Question 1

The weighted average method separates beginning inventory and current production to compute cost per unit of production.

Accepted Answer

A) True 
 B)False

Question 2

Discuss why units are lost during production.

Accepted Answer

In most production processes,losses are

Question 3

Lewis Company uses a weighted average process costing system.Material is added at the start of production.Lewis Company started 13,000 units into production and had 4,500 units in process at the start of the period that were 60 percent complete as to conversion costs.If Lewis Company transferred out 11,750 units,how many units were in ending Work in Process Inventory?

Accepted Answer

A) 1,250 
B) 3,000 
C) 3,500 
D) 5,750 
A) 1,250 
B) 3,000 
C) 3,500 
D) 5,750

Question 4

Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
Beginning Watk in Process             Costs of Begiluing Work in
                                                                      Process:

(75% complete)                      14,500 units            Materil            $ \$ 25,100 $

$\begin{array}{lll}
\text { Started } & 75,000 \text { units } & \text { Conversion } & 50,000 \
\text { Ending Work in Process } & \text { Cumrent Costs: } 
\end{array}$

$\begin{array}{llll}
\text { (60\% complete) } & 16,000 \text { units } & \text { Material } & \$ 120,000 \
\text { Abtormal spoilage } & 2,500 \text { units } & \text { Conversion } & 300,000 \
\text { Normal spoilage (continuous) } & 5,000 \text { units } & \
\text { Tranferred out } & 66,000 \text { units } &
\end{array}$

All materials are added at the start of production.
Refer to Stillwater Corporation.Using FIFO,what is the cost per equivalent unit for conversion costs?

Accepted Answer

A) $4.46 
B) $4.15 
C) $4.30 
D) $3.84 
A) $4.46 
B) $4.15 
C) $4.30 
D) $3.84

Question 5

When a standard costing system is used with process costing,Work in Process inventory is recorded using actual costs.

Accepted Answer

A) True 
 B)False

Question 6

Wright Company
Wright Company adds material at the start of production.The following production information is available for September:
             Beginning Work in Process Inventory                                   (45% complete as to conversion)        10,000 units               Started this period               120,000 units               Ending Work in Process Inventory       80% complete as to conversion)       8,200 units               Beginning Work in Process Inventory Costs:                                    Material       $24,500                      Conversion       68,905               Current Period Costs:                                    Material       $ 75,600                      Conversion       130,053      
Refer to Wright Company.What is the cost of all units transferred out using the FIFO method?

Accepted Answer

A) $204,624 
B) $191,289 
C) $287,004 
D) $298,029 
A) $204,624 
B) $191,289 
C) $287,004 
D) $298,029

Question 7

A loss that occurs uniformly throughout a production process is referred to as a __________________ loss.

Accepted Answer

The answer of A loss that occurs uniformly throughout a...

Question 8

Wright Company
Wright Company adds material at the start of production.The following production information is available for September:
             Beginning Work in Process Inventory                                   (45% complete as to conversion)        10,000 units               Started this period               120,000 units               Ending Work in Process Inventory       80% complete as to conversion)       8,200 units               Beginning Work in Process Inventory Costs:                                    Material       $24,500                      Conversion       68,905               Current Period Costs:                                    Material       $ 75,600                      Conversion       130,053      
Refer to Wright Company.What is the conversion cost per equivalent unit using the weighted average method?

Accepted Answer

A) $1.01 
B) $1.05 
C) $1.55 
D) $1.61 
A) $1.01 
B) $1.05 
C) $1.55 
D) $1.61

Question 9

In a complex production environment,it is more difficult to compute a single EUP rate for conversion costs.

Accepted Answer

A) True 
 B)False

Question 10

Hickman Company uses a FIFO process costing system.The company had 6,000 units that were 75 percent complete as to conversion costs at the beginning of the month.The company started 25,000 units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs.What are equivalent units for material,if material is added at the beginning of the process?

