accepted Answer

A) The costs of the additional processing are ignored in allocating joint costs. 
B) The costs of the additional processing are subtracted from the joint costs allocated to B. 
C) The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B. 
D) None of these are correct.

Question 7

Joint costs are commonly allocated based upon relative:

Accepted Answer

A) Sales value. 
B) Marketing costs. 
C) Conversion costs. 
D) Prime costs.

Question 8

Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year, cost $300,000. Budde produced 15,000 gallons of X15, which sells for $40 per gallon and 45,000 gallons of Z24, which sells for $20 per gallon. Using the physical units method, how much of the joint cost should be allocated to X15?

Accepted Answer

A) $100,000 
B) $225,000 
C) $60,000 
D) $75,000

Question 9

In a process cost system, the cost attributable to abnormal losses that occur due to unexpected circumstances such as machine operator error should be assigned to:

Accepted Answer

A) Ending work in process inventory. 
B) Cost of goods manufactured and ending work in process inventory in the ratio of units worked on during the period to units remaining in work in process inventory. 
C) A separate loss account in order to highlight production inefficiencies 
D) Cost of good manufactured (transferred out)

Exam 6: Process Cost Accounting Additional Procedures

Regina Manufacturing uses the FIFO method of process costing. The production report for the Curing Department, where the materials are added at the beginning of the period, for September was as follows: The number of units started and completed during the period was:

The following information is available for the month of April from the First department of the Armque Corporation: Materials are added in the beginning of the process in the First department. Using the first-in, first-out method, what are the equivalent units of production for the month of April?

If a company produces two products, A and B, from a joint process, and B requires additional processing after the split-off in order to be salable, how is the joint cost allocated to B determined?

Joint costs are commonly allocated based upon relative:

In a process cost system, the cost attributable to abnormal losses that occur due to unexpected circumstances such as machine operator error should be assigned to: