The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. \[\begin{array} { | l | r | r | } \hline \text { Units: } & { \text { units } } & \begin{array} { c } \% \text { complete for } \\ \text { conversions } \end{array} \\ \hline \text { work in process, } 1 / 1 & 60,000 & 15 \% \\ \hline \text { started } & 105,000 & \\ \hline \text { work in process, } 1 / 31 & 40,000 & 20 \% \\\hline \\ \hline \text { Costs: } & & \\ \hline & \text { Materials } & \text { Conversion } \\ \hline \text { beginning work in process } & \$ 16,500 & \$ 33,250 \\ \hline \text { current costs } & \$ 643,500 & \$ 332,500 \\ \hline \end{array}\] What is the cost assigned to the units completed and transferred to finishing?

A) $843,750 B) $708,750 C) $777,500 D) $976,000 E) none of the above A) $843,750 B) $708,750 C) $777,500 D) $976,000 E) none of the above

Mannassass Company manufactures chairs. The following information was given for the company: \[\begin{array} { l r } \text { units, beginning work in process } & 0 \\ \text { units started } & 20,000 \\ \text { units completed } & ? \\ \text { units, ending work in process } & 5,000 \\ \text { cost of direct materials } & \$ 440,000 \\ \text { cost of conversion } & \$ 64,000 \end{array}\] Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What are the units started and completed?

A) 20,000 B) 10,000 C) 15,000 D) 40,000 E) none of the above A) 20,000 B) 10,000 C) 15,000 D) 40,000 E) none of the above

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: \[\begin{array}{l} \begin{array} { l r r r r r } &&&\text { Costs }\\ & \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \\ \text { Work in process, July 1 } & 30 & \$ 1,590 & \$ 0 & \$ 513 \\ \text { Transferred in during July } & ? & & & & \\ \text { Completed during July } & 105 & & & & \\ \text { Work in process, July 31 } & 15 & & & & \\ \text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767 \end{array} \end{array}\] The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Rounded to two decimal places, Mountainside's conversion cost per unit using FIFO would be

A) $15.50. B) $19.00. C) $20.00. D) $24.52. A) $15.50. B) $19.00. C) $20.00. D) $24.52.

Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: \[\begin{array} { | l | r | r | r | } \hline &{ \text { Cutting } } & { \text { Assembly } } & { \text { Finishing } } \\ \hline \text { direct materials } & \$ 7,000 & \$ 10,000 & \$ 3,000 \\ \hline \text { direct labor } & 3,000 & 14,000 & 2,000 \\ \hline \text { applied overhead } & 4,000 & 5,000 & 6,000 \\ \hline \end{array}\] There were no work in process inventories and 1,000 podiums were produced. What is the cost transferred out of the assembly department.

A) $43,000 B) $54,000 C) $29,000 D) $14,000 E) none of the above A) $43,000 B) $54,000 C) $29,000 D) $14,000 E) none of the above

The following information is available for Department C for the month of June: $\begin{array}{lr}&\text { Units }& \text { Cost }\\ \text { Work in process, June } 1 \text { (70\% complete) } & 10,000\\ \text { Direct materials } && \$ 36,000 \\ \text { Direct labor } && 18,000 \\ \text { Manufacturing overhead } && 24.000\\ \text {Total work in process, June 1 }&&\$78,000\\ \text {Started in production during June }&40,000\\ \text { Costs added: } & \\ \text { Direct materials } && \$ 108,000 \\ \text { Direct labor } && 48,000 \\ \text { Manufacturing overhead } && 60,600\\ \text { Total costs added during June }&&\$216,600\\ \text { Work in process, June } 30 \text { (80\% complete })&4,000 \end{array}$ Materials are added at the beginning of the process. Round unit costs to two decimal places. The cost per equivalent unit of production for materials using the weighted average method is

A) $2.70. B) $2.88 C) $3.12. D) $3.60. A) $2.70. B) $2.88 C) $3.12. D) $3.60.

Thunder Roads Enterprises makes the following information available: $\begin{array}{lr} \text { Units in process at the beginning of the month } & 2,000 \\ \text { Units in process at the end of the month } & 4,000 \\ \text { Units started during the month } & 30,000 \end{array}$ Materials are added at the beginning of the process. Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the FIFO method?

A) 36,000 units B) 34,000 units C) 30,000 units D) 29,200 units A) 36,000 units B) 34,000 units C) 30,000 units D) 29,200 units

Edelstein Company had the following data for 2018: $\begin{array}{lr} \text { Units in process at the beginning of the month } & 4,000 \\ \text { Units in process at the end of the month } & 10,000 \\ \text { Units started during the month } & 40,000 \end{array}$ Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion. How many equivalent units for materials would there be using the FIFO method?

A) 44,000 units B) 30,000 units C) 40,000 units D) 39,400 units A) 44,000 units B) 30,000 units C) 40,000 units D) 39,400 units

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: \[\begin{array}{l} \begin{array} { l r r r r r } &&&\text { Costs }\\ & \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \\ \text { Work in process, July 1 } & 30 & \$ 1,590 & \$ 0 & \$ 513 \\ \text { Transferred in during July } & ? & & & & \\ \text { Completed during July } & 105 & & & & \\ \text { Work in process, July 31 } & 15 & & & & \\ \text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767 \end{array} \end{array}\] The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for materials using weighted average would be

A) 15. B) 90. C) 105. D) 120. A) 15. B) 90. C) 105. D) 120.

The following information is available for Department C for the month of August: \[\begin{array} { l r r } & \text { Units } & \text { Cost } \\ \text { Work in process, August } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labor } & & 18,000 \\ \text { Manufacturing overhead } & & 24,000 \\ \text { Total work in process, August } 1 && \$ 78,000 \\ \text { Started in production during August } & 40,000 & \\ \text { Costs added: } & & \\ \text { Direct materials } & & 108,000 \\ \text { Direct labor } & & 48,000 \\ \text { Manufacturing overhead } & & 61,040\\ \text { Total costs added during August } & & \$ 217,040\\ \text { Work in process, August } 31 \text { (80\% complete) } & 4,000 & \\ \text { Units completed and transferred out } & 42,000 & \end{array}\] Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption. Department C's conversion cost per unit using the weighted average method is

A) $2.18. B) $2.22. C) $2.31. D) $3.20. A) $2.18. B) $2.22. C) $2.31. D) $3.20.

Boysenberry Company manufactures a product that passes through two processes: Grinding and Mixing. Boysenberry adds all manufacturing costs uniformly in the Grinding Department. Information relating to the Grinding Department for November follows: \[\begin{array}{l} \text { Work in process, November } 1 :\\ \begin{array} { l r } \text { Units (75\% complete) } & 1,500 \\ \text { Direct materials } & \$ 12,500 \\ \text { Direct labor } & \$ 10,000 \\ \text { Overhead } & \$ 8,000 \end{array} \end{array}\] During November, 4,500 units were completed and transferred to the Mixing Department. The following costs were incurred by the Mixing Department during November: $\begin{array}{lr} \text { Direct materials } & \$ 42,000 \\ \text { Direct labor } & 60,000 \\ \text { Overhead } & 15,000 \end{array}$ There were 250 units that were 60 percent complete remaining in Grinding Department on November 30. Determine the equivalent units of production using the weighted average method.

A) 4,500 units B) 4,650 units C) 4,000 units D) 4,350 units A) 4,500 units B) 4,650 units C) 4,000 units D) 4,350 units

Exam 6: Process Costing

The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. Units: units \% complete for conversions work in process, 1/1 60,000 15\% started 105,000 work in process, 1/31 40,000 20\% Costs: Materials Conversion beginning work in process \ 16,500 \ 33,250 current costs \ 643,500 \ 332,500 What is the cost assigned to the units completed and transferred to finishing?

(Multiple Choice)

5.0/5

(70)

Question 121

Mannassass Company manufactures chairs. The following information was given for the company: units, beginning work in process 0 units started 20,000 units completed ? units, ending work in process 5,000 cost of direct materials \ 440,000 cost of conversion \ 64,000 Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What are the units started and completed?

(Multiple Choice)

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Question 122

When conversion costs are uniform,

(Multiple Choice)

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Question 123

Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for conversion costs were produced using the weighted average method?

(Multiple Choice)

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(93)

Question 124

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs Units Trans.-in Materials Conv. Work in process, July 1 30 \ 1,590 \ 0 \ 513 Transferred in during July ? Completed during July 105 Work in process, July 31 15 Costs added during July \ 4,410 \ 1,050 \ 1,767 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Rounded to two decimal places, Mountainside's conversion cost per unit using FIFO would be

(Multiple Choice)

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(76)

Question 125

In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to assign conversion costs.

