Exam 4: Process Costing and Hybrid Product-Costing Systems

Aglow Company uses a process-cost system for its single product.Material A is added at the beginning of the process;in contrast,material B is added when the units are 50% complete.The firm's ending work-in-process inventory consists of 4,000 units that are 75% complete.Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

Forest Company,which uses a weighted-average process-costing system,had 7,000 units in production at the end of the current period that were 60% complete.Material A is introduced at the beginning of the process;material B is introduced at the end of the process;and conversion cost is introduced evenly throughout manufacturing.Equivalent-unit production costs follow. Material A: $12.50 Material B: $2.00 Conversion cost: $6.60 The cost of the company's ending work-in-process inventory is:

Process costing is used to account for:

Which of the following manufacturers would most likely not use a process-cost accounting system?

Unit costs in a process-costing system are derived by using:

Agora Company uses a process-cost system for its single product.Material A is added at the beginning of the process;in contrast,material B is added when the units are 75% complete.The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete.Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

Which of the following is true concerning cost drivers for the predetermined overhead rate in a process-costing system?

Griswold,Inc. ,which uses a process-costing system,transfers completed production from Department no.1 to Department no.2 for further work.Which of the following best describes the account that would be debited to record this transfer?

Using the weighted-average method of process costing,the total costs remaining in work in process on May 31 are:

When computing the conversion cost per equivalent unit under the weighted-average method of process costing,all of the following information would be needed except:

Using the weighted-average method of process costing,the cost of goods completed and transferred during May is:

Hammett has a single production department,and uses a process-costing system.The balance in its Work-in-Process account on January 1 was $68,000.The account was charged with direct materials,direct labor,and manufacturing overhead of $450,000 throughout the year.If a review of the accounting records determined that $86,000 of goods were still in production at year-end,Hammett should make a journal entry on December 31 that includes:

Which of the following are needed to calculate the total cost of the ending work-in-process inventory under the weighted-average process-costing method?

Manhattan,Inc. ,uses a weighted-average process-costing system.All materials are introduced at the beginning of production;conversion cost is incurred evenly throughout manufacturing.The following information pertains to April:

Kentucky Corporation uses a process-cost accounting system.The company adds direct materials at the start of its production process;conversion cost,on the other hand,is incurred evenly throughout manufacturing.The firm has no beginning work-in-process inventory;its ending work in process is 40% complete.Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

Which of the following companies would likely use a process-costing system?

Majesco,which uses a process-costing system,adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing.The following selected information was taken from the company's accounting records: Total equivalent units of materials: 5,000 Total equivalent units of conversion: 4,400 Units started and completed during the period: 3,500 On the basis of this information,the ending work-in-process inventory's stage of completion is:

Which of the following statements about similarities between process costing and job-order costing are true? I.Both systems assign production costs to units of output. II.Both systems require extensive knowledge of financial accounting. III.The flow of costs through the manufacturing accounts is essentially the same.

Which of the following data are needed to calculate total equivalent units under the weighted-average method?

Fiero Corporation adds all materials at the beginning of production and incurs conversion cost evenly throughout manufacturing.The company completed 70,000 units during the year and had 12,000 units in process at year end,20% complete with respect to conversion cost.Equivalent units for the year total: