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 weighted average method of process costing,compute EUP units for Materials A and

A) 2,700 and 2,280,respectively B) 2,700 and 2,450,respectively C) 2,000 and 2,240,respectively D) 2,240 and 2,700,respectively A) 2,700 and 2,280,respectively B) 2,700 and 2,450,respectively C) 2,000 and 2,240,respectively D) 2,240 and 2,700,respectively

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 weighted average method of process costing,compute the average cost per unit for Material

A) $20.10 B) $20.00 C) $31.25 D) $31.00 A) $20.10 B) $20.00 C) $31.25 D) $31.00

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 cost per EUP for material and conversion are $1.75 and $4.55,respectively.What is the cost assigned to ending Work in Process?

A) $100,800 B) $87,430 C) $103,180 D) $71,680 A) $100,800 B) $87,430 C) $103,180 D) $71,680

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 weighted average method of process costing,compute the average cost per EUP for conversion.

A) $39.90 B) $45.00 C) $43.03 D) $47.59 A) $39.90 B) $45.00 C) $43.03 D) $47.59

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 weighted average method of process costing,compute the average cost per EUP for Material

A) $20.00 B) $31.25 C) $20.10 D) $31.00 A) $20.00 B) $31.25 C) $20.10 D) $31.00

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 material?

A) 75,000 B) 72,500 C) 84,500 D) 70,000 A) 75,000 B) 72,500 C) 84,500 D) 70,000

Exam 6: Process Costing

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 Beginuing inventory costs: Material A \ 14,270 Material B 5,950 Conversion 5,640 Current Period costs: Material A \ 40,000 Material B 70,000 Conversion 98,100 Material A is added at the start of production,while Material B is added uniformly throughout the process. Refer to Saturn Corporation.Assuming a weighted average method of process costing,compute EUP units for Materials A and

(Multiple Choice)

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Question 41

Transferred-in cost represents the cost from

(Multiple Choice)

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Question 42

Stocks Corporation Stocks Corporation has the following information available for June of the current year:

Beginning Work in Process Inventory (20% complete as to conversion) 12,000 units

Started 150,000 units

Ending Work in Process Inventory (25% complete as to conversion) 35,000 units

Beginning Work in Process Inventory Costs:

Material $ 2,500

Conversion 2,650

Current Period Costs:

Material $ 36,000

Conversion 112,750

All material is added at the start of production and all products completed are transferred out. Refer to Stocks Corporation.Prepare an equivalent units schedule using the (a)FIFO and (b)weighted average method.

(Essay)

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Question 43

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 Beginuing inventory costs: Material A \ 14,270 Material B 5,950 Conversion 5,640 Current Period costs: Material A \ 40,000 Material B 70,000 Conversion 98,100 Material A is added at the start of production,while Material B is added uniformly throughout the process. Refer to Saturn Corporation Assuming a weighted average method of process costing,compute the average cost per unit for Material

(Multiple Choice)

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Question 44

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 FIFO method?

(Multiple Choice)

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Question 45

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 $\$ 25,100$ Started 75,000 units Conversion 50,000 Ending Work in Process Cumrent Costs: (60\% complete) 16,000 units Material \ 120,000 Abtormal spoilage 2,500 units Conversion 300,000 Normal spoilage (continuous) 5,000 units Tranferred out 66,000 units All materials are added at the start of production. Refer to Stillwater Corporation.Assume that the cost per EUP for material and conversion are $1.75 and $4.55,respectively.What is the cost assigned to ending Work in Process?

(Multiple Choice)

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Question 46

Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of ____________________.

(Short Answer)

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Question 47

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 Beginuing inventory costs: Material A \ 14,270 Material B 5,950 Conversion 5,640 Current Period costs: Material A \ 40,000 Material B 70,000 Conversion 98,100 Material A is added at the start of production,while Material B is added uniformly throughout the process. Refer to Saturn Corporation Assuming a weighted average method of process costing,compute the average cost per EUP for conversion.

