Question 1

What costing system uses job-order costing to assign material costs and process costing to assign conversion costs?

Accepted Answer

A) matrix costing 
B) blend costing 
C) operation costing 
D) variable costing 
A) matrix costing 
B) blend costing 
C) operation costing 
D) variable costing

Question 2

Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:
$\begin{array}{lcc}
&\text { Small }&\text { Large } \
&\text {Work Order } 10&\text { Work Order } 11\
\hline\text { Direct materials (actual costs) } & \$ 45,000 & \$ 75,000 \
\text { Applied conversion costs: } & & \
\text { Mixing } &?& ? \
\text { Cooking } & \$ 12,000  & \$ 12,000 \
\text { Bottling } & \$ 10,000 & \$ 15,000 \\
\text { Batch size (bottles) }& 5,000 & 5,000
\end{array}$
 In the Mixing Department,conversion costs are applied on the basis of direct labour hours.Budgeted conversion costs for the department for the year were $50,000 for labour and $125,000 for overhead.Budgeted direct labour hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle.
Small (Work Order 10)and Large (Work Order 11)flow through the Mixing Department first,then through the Cooking and Bottling departments.
-Refer to the figure.What is Ring Company's amount transferred from the Mixing Department to the Bottling Department for Work Order 10?

Accepted Answer

A) $39,500 
B) $45,000 
C) $62,500 
D) $84,500 
A) $39,500 
B) $45,000 
C) $62,500 
D) $84,500

Question 3

Takon manufactures specialized plastic boxes in two processes: Moulding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
$\begin{array}{lcccc}
&&&\text { Costs }\
&\underline{\text { Units }} &\underline{\text { Trans.-in }} &\underline{\text { Materials }} &\underline{\text { Conv. }}\
\text { Work in process, October } 1 & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during October } & ? & & & \
\text { Completed during October } & 105 & & & \
\text { Work in process, October } 31 & 15 & &  \
\text { Costs added during October } & & \$ 4,410 & \$ 1,050 &\$ 1,767
\end{array}$

The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-Refer to the figure.Rounded to two decimal places,what would be Takon's conversion cost per unit using FIFO?

Accepted Answer

A) $15.50 
B) $19.00 
C) $20.00 
D) $24.52 
A) $15.50 
B) $19.00 
C) $20.00 
D) $24.52

Question 4

Vance Manufacturing Company began June 2011 with 10,000 units of inventory in process,20 percent completed.During the period,50,000 units were completed and transferred to the finished goods warehouse.Ending inventory consisted of 5,000 units,70 percent completed.Materials were added at the beginning of the process.
Calculate the equivalent units for:
a.Materials costs under the weighted average process cost method.
b.Conversion costs under the weighted average process cost method.
c.Materials costs under the FIFO process cost method.
d.Conversion costs under the FIFO process cost method.

Accepted Answer

None

Question 5

Takon manufactures specialized plastic boxes in two processes: Moulding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
$\begin{array}{lcccc}
&&&\text { Costs }\
&\underline{\text { Units }} &\underline{\text { Trans.-in }} &\underline{\text { Materials }} &\underline{\text { Conv. }}\
\text { Work in process, October } 1 & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during October } & ? & & & \
\text { Completed during October } & 105 & & & \
\text { Work in process, October } 31 & 15 & &  \
\text { Costs added during October } & & \$ 4,410 & \$ 1,050 &\$ 1,767
\end{array}$

The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-Refer to the figure.What would be Takon's equivalent units for transferred-in units using weighted average?

Accepted Answer

A) 15 
B) 90 
C) 105 
D) 120 
A) 15 
B) 90 
C) 105 
D) 120

Question 6

Irvin Corporation’s Mixing Department began January 2011 with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).
-Refer to the figure.If materials were added at the beginning of the process,how many equivalent units of production for conversion costs would there be for Irvin using the weighted average costing method?

Accepted Answer

A) 99,500 units 
B) 105,500 units 
C) 110,000 units 
D) 120,500 units 
A) 99,500 units 
B) 105,500 units 
C) 110,000 units 
D) 120,500 units

Question 7

How are costs accounted for in process costing?

Accepted Answer

A) by year 
B) by batch 
C) by process 
D) by job 
A) by year 
B) by batch 
C) by process 
D) by job

Question 8

As production occurs,where are materials,direct labour,and applied manufacturing overhead recorded?

Accepted Answer

A) in materials 
B) in finished goods 
C) in work in process 
D) in cost of goods sold 
A) in materials 
B) in finished goods 
C) in work in process 
D) in cost of goods sold

Question 9

Beginning inventory consisted of 10,000 units (20 percent converted)and ending inventory consisted of 20,000 units (40 percent converted).In addition,60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

Accepted Answer

A) 50,000 units 
B) 56,000 units 
C) 58,000 units 
D) 70,000 units 
A) 50,000 units 
B) 56,000 units 
C) 58,000 units 
D) 70,000 units

Question 10

Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows:
$$\begin{array} { | l | c | c | c | } 
\hline & & { \text { Costs } } \
\hline & \text { Units } & \text { Materials } & \text { Conversion } \
\hline \text { Work in process, March 1 } & 25,000 & \$ 68,750 & \$ 167,650 \
\hline \text { Started during March } & 100,000 & 300,000 & 903,350 \
\hline \text { Work in process, March 31 } & 10,000 & & \
\hline
\end{array}$$
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
-Refer to the figure.How many equivalent units for materials would there be for Gill Corporation in March using the FIFO method?

