Question 1

What are the two methods used to determine equivalent units of production?

Accepted Answer

A) weighted average and FIFO 
B) weighted average and LIFO 
C) FIFO and specific identification 
D) LIFO and specific identification 
A) weighted average and FIFO 
B) weighted average and LIFO 
C) FIFO and specific identification 
D) LIFO and specific identification

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 Bottling Department to Finished Goods for Work Order 10?

Accepted Answer

A) $39,500 
B) $45,000 
C) $67,000 
D) $84,500 
A) $39,500 
B) $45,000 
C) $67,000 
D) $84,500

Question 3

What is a difference between the job-order costing system and the process costing system?

Accepted Answer

A) One does not use a raw materials account. 
B) The number of work-in-process accounts is different. 
C) One does not use the finished goods account. 
D) They both distribute the costs among equivalent units. 
A) One does not use a raw materials account. 
B) The number of work-in-process accounts is different. 
C) One does not use the finished goods account. 
D) They both distribute the costs among equivalent units.

Question 4

Urban Company manufactures a product through a continuous single-step process.All materials are added at the beginning of processing.Production and cost data for the company for February are as follows:
 $\begin{array}{lr}
\text { Production data: }\
\text { In process, beginning of month ( } 20 \% \text { converted) } & 1,000 \text { unit } \
\text { Started during February } & 5,000 \text { unit } \
\text { Completed and transferred to finished goods } & 4,500 \text { unit } \
\text { In process, end of month ( } 60 \% \text { converted) } & 1,500 \text { unit }\
\
\text { Manufacturing costs: }\
\text { Work in process, beginning } & \$ 14,730 \
\text { Materials } & \$ 45,000 \
\text { Direct labour cost } & \$ 102,960 \
\text { Factory overhead cost } & \$ 51,480
\end{array}$ Prepare a cost of production report for February.Use FIFO process costing.

Accepted Answer

\[\begin{array}{l}
\text { Summary of un

Question 5

Pelosi Company manufactures chairs. The following information was given for the company:
$\begin{array}{lr}
\text { Units, beginning work in process } & 0 \
\text { Units started } & 20,000 \
\text { Units completed } & ?\
\text { Units, ending work in process } & 5,000 \
\text { Cost of direct materials } & \$ 440,000 \
\text { Cost of conversion } & \$ 64,000
\end{array}$

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.
-Refer to the figure.What are the equivalent units for materials and conversion,respectively?

Accepted Answer

A) 15,000; 14,000 
B) 15,000; 15,000 
C) 20,000; 16,000 
D) 20,000; 20,000 
A) 15,000; 14,000 
B) 15,000; 15,000 
C) 20,000; 16,000 
D) 20,000; 20,000

Question 6

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 ending work in process using the weighted average method?

Accepted Answer

A) $16,992 
B) $21,312 
C) $23,760 
D) $28,760 
A) $16,992 
B) $21,312 
C) $23,760 
D) $28,760

Question 7

Materials are added to a second Production Department and will not increase the number of units produced in this department.What would be the result of adding materials to the second department?

Accepted Answer

A) It would decrease total ending work in process. 
B) It would change the amount of factory overhead included in the ending work in process. 
C) It would increase total unit cost. 
D) The dollar amount transferred out of the department will not change. 
A) It would decrease total ending work in process. 
B) It would change the amount of factory overhead included in the ending work in process. 
C) It would increase total unit cost. 
D) The dollar amount transferred out of the department will not change.

Question 8

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 unit cost of Large?

Accepted Answer

A) $3.50 
B) $16.90 
C) $20.40 
D) $23.90 
A) $3.50 
B) $16.90 
C) $20.40 
D) $23.90

Question 9

Ely Company had the following data for the current year:
$\begin{array}{llr}
  \text {Units in process at the begmning of the month  } &4,000\
 \text { Units in process at the end of the month   } &10,000\
 \text {  Units started during the month} &40,000
\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.
-To find the unit cost of materials for a department using the FIFO method of process costing,by what figure would you divide the total cost of materials issued to the department during the year?

Accepted Answer

A) units in process 
B) units started and completed 
C) total units manufactured 
D) equivalent units of output 
A) units in process 
B) units started and completed 
C) total units manufactured 
D) equivalent units of output

Question 10

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 transferred-out costs using weighted average?