Accepted Answer

A) 18,500 
B) 25,000 
C) 26,500 
D) 31,000 
A) 18,500 
B) 25,000 
C) 26,500 
D) 31,000

Question 11

To compute equivalent units of production using the FIFO method of process costing,work for the current period must be stated in units

Accepted Answer

A) completed during the period and units in ending inventory. 
B) completed from beginning inventory,units started and completed during the period,and units partially completed in ending inventory. 
C) started during the period and units transferred out during the period. 
D) processed during the period and units completed during the perioD. 
A) completed during the period and units in ending inventory. 
B) completed from beginning inventory,units started and completed during the period,and units partially completed in ending inventory. 
C) started during the period and units transferred out during the period. 
D) processed during the period and units completed during the perioD.

Question 12

Normal spoilage units resulting from a continuous process

Accepted Answer

A) are extended to the EUP schedule. 
B) result in a higher unit cost for the good units produced. 
C) result in a loss being incurred. 
D) cause estimated overhead to increase. 
A) are extended to the EUP schedule. 
B) result in a higher unit cost for the good units produced. 
C) result in a loss being incurred. 
D) cause estimated overhead to increase.

Question 13

Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
Beginning Watk in Process             Costs of Begiluing Work in
                                                                      Process:

(75% complete)                      14,500 units            Materil            $ \$ 25,100 $

$\begin{array}{lll}
\text { Started } & 75,000 \text { units } & \text { Conversion } & 50,000 \
\text { Ending Work in Process } & \text { Cumrent Costs: } 
\end{array}$

$\begin{array}{llll}
\text { (60\% complete) } & 16,000 \text { units } & \text { Material } & \$ 120,000 \
\text { Abtormal spoilage } & 2,500 \text { units } & \text { Conversion } & 300,000 \
\text { Normal spoilage (continuous) } & 5,000 \text { units } & \
\text { Tranferred out } & 66,000 \text { units } &
\end{array}$
All materials are added at the start of production.
Refer to Stillwater Corporation.Using weighted average,what are equivalent units for material?

Accepted Answer

A) 82,000 
B) 89,500 
C) 84,500 
D) 70,000 
A) 82,000 
B) 89,500 
C) 84,500 
D) 70,000

Question 14

The cost of normal discrete losses is

Accepted Answer

A) absorbed by all units past the inspection point on an equivalent unit basis. 
B) absorbed by all units in ending inventory. 
C) considered a period cost. 
D) written off as a loss on an equivalent unit basis. 
A) absorbed by all units past the inspection point on an equivalent unit basis. 
B) absorbed by all units in ending inventory. 
C) considered a period cost. 
D) written off as a loss on an equivalent unit basis.

Question 15

Colorful Creations Corporation
The Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating.Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.During the month,6,500 wreaths were started.At month end,Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion.Assume Forming uses the weighted average method of process costing.Costs in the Forming Department are as follows:
Beginui
ing Work
in
Process
Costs:

Materiel                          $1,000
Conversion                          1,500

Current
Cast:
Materiel                          $\$ 3,200$
Conversion                    5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion.The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.Decorating uses the FIFO method of process costing,and costs associated with Decorating are:
Beginning WIP Inventory :

$\begin{array} { l l } \text { Transferred In } & \$ 1,170 \ \text { Meteriel } & 4,320 \ \text { Conversion } & 6,210 \end{array}$

Current Perind:

Transferred In                         $?$
 Material                             $67,745
Conversion                        95,820

Refer to Colorful Creations Corporation.Assume that 8,000 units were transferred to Decorating at a total cost of $16,000.What is the conversion cost per equivalent unit in Decorating?