Accepted Answer

A) 100,000 units 
B) 110,000 units 
C) 119,000 units 
D) 125,000 units 
A) 100,000 units 
B) 110,000 units 
C) 119,000 units 
D) 125,000 units

Question 11

Which of the following are accounted for in the same manner as transferred-in costs?

Accepted Answer

A) materials added at the beginning of the process 
B) materials added at the end of the process 
C) conversion costs 
D) labour costs 
A) materials added at the beginning of the process 
B) materials added at the end of the process 
C) conversion costs 
D) labour costs

Question 12

Irvin Corporation’s Mixing Department began January with 10,000 gallons of product (40 percent completed) in process. During January, Irvin started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).
-Refer to the figure.If materials were added when the units were 50 percent complete,how many equivalent units of production for materials would there be for Irvin Corporation using the FIFO costing method?

Accepted Answer

A) 85,000 units 
B) 101,500 units 
C) 105,500 units 
D) 110,000 units 
A) 85,000 units 
B) 101,500 units 
C) 105,500 units 
D) 110,000 units

Question 13

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows:
$\begin{array}{lr}
\text { Direct materials } & 100 \
\text { CPA staff salaries } & 2,000 \
\text { Overhead } & 900 \
\text { Total } & \$ 3,000
\end{array}$
Number of tax returns	200
-Refer to the figure.What is the cost of services sold?

Accepted Answer

A) $100 
B) $900 
C) $2,000 
D) $3,000 
A) $100 
B) $900 
C) $2,000 
D) $3,000

Question 14

Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:
$\begin{array}{lcc}
&\text { Small }&\text { Large } \
&\text {Work Order } 10&\text { Work Order } 11\
\hline\text { Direct materials (actual costs) } & \$ 45,000 & \$ 75,000 \
\text { Applied conversion costs: } & & \
\text { Mixing } &?& ? \
\text { Cooking } & \$ 12,000  & \$ 12,000 \
\text { Bottling } & \$ 10,000 & \$ 15,000 \\
\text { Batch size (bottles) }& 5,000 & 5,000
\end{array}$
 In the Mixing Department,conversion costs are applied on the basis of direct labour hours.Budgeted conversion costs for the department for the year were $50,000 for labour and $125,000 for overhead.Budgeted direct labour hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle.
Small (Work Order 10)and Large (Work Order 11)flow through the Mixing Department first,then through the Cooking and Bottling departments.
-Refer to the figure.What is Ring Company's journal entry to apply conversion costs in the Mixing Department for Work Order 10?

Accepted Answer

A) Materials$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$45,000
Work in Process-Mixing$\quad$$\quad$$\quad$$\quad$45,000 
B) Work in Process-Mixing$\quad$17,500
Conversion Costs Control$\quad$$\quad$$\quad$17,500 
C) Conversion Costs Control$\quad$17,500
Work in Process-Mixing$\quad$$\quad$$\quad$$\quad$17,500 
D) $\begin{array}{llr}
 \text { Work in Process-Mixing }&45,000\
\quad\quad\quad\quad \text {Materials  }   &&45,000\
\end{array}$ 
A) Materials$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$45,000
Work in Process-Mixing$\quad$$\quad$$\quad$$\quad$45,000 
B) Work in Process-Mixing$\quad$17,500
Conversion Costs Control$\quad$$\quad$$\quad$17,500 
C) Conversion Costs Control$\quad$17,500
Work in Process-Mixing$\quad$$\quad$$\quad$$\quad$17,500 
D) $\begin{array}{llr}
 \text { Work in Process-Mixing }&45,000\
\quad\quad\quad\quad \text {Materials  }   &&45,000\
\end{array}$

Question 15

Lee Company began making lipstick in October using a single-step process.Lee incurred $42,000 for materials and $48,640 for conversion during the month.There were 21,000 cases of lipstick started in October and 3,000 cases unfinished (40 percent complete)at the end of the period.All materials were added at the beginning of the production process. What is the unit cost for materials for Lee using the FIFO method?

Accepted Answer

A) $2.00 
B) $2.03 
C) $4.03 
D) $4.53 
A) $2.00 
B) $2.03 
C) $4.03 
D) $4.53

Question 16

Allen Company has the following information for the Assembly Department for October:
$\begin{array}{lr}
\text { Materials purchased } & \$ 40,000 \
\text { Materials used } & 44,000 \
\text { Direct labour } & 30,000 \
\text { Actual manufacturing overhead } & 56,000 \
\text { Cost of goods completed and transferred to the Finishing Dept. } & 120,000
\end{array}$
Overhead rate is 200 percent of direct labour costs.
Allen Company uses a process costing system for the Assembly Department.
-Refer to the figure.What debit or credit would the journal entry to record materials purchased include?

