Question 1

A process costing system does which of the following?

$\text {\underline{ Calculates EUPs} }$                     $\text {\underline{ Assygns costs to invent ories} }$

Accepted Answer

A) no no 
B) no yes 
C) yes yes 
D) yes no 
A) no no 
B) no yes 
C) yes yes 
D) yes no

Question 2

Standard costing is compatible with both FIFO and weighted average methods of costing.

Accepted Answer

A) True 
 B)False

Question 3

Garfield Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs.Garfield Company started and completed 42,000 units this period and had ending Work in Process Inventory of 12,000 units.How many units were started this period?

Accepted Answer

A) 42,000 
B) 47,000 
C) 54,000 
D) 59,000 
A) 42,000 
B) 47,000 
C) 54,000 
D) 59,000

Question 4

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 the cost assigned to normal spoilage and how is it classified using weighted average?

Accepted Answer

A) $6,193 allocated between WIP and Transferred Out 
B) $6,424 allocated between WIP and Transferred Out 
C) $6,193 assigned to loss account 
D) $6,424 assigned to units Transferred Out 
A) $6,193 allocated between WIP and Transferred Out 
B) $6,424 allocated between WIP and Transferred Out 
C) $6,193 assigned to loss account 
D) $6,424 assigned to units Transferred Out

Question 5

Saturn Corporation
Begining invent ouy (30\% complete as to Material B and $ 60 \% $ complete for                                     700                                   units
conversion

Started this cycle                                                                                                                                     2,000                               units
Ending inventory (50\% complete as to Material B and $ 80 \% $ complete for conversion)                       500                                   units

$\begin{array}{lc}
\text { Beginuing inventory costs: } &  \
\text { Material A } &\$ 14,270 \
\text { Material B } &5,950  \
\text { Conversion } & 5,640  \
\text { Current Period costs: } &  \
\text { Material A } & \$ 40,000\
\text { Material B } &70,000  \
\text { Conversion } & 98,100
\end{array}$

Material A is added at the start of production,while Material B is added uniformly throughout the process.
Refer to Saturn Corporation Assuming a FIFO method of process costing,compute the average cost per EUP for conversion.

Accepted Answer

A) $45.50 
B) $45.00 
C) $43.03 
D) $47.59 
A) $45.50 
B) $45.00 
C) $43.03 
D) $47.59

Question 6

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 7

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 are equivalent units for conversion costs?

Accepted Answer

A) 72,225 
B) 67,225 
C) 69,725 
D) 78,100 
A) 72,225 
B) 67,225 
C) 69,725 
D) 78,100

Question 8

When is a hybrid costing system appropriate in a manufacturing setting?

Accepted Answer

A hybrid costing system combines charact

Question 9

Equivalent units of production are equal to the

Accepted Answer

A) units completed by a production department in the period. 
B) number of units worked on during the period by a production department. 
C) number of whole units that could have been completed if all work of the period had been used to produce whole units. 
D) identifiable units existing at the end of the period in a production department. 
A) units completed by a production department in the period. 
B) number of units worked on during the period by a production department. 
C) number of whole units that could have been completed if all work of the period had been used to produce whole units. 
D) identifiable units existing at the end of the period in a production department.

Question 10

Discrete production losses are assumed to occur at the end of a process.

Accepted Answer

A) True 
 B)False

Question 11

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.Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75,respectively.Using FIFO what is the total cost assigned to the units transferred out?

Accepted Answer

A) $414,194 
B) $339,094 
C) $445,444 
D) $396,975 
A) $414,194 
B) $339,094 
C) $445,444 
D) $396,975

Question 12

Andersen Corporation
Andersen Corporation has the following information for the current month:
             Units started       95,000 units               Beginning Work in Process: (30% complete)       15,000 units               Normal spoilage (discrete)       3,000 units               Abnormal spoilage       4,000 units               Ending Work in Process: (75% complete)       15,000 units               Transferred out       88,000 units               Beginning Work in Process Costs:                             Material                 $18,000                      Conversion            14,000      
All materials are added at the start of the production process.Andersen Corporation inspects goods at 75 percent completion as to conversion.
Refer to Andersen Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.Using FIFO,what is the total cost assigned to the transferred-out units (rounded to the nearest dollar)?

Accepted Answer

A) $344,938 
B) $365,875 
C) $376,938 
D) $378,625 
A) $344,938 
B) $365,875 
C) $376,938 
D) $378,625

Question 13

A continuous loss

Accepted Answer

A) occurs unevenly throughout a process. 
B) never occurs during the production process. 
C) always occurs at the same place in a production process. 
D) occurs evenly throughout the production process. 
A) occurs unevenly throughout a process. 
B) never occurs during the production process. 
C) always occurs at the same place in a production process. 
D) occurs evenly throughout the production process.

Question 14

A process costing system
Calculates average cost                                                 Determines total units to
$\text {\underline{ per whole unit} }$                                                    $\text {\underline{ account for} }$

Accepted Answer

A) yes yes 
B) no no 
C) yes no 
D) no yes 
A) yes yes 
B) no no 
C) yes no 
D) no yes

Question 15

The FIFO method combines beginning inventory and current production to compute cost per unit of production.

Accepted Answer

A) True 
 B)False

Question 16

Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.

