Question 1

-Refer to the figure.What is Department A's cost per unit for materials using the weighted average method?

Accepted Answer

A) $2.16 
B) $2.88 
C) $3.43 
D) $3.60 
A) $2.16 
B) $2.88 
C) $3.43 
D) $3.60

Question 2

If beginning inventory contained 2,000 units of product that were judged to be 40 percent complete as to labour,what would be the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units?

Accepted Answer

A) 400 units 
B) 800 units 
C) 1,200 units 
D) 2,000 units 
A) 400 units 
B) 800 units 
C) 1,200 units 
D) 2,000 units

Question 3

Cap Corporation produces two types of product: Regular and Super.Two work orders for two batches of the products are shown below,along with some additional cost information:
 $\begin{array}{lcc}
&\text { Regular}&\text {  Super }\
&\text { Work Order } 5 &\text { Work Order }\
\text { Direct materials (actual costs) } & \$ 180,000 & \$ 300,000 \
\text { Applied conversion costs: } &\
\text { Mixing } &   ?  & ? \  
\text { Cooking } &\$ 48,000 & \$ 48,000  \
\text { Bottling } & \$ 40,000 & \$ 30,000 \
& & \
\text { Batch size (bottles) } & 5,000 & 5,000
\end{array}$ 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 $200,000 for labour and $600,000 for overhead.Budgeted direct labour hours were 5,000.It takes 6 minutes to mix the ingredients needed for each bottle.
Regular and Super flow through the Mixing Department,followed by the Cooking and Bottling departments. 
a.What are the conversion costs applied to Regular and Super from the Mixing Department for each batch?
b.Calculate the cost per bottle for Regular and Super.
c.Prepare the journal entries that record the costs of a batch of 5,000 bottles of Regular.

Accepted Answer

a.($200,000 + $600,000)/5,000 = $160 per

Question 4

CUPORAMA Corp. manufactures cups. The company’s manufacturing operations and costs applied to products for April were:
$\begin{array}{|c|c|c|c|}
\hline & \text { Moulding } & \text { Heat-treat } & \text { Finishing } \
\hline \text { Direct labour } & \$ 25,000 & \$ 12,500 & \$ 7,500 \
\hline \text { actory overhead } & 30,000 & 17,500 & 12,600 \
\hline \text { otal } & \$ 55,000 & \$ 30,000 & \$ 20,10 \
\hline
\end{array}$ Three types of cups were produced in April.The quantities and direct materials costs were:
$\begin{array}{lcc}
\text { Type } & \text { Quantity } & \text { Direct Materials } \
\hline \text { Casts } & 5,000 & \$ 15,000 \
\text { Cups } & 7,000 & 22,470 \
\text { Mugs } & 8,000 & 32,500
\end{array}$ Casts are produced in the Moulding Department.Cups pass through the Moulding and Finishing departments.Mugs pass through all three departments.An operations costing system is used.
-Refer to the figure.What is CUPORAMA's total cost per unit for cups in April?

Accepted Answer

A) $4.09 
B) $7.30 
C) $7.84 
D) $11.05 
A) $4.09 
B) $7.30 
C) $7.84 
D) $11.05

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.Rounded to two decimal places,what would be Takon's cost per equivalent unit for conversion using weighted average?

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 6

CUPORAMA Corp. manufactures cups. The company’s manufacturing operations and costs applied to products for April were:
$\begin{array}{|c|c|c|c|}
\hline & \text { Moulding } & \text { Heat-treat } & \text { Finishing } \
\hline \text { Direct labour } & \$ 25,000 & \$ 12,500 & \$ 7,500 \
\hline \text { actory overhead } & 30,000 & 17,500 & 12,600 \
\hline \text { otal } & \$ 55,000 & \$ 30,000 & \$ 20,10 \
\hline
\end{array}$ Three types of cups were produced in April.The quantities and direct materials costs were:
$\begin{array}{lcc}
\text { Type } & \text { Quantity } & \text { Direct Materials } \
\hline \text { Casts } & 5,000 & \$ 15,000 \
\text { Cups } & 7,000 & 22,470 \
\text { Mugs } & 8,000 & 32,500
\end{array}$ Casts are produced in the Moulding Department.Cups pass through the Moulding and Finishing departments.Mugs pass through all three departments.An operations costing system is used.
-Refer to the figure.What is CUPORAMA's total cost for casts in April?

