Question 1

(Appendix 4A)Using the FIFO method,what are the equivalent units of production for conversion costs for May?

Accepted Answer

A)  85,600 units. 
B)  88,800 units. 
C)  95,200 units. 
D)  98,400 units.

Question 2

(Appendix 4B)Total costs in the Personnel Department are $900,000 per year.Under the step-down method,the costs of the Personnel Department are allocated before the costs of the Engineering Department are allocated.What would be the amount of Personnel Department cost that would be allocated to Producing Department 2 under the step method?

Accepted Answer

A)  $0. 
B)  $261,000. 
C)  $269,072. 
D)  $296,591.

Question 3

(Appendix 4A)Tarten Company uses the FIFO method in its process costing system.Operating data for the Curing Department for the month of March appear below:

According to the company's records,the conversion cost in beginning work-in-process inventory was $7,470 at the beginning of March.The cost per equivalent unit for conversion costs for March was $8.20.
How much conversion cost would be assigned to the units completed and transferred out of the department during March?

Accepted Answer

A)  $525,530. 
B)  $592,040. 
C)  $533,090. 
D)  $533,000.

Question 4

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

Accepted Answer

A) True 
 B)False

Question 5

(Appendix 4B)Grant Company has several service departments that provide services to each other as well as to operating departments within the company.Which method would be least accurate in allocating the company's service department costs?

Accepted Answer

A)  The sequential method. 
B)  The direct method. 
C)  The step-down method. 
D)  The reciprocal method.

Question 6

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:

Accepted Answer

A) True 
 B)False

Question 7

Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:

The company uses the weighted-average method in its process costing system.

Required:

a) Calculate the equivalent units and unit costs for February for materials and for conversion costs.
b) Determine the cost transferred to finished goods.
c) Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories.

Accepted Answer

The answer of Production and cost data for the month...

Question 8

The following data were taken from the accounting records of the Hazel Corporation,which uses the weighted-average method in its process costing system: What were the equivalent units of production for conversion costs?

Accepted Answer

A)  102,000 units. 
B)  112,000 units. 
C)  111,000 units. 
D)  100,000 units.

Question 9

(Appendix 4A)Under the FIFO process costing method,the equivalent units of production in the production report relate to work done only during the current period.

Accepted Answer

A) True 
 B)False

Question 10

(Appendix 4A)Using the FIFO method,the cost per equivalent unit of materials for May is closest to which of the following?

Accepted Answer

A)  $4.12. 
B)  $4.50. 
C)  $4.60. 
D)  $4.80.

Question 11

Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for conversion costs for the Refining Department for the month?

Accepted Answer

A)  119,100 units. 
B)  120,000 units. 
C)  114,000 units. 
D)  131,000 units.

Question 12

A manufacturer of blank DVDs would ordinarily use process costing rather than job-order costing.

Accepted Answer

A) True 
 B)False

Question 13

What are the equivalent units of production for materials for the month of May?

Accepted Answer

A)  60,000 units. 
B)  74,000 units. 
C)  64,000 units. 
D)  69,800 units.

Question 14

What total amount was debited to the Work-in-process inventory during the month of May?

Accepted Answer

A)  $522,560. 
B)  $609,600. 
C)  $1,042,040. 
D)  $1,132,160.

Question 15

(Appendix 4A)Index Company uses the FIFO method in its process costing system.The first processing department,the Forming Department,started the month with 17,000 units in its beginning work-in-process inventory; the units were 10% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $9,010.An additional 76,000 units were started into production during the month,and 83,000 units were completed and transferred to the next processing department.There were 10,000 units in the ending work-in-process inventory of the Forming Department; 70% of the units were complete with respect to conversion costs.A total of $445,915 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department's production report? (Round off to three decimal places.)

Accepted Answer

A)  $5.050. 
B)  $5.300. 
C)  $5.867. 
D)  $5.150.

Question 16

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

Accepted Answer

A) True 
 B)False

Question 17

Valley Manufacturing Company's beginning work-in-process inventory consisted of 10,000 units,100% complete with respect to materials cost and 40% complete with respect to conversion costs.The total cost in the beginning inventory was $30,000.During the month,50,000 units were transferred out.The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method.Given this information,what was the total cost of the units completed and transferred out?

Accepted Answer

A)  $255,000. 
B)  $270,000. 
C)  $240,000. 
D)  $285,000.

Question 18

(Appendix 4A)Using the FIFO method,what are the equivalent units of production for material for the month?

Accepted Answer

A)  50,000 units. 
B)  58,000 units. 
C)  54,000 units. 
D)  60,000 units.

Question 19

Eve Company uses the weighted-average method in its process costing system.The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process):

What unit cost (rounded to the nearest cent)was used in calculating the total cost of labour and overhead included in the Work-in-process inventory on September 1?

Accepted Answer

A)  0.27 
B)  0.31 
C)  1.78 
D)  2.73

Question 20

(Appendix 4B)Assume that the company uses the direct method of allocating Service Department costs to Operating Departments.How much Building & Grounds cost would be allocated to Operating Department A?

Accepted Answer

A)  $20,903. 
B)  $21,600. 
C)  $24,000. 
D)  $29,700.

Exam 4: Systems Design: Process Costing

(Appendix 4A) Using the FIFO method,what are the equivalent units of production for conversion costs for May?

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

(Appendix 4B) Grant Company has several service departments that provide services to each other as well as to operating departments within the company.Which method would be least accurate in allocating the company's service department costs?

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:

The following data were taken from the accounting records of the Hazel Corporation,which uses the weighted-average method in its process costing system: What were the equivalent units of production for conversion costs?

(Appendix 4A)Under the FIFO process costing method,the equivalent units of production in the production report relate to work done only during the current period.

(Appendix 4A) Using the FIFO method,the cost per equivalent unit of materials for May is closest to which of the following?

Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for conversion costs for the Refining Department for the month?

A manufacturer of blank DVDs would ordinarily use process costing rather than job-order costing.

What are the equivalent units of production for materials for the month of May?

What total amount was debited to the Work-in-process inventory during the month of May?

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

(Appendix 4A) Using the FIFO method,what are the equivalent units of production for material for the month?

(Appendix 4B) Assume that the company uses the direct method of allocating Service Department costs to Operating Departments.How much Building & Grounds cost would be allocated to Operating Department A?