Accepted Answer

A) True 
 B)False

Question 17

Discuss how spoilage is treated in EUP computations.

Accepted Answer

If spoilage is normal and continuous,the

Question 18

Vincent Manufacturing employs a weighted average process costing system for its products.One product passes through three departments (Molding,Assembly,and Finishing)during production.The following activity took place in the Finishing Department during April:.
 Units in beginning inventory                            4,200
Units transferred in from Assembly                  42,000
Units spoiled                                                    2,100
Good units transferred out                                  33,600

The costs per equivalent unit of production for each cost failure area as follows:
              Cost of prior departments       $5.00               Raw material       1.00               Conversion        3.00               Total cost per EUP       $9.00       
Raw material is added at the beginning of the Finishing process without changing the number of units being processed.Work in process inventory was 40 percent complete as to conversion on April 30.All spoilage was discovered at final inspection.Of the total units spoiled,1,680 were within normal limits.Spoilage is considered discrete.
Required:
 a. Calculate the equivalent units of prochuction
b. Determine the cost of units transferred out of Firishing
c. Determine the cost of ending Work in Process Inventory
d. The portion of the total transferred in cost associated with beginning Work in Process Inventory amounted to $ \$ 18,900 $. What is th current period cost that was transferred in from Assembly to Finishing?
e. Determine the cost associated with abnormal spoilage for the month.

Accepted Answer

The costs per equivalent unit of product

Question 19

Painter Corporation
Painter Corporation has the following information for the current month:
             Units started       100,000 units               Beginning Work in Process: (35% complete)       20,000 units               Normal spoilage (discrete)       3,500 units               Abnormal spoilage       5,000 units               Ending Work in Process: (70% complete)       14,500 units               Transferred out       97,000 units               Beginning Work in Process Costs:                             Material                 $15,000                      Conversion            10,000      
All materials are added at the start of the production process.Painter Corporation inspects goods at 75 percent completion as to conversion.
Refer to Painter Corporation.What are equivalent units of production for material,assuming FIFO?

Accepted Answer

A) 100,000 
B) 96,500 
C) 95,000 
D) 120,000 
A) 100,000 
B) 96,500 
C) 95,000 
D) 120,000

Question 20

The process costing system that computes equivalent units only on work done in the current period is known as a ________.

Accepted Answer

FIFO proce

A process costing system does which of the following? $\text {\underline{ Calculates EUPs} }$ $\text {\underline{ Assygns costs to invent ories} }$

Standard costing is compatible with both FIFO and weighted average methods of costing.

Garfield Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs.Garfield Company started and completed 42,000 units this period and had ending Work in Process Inventory of 12,000 units.How many units were started this period?

Normal spoilage units resulting from a continuous process

When is a hybrid costing system appropriate in a manufacturing setting?

Equivalent units of production are equal to the

Discrete production losses are assumed to occur at the end of a process.

A continuous loss

A process costing system Calculates average cost Determines total units to $\text {\underline{ per whole unit} }$ $\text {\underline{ account for} }$

The FIFO method combines beginning inventory and current production to compute cost per unit of production.

Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.

Discuss how spoilage is treated in EUP computations.

The process costing system that computes equivalent units only on work done in the current period is known as a ________.

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

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

Units started	95,000 units
Beginning Work in Process: (30% complete)	15,000 units
Normal spoilage (discrete)	3,000 units
Abnormal spoilage	4,000 units
Ending Work in Process: (75% complete)	15,000 units
Transferred out	88,000 units
Beginning Work in Process Costs:
	Material $18,000
	Conversion 14,000

Cost of prior departments	$5.00
Raw material	1.00
Conversion	3.00
Total cost per EUP	$9.00

Units started	100,000 units
Beginning Work in Process: (35% complete)	20,000 units
Normal spoilage (discrete)	3,500 units
Abnormal spoilage	5,000 units
Ending Work in Process: (70% complete)	14,500 units
Transferred out	97,000 units
Beginning Work in Process Costs:
	Material $15,000
	Conversion 10,000

Exam 6: Process Costing

A process costing system does which of the following? Calculates EUPs‾ \text {\underline{ Calculates EUPs} } Calculates EUPs​ Assygns costs to invent ories‾ \text {\underline{ Assygns costs to invent ories} } Assygns costs to invent ories​

Standard costing is compatible with both FIFO and weighted average methods of costing.

Garfield Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs.Garfield Company started and completed 42,000 units this period and had ending Work in Process Inventory of 12,000 units.How many units were started this period?

Normal spoilage units resulting from a continuous process

When is a hybrid costing system appropriate in a manufacturing setting?

Equivalent units of production are equal to the

Discrete production losses are assumed to occur at the end of a process.

A continuous loss

A process costing system Calculates average cost Determines total units to per whole unit‾ \text {\underline{ per whole unit} } per whole unit​ account for‾ \text {\underline{ account for} } account for​

The FIFO method combines beginning inventory and current production to compute cost per unit of production.

Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.

Discuss how spoilage is treated in EUP computations.

The process costing system that computes equivalent units only on work done in the current period is known as a ________.

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

A process costing system does which of the following? $\text {\underline{ Calculates EUPs} }$ $\text {\underline{ Assygns costs to invent ories} }$

A process costing system Calculates average cost Determines total units to $\text {\underline{ per whole unit} }$ $\text {\underline{ account for} }$