Accepted Answer

A) $13,750 
B) $26,275 
C) $28,750 
D) $70,000 
A) $13,750 
B) $26,275 
C) $28,750 
D) $70,000

Question 7

The following information is available for Dale, Inc.:
$\begin{array}{ll}
\text { Direct Materials -Assembly Department } & \$ 10,000 \
\text { Direct Materials -Finishing Department } & 15,000 \
\text { Direct Labour -Assembly Department } & 11,000 \
\text { Direct Labour -Finishing Department } & 20,000 \
\text { Applied Overhead-Assembly Department } & 11,000 \
\text { Applied Overhead-Finishing Department } & 20,000 \
\text { Actual Overhead-Assembly Department } & 12,500 \
\text { Actual Overhead-Finishing Department } & 17,500
\end{array}$
-Refer to the figure.What are the "total bottling costs to account for" in the Assembly Department?

Accepted Answer

A) $10,000 
B) $21,000 
C) $32,000 
D) $44,500 
A) $10,000 
B) $21,000 
C) $32,000 
D) $44,500

Question 8

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 materials using weighted average?

Accepted Answer

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

Question 9

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 per equivalent unit of production for conversion using the weighted average method?

Accepted Answer

A) $2.19 
B) $2.55 
C) $3.06 
D) $3.54 
A) $2.19 
B) $2.55 
C) $3.06 
D) $3.54

Question 10

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.If a total of $11,050 in production costs were incurred,how much cost would be assigned to the units completed?

Accepted Answer

A) $3.250 
B) $8,287.50 
C) $9,750 
D) $11,050 
A) $3.250 
B) $8,287.50 
C) $9,750 
D) $11,050

Question 11

What process produces groups of different products that are identical in many ways but differ in others?

Accepted Answer

A) operating costing process 
B) cost reconciliation process 
C) batch production process 
D) equivalent unit of output process 
A) operating costing process 
B) cost reconciliation process 
C) batch production process 
D) equivalent unit of output process

Question 12

Quinn Corporation produces a product that passes through two processes. During October, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the second department’s operations during October:
Units, beginning work in process (1/3 complete)$\quad$$\quad$$\quad$6,000
Units, ending work in process ( $ 1 / 2 $ complete)$\quad$$\quad$4,000
-Refer to the figure.What are the equivalent units for those transferred in from the prior department using weighted average?

Accepted Answer

A) 14,000 units 
B) 16,000 units 
C) 20,000 units 
D) 26,000 units 
A) 14,000 units 
B) 16,000 units 
C) 20,000 units 
D) 26,000 units

Question 13

York,Inc.,manufactures a product that passes through two processes: Mixing and Packaging.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for December follows: 
 $$\begin{array} { l r } 
\text { Work in process, December } 1 : \
\text { Units (30\% complete) } & 7,500 \
\text { Direct materials } & \$ 2,000 \
\text { Direct labour } & \$ 1,500 \
\text { Overhead } & \$ 1,188
\end{array}$$ During December,150,000 units were completed and transferred to Packaging.The following costs were incurred by the Mixing Department during December:
 $$\begin{array} { l r } 
\text { Direct materials } & \$ 25,000 \
\text { Direct labaur } & 15,000 \
\text { Overhead } & 6,000
\end{array}$$ There were 12,000 units that were 70 percent complete remaining in the Mixing Department at December 30.Use the weighted average method and round unit costs to two decimal places. 
a.Determine the equivalent units of production for December.
b.Determine the total costs to account for in December.
c.Determine the total cost per equivalent unit of production.
d.Calculate the cost of goods transferred to the Packaging Department.
e.Calculate the cost of December's ending work in process for the Mixing Department.

