1.

(Points: 5) The "costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of units transferred out.

a. a. TRUE b. b. FALSE<br/><br/>

Save Answer 2. (Points: 5) In order to use process costing, the output of a processing department should be homogeneous.

a. a. TRUE b. b. FALSE<br/><br/>

Save Answer 3. (Points: 5) The following journal entry would be made in a processing costing system when units that have been completed in the final processing department are transferred to the finished goods warehouse:

a. a. TRUE b. b. FALSE<br/><br/>

Save Answer 4. (Points: 5)

Chabud Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:

A total of 8,100 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 70% complete with respect to materials and 40% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for materials for the month in the first processing department is closest to:

a. b. c. d.

a. $16.72 b. $18.15 c. $17.52 d. $17.33

Save Answer 5. (Points: 5) Raulot Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

The Molding Department's cost per equivalent unit for conversion cost for January was $1.72. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

a. b. c. d.

a. $5,332.00 b. $2,528.40 c. $3,199.20 d. $2,132.80

Save Answer 6. (Points: 5) Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows:

What was the materials cost of work in process at October 31?

a. b. c. d.

a. $3,060 b. $5,520 c. $6,000 d. $6,120

Save Answer 7. (Points: 5) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is:

a. b. c. d.

a. the same as the number of units put into production. b. less than the number of units put into production. c. the same as the number of units completed. d. less than the number of units completed.

Save Answer 8. (Points: 5) A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows:

A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. The cost of the work in process inventory in the Finishing Department at the end of May was:

a. b. c. d.

a. $7,600 b. $10,000 c. $2,500 d. $4,000

Save Answer 9. (Points: 5) Sumter Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

How many units were started into production during the month?

a. b. c. d.

a. 68,000 units b. 84,000 units c. 72,000 units d. 56,000 units

Save Answer 10. (Points: 5) The Morgan Company uses the weighted-average method in its process costing system. For a particular department, the company had 54,000 equivalent units with respect to conversion costs in March. There were 7,500 units in the department's beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The ending work in process inventory in the department:

a. b. c. d.

a. consisted of 5,000 units. b. consisted of 2,500 units. c. was 65% complete with respect to conversion costs. d. was 40% complete with respect to conversion costs.

Save Answer 11. (Points: 5) Process costing would be appropriate for each of the following except:

a. b. c. d.

a. custom furniture manufacturing. b. oil refining. c. grain milling. d. newsprint production.

Save Answer 12. (Points: 5) Abis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

A total of 9,200 units were started and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

a. b. c. d.

a. $40.77 b. $33.24 c. $38.83 d. $37.68

Save Answer 13. (Points: 5) Park Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $40,484 and a total of $213,890 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

a. b. c. d.

a. $4.823 b. $4.186 c. $4.650 d. $4.590

Save Answer 14. (Points: 5) Hanson Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $90,780. An additional 84,000 units were started into production during the month and 82,000 units were completed in the Welding Department and transferred to the next processing department. There were 19,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $690,780 in conversion costs were incurred in the department during the month.

The cost per equivalent unit for conversion costs is closest to:

a. b. c. d.

a. $6.707 b. $8.224 c. $8.900 d. $8.723

Save Answer 15. (Points: 5) Sala Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March.

The Fitting Department's cost per equivalent unit for conversion cost for March was $2.64. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

a. b. c. d.

a. $118,800.00 b. $131,472.00 c. $126,508.80 d. $143,616.00

Save Answer 16. (Points: 5) Dewey Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 15,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,200. An additional 86,000 units were started into production during the month. There were 13,000 units in the

ending work in process inventory of the Welding Department that were 60% complete with respect to conversion costs. A total of $575,360 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to:

a. b. c. d.

a. $5.812 b. $6.206 c. $6.400 d. $6.690

Save Answer 17. (Points: 5) A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows:

A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. The cost of the units transferred to the Finishing Department during May was:

a. b. c. d.

a. $50,000 b. $40,000 c. $53,000 d. $42,400

Save Answer 18. (Points: 5) Chabud Corporation uses the weighted-average method in its process costing system. This

month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:

A total of 8,100 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 70% complete with respect to materials and 40% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. What are the equivalent units for conversion costs for the month in the first processing department?

a. b. c. d.

a. 8,600 b. 7,820 c. 7,300 d. 520

Save Answer 19. (Points: 5) Bosril Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

A total of 5,600 units were started and 4,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 85% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. What are the equivalent units for conversion costs for the month in the first processing department?

a. b. c. d.

a. 6,000 b. 5,395 c. 4,900 d. 495

Save Answer 20. (Points: 5) The Richmond Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:

a. b. c. d.

a. $126,000 b. $75,600 c. $80,100 d. $95,400

Save Answer