Reference: 04-05 The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: \[\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Number of } \\ \text { Units } \end{array} & \begin{array} { l } \text { Conversion Costs } \\ \text { (Percent Complete) } \end{array} \\ \hline \text { Beginning work in process inventory } & 9,000 & 60 \% \\ \hline \text { Units started into production } & 45,000 & - \\ \hline \text { Units completed and transferred out } & 46,000 & - \\ \hline \text { Ending work in process inventory } & 8,000 & 25 \% \\ \hline \end{array}\] All materials are added prior to the beginning of work in the Blending Department. -Assuming that Tru-Colour Paint Company uses the weighted-average method, the equivalent units of production for materials would be?

A) 54,000 units. B) 48,000 units. C) 45,000 units. D) 46,000 units. A) 54,000 units. B) 48,000 units. C) 45,000 units. D) 46,000 units.

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: \[\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 298,800 \\ \hline \text { Direct labour } & \$ 540,800 \\ \hline \text { Factory overhead } & \$ 135,400 \\ \hline \end{array}\] During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What were the equivalent units of production for material costs for May

A) 49,200 units. B) 49,800 units. C) 47,800 units. D) 46,300 units. A) 49,200 units. B) 49,800 units. C) 47,800 units. D) 46,300 units.

Reference: 04-10 Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline & \text { Units } & \begin{array} { l } \text { Labour and Overhead } \\ \text { (Percentage Complete) } \end{array} \\ \hline \text { Work in process, October 1 } & 8,000 & 60 \% \\ \hline \text { Units started } & 25,000 & \\ \hline \text { Completed and transferred } & 20,000 & \\ \hline \text { Work in process, October } 31 & 13,000 & 20 \% \\ \hline \end{array}\\ \begin{array} { | l | l | l | l | } \hline \text { Costs for October: } & \text { Transferred In } & \text { Materials } & \begin{array} { l } \text { Labour and } \\ \text { Overhead } \end{array} \\ \hline \text { Work in process, October } 1 & \$ 33,000 & \$ 16,500 & \$ 31,200 \\ \hline \text { Added during the month } & \$ 59,400 & \$ 82,500 & \$ 194,800 \\ \hline \end{array} \end{array}\] All materials are added at the beginning of the process. -The total cost assigned to units transferred out during October was

A) $316,000. B) $264,600. C) $342,000. D) $358,400. A) $316,000. B) $264,600. C) $342,000. D) $358,400.

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: \[\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 298,800 \\ \hline \text { Direct labour } & \$ 540,800 \\ \hline \text { Factory overhead } & \$ 135,400 \\ \hline \end{array}\] During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What was the conversion cost per equivalent unit for May

A) $21.86. B) $12.81. C) $14.15. D) $15.18. A) $21.86. B) $12.81. C) $14.15. D) $15.18.

Reference: 04-04 The activity in Nolan Company's Blending Department for the month of April is given below: \[\begin{array} { | c | l | l | } \hline & \begin{array} { l } \text { Number of } \\ \text { Units } \end{array} & \begin{array} { l } \text { Labowr and Overhead } \\ \text { (Percentage Complete) } \end{array} \\ \hline \text { Work in process } & & \\ \hline \text { inventory, April 1 } & 8,000 & 50 \% \\ \hline \text { Started into process } & & \\ \hline \text { during the month } & 50,000 & \\ \hline \text { Work in process } & & \\ \hline \text { inventory, April } 30 & 10,000 & 70 \% \\ \hline \end{array}\] All materials are added at the beginning of processing in the Blending Department. -The equivalent units of production for material for the month, using the weighted-average method, are?

A) 58,000 units. B) 48,000 units. C) 50,000 units. D) 52,000 units. A) 58,000 units. B) 48,000 units. C) 50,000 units. D) 52,000 units.

The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system: \[\begin{array} { | c | l | } \hline \text { Beginning work in process inventory } & \\ \hline ( 100 \% \text { complete as to materials; } & \\ \hline 70 \% \text { complete as to conversion) } & 30,000 \text { units } \\ \hline \text { Started in process during the period } & 90,000 \text { units } \\ \hline \text { Ending work in process inventory } & \\ \hline ( 100 \% \text { complete as to materials; } & \\ \hline 60 \% \text { complete as to conversion) } & 20,000 \text { units } \\ \hline \end{array}\] The equivalent units of production for conversion costs were?

A) 102,000. B) 112,000. C) 111,000. D) 100,000. A) 102,000. B) 112,000. C) 111,000. D) 100,000.

Reference: 04-06 The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. \[\begin{array} { | l | l | l | } \hline & \text { Units } & \begin{array} { l } \text { Labour and Overhead } \\ \text { (Percentage Complete) } \end{array} \\ \hline \text { Work in process inventory, July 1 } & 20,000 & 40 \% \\ \hline \text { Started during the month } & 70,000 & \\ \hline \text { Completed during the month } & 80,000 & \\ \hline \text { Work in process inventory, July } 31 & ? & 25 \% \\ \hline \end{array}\] All materials are added at the beginning of the manufacturing process. -The equivalent units of production for material for the month are?

A) 90,000 units. B) 70,000 units. C) 80,000 units. D) 82,500 units. A) 90,000 units. B) 70,000 units. C) 80,000 units. D) 82,500 units.

Reference: 04-10 Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline & \text { Units } & \begin{array} { l } \text { Labour and Overhead } \\ \text { (Percentage Complete) } \end{array} \\ \hline \text { Work in process, October 1 } & 8,000 & 60 \% \\ \hline \text { Units started } & 25,000 & \\ \hline \text { Completed and transferred } & 20,000 & \\ \hline \text { Work in process, October } 31 & 13,000 & 20 \% \\ \hline \end{array}\\\\ \begin{array} { | l | l | l | l | } \hline \text { Costs for October: } & \text { Transferred In } & \text { Materials } & \begin{array} { l } \text { Labour and } \\ \text { Overhead } \end{array} \\ \hline \text { Work in process, October 1 } & \$ 33,000 & \$ 16,500 & \$ 31,200 \\ \hline \text { Added during the month } & \$ 59,400 & \$ 82,500 & \$ 194,800 \\ \hline \end{array} \end{array}\] All materials are added at the beginning of the process. -The total cost assigned to ending work in process inventory was

A) $152,800. B) $ 59,000. C) $75,400. D) $101,400. A) $152,800. B) $ 59,000. C) $75,400. D) $101,400.

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: \[\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 298,800 \\ \hline \text { Direct labour } & \$ 540,800 \\ \hline \text { Factory overhead } & \$ 135,400 \\ \hline \end{array}\] During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What was the material cost per equivalent unit for May

A) $6.06. B) $6.45. C) $6.00. D) $6.25. A) $6.06. B) $6.45. C) $6.00. D) $6.25.

Exam 4: Process Costing

Reference: 04-05 The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: Number of Units Conversion Costs (Percent Complete) Beginning work in process inventory 9,000 60\% Units started into production 45,000 - Units completed and transferred out 46,000 - Ending work in process inventory 8,000 25\% All materials are added prior to the beginning of work in the Blending Department. -Assuming that Tru-Colour Paint Company uses the weighted-average method, the equivalent units of production for materials would be?

(Multiple Choice)

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Question 61

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: Direct materials \ 298,800 Direct labour \ 540,800 Factory overhead \ 135,400 During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What were the equivalent units of production for material costs for May

(Multiple Choice)

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Question 62

Reference: 04-10 Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data: Units Labour and Overhead (Percentage Complete) Work in process, October 1 8,000 60\% Units started 25,000 Completed and transferred 20,000 Work in process, October 31 13,000 20\% Costs for October: Transferred In Materials Labour and Overhead Work in process, October 1 \ 33,000 \ 16,500 \ 31,200 Added during the month \ 59,400 \ 82,500 \ 194,800 All materials are added at the beginning of the process. -The total cost assigned to units transferred out during October was

(Multiple Choice)

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Question 63

Reference: 04-03 Madsen Company uses the weighted-average method in its process costing system. During October, the Mixing Department transferred out 40,000 units. The October 31 work in process inventory in the Mixing Department consisted of 4,000 equivalent units of material and 5,000 equivalent units of labour and overhead. The cost per equivalent unit was $2.50 for materials and $6.25 for labour and overhead. -The total cost of the October 31 work in process inventory was?

(Multiple Choice)

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Question 64

Fabian Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department. There were 12,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

(Multiple Choice)

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Question 65

Using the weighted-average method, the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

(True/False)

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Question 66

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: Direct materials \ 298,800 Direct labour \ 540,800 Factory overhead \ 135,400 During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What was the conversion cost per equivalent unit for May

(Multiple Choice)

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Question 67

Reference: 04-04 The activity in Nolan Company's Blending Department for the month of April is given below: Number of Units Labowr and Overhead (Percentage Complete) Work in process inventory, April 1 8,000 50\% Started into process during the month 50,000 Work in process inventory, April 30 10,000 70\% All materials are added at the beginning of processing in the Blending Department. -The equivalent units of production for material for the month, using the weighted-average method, are?

(Multiple Choice)

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Question 68

Rariton Company uses the weighted-average method in its process costing system.

(Multiple Choice)

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Question 69

The Richmond Company uses the weighted-average method in its process costing system.

(Multiple Choice)

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Question 70

The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system: Beginning work in process inventory (100\% complete as to materials; 70\% complete as to conversion) 30,000 units Started in process during the period 90,000 units Ending work in process inventory (100\% complete as to materials; 60\% complete as to conversion) 20,000 units The equivalent units of production for conversion costs were?

(Multiple Choice)

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Question 71

The Assembly Department started the month with 35,000 units in its beginning work in process inventory. An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

(Multiple Choice)

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Question 72

Equivalent units of production in a department for a period will be equal to the number of equivalent units in ending work in process inventory.

(True/False)

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Question 73

Paxton Company uses the weighted-average method in its process costing system. Molding Department is the second department in its production process.

(Multiple Choice)

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Question 74

Reference: 04-06 The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. Units Labour and Overhead (Percentage Complete) Work in process inventory, July 1 20,000 40\% Started during the month 70,000 Completed during the month 80,000 Work in process inventory, July 31 ? 25\% All materials are added at the beginning of the manufacturing process. -The equivalent units of production for material for the month are?

(Multiple Choice)

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Question 75

If the costs for direct labour, factory overhead and direct material were $873,600, $109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $11.60.

(True/False)

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Question 76

Reference: 04-10 Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data: Units Labour and Overhead (Percentage Complete) Work in process, October 1 8,000 60\% Units started 25,000 Completed and transferred 20,000 Work in process, October 31 13,000 20\% Costs for October: Transferred In Materials Labour and Overhead Work in process, October 1 \ 33,000 \ 16,500 \ 31,200 Added during the month \ 59,400 \ 82,500 \ 194,800 All materials are added at the beginning of the process. -The total cost assigned to ending work in process inventory was

(Multiple Choice)

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Question 77

If the costs for direct labour, factory overhead and direct material were $873,600, $109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $35.10.

(True/False)

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(70)

Question 78

Reference: 04-12 GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and $ 9,625 factory overhead. Costs added to work in process in May were as follows: Direct materials \ 298,800 Direct labour \ 540,800 Factory overhead \ 135,400 During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process. -What was the material cost per equivalent unit for May

(Multiple Choice)

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(75)

Question 79

When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

(True/False)

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Question 80

Using the weighted-average method, the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

Rariton Company uses the weighted-average method in its process costing system.

The Richmond Company uses the weighted-average method in its process costing system.

Equivalent units of production in a department for a period will be equal to the number of equivalent units in ending work in process inventory.

Paxton Company uses the weighted-average method in its process costing system. Molding Department is the second department in its production process.

If the costs for direct labour, factory overhead and direct material were $873,600, $109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $11.60.

If the costs for direct labour, factory overhead and direct material were $873,600, $109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $35.10.

When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

An Introduction to Managerial Accounting

Cost Concepts

Systems Design: Job-Order Costing

Activity-Based Costing

Cost Behaviour: Analysis and Use

Budgeting

Cost-Volume-Profit Relationships

Relevant Costs: the Key to Decision Making

Capital Budgeting Decisions

Standard Costs and Variance Analysis

Organizational Structure and Performance Measurement

How Well Am I Doing Financial Statement Analysis Online

How Well Am I Doing Cash Flow Statement Online

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