Accepted Answer

a.158,400 Units accounted for: Physical

Question 14

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 FIFO?

Accepted Answer

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

Question 15

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 cost per equivalent units for transferred-in costs using weighted average?

Accepted Answer

A) $49.00 
B) $50.00 
C) $57.14 
D) $66.67 
A) $49.00 
B) $50.00 
C) $57.14 
D) $66.67

Question 16

Zoo Company manufactures a product that passes through two departments,Assembly and Finishing.In the Finishing Department,materials are added at the end of the process.Conversion costs are incurred uniformly throughout the process.During the month of December,the Finishing Department received 60,000 units from the Assembly Department.The transferred-in cost of the 60,000 units was $69,900.
Costs added by Finishing during December included the following:
 $\begin{array}{llr}
  \text { Direct materials } &\$35,200\
 \text { Direct labour } &56,000\
 \text { Overhead } &25,600
\end{array}$
 On December 1,the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs.On December 30,12,000 units were in inventory,one-third complete with respect to conversion costs.The costs associated with the 10,000 units in beginning inventory were as follows:
 $\begin{array}{llr}
  \text {Transferred in  } &\$11,650\
 \text {  Direct labour} &8,750\
 \text { Overhead } &4,000
\end{array}$
 Prepare a cost of production report using the weighted average method.

Accepted Answer

@#IMG-DLM& *Differen

Question 17

The following information is available:
$\begin{array}{lr}
\text { Units in process at the beginning of the month } & 2,000 \
\text { Units in process at the end of the month } & 4,000 \
\text { Units started during the month } & 30,000
\end{array}$

Materials are added at the beginning of the process.
-Refer to the figure.Beginning and ending units were 60 percent complete as to conversion costs.What is the number of units started and completed?

Accepted Answer

A) 26,000 units 
B) 28,000 units 
C) 30,000 units 
D) 36,000 units 
A) 26,000 units 
B) 28,000 units 
C) 30,000 units 
D) 36,000 units

Question 18

Which is a feature of a process costing system?

Accepted Answer

A) Unique products pass through individualized processes. 
B) Each unit is treated uniquely in receiving a process. 
C) Manufacturing costs are accumulated by a process for a given time period. 
D) Unit costs are calculated for each job. 
A) Unique products pass through individualized processes. 
B) Each unit is treated uniquely in receiving a process. 
C) Manufacturing costs are accumulated by a process for a given time period. 
D) Unit costs are calculated for each job.

Question 19

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.If a total of $11,050 in production costs was incurred,what would the unit cost be in January?

Accepted Answer

A) $55.25 
B) $65 
C) $73.67 
D) $221 
A) $55.25 
B) $65 
C) $73.67 
D) $221

Question 20

Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials; 45,000 units were completed and transferred out during the month; 4,500 units were in ending inventory,10 percent complete with respect to materials.What would be the weighted average equivalent units of production for materials for the month?

Accepted Answer

A) 45,000 units 
B) 45,450 units 
C) 46,800 units 
D) 47,250 units 
A) 45,000 units 
B) 45,450 units 
C) 46,800 units 
D) 47,250 units

-Refer to the figure.What is Department A's cost per unit for materials using the weighted average method?

If beginning inventory contained 2,000 units of product that were judged to be 40 percent complete as to labour,what would be the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units?

What process produces groups of different products that are identical in many ways but differ in others?

Which is a feature of a process costing system?

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

-Refer to the figure.What is Department A's cost per unit for materials using the weighted average method?

If beginning inventory contained 2,000 units of product that were judged to be 40 percent complete as to labour,what would be the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units?

What process produces groups of different products that are identical in many ways but differ in others?

Which is a feature of a process costing system?

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