Accepted Answer

A) $11.32 
B) $11.46 
C) $12.00 
D) $12.78 
A) $11.32 
B) $11.46 
C) $12.00 
D) $12.78

Question 16

Colorful Creations Corporation
The Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating.Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.During the month,6,500 wreaths were started.At month end,Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion.Assume Forming uses the weighted average method of process costing.Costs in the Forming Department are as follows:
Beginui
ing Work
in
Process
Costs:

Materiel                          $1,000
Conversion                          1,500

Current
Cast:
Materiel                          $\$ 3,200$
Conversion                    5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion.The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.Decorating uses the FIFO method of process costing,and costs associated with Decorating are:
Beginning WIP Inventory :

$\begin{array} { l l } \text { Transferred In } & \$ 1,170 \ \text { Meteriel } & 4,320 \ \text { Conversion } & 6,210 \end{array}$

Current Perind:

Transferred In                         $?$
 Material                             $67,745
Conversion                        95,820

Refer to Colorful Creations Corporation.Assume 8,000 units were transferred to Decorating.Compute the number of equivalent units in Decorating for conversion.

Accepted Answer

A) 7,925 
B) 7,985 
C) 8,360 
D) 8,465 
A) 7,925 
B) 7,985 
C) 8,360 
D) 8,465

Question 17

Grant Corporation
The following information is available for Grant Corporation for the current month:
             Normal spoilage (discrete)              1,100 units               Abnormal spoilage              900 units               Ending WIP      (70% complete)       13,000 units               Transferred out              72,500 units               Beginning Work in Process Costs:                                    Material       $10,400                      Conversion       13,800               Current Costs:                                    Material       $120,000                      Conversion       350,000      
All materials are added at the start of production and the inspection point is at the end of the process.
Refer to Grant Corporation.What is cost per equivalent unit for material using weighted average?

Accepted Answer

A) $1.49 
B) $1.63 
C) $1.56 
D) $1.44 
A) $1.49 
B) $1.63 
C) $1.56 
D) $1.44

Question 18

The costing method that includes beginning work-in-process inventory in the computation of equivalent units is the ________ method.

Accepted Answer

The answer of The costing method that includes beginning work-in-process...

Question 19

Abnormal spoilage is always accounted for on an equivalent unit basis.

Accepted Answer

A) True 
 B)False

Question 20

When a standard costing system is used with process costing,Work in Process inventory is recorded using standard costs.

Accepted Answer

A) True 
 B)False

The weighted average method separates beginning inventory and current production to compute cost per unit of production.

Discuss why units are lost during production.

When a standard costing system is used with process costing,Work in Process inventory is recorded using actual costs.

A loss that occurs uniformly throughout a production process is referred to as a __________________ loss.

In a complex production environment,it is more difficult to compute a single EUP rate for conversion costs.

To compute equivalent units of production using the FIFO method of process costing,work for the current period must be stated in units

Normal spoilage units resulting from a continuous process

The cost of normal discrete losses is

The costing method that includes beginning work-in-process inventory in the computation of equivalent units is the ________ method.

Abnormal spoilage is always accounted for on an equivalent unit basis.

When a standard costing system is used with process costing,Work in Process inventory is recorded using standard costs.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000 units
Started this period		120,000 units
Ending Work in Process Inventory	80% complete as to conversion)	8,200 units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Normal spoilage (discrete)		1,100 units
Abnormal spoilage		900 units
Ending WIP	(70% complete)	13,000 units
Transferred out		72,500 units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

Exam 6: Process Costing

The weighted average method separates beginning inventory and current production to compute cost per unit of production.

Discuss why units are lost during production.

When a standard costing system is used with process costing,Work in Process inventory is recorded using actual costs.

A loss that occurs uniformly throughout a production process is referred to as a __________________ loss.

In a complex production environment,it is more difficult to compute a single EUP rate for conversion costs.

To compute equivalent units of production using the FIFO method of process costing,work for the current period must be stated in units

Normal spoilage units resulting from a continuous process

The cost of normal discrete losses is

The costing method that includes beginning work-in-process inventory in the computation of equivalent units is the ________ method.

Abnormal spoilage is always accounted for on an equivalent unit basis.

When a standard costing system is used with process costing,Work in Process inventory is recorded using standard costs.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters