Nunez Products Inc. uses process costing. The following information was available for the current year: $\begin{array}{lrr} &\text { Number }&\text { Production }\\ & \underline{\text { of units }}& \underline{\text { Costs }}\\ \text { Beginning work-in-process ( } 20 \% \text { complete) } & 400 & \$ 640 \\ \text { Current period production } & 20000 & 133760 \\ \text { Ending work-in-process ( } 40 \% \text { complete) } & 6000 & \end{array}$ -If Nunez uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

A) $5.89 B) $8.00 C) $8.12 D) $8.04 A) $5.89 B) $8.00 C) $8.12 D) $8.04 B

Nunez Products Inc. uses process costing. The following information was available for the current year: $\begin{array}{lrr} &\text { Number }&\text { Production }\\ & \underline{\text { of units }}& \underline{\text { Costs }}\\ \text { Beginning work-in-process ( } 20 \% \text { complete) } & 400 & \$ 640 \\ \text { Current period production } & 20000 & 133760 \\ \text { Ending work-in-process ( } 40 \% \text { complete) } & 6000 & \end{array}$ -If Nunez uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

A) $7.43 B) $7.47 C) $7.96 D) $8.00 A) $7.43 B) $7.47 C) $7.96 D) $8.00

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year: $\begin{array}{lrr} &\text { Number }&\text { Production }\\ & \underline{\text { of units }}& \underline{\text { Costs }}\\ \text { Beginning work-in-process ( } 20 \% \text { complete) } & 1000 & \$ 5850 \\ \text { Current period production } & 40000 & 604500 \\ \text { Ending work-in-process ( } 70 \% \text { complete) } & 6000 & \end{array}$ -If Peace uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,how many total equivalent units were completed in the current period?

A) 40 000 equivalent units B) 39 000 equivalent units C) 36 600 equivalent units D) 45 000 equivalent units A) 40 000 equivalent units B) 39 000 equivalent units C) 36 600 equivalent units D) 45 000 equivalent units

Greenfields productions manufacture thousands of electric-powered lawn mowers.To cost their products,they use the FIFO method of process costing.The following information was available for the current year: $\begin{array}{lcc} & \text {Number } & \text {Production } \\ &\underline{ \text {of units } } &\underline{\text { costs }}\\ \text { Beginning work-in-process ( \( 20 \% $ complete) } &20000&\$15000\\ \text { Goods completed in the period } &150000&280000\\ \text { Ending work-in-process ( $ 30 \% $ complete) } &10000\\ \end{array}\) Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the cost allocated to the ending work-in-pracess units? D. What is cost of goods manufactured for the year?

A. Total equivalent urits @#LAT-DLM& @#LAT-DLM&

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: $\begin{array}{lrr} &\text { Number }&\text { Production }\\ & \underline{\text { of units }}& \underline{\text { Costs }}\\ \text { Beginning work-in-process ( } 60 \% \text { complete) } & 20000 & \$72000 \\ \text { Current period production } &300000 & 1809000 \\ \text { Ending work-in-process ( } 35 \% \text { complete) } & 10000 & \end{array}$ -If Bost uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

A) $6.24 B) $5.81 C) $6.00 D) $5.94 A) $6.24 B) $5.81 C) $6.00 D) $5.94

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: $\begin{array}{lrr} &\text { Number }&\text { Production }\\ & \underline{\text { of units }}& \underline{\text { Costs }}\\ \text { Beginning work-in-process ( } 60 \% \text { complete) } & 20000 & \$72000 \\ \text { Current period production } &300000 & 1809000 \\ \text { Ending work-in-process ( } 35 \% \text { complete) } & 10000 & \end{array}$ -If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost of the ending work-in-process inventory in December?

A) $57 700 B) $20 195 C) $22 435 D) $21 000 A) $57 700 B) $20 195 C) $22 435 D) $21 000

Exam 5: Process Costing Systems

In its initial year of operation,Montoya Manufacturing started and completed 4000 identical widgets and had 1000 widgets that were 40 per cent complete in work-in-process at the end of the year.Total production costs for the year were $55 000.What is the cost per equivalent unit?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

Bretlind watch manufacturers use the FIFO method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 20 \% complete) 60000 \2 00000 Units started this period (current period production work) 400000 1100000 Ending work-in-process ( 40\% complete) 40000 Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the cost allocated to the ending work-in-pracess units? D. What is cost of goods manufactured for the year?

Free

(Essay)

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Question 2

Correct Answer:

Verified

A. Total equivalent units $=424000$
$420000+(40000 \times 0.40)-(60000 \times 0.20)$

B. Cost per equivalent unit $=\$ 2.5943$ $\quad$ $[\$ 1 \quad 100000 \div 424000]$

C. Cost of ending work-in-process $=\$ 41509$ $\quad$ $(40000 \times 40 \% \times \$ 2.5943)$

D. Cost of goods manufactured $=\$ 1258491$ $\quad$ $(\$ 1100000+\$ 200000-\$ 41509)$

Nunez Products Inc. uses process costing. The following information was available for the current year: Number Production Beginning work-in-process ( 20\% complete) 400 \ 640 Current period production 20000 133760 Ending work-in-process ( 40\% complete) 6000 -If Nunez uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

Free

(Multiple Choice)

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(79)

Question 3

Correct Answer:

Verified

B

Nunez Products Inc. uses process costing. The following information was available for the current year: Number Production Beginning work-in-process ( 20\% complete) 400 \ 640 Current period production 20000 133760 Ending work-in-process ( 40\% complete) 6000 -If Nunez uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

(Multiple Choice)

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(80)

Question 4

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year: Number Production Beginning work-in-process ( 20\% complete) 1000 \ 5850 Current period production 40000 604500 Ending work-in-process ( 70\% complete) 6000 -If Peace uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,how many total equivalent units were completed in the current period?