(True/False)

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Question 126

Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials \ 7,000 \ 10,000 \ 3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced. What is the cost transferred out of the assembly department.

(Multiple Choice)

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Question 127

When products and their costs are moved from one process to the next process, these costs are referred to as

(Multiple Choice)

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Question 128

The following information is available for Department C for the month of June: Units Cost Work in process, June 1 (70\% complete) 10,000 Direct materials \ 36,000 Direct labor 18,000 Manufacturing overhead 24.000 Total work in process, June 1 \7 8,000 Started in production during June 40,000 Costs added: Direct materials \ 108,000 Direct labor 48,000 Manufacturing overhead 60,600 Total costs added during June \2 16,600 Work in process, June 30 (80\% complete ) 4,000 Materials are added at the beginning of the process. Round unit costs to two decimal places. The cost per equivalent unit of production for materials using the weighted average method is

(Multiple Choice)

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Question 129

As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in

(Multiple Choice)

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Question 130

Thunder Roads Enterprises makes the following information available: Units in process at the beginning of the month 2,000 Units in process at the end of the month 4,000 Units started during the month 30,000 Materials are added at the beginning of the process. Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the FIFO method?

(Multiple Choice)

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(71)

Question 131

Wonder Paints Corporation's Mixing Department began August 2018 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). If materials were added when the units were 80 percent complete, how many equivalent units of production for materials would there be for Wonder Paints using the weighted average costing method?

(Multiple Choice)

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Question 132

Edelstein Company had the following data for 2018: Units in process at the beginning of the month 4,000 Units in process at the end of the month 10,000 Units started during the month 40,000 Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion. How many equivalent units for materials would there be using the FIFO method?

(Multiple Choice)

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Question 133

Which of the following is true of a production report prepared under a process-costing system?

(Multiple Choice)

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Question 134

Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-process inventories.

(True/False)

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Question 135

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs Units Trans.-in Materials Conv. Work in process, July 1 30 \ 1,590 \ 0 \ 513 Transferred in during July ? Completed during July 105 Work in process, July 31 15 Costs added during July \ 4,410 \ 1,050 \ 1,767 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for materials using weighted average would be

(Multiple Choice)

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(87)

Question 136

The following information is available for Department C for the month of August: Units Cost Work in process, August 1 (70\% complete) 10,000 Direct materials \ 36,000 Direct labor 18,000 Manufacturing overhead 24,000 Total work in process, August 1 \ 78,000 Started in production during August 40,000 Costs added: Direct materials 108,000 Direct labor 48,000 Manufacturing overhead 61,040 Total costs added during August \ 217,040 Work in process, August 31 (80\% complete) 4,000 Units completed and transferred out 42,000 Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption. Department C's conversion cost per unit using the weighted average method is

(Multiple Choice)

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(70)

Question 137

When spoilage is assumed to be __________ it is embedded in the total cost of good units.

(Short Answer)

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Question 138

The documents used to collect production costs for each batch in operation costing are called __________ .

(Short Answer)

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Question 139

Boysenberry Company manufactures a product that passes through two processes: Grinding and Mixing. Boysenberry adds all manufacturing costs uniformly in the Grinding Department. Information relating to the Grinding Department for November follows: Work in process, November 1: Units (75\% complete) 1,500 Direct materials \ 12,500 Direct labor \ 10,000 Overhead \ 8,000 During November, 4,500 units were completed and transferred to the Mixing Department. The following costs were incurred by the Mixing Department during November: Direct materials \ 42,000 Direct labor 60,000 Overhead 15,000 There were 250 units that were 60 percent complete remaining in Grinding Department on November 30. Determine the equivalent units of production using the weighted average method.

(Multiple Choice)

4.9/5

(82)

Question 140

When conversion costs are uniform,

Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for conversion costs were produced using the weighted average method?

In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to assign conversion costs.

When products and their costs are moved from one process to the next process, these costs are referred to as

As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in

Which of the following is true of a production report prepared under a process-costing system?

Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-process inventories.

When spoilage is assumed to be __________ it is embedded in the total cost of good units.

The documents used to collect production costs for each batch in operation costing are called __________ .

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

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