Question 1

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

Accepted Answer

A) normal and discrete. 
B) normal and continuous. 
C) abnormal and discrete. 
D) abnormal and continuous. 
A) normal and discrete. 
B) normal and continuous. 
C) abnormal and discrete. 
D) abnormal and continuous.

Question 2

In a process costing system using the weighted average method,cost per equivalent unit for a given cost component is found by dividing which of the following by EUP?

Accepted Answer

A) only current period cost 
B) current period cost plus the cost of beginning inventory 
C) current period cost less the cost of beginning inventory 
D) current period cost plus the cost of ending inventory 
A) only current period cost 
B) current period cost plus the cost of beginning inventory 
C) current period cost less the cost of beginning inventory 
D) current period cost plus the cost of ending inventory

Question 3

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 assignment of costs assuming the (a)FIFO and (b)weighted average method.
 Nestar Carpuration

Accepted Answer

All material is added at the start of pr

Question 4

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

Accepted Answer

The answer of The costing method that excludes beginning work...

Question 5

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 conversion costs?

Accepted Answer

A) 80,600 
B) 78,100 
C) 83,100 
D) 75,600 
A) 80,600 
B) 78,100 
C) 83,100 
D) 75,600

Question 6

Rubenstein Company makes small metal containers.The company began April with 250 containers in process that were 30 percent complete as to material and 40 percent complete as to conversion costs.During the month,5,000 containers were started.At month end,1,700 containers were still in process (45 percent complete as to material and 80 percent complete as to conversion costs).Using the weighted average method,what are the equivalent units for conversion costs?

Accepted Answer

A) 3,450 
B) 4,560 
C) 4,610 
D) 4,910 
A) 3,450 
B) 4,560 
C) 4,610 
D) 4,910

Question 7

Hogan Company uses a weighted average process costing system and started 30,000 units this month.Hogan had 12,000 units that were 20 percent complete as to conversion costs in beginning Work in Process Inventory and 3,000 units that were 40 percent complete as to conversion costs in ending Work in Process Inventory.What are equivalent units for conversion costs?

Accepted Answer

A) 37,800 
B) 40,200 
C) 40,800 
D) 42,000 
A) 37,800 
B) 40,200 
C) 40,800 
D) 42,000

Question 8

Delightful Candy Corporation has two processing departments,Cooking and Packaging.Ingredients are placed into production at the beginning of the process in Cooking,where they are formed into various shapes.When finished,they are transferred into Packaging,where the candy is placed into heart and tuxedo boxes and covered with foil.All material added in Packaging is considered as one material for convenience.Since the boxes contain a variety of candies,they are considered partially complete until filled with the appropriate assortment.The following information relates to the two departments for the month of February:
 $\begin{array}{l}
\text { Cooking Departinent: }\
\begin{array}{lll}
\text { Beginning WIP (30\% complete as to conversion) } & 4,500&units \
\text { Jnits started this period } & 15,000&units \
\text { Ending WIP (60\% complete as to conversion) } & 2,400&units
\end{array}
\end{array}$

Packaging Departinent:
$\begin{array}{ll}
\text { Beginning WIP (90\% complete as to material, } 80 \% \text { complete as to conversion) } & 1,000 &units\
\text { Units started churing period } & ? \
\text { Ending WIP ( } 80 \% \text { complete as to material and } 80 \% \text { complete as to conversion) } & 500&units
\end{array}$
a.Determine equivalent units of production for both departments using the weighted average method.
b.Determine equivalent units of production for both departments using the FIFO method.

Accepted Answer

a.Determine equivalent units of producti

Question 9

The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when

Accepted Answer

A) the goods produced are homogeneous. 
B) there is no beginning Work in Process Inventory. 
C) there is no ending Work in Process Inventory. 
D) beginning and ending Work in Process Inventories are each 50 percent complete. 
A) the goods produced are homogeneous. 
B) there is no beginning Work in Process Inventory. 
C) there is no ending Work in Process Inventory. 
D) beginning and ending Work in Process Inventories are each 50 percent complete.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A ____________________ costing system is appropriate where products manufactured have different direct materials but similar processing techniques.

Accepted Answer

The answer of A ____________________ costing system is appropriate where...

Question 12

Dallas Co.has a production process in which the inspection point is at 65 percent of conversion.The beginning inventory for July was 35 percent complete and ending inventory was 80 percent complete.Normal spoilage costs would be assigned to which of the following groups of units,using FIFO costing?
Beginting                             Ending               &nbsUnitsStarted
$\text {\underline{ Inventory }}$                $\text {\underline{ Inventory} }$             $\text {\underline{ \& Completed }}$

Accepted Answer

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

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 is cost per equivalent unit for conversion costs using FIFO?

Accepted Answer

A) $4.00 
B) $4.19 
C) $4.34 
D) $4.38 
A) $4.00 
B) $4.19 
C) $4.34 
D) $4.38

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 is the cost assigned to abnormal spoilage using FIFO?

Accepted Answer

A) $1,350 
B) $3,906 
C) $5,256 
D) $6,424 
A) $1,350 
B) $3,906 
C) $5,256 
D) $6,424

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 weighted average is used?

Accepted Answer

A) 107,000 
B) 116,500 
C) 120,000 
D) 115,000 
A) 107,000 
B) 116,500 
C) 120,000 
D) 115,000

Question 17

Bridges Industries manufactures wood furniture.In the Lamination Department,varnish is added when the goods are 60 percent complete as to overhead.The units that are spoiled during processing are found upon inspection at the end of production.Spoilage is considered discrete.
              Production Data for Current Month                          Beginning inventory (80% complete as to labor, 70% complete as to overhead)      1,000units                Transferred in during month       7,450units               Ending inventory (40% complete as to labor, 20% complete as to overhead)       1,500units               Normal spoilage (found during final quality inspection)       100units               Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs      200units      All other units were transferred to finished goods
              Cost Data for Current Month                                    Beginning work in process inventory:                                           Prior department costs      $7,510                              Varnish       950                             Direct labor       2,194                             Overhead        5,522       $ 16,176               Current period costs:                                           Prior department costs       $68,540                             Varnish       7,015                             Direct labor       23,000                             Overhead        56,782        155,337               Total costs to account for              $171,513              
Required:Determine the proper disposition of the current month costs for the Laminating Department using the weighted average method.

Accepted Answer

All other units were transferred to fini

Question 18

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 a schedule showing the computation for cost per equivalent unit assuming the (a)FIFO and (b)weighted average method.

Accepted Answer

All material is added at the start of pr

Question 19

The following costs were accumulated by Department 2 of Joplin Company during November:
                    Cost Transferred from Dept. 1          Material        Conversion Costs      Total                 Beginning Inventory       $ 17,050       0       $ 5,450       $ 22,500               Current Period Cost       184,000       $ 34,000       104,000        322,000                      $ 201,050       $ 34,000       $ 109,450       $344,500      Production for November in Department 2 (in units):
              WIP-November 1       2,000 60% complete               Complete period transferred       20,000               WIP-November 30       5,000 40% complete       
Materials are not added in Department 2 until the very end of processing Department 2.
Required:Compute the cost of units completed and the value of ending WIP for:
 a. Weighted average invent ouv assumntion  
 b. FIFO inventoty assumption

Accepted Answer

Production for November in Department 2

Question 20

Conversion costs include all manufacturing costs other than direct materials.

Accepted Answer

A) True 
 B)False

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

In a process costing system using the weighted average method,cost per equivalent unit for a given cost component is found by dividing which of the following by EUP?

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

The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when

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

A ____________________ costing system is appropriate where products manufactured have different direct materials but similar processing techniques.

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

Conversion costs include all manufacturing costs other than direct materials.

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	(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

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	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

Production Data for Current Month
Beginning inventory (80% complete as to labor, 70% complete as to overhead)	1,000units
Transferred in during month	7,450units
Ending inventory (40% complete as to labor, 20% complete as to overhead)	1,500units
Normal spoilage (found during final quality inspection)	100units
Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs	200units

Cost Data for Current Month
Beginning work in process inventory:
	Prior department costs	$7,510
	Varnish	950
	Direct labor	2,194
	Overhead	5,522	$ 16,176
Current period costs:
	Prior department costs	$68,540
	Varnish	7,015
	Direct labor	23,000
	Overhead	56,782	155,337
Total costs to account for		$171,513

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

	Cost Transferred from Dept. 1	Material	Conversion Costs	Total
Beginning Inventory	$ 17,050	0	$ 5,450	$ 22,500
Current Period Cost	184,000	$ 34,000	104,000	322,000
	$ 201,050	$ 34,000	$ 109,450	$344,500

WIP-November 1	2,000 60% complete
Complete period transferred	20,000
WIP-November 30	5,000 40% complete

Exam 6: Process Costing

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

In a process costing system using the weighted average method,cost per equivalent unit for a given cost component is found by dividing which of the following by EUP?

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

The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when

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

A ____________________ costing system is appropriate where products manufactured have different direct materials but similar processing techniques.

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

Conversion costs include all manufacturing costs other than direct materials.

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