Accepted Answer

A) a debit to materials inventory for $40,000 
B) a debit to materials inventory for $44,000 
C) a credit to accounts payable for $44,000 
D) a debit to accounts payable for $40,000 
A) a debit to materials inventory for $40,000 
B) a debit to materials inventory for $44,000 
C) a credit to accounts payable for $44,000 
D) a debit to accounts payable for $40,000

Question 17

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr}
  \text { Units, beginning work in process } &0\
 \text { Units staited } &200\
 \text { Units completed } &?\
 \text { Units, ending work in process ( $ 40 \% $ complete) } &50
\end{array}$

-Refer to the figure.What are the equivalent units?

Accepted Answer

A) 150 
B) 170 
C) 180 
D) 200 
A) 150 
B) 170 
C) 180 
D) 200

Question 18

What do equivalent units express all activity of the period in terms of?

Accepted Answer

A) direct labour hours 
B) partially completed units 
C) fully completed units 
D) units of input 
A) direct labour hours 
B) partially completed units 
C) fully completed units 
D) units of input

Question 19

The following information is available for Department A for the month of January:
$\begin{array}{lcc}
& \underline{\text {Units}}&
\underline{\text{cost}} \
\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \
 \text { Direct materials } & & \$ 36,000 \
 \text { Direct labour } & & 18,000 \
\text { Manufacturing overhead } & &\underline{ 24,000} \
 \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\
 \begin{array}{l}
\text { Started in production during January } \
\text { Costs added: }
\end{array} & 40,000 & \
 \text { Direct materials } & & \$ 108,000 \
 \text { Direct labour } & & 48,000 \
 \text { Manufacturing overhead } & &\underline{ 60,600} \
\text { Total costs added during January } & & \underline{\$ 216,600 }\
\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000
\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.
-Refer to the figure.What is the cost of goods transferred out using the weighted average method?

Accepted Answer

A) $241,500 
B) $273,240 
C) $273,600 
D) $309,800 
A) $241,500 
B) $273,240 
C) $273,600 
D) $309,800

Question 20

The Dodd Company uses a weighted average process costing system. The following information was reported for the Assembly process for July. Materials are added at the beginning of the process and are 100%.
$\begin{array}{|l|c|l|}
\hline{\text { Units: }} & \text { Units } &{\begin{array}{c}
\text { \% Complete for } \
\text { Conversions }
\end{array}} \
\hline \text { Work in process, } 7 / 1 & 60,000 & 15 \% \
\hline \text { Started } & 105,000 & \
\hline \text { Work in process, } 7 / 31 & 40,000 & 20 \%\\hline & & \
\hline \text { Costs: } & & \
\hline & \text { Materials } & \text { Conversion } \\hline \text { Beginning work in process } & \$ 16,500 & \$ 33,250 \
\hline \text { Current costs } & \$ 643,500 & \$ 332,500\
\hline 
\end{array}$
-Refer to the figure.What is the cost per unit for materials?

Accepted Answer

A) $2.75 
B) $3.90 
C) $4.00 
D) $4.96 
A) $2.75 
B) $3.90 
C) $4.00 
D) $4.96

What costing system uses job-order costing to assign material costs and process costing to assign conversion costs?

How are costs accounted for in process costing?

As production occurs,where are materials,direct labour,and applied manufacturing overhead recorded?

Beginning inventory consisted of 10,000 units (20 percent converted)and ending inventory consisted of 20,000 units (40 percent converted).In addition,60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

Which of the following are accounted for in the same manner as transferred-in costs?

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows: Direct materials 100 CPA staff salaries 2,000 Overhead 900 Total \ 3,000 Number of tax returns 200 -Refer to the figure.What is the cost of services sold?

Baynor Inc. manufactures desks. The following data was given for production in January: Units, beginning work in process 0 Units staited 200 Units completed ? Units, ending work in process ( 40 \% complete) 50 -Refer to the figure.What are the equivalent units?

What do equivalent units express all activity of the period in terms of?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 5: Process Costing

What costing system uses job-order costing to assign material costs and process costing to assign conversion costs?

How are costs accounted for in process costing?

As production occurs,where are materials,direct labour,and applied manufacturing overhead recorded?

Beginning inventory consisted of 10,000 units (20 percent converted)and ending inventory consisted of 20,000 units (40 percent converted).In addition,60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

Which of the following are accounted for in the same manner as transferred-in costs?

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows: Direct materials 100 CPA staff salaries 2,000 Overhead 900 Total \ 3,000 Number of tax returns 200 -Refer to the figure.What is the cost of services sold?

Baynor Inc. manufactures desks. The following data was given for production in January: Units, beginning work in process 0 Units staited 200 Units completed ? Units, ending work in process ( 40 \% complete) 50 -Refer to the figure.What are the equivalent units?

What do equivalent units express all activity of the period in terms of?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters