Question 1

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. )

Accepted Answer

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

Question 2

Which of the following best describes transferred-in costs in process costing?

Accepted Answer

A) These costs are incurred in previous departments that are carried forward to subsequent departments. 
B) These costs are transferred in to the company by an external vendor. 
C) These costs are incurred in transferring raw materials and labor from the place of availability to the factory. 
D) These costs cannot be controlled by an organization as they are transferred to the organization from the market participants.

Question 3

Weighted-average cost per equivalent unit is obtained by dividing the sum of costs for beginning work in process plus costs for work done in the current period by total equivalent units of work done to date.

Accepted Answer

A) True 
 B)False

Question 4

Ford Motor Company is said to use a hybrid costing system.What is a hybrid costing system,and what would be the advantage to Ford of such a system?

Accepted Answer

The answer of Ford Motor Company is said to use...

Question 5

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. )

Accepted Answer

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

Question 6

In companies that produce masses of identical or similar units of output and consequently use process-costing systems,it is relatively easy to set standards and use a standard cost as the cost per equivalent unit.

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

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

Question 8

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

Accepted Answer

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 9

The weighted-average method merges unit costs from different accounting periods,obscuring period-to-period comparisons.

Accepted Answer

A) True 
 B)False

Exam 17: Process Costing

Which of the following best describes transferred-in costs in process costing?

Weighted-average cost per equivalent unit is obtained by dividing the sum of costs for beginning work in process plus costs for work done in the current period by total equivalent units of work done to date.

Ford Motor Company is said to use a hybrid costing system.What is a hybrid costing system,and what would be the advantage to Ford of such a system?

In companies that produce masses of identical or similar units of output and consequently use process-costing systems,it is relatively easy to set standards and use a standard cost as the cost per equivalent unit.

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

The weighted-average method merges unit costs from different accounting periods,obscuring period-to-period comparisons.