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 conversion using FIFO would be

A) 114. B) 105. C) 93. D) 9. A) 114. B) 105. C) 93. D) 9.

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 costs per unit for materials and conversion respectively?

A) $22; $4 B) $29.33; $4.27 C) $11; $1.60 D) $88; $64 E) none of the above A) $22; $4 B) $29.33; $4.27 C) $11; $1.60 D) $88; $64 E) none of the above

Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: $\begin{array}{lr} \text { Work in process, January 1: } & \\ \text { Units (35\% complete) } & 7,500 \\ \text { Direct materials } & \$ 36,000 \\ \text { Direct labor } & \$ 45,000 \\ \text { Overhead } & \$ 15,000 \end{array}$ During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: $\begin{array}{lr} \text { Direct materials } & \$ 133,050 \\ \text { Direct labor } & 180,000 \\ \text { Overhead (applied) } & 45,000 \end{array}$ There were 2,500 units that were 80 percent complete remaining in Mixing at January 31. The amount of total costs to account for is

A) $454,050. B) $396,000. C) $360,000. D) none of the above. A) $454,050. B) $396,000. C) $360,000. D) none of the above.

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 per unit for conversion?

A) $2.79 B) $2.75 C) $2.50 D) $2.22 E) none of the above A) $2.79 B) $2.75 C) $2.50 D) $2.22 E) none of the above

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 are the equivalent units for materials?

A) 133,000 B) 100,000 C) 165,000 D) 125,000 E) none of the above A) 133,000 B) 100,000 C) 165,000 D) 125,000 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 costs transferred out using weighted average would be

A) $6,000. B) $8,190. C) $8,400. D) $9,330. A) $6,000. B) $8,190. C) $8,400. D) $9,330.

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 are the equivalent units for conversion?

A) 133,000 B) 165,000 C) 125,000 D) 100,000 E) none of the above A) 133,000 B) 165,000 C) 125,000 D) 100,000 E) none of the above

Exam 6: Process Costing

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: Large Larger Work Order 10 Work Order 11 Direct materials (actual costs) \4 5,000 \7 5,000 Applied conversion costs: Mixing ? ? Cooking \ 12,000 \ 12,000 Bottling \ 10,000 \ 15,000 Batch size (bottles) 5,000 5,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company's journal entry to record materials used in the Mixing Department for Work Order 10? a. Materials 45,000 Work in Frocess-Mixing 45,000 b. Work in Process-Mixing 17,500 Conversion Costs Control 17,500 c. Conversion Costs Control 17,500 Work in Process-Mixing 17,500 d. Work in Process-Mixing 45,000 Materials 45,000

(Short Answer)

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Question 141

Transferred-in goods, must be converted to the units of measure used by the current department.

(True/False)

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Question 142

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 conversion using FIFO would be

(Multiple Choice)

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Question 143

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called the __________ costing method.

(Short Answer)

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Question 144

The cost flows for a process-costing system are totally different from those of a job order costing system.

(True/False)

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Question 145

Which of the following is a difference between a job-order costing system and a process-costing system?

(Multiple Choice)

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Question 146

If a spoilage is normal (expected), the cost of spoiled units is:

(Multiple Choice)

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Question 147

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 costs per unit for materials and conversion respectively?

(Multiple Choice)

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Question 148

The costing system that uses job-order procedures to assign direct material costs to batches and process procedures to assign conversion costs is called __________ costing.

(Short Answer)

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Question 149

Xanadu Company manufactures a product that passes through two departments, Assembly and Finishing. In the Finishing Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout the process. During the month of January, the Finishing Department received 60,000 units from the Assembly Department. The transferred-in cost of the 60,000 units was $69,900. Costs added by Finishing during January included the following: Direct materials \ 35,200 Direct labor 56,000 Overhead 25,600 On January 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs. On January 31, 12,000 units were in inventory, one-third complete with respect to conversion costs. The costs associated with the 10,000 units in beginning inventory were as follows: Transferred in \ 11,650 Directlabor 8,750 Overhead 4,000 Required: Prepare a cost of production report using the weighted average method.

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Question 150

When materials are not added uniformly using a work-in-process system, __________ of equivalent units are needed, one for each type of input.

(Short Answer)

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Question 151

Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: Work in process, January 1: Units (35\% complete) 7,500 Direct materials \ 36,000 Direct labor \ 45,000 Overhead \ 15,000 During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: Direct materials \ 133,050 Direct labor 180,000 Overhead (applied) 45,000 There were 2,500 units that were 80 percent complete remaining in Mixing at January 31. The amount of total costs to account for is

(Multiple Choice)

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Question 152

Julius Corporation's mixing department began January 2018 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Julius using the FIFO costing method?

(Multiple Choice)

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Question 153

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 per unit for conversion?

(Multiple Choice)

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Question 154

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 are the equivalent units for materials?

(Multiple Choice)

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Question 155

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 costs transferred out using weighted average would be

(Multiple Choice)

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Question 156

Which of the following is true of the first-in, first-out costing method?

(Multiple Choice)

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Question 157

Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process ( $1 / 3$ complete) $\quad 6,000$ Units, ending work in process ( $1 / 2$ complete) $\quad 4,000$ The equivalent units for conversion using weighted average is

(Multiple Choice)

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Question 158

Which of the following is true of work orders?

(Multiple Choice)

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Question 159

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 are the equivalent units for conversion?

(Multiple Choice)

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Question 160

Transferred-in goods, must be converted to the units of measure used by the current department.

The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is called the __________ costing method.

The cost flows for a process-costing system are totally different from those of a job order costing system.

Which of the following is a difference between a job-order costing system and a process-costing system?

If a spoilage is normal (expected), the cost of spoiled units is:

The costing system that uses job-order procedures to assign direct material costs to batches and process procedures to assign conversion costs is called __________ costing.

When materials are not added uniformly using a work-in-process system, __________ of equivalent units are needed, one for each type of input.

Which of the following is true of the first-in, first-out costing method?

Which of the following is true of work orders?

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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