Question 1

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

Accepted Answer

A) Units started 
B) Ending units in inventory 
C) Cost of goods sold 
D) Units completed 
A) Units started 
B) Ending units in inventory 
C) Cost of goods sold 
D) Units completed C

Question 2

Kenney Co.uses process costing to account for the production of canned energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 19,200 units for materials and 16,000 units for conversion costs.Beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs.April costs were $57,600 for materials and $64,000 for conversion costs.Ending inventory still in process was 6,400 units (100% complete for materials,50% for conversion).The cost per equivalent unit for conversion costs using the weighted average method would be:

Accepted Answer

A) $4.00 
B) $4.40 
C) $1.10 
D) $8.70 
A) $4.00 
B) $4.40 
C) $1.10 
D) $8.70 B

Question 3

Kramer Corp.began the period with 5,200 units in process that were 100% complete for materials and 60% complete for conversion,and ended the period with 26,000 units completed and 6,500 units still in process.Work in process was 100% complete for materials and 70% complete for conversion costs.
Required:
Using the weighted average method,compute the equivalent units of production for materials and conversion for the period.

Accepted Answer

Equivalent Units = Physical Units × Percentage of Completion.

Question 4

Trout,Inc.prepared the following production report:
   Additional information: Trout adds direct materials at the beginning of the process,while conversion costs are incurred uniformly throughout the process.At the beginning of the period,Work in Process Inventory was 40% complete.At the end of the period,Work in Process Inventory was 70% complete.
Required:
Fill in the missing amounts.

Accepted Answer

a.4,000 = 7,000 − 3,000
b.2,000 = 2,000

Question 5

Rowen,Inc.adds direct materials at the beginning of the process,while conversion costs are incurred uniformly throughout the process.At the beginning of the period,Work in Process Inventory was 50% complete.At the end of the period,Work in Process Inventory was 60% complete.Rowen,Inc.started the following production report:
   Required:
Complete the production report by filling in the missing amounts.

Accepted Answer

a.6,000 = 18,000 − 12,000
b.18,000 = 18,

Question 6

To determine how much cost should be assigned to ending Work in Process Inventory:

Accepted Answer

A) multiply costs per equivalent unit by the number of equivalent units associated with units completed. 
B) multiply costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory. 
C) subtract cost of beginning inventory from current period costs. 
D) add cost of beginning inventory and current period costs. 
A) multiply costs per equivalent unit by the number of equivalent units associated with units completed. 
B) multiply costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory. 
C) subtract cost of beginning inventory from current period costs. 
D) add cost of beginning inventory and current period costs.

Question 7

Under process costing,which manufacturing costs are assigned to the product as it moves from one manufacturing process to the next?

Accepted Answer

A) Direct materials,direct labor,and conversion costs 
B) Direct materials,indirect materials,and manufacturing overhead 
C) Direct materials,direct labor,and manufacturing overhead 
D) Direct materials,direct labor,and indirect labor 
A) Direct materials,direct labor,and conversion costs 
B) Direct materials,indirect materials,and manufacturing overhead 
C) Direct materials,direct labor,and manufacturing overhead 
D) Direct materials,direct labor,and indirect labor

Question 8

South Corp.uses a FIFO process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,000 units that were 40% completed.10,000 units were started into the process during January.On January 31,the inventory consisted of 500 units that were 70% completed.How many units were started and completed during the period?

Accepted Answer

A) 9,500 
B) 10,500 
C) 11,000 
D) 11,500 
A) 9,500 
B) 10,500 
C) 11,000 
D) 11,500

Question 9

A firm using process costing needs to reconcile the number of physical units in order to:

Accepted Answer

A) account for units that have different percentages of completion. 
B) determine the number of units that were started during the period. 
C) reconcile beginning Work in Process Inventory with ending Work in Process Inventory. 
D) separate physical units from the equivalent units. 
A) account for units that have different percentages of completion. 
B) determine the number of units that were started during the period. 
C) reconcile beginning Work in Process Inventory with ending Work in Process Inventory. 
D) separate physical units from the equivalent units.

Question 10

James Co.uses process costing to account for the production of bottled energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 10,000 units for materials and 9,000 units for conversion costs.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $41,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,75% for conversion).The value of units completed and transferred out using the weighted average method would be closest to:

Accepted Answer

A) $37,200.00 
B) $55,800.00 
C) $76,000.00 
D) $79,833.00 
A) $37,200.00 
B) $55,800.00 
C) $76,000.00 
D) $79,833.00

Question 11

Under the weighted average method of process costing,which of the following formulas is used to calculate the cost per equivalent unit?

Accepted Answer

A) (Ending Inventory + Current Costs)/Physical Units 
B) (Beginning Inventory + Current Costs)/Physical Units 
C) (Ending Inventory + Current Costs)/Equivalent Units 
D) (Beginning Inventory + Current Costs)/Equivalent Units 
A) (Ending Inventory + Current Costs)/Physical Units 
B) (Beginning Inventory + Current Costs)/Physical Units 
C) (Ending Inventory + Current Costs)/Equivalent Units 
D) (Beginning Inventory + Current Costs)/Equivalent Units

Question 12

For Salcido,Inc. ,the value of beginning Work in Process Inventory was $100,000,25% of which was direct materials cost.During the period,Salcido completed work on 42,500 units,only completed 80% of the work on another 10,000 units,and incurred $80,000 in direct materials cost and $177,500 in conversion costs.Salcido adds direct materials at the beginning of their production process,and incurs conversion costs evenly throughout the process.
Required:
Calculate the following using the weighted average method for process costing.
a.Equivalent units for direct materials
b.Equivalent units for conversion costs
c.Cost per equivalent unit for direct materials
d.Cost per equivalent unit for conversion costs
e.Cost assigned to ending Work in Process Inventory
f.Cost assigned to goods completed and transferred out

Accepted Answer

a.52,500 = (42,500 × 100%)+ (10,000 × 10

Question 13

The production report contains information about the number of physical units and equivalent units,but not their costs.

