Question 1

Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?

Accepted Answer

A) standard 
B) actual 
C) process 
D) job order 
A) standard 
B) actual 
C) process 
D) job order

Question 2

In a cost of production report using process costing,transferred-in costs are similar to the

Accepted Answer

A) cost of material added at the beginning of production. 
B) conversion cost added during the period. 
C) cost transferred out to the next department. 
D) cost included in beginning inventory. 
A) cost of material added at the beginning of production. 
B) conversion cost added during the period. 
C) cost transferred out to the next department. 
D) cost included in beginning inventory.

Question 3

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.What are equivalent units of production for conversion costs,assuming FIFO?

Accepted Answer

A) 97,750 
B) 100,000 
C) 101,750 
D) 104,500 
A) 97,750 
B) 100,000 
C) 101,750 
D) 104,500

Question 4

Wyman Corporation
Wyman Corporation.has the following information for May:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (75\% complete as to conversion) } &7,500 \text { units } \
\text { Started } &  27,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (15\% complete as to conversion) } & 9,400 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 25,500\
\text { Conversion } & 52,725
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 34,300 $
Conversion                                                                            $ 80,845 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Wyman Corporation.Assume that weighted average process costing is used.What is the cost per equivalent unit for material?

Accepted Answer

A) $0.99 
B) $1.18 
C) $1.64 
D) $1.73 
A) $0.99 
B) $1.18 
C) $1.64 
D) $1.73

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

Accepted Answer

A) 2,600 
B) 2,180 
C) 2,000 
D) 2,700 
A) 2,600 
B) 2,180 
C) 2,000 
D) 2,700

Question 6

The addition of material in a successor department that causes an increase in volume is called

Accepted Answer

A) accretion. 
B) reworked units. 
C) complex procedure. 
D) undetected spoilage. 
A) accretion. 
B) reworked units. 
C) complex procedure. 
D) undetected spoilage.

Question 7

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 total cost assigned to goods transferred out using weighted average?

Accepted Answer

A) $435,080 
B) $429,824 
C) $428,656 
D) $423,400 
A) $435,080 
B) $429,824 
C) $428,656 
D) $423,400

Question 8

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.Assuming that weighted average is used,what is the cost assigned to ending inventory?

Accepted Answer

A) $55,312 
B) $63,750 
C) $66,375 
D) $72,312 
A) $55,312 
B) $63,750 
C) $66,375 
D) $72,312

Question 9

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 Material

Accepted Answer

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

Question 10

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.What are equivalent units of production for material assuming weighted average is used?

Accepted Answer

A) 105,500 
B) 106,000 
C) 107,000 
D) 110,000 
A) 105,500 
B) 106,000 
C) 107,000 
D) 110,000

Question 11

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 material using FIFO?

Accepted Answer

A) 80,000 
B) 79,100 
C) 78,900 
D) 87,500 
A) 80,000 
B) 79,100 
C) 78,900 
D) 87,500

Question 12

Fox Corporation
Fox Corporation.has the following information for August:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (70\% complete as to conversion) } & 6,000 \text { units } \
\text { Started } &  24,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (10\% complete as to conversion) } & 8,500 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 23,400\
\text { Conversion } & 50,607
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 31,500 $
Conversion                                                                            $ 76.956 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Fox Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Accepted Answer

A) $3.44 
B) $4.24 
C) $5.71 
D) $7.03 
A) $3.44 
B) $4.24 
C) $5.71 
D) $7.03

Question 13

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 material using weighted average?

Accepted Answer

A) 86,600 
B) 87,500 
C) 86,400 
D) 85,500 
A) 86,600 
B) 87,500 
C) 86,400 
D) 85,500

Question 14

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 FIFO?

Accepted Answer

A) 79,700 
B) 79,500 
C) 81,100 
D) 80,600 
A) 79,700 
B) 79,500 
C) 81,100 
D) 80,600

Question 15

Which of the following is(are)the same between the weighted average and FIFO methods of calculating EUPs?
$\begin{array}{lll}
\text { Unitsto } & \text { EUP } & \text { Total cost to } \
\text {\underline{ accountfor} } & \text {\underline{ calculations }} & \text {\underline{ account for }}
\end{array}$

Accepted Answer

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

Question 16

A continuous loss is assumed to occur at a specific point in the production process.

Accepted Answer

A) True 
 B)False

Question 17

Duffy Company makes fabric-covered hatboxes.The company began July with 500 boxes in process that were 100 percent complete as to cardboard,80 percent complete as to cloth,and 60 percent complete as to conversion costs.During the month,3,300 boxes were started.On April 30,350 boxes were in process (100 percent complete as to cardboard,70 percent complete as to cloth,and 55 percent complete as to conversion costs).Using the FIFO method,what are equivalent units for cloth?

Accepted Answer

A) 3,295 
B) 3,395 
C) 3,450 
D) 3,595 
A) 3,295 
B) 3,395 
C) 3,450 
D) 3,595

Question 18

A loss that occurs at a specific point in a production process is referred to as a ____________ loss.

Accepted Answer

The answer of A loss that occurs at a specific...

Question 19

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 must be accounted for?

Accepted Answer

A) 118,200 
B) 128,200 
C) 130,000 
D) 138,200 
A) 118,200 
B) 128,200 
C) 130,000 
D) 138,200

Question 20

Tastee Ice Cream Company produces ice cream in two departments-Mixing and Finishing.In Mixing,all ingredients except fruit are added at the start of production.In Finishing,fruit is added and then the mixture is placed into containers.Adding the fruit to the basic ice cream mixture increases the volume transferred in by the number of gallons of fruit added.Any spoilage that occurs is in the Finishing Department.Spoilage is detected just before the ice cream is placed into containers or at the 98 percent completion point.All spoilage is abnormal.
Finishing Department
              BWIP (100% fruit, 0% container, 30% CC)       5,000 gallons               Gallons transferred in       5,500               Gallons of fruit added       1,200               EWIP (100% fruit, 0% container, 60% CC)       1,700 gallons               Gallons transferred out       9,000               Abnormal spoilage       1,000      
BWIP Costs:
 Transferred In                  $9,700
Fiuit                                10,500
$ \mathrm{CC} $                                  15,000 
Current Costs:
             Transferred In       12,400               Fruit       54,000               Containers       11,000               CC        98,000               Total Costs       $ 210,600       Prepare a cost of production report for October 20XY.The company uses weighted average.

Accepted Answer

BWIP Costs:
 Transferred In

Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?

In a cost of production report using process costing,transferred-in costs are similar to the

The addition of material in a successor department that causes an increase in volume is called

Which of the following is(are)the same between the weighted average and FIFO methods of calculating EUPs? Unitsto EUP Total cost to

A continuous loss is assumed to occur at a specific point in the production process.

A loss that occurs at a specific point in a production process is referred to as a ____________ loss.

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

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

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

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

BWIP (100% fruit, 0% container, 30% CC)	5,000 gallons
Gallons transferred in	5,500
Gallons of fruit added	1,200
EWIP (100% fruit, 0% container, 60% CC)	1,700 gallons
Gallons transferred out	9,000
Abnormal spoilage	1,000

Transferred In	12,400
Fruit	54,000
Containers	11,000
CC	98,000
Total Costs	$ 210,600

Exam 6: Process Costing

Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?

In a cost of production report using process costing,transferred-in costs are similar to the

The addition of material in a successor department that causes an increase in volume is called

Which of the following is(are)the same between the weighted average and FIFO methods of calculating EUPs? Unitsto EUP Total cost to

A continuous loss is assumed to occur at a specific point in the production process.

A loss that occurs at a specific point in a production process is referred to as a ____________ loss.

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