(Multiple Choice)

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Question 48

Process costing is used in companies that

(Multiple Choice)

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Question 49

Nelson Corporation Nelson Corporation has the following information available for May of the current year:

Beginning Work in Process Inventory (25% complete as to conversion) 10,000 units

Started 120,000 units

Ending Work in Process Inventory (30% complete as to conversion) 30,000 units

Beginning Work in Process Inventory Costs:

Material $ 2,100

Conversion 2,030

Current Period Costs:

Material $ 33,000

Conversion 109,695

All material is added at the start of production and all products completed are transferred out. Refer to Nelson Corporation.Prepare a schedule showing the computation for cost per equivalent unit assuming the (a)FIFO and (b)weighted average method.

(Essay)

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Question 50

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.How many units were started and completed in the period?

(Multiple Choice)

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Question 51

A hybrid costing system would be appropriate for a company that manufactures cake flour.

(True/False)

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Question 52

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 Beginuing inventory costs: Material A \ 14,270 Material B 5,950 Conversion 5,640 Current Period costs: Material A \ 40,000 Material B 70,000 Conversion 98,100 Material A is added at the start of production,while Material B is added uniformly throughout the process. Refer to Saturn Corporation Assuming a weighted average method of process costing,compute the average cost per EUP for Material

(Multiple Choice)

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Question 53

TriCities Corporation TriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory (40% complete as to conversion) 7,000 units

Started this period 32,000 units

Ending Work in Process Inventory (25% complete as to conversion) 2,500 units

Transferred out ?

Refer to TriCities Corporation.Compute the number of units started and completed in August.

(Multiple Choice)

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Question 54

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 conversion costs using weighted average?

(Multiple Choice)

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Question 55

Nelson Corporation Nelson Corporation has the following information available for May of the current year:

Beginning Work in Process Inventory (25% complete as to conversion) 10,000 units

Started 120,000 units

Ending Work in Process Inventory (30% complete as to conversion) 30,000 units

Beginning Work in Process Inventory Costs:

Material $ 2,100

Conversion 2,030

Current Period Costs:

Material $ 33,000

Conversion 109,695

All material is added at the start of production and all products completed are transferred out. Refer to Nelson Corporation.Prepare an equivalent units schedule using the (a)FIFO and (b)weighted average method.

(Essay)

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Question 56

The process costing system that computes equivalent units on beginning work in process inventory as well as work done in the current period is known as a _______________.

(Short Answer)

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Question 57

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 are equivalent units of production for conversion costs using weighted average?

(Multiple Choice)

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Question 58

TriCities Corporation TriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory (40% complete as to conversion) 7,000 units

Started this period 32,000 units

Ending Work in Process Inventory (25% complete as to conversion) 2,500 units

Transferred out ?

Refer to TriCities Corporation.Calculate equivalent units of production for conversion using FIFO.

(Multiple Choice)

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Question 59

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 $\$ 25,100$ Started 75,000 units Conversion 50,000 Ending Work in Process Cumrent Costs: (60\% complete) 16,000 units Material \ 120,000 Abtormal spoilage 2,500 units Conversion 300,000 Normal spoilage (continuous) 5,000 units Tranferred out 66,000 units All materials are added at the start of production. Refer to Stillwater Corporation.Using FIFO,what are equivalent units for material?

(Multiple Choice)

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Question 60

Transferred-in cost represents the cost from

Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of ____________________.

Process costing is used in companies that

A hybrid costing system would be appropriate for a company that manufactures cake flour.

The process costing system that computes equivalent units on beginning work in process inventory as well as 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

Beginning Work in Process Inventory	(20% complete as to conversion)	12,000 units
Started		150,000 units
Ending Work in Process Inventory	(25% complete as to conversion)	35,000 units
Beginning Work in Process Inventory Costs:
	Material	$ 2,500
	Conversion	2,650
Current Period Costs:
	Material	$ 36,000
	Conversion	112,750

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

Beginning Work in Process Inventory	(40% complete as to conversion)	7,000 units
Started this period		32,000 units
Ending Work in Process Inventory	(25% complete as to conversion)	2,500 units
Transferred out	?

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