Accepted Answer

A) True 
 B)False

Question 14

Hager Co.uses process costing to account for the production of bottled energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion).The value of units completed and transferred out using the weighted average method would be closest to:

Accepted Answer

A) $63,866.40 
B) $65,000.00 
C) $76,000.00 
D) $79,833.00 
A) $63,866.40 
B) $65,000.00 
C) $76,000.00 
D) $79,833.00

Question 15

Which of the following is a characteristic of process costing?

Accepted Answer

A) Products are unique. 
B) Costs are traced to products rather than to production processes. 
C) It is employed by companies that use standardized processes. 
D) It can only be used for manufacturing firms and not used for service firms. 
A) Products are unique. 
B) Costs are traced to products rather than to production processes. 
C) It is employed by companies that use standardized processes. 
D) It can only be used for manufacturing firms and not used for service firms.

Question 16

Brody Corp.uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 40% completed.13,000 units were started during January.On January 31,the inventory consisted of 650 units that were 70% completed.How many units were completed during the period?

Accepted Answer

A) 12,350 
B) 13,650 
C) 14,300 
D) 14,950 
A) 12,350 
B) 13,650 
C) 14,300 
D) 14,950

Question 17

Under FIFO,to calculate the number of equivalent units,ask yourself: What did we do during the ________ period to get beginning inventory from x% to y% complete and what did we do during the ________ period to get ending inventory to z% complete?

Accepted Answer

A) current,current 
B) current,prior 
C) prior,current 
D) prior,prior 
A) current,current 
B) current,prior 
C) prior,current 
D) prior,prior

Question 18

Prepare the journal entries to record the following transactions for Viking Co. ,a company that produces Viking helmets for sale to tourists.
a.Purchased $80,000 of steel (8,000 tons)in cash.
b.Issued $75,000 of steel (7,500 tons)into production.
c.Paid $15,000 cash in production labor costs.
d.Applied overhead at the predetermined rate of $5 per ton of steel.
e.Incurred $40,000 of actual overhead costs,paid in cash.(Assume any difference between actual and applied overhead costs is adjusted directly to cost of goods sold. )
f.Completed 25,000 helmets.(Approximately $27,500 of inventory remains in process,so the cost of each helmet is approximately $________. )
g.Sold 22,000 helmets at $24.00 per unit.(All proceeds were collected in cash. )
h.Disposed of any over- or under-applied overhead cost.

Accepted Answer

@#IMG-DLM& When materials are purchased,Raw Materi

Question 19

Which of the following accounts will be treated differently by a process costing system as compared to a job order costing system?

Accepted Answer

A) Raw Materials Inventory 
B) Work in Process Inventory 
C) Finished Goods Inventory 
D) Cost of Goods Sold 
A) Raw Materials Inventory 
B) Work in Process Inventory 
C) Finished Goods Inventory 
D) Cost of Goods Sold

Question 20

A separate Work in Process Inventory account is used in process costing for each major production process.

Accepted Answer

A) True 
 B)False

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

To determine how much cost should be assigned to ending Work in Process Inventory:

Under process costing,which manufacturing costs are assigned to the product as it moves from one manufacturing process to the next?

A firm using process costing needs to reconcile the number of physical units in order to:

Under the weighted average method of process costing,which of the following formulas is used to calculate the cost per equivalent unit?

The production report contains information about the number of physical units and equivalent units,but not their costs.

Which of the following is a characteristic of process costing?

Brody Corp.uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 40% completed.13,000 units were started during January.On January 31,the inventory consisted of 650 units that were 70% completed.How many units were completed during the period?

Under FIFO,to calculate the number of equivalent units,ask yourself: What did we do during the period to get beginning inventory from x% to y% complete and what did we do during the period to get ending inventory to z% complete?

Which of the following accounts will be treated differently by a process costing system as compared to a job order costing system?

A separate Work in Process Inventory account is used in process costing for each major production process.

Introduction to Managerial Accounting

Job Order Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 3: Process Costing

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

To determine how much cost should be assigned to ending Work in Process Inventory:

Under process costing,which manufacturing costs are assigned to the product as it moves from one manufacturing process to the next?

A firm using process costing needs to reconcile the number of physical units in order to:

Under the weighted average method of process costing,which of the following formulas is used to calculate the cost per equivalent unit?

The production report contains information about the number of physical units and equivalent units,but not their costs.

Which of the following is a characteristic of process costing?

Brody Corp.uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 40% completed.13,000 units were started during January.On January 31,the inventory consisted of 650 units that were 70% completed.How many units were completed during the period?

Under FIFO,to calculate the number of equivalent units,ask yourself: What did we do during the ________ period to get beginning inventory from x% to y% complete and what did we do during the ________ period to get ending inventory to z% complete?

Which of the following accounts will be treated differently by a process costing system as compared to a job order costing system?

A separate Work in Process Inventory account is used in process costing for each major production process.

Introduction to Managerial Accounting

Job Order Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Under FIFO,to calculate the number of equivalent units,ask yourself: What did we do during the period to get beginning inventory from x% to y% complete and what did we do during the period to get ending inventory to z% complete?