(Multiple Choice)

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Question 5

You enjoy making cakes and pastries and have decided to open up a small bakery across from campus.You plan on making a variety of baked items,probably a couple of different batches each day since the processes differ for each variety.You recall from your managerial accounting class that product costing is important and that there are a few different choices in determining product costs. Would product costing be important for a small operation such as this? Why or why not? If you were to use a product costing system,which one would you use and why?

(Essay)

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Question 6

In its initial year of operation, Sampson Production started and completed 2000 identical telephones and had 1000 telephones that were 30 per cent complete in work-in-process at the end of the year. Total production costs for the year were $40 000. -What is the cost per equivalent unit in Sampson Production?

(Multiple Choice)

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Question 7

Greenfields productions manufacture thousands of electric-powered lawn mowers.To cost their products,they use the FIFO method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 20 \% complete) 20000 \1 5000 Goods completed in the period 150000 280000 Ending work-in-process ( 30\% complete) 10000 Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the cost allocated to the ending work-in-pracess units? D. What is cost of goods manufactured for the year?

(Essay)

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Question 8

Discuss the differences between normal spoilage and abnormal spoilage.

(Essay)

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Question 9

Howell Manufacturers had no units in process at the beginning of the year.During the current year,40 000 units were started.There were 5000 units in work-in-process at the end of the year.These units were 35 per cent complete.How many total equivalent units were completed during the year?

(Multiple Choice)

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Question 10

When is it appropriate to use process costing? Describe how costs are accumulated and assigned to products.

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Question 11

Koole Products Inc.uses the first-in,first-out (FIFO)method of process costing.The following information was available for the current year: Number Production Beginning work-in-process ( 80 \% complete) 1000 \6 400 Units started this period (current period production work) 70000 548000 Ending work-in-process ( 60\% complete) 4000 Required: A. How many total equivalent units were completed during the year? B. What was the cost per equivalent unit? C. What is the cost allocated to the ending wark-in-pracess units? D. What is cost of goods manufactured for the year?

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Question 12

Sheldon Toys Inc manufactures toy cannons. This period, beginning WIP inventory was 4000 units that were 30 per cent complete, and ending inventory was 2000 units that were 40 per cent complete. Beginning and ending WIP costs were $10 000 and $7000 respectively. Further, 9000 units were produced this year at a cost of $25 000. -How many physical units were worked on this period?

(Multiple Choice)

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Question 13

Under which of the following conditions will the first-in,first-out method produce the same cost of goods manufactured as the weighted-average method?

(Multiple Choice)

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Question 14

Sheldon Toys Inc manufactures toy cannons. This period, beginning WIP inventory was 4000 units that were 30 per cent complete, and ending inventory was 2000 units that were 40 per cent complete. Beginning and ending WIP costs were $10 000 and $7000 respectively. Further, 9000 units were produced this year at a cost of $25 000. -What are the total equivalent units worked on this period?

(Multiple Choice)

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Question 15

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Number Production Beginning work-in-process ( 60\% complete) 20000 \7 2000 Current period production 300000 1809000 Ending work-in-process ( 35\% complete) 10000 -If Bost uses the first-in,first-out (FIFO)method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

(Multiple Choice)

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Question 16

What is the weighted average process costing method?

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Question 17

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Number Production Beginning work-in-process ( 60\% complete) 20000 \7 2000 Current period production 300000 1809000 Ending work-in-process ( 35\% complete) 10000 -If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost of the ending work-in-process inventory in December?

(Multiple Choice)

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Question 18

Equivalent units are most likely calculated for which of the following costs?

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Question 19

With respect to process costing,what is the difference in how the weighted-average and first-in,first-out (FIFO)methods treat beginning work-in-process units?

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Question 20

In its initial year of operation,Montoya Manufacturing started and completed 4000 identical widgets and had 1000 widgets that were 40 per cent complete in work-in-process at the end of the year.Total production costs for the year were $55 000.What is the cost per equivalent unit?

Discuss the differences between normal spoilage and abnormal spoilage.

Howell Manufacturers had no units in process at the beginning of the year.During the current year,40 000 units were started.There were 5000 units in work-in-process at the end of the year.These units were 35 per cent complete.How many total equivalent units were completed during the year?

When is it appropriate to use process costing? Describe how costs are accumulated and assigned to products.

Under which of the following conditions will the first-in,first-out method produce the same cost of goods manufactured as the weighted-average method?

What is the weighted average process costing method?

Equivalent units are most likely calculated for which of the following costs?

With respect to process costing,what is the difference in how the weighted-average and first-in,first-out (FIFO)methods treat beginning work-in-process units?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Job Costing and Overhead Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

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