Accepted Answer

A) $6,000 
B) $8,190 
C) $8,400 
D) $9,330 
A) $6,000 
B) $8,190 
C) $8,400 
D) $9,330

Question 11

Speakeasy Co. manufactures podiums. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for May:
$$\begin{array} { | l | c | c | c | } 
\hline & \text { Cuttine } & \text { Assembly } & \text { Finishine } \
\hline \text { Direct materials } & \mathbf {\$ 7 , 0 0 0 } & \mathbf { 1 0 , 0 0 0 } & \mathbf { \$ 3 , 0 0 0 } \
\hline \text { Direct labour } & 3,000 & 14,000 & 2,000 \
\hline \text { Applied averhead } & 4,000 & 5,000 & 6,000 \
\hline
\end{array}$$
There were no work in process inventories and 1,000 podiums were produced.
-Refer to the figure.What would be the journal entries to record the transfer of goods from process to process?

Accepted Answer

A) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 14,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \
\text { Work in Process-Finishing } & 43,000 & \
\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 43,000 \
\text { Finished Goods } & 54,000 & \\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &54,000
\end{array}$$ 
B) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 29,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } && 29,000 \
\text { Work in Process-Finishing } & 11,000  \
\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \
\text { Finished Goods }&54,000 \
\quad\quad\quad\text { Work in Process-Finishing }&&54,000
\end{array}$$ 
C) $$\begin{array} { l c c } 
\text { Work in Process-Cutting } & 14,000  \
\quad\quad\quad\quad\quad\quad\quad\text { Raw Materials } & & 14,000\
\text { Work in Process-Assembly } & 29,000 \
\quad\quad\quad\text { Raw materials }&& 29,000 \
\text { Work in Process-Finishing } & 11,000 \
\quad\quad\quad\text { Raw materials }&& 11,000\
\end{array}$$ 
D) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 14,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \
\text { Work in Process-Finishing } & 11,000 & \
\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \
\text { Finished Goods } & 29,000 & \\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &29,000
\end{array}$$ 
A) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 14,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \
\text { Work in Process-Finishing } & 43,000 & \
\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 43,000 \
\text { Finished Goods } & 54,000 & \\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &54,000
\end{array}$$ 
B) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 29,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } && 29,000 \
\text { Work in Process-Finishing } & 11,000  \
\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \
\text { Finished Goods }&54,000 \
\quad\quad\quad\text { Work in Process-Finishing }&&54,000
\end{array}$$ 
C) $$\begin{array} { l c c } 
\text { Work in Process-Cutting } & 14,000  \
\quad\quad\quad\quad\quad\quad\quad\text { Raw Materials } & & 14,000\
\text { Work in Process-Assembly } & 29,000 \
\quad\quad\quad\text { Raw materials }&& 29,000 \
\text { Work in Process-Finishing } & 11,000 \
\quad\quad\quad\text { Raw materials }&& 11,000\
\end{array}$$ 
D) $$\begin{array} { l c c } 
\text { Work in Process-Assembly } & 14,000 & \
\quad\quad\quad\quad\text { Work in Process-Cutting } & &14,000 \
\text { Work in Process-Finishing } & 11,000 & \
\quad\quad\quad\quad\quad\text { Work in Process-Assembly } && 11,000 \
\text { Finished Goods } & 29,000 & \\quad\quad\quad\quad\quad\quad\text { Work in Process-Finishing } & &29,000
\end{array}$$

Question 12

Which is an advantage of the weighted average costing assumption in process costing?

Accepted Answer

A) There is a possibility of errors when input costs are changing significantly from one period to the next. 
B) The cumulative effect of an error might produce a significant distortion in the cost of the final product. 
C) The performance of the current period is combined with the performance of the current period,making it difficult to compare costs between periods. 
D) Unit costs are simpler to calculate. 
A) There is a possibility of errors when input costs are changing significantly from one period to the next. 
B) The cumulative effect of an error might produce a significant distortion in the cost of the final product. 
C) The performance of the current period is combined with the performance of the current period,making it difficult to compare costs between periods. 
D) Unit costs are simpler to calculate.

Question 13

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 was the total number of units to account for?

Accepted Answer

A) 50 
B) 150 
C) 200 
D) 400 
A) 50 
B) 150 
C) 200 
D) 400

Question 14

The following information pertains to North Company: $\begin{array}{lr}
&\text { Units }\
\text { Work in process, January } 1 \text { (20\% complete) } & 8,000 \
\text { Started in January } & 40,000 \
\text { Work in process, January } 31 & 12,000
\end{array}$
 Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method was 39,000,how complete was ending work in process at January 31?

Accepted Answer

A) 15.0% complete 
B) 25.0% complete 
C) 30.0% complete 
D) 97.5% complete 
A) 15.0% complete 
B) 25.0% complete 
C) 30.0% complete 
D) 97.5% complete

Question 15

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.How many units were completed?

Accepted Answer

A) 50 
B) 150 
C) 200 
D) 400 
A) 50 
B) 150 
C) 200 
D) 400

Question 16

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 conversion?

Accepted Answer

A) $2.22 
B) $2.50 
C) $2.75 
D) $2.79 
A) $2.22 
B) $2.50 
C) $2.75 
D) $2.79

Question 17

Beginning inventory consisted of 1,000 units with costs of $21,000.All materials and 60 percent of labour and overhead were added in the prior period.In addition,another 8,000 units were started and completed.Unit costs are materials,$6.00; labour,$15.00; overhead,$9.00.What is the total cost of goods transferred out using FIFO?

Accepted Answer

A) $240,000 
B) $262,200 
C) $270,000 
D) $270,600 
A) $240,000 
B) $262,200 
C) $270,000 
D) $270,600

Question 18

What is the term for the number of completed units that is equal,in terms of production inputs,to a given number of partially completed units?

Accepted Answer

A) units completed 
B) equivalent units 
C) units started and completed 
D) total units in production 
A) units completed 
B) equivalent units 
C) units started and completed 
D) total units in production

Question 19

-Refer to the figure.What are Department A's equivalent units of production for conversion using the weighted average method?

Accepted Answer

A) 44,800 
B) 47,200 
C) 50,000 
D) 54,000 
A) 44,800 
B) 47,200 
C) 50,000 
D) 54,000

Question 20

Begzy Company produces calculators on an assembly line in a single-step process. The following data pertains to November:

$\begin{array}{lr}
\text { Current manufacturing costs: } & \
\text { Materials purchased } & 150,000 \
\text { Materials issued to production } & 120,000 \
\text { Direct labour } & 40,000 \
\text { Factory overhead } & 30,000\
\
\text { Finished goods for period } & 180,000 \
\text { Beginning work in process } &0 \
& \
\text { Ending woct materials } & \
\quad \text { Materials } & 3,000 \
\text { Direct labour } &? \
\text { Factory overhead } & ?
\end{array}$

a.Prepare traditional journal entries for the following events in November:
1. Purchase of materials on account
2. Requisition of materials into production
3. Usage of direct labour
4. Application of overhead
5. Completion of finished goods

b.What is the amount of direct labour in ending work in process?
a.Prepare traditional journal entries for the following events in November:
1. Purchase of materials on account
2. Requisition of materials into production
3. Usage of direct labour
4. Application of overhead
5. Completion of finished goods
b.What is the amount of direct labour in ending work in process?

Accepted Answer

a.1. 
b.Ending WIP	= $0 + $120

What are the two methods used to determine equivalent units of production?

What is a difference between the job-order costing system and the process costing system?

Materials are added to a second Production Department and will not increase the number of units produced in this department.What would be the result of adding materials to the second department?

Which is an advantage of the weighted average costing assumption in process costing?

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 was the total number of units to account for?

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.How many units were completed?

What is the term for the number of completed units that is equal,in terms of production inputs,to a given number of partially completed units?

-Refer to the figure.What are Department A's equivalent units of production for conversion using the weighted average method?

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 are the two methods used to determine equivalent units of production?

What is a difference between the job-order costing system and the process costing system?

Materials are added to a second Production Department and will not increase the number of units produced in this department.What would be the result of adding materials to the second department?

Which is an advantage of the weighted average costing assumption in process costing?

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 was the total number of units to account for?

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.How many units were completed?

What is the term for the number of completed units that is equal,in terms of production inputs,to a given number of partially completed units?

-Refer to the figure.What are Department A's equivalent units of production for conversion using the weighted average method?

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