Diulio Company produces a product in a process-costing system involving several departments.The company uses the weighted-average method of process costing.The first department's data for the month of April follow: $\begin{array} { l } \text { Units in beginning work-in-process inventory}&15,000 \\ \text { Units started during April}& 140,000\\ \text {Units completed during April }&120,000 \\ \text {Units in ending work-in-process inventory }&35,000 \\ \end{array}$ $\begin{array} { l } \text {Direct materials added in current month}&\$168,000 \\ \text {Conversion costs added in current month }&\$186,000 \\ \text { Direct materials-beginning Work-in-process inventory }&\$ 25,750\\ \text {Conversion costs-beginning work-in-process inventory }&\$ 3,225\\ \end{array}$ Stage of Completion: $\begin{array}{lll}&\text { Materials }&\text { Conversion Costs }\\ \text { Beginning work-in-process inventory } & 50 \% & 40 \% \\ \text { Ending work-in-process inventory } & 50 \% & 30 \% \end{array}$ Required: A) Compute equivalent units for materials and conversion costs. B) Compute the cost per unit for materials and conversion costs. Round to two decimal places. C) Compute the cost of the units transferred. D) Compute the cost of the ending work-in-process inventory.

A)Materials: 137,500 equivalent units Co

Litfin Company has the following information available for the month of March: $\begin{array}{lccll} &&\text { Units }&\text { Transterred- }&\text { Direct }\\ &\text { Conversion }& \text { in Costs } & \text { Materials } & \text { Costs } \\ \text { Work-in-process inventory, March } 1&240 & \$ 33,600 & 0 & \$ 18,000 \\ *\text { Percent complete }&& 100 \% & 0 \% & 62.5 \% \end{array}$ $\begin{array}{ll} \text { Transferred-in during March } & 400 \\ \text { Completed in March } & 440 \\ \text { Work-in-process inventory, March 31 } & 200\\ \text { *Percent complete }&&100\%&0\%&80\% \end{array}$ $\begin{array} { l } \text {Costs added in March }&\$52,000&\$13,200&\$48,600 \\ \end{array}$ The company uses the weighted average cost method.What is the cost per equivalent unit for March for direct materials?

A) $20.63 B) $22.00 C) $30.00 D) $33.00 A) $20.63 B) $22.00 C) $30.00 D) $33.00

Brown Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month: $\begin{array} { l } \text {Units started and completed }&70,000\\ \text {Units started and not complete }&10,000\\ \text {Units in beginning inventory }&0\\ \end{array}$ $\begin{array} { l } \text {Direct materials costs }&\$560,000 \\ \text { Conversion costs}&\$240,000 \\ \end{array}$ The partially complete units at the end of the month were 100 percent complete with respect to materials and 60 percent complete with respect to conversion costs.The unit cost of direct materials is ________.

A) $1.67 B) $3.32 C) $6.86 D) $7.00 A) $1.67 B) $3.32 C) $6.86 D) $7.00

Zeman Company has the following information available for the month of March: $\begin{array}{lccll} &&\text { Units }&\text { Transterred- }&\text { Direct }\\ &\text { Conversion }& \text { in Costs } & \text { Materials } & \text { Costs } \\ \text { Work-in-process inventory, March } 1&240 & \$ 33,600 & 0 & \$ 18,000 \\ *\text { Percent complete }&& 100 \% & 0 \% & 62.5 \% \end{array}$ $\begin{array}{ll} \text { Transferred-in during March } & 400 \\ \text { Completed in March } & 440 \\ \text { Work-in-process inventory, March 31 } & 200\\ \text { *Percent complete }&&100\%&0\%&80\% \end{array}$ $\begin{array} { l } \text {Costs added in March }&\$52,000&\$13,200&\$48,600 \\ \end{array}$ The company uses the weighted average cost method.What is the cost per equivalent unit for March for conversion costs?

A) $22.00 B) $40.91 C) $104.06 D) $111.00 A) $22.00 B) $40.91 C) $104.06 D) $111.00

Sherry Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: $\begin{array}{ll} \text { Direct materials added } & \$ 336,000 \\ \text { Direct labor } & 460,320 \\ \text { Factory overhead } & \underline{204,000} \\ \text { Total costs to account for }&\$1,000,320 \end{array}$ $\begin{array} { l } \text { Units started}&80,000\\ \text {Units completed and transferred }&67,200\\ \text {Units not complete }&12,800\\ \text { Units in beginning inventory}&0\\ \end{array}$ The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

A) $3.00 B) $6.00 C) $8.65 D) $9.00 A) $3.00 B) $6.00 C) $8.65 D) $9.00

Bombard Company manufactures plastic cups in one department.The following information is available: $\begin{array} { l } \text {Work-In-Process Inventory, beginning }&0\\ \text { Units started}&60,000\\ \text {Units completed and transferred }&48,000\\ \text {Work-In-Process Inventory, end}&12,000\\ \end{array}$ $\begin{array} { l } \text {Direct materials added }&\$ 240,000\\ \text {Direct labor }&\$164,780 \\ \text {Factory overhead }&\$ 82,000\\ \end{array}$ The units in the ending Work-In-Process Inventory are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.The cost of the ending Work-In-Process Inventory is ________.

A) $61,200 B) $72,200 C) $75,420 D) $102,000 A) $61,200 B) $72,200 C) $75,420 D) $102,000

Simeranio Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of June follow: Work-In-Process Inventory,June 1: $\begin{array} { l } \text {Units }&15,000\\ \text { Direct materials ( \( 100 \% $ complete)}&\$35,000\\ \text {Conversion costs ( $ 30 \% $ complete) }&\$14,000\\ \end{array}\) $\begin{array} { l } \text {Units started in June }&65,000\\ \text { Units completed in June}&62,000\\ \text {Work-In-Process Inventory, June 30 }&18,000\\ \end{array}$ $\begin{array} { l } \text {Direct materials added in June }&\$285,000\\ \text {Conversion costs added in June }&\$210,000\\ \end{array}$ With regard to the Work-In-Process Inventory on June 30,materials are 100 percent complete and conversion costs are 50 percent complete.The unit cost for conversion costs is ________.

A) $2.62 B) $2.80 C) $2.88 D) $3.15 A) $2.62 B) $2.80 C) $2.88 D) $3.15

Benville Hospital uses a job-order costing system for all patients who have surgery.The following information is available: $\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\ \end{array}$ The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the surgery recovery floor is ________.

A) $42.00 B) $45.75 C) $75.00 D) $80.00 A) $42.00 B) $45.75 C) $75.00 D) $80.00

Roberts Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: $\begin{array}{ll} \text { Direct materials added } & \$ 336,000 \\ \text { Direct labor } & 460,800 \\ \text { Factory overhead } & 230,400\\ \text { Total costs to account for }&\$1,027,200 \end{array}$ $\begin{array} { l } \text { Units started}&80,000\\ \text {Units completed and transferred }&67,200\\ \text {Units not complete }&12,800\\ \text { Units in beginning inventory}&0\\ \end{array}$ The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The ending balance in Work-In-Process Inventory--Assembly is ________.

A) $140,160 B) $168,960 C) $862,848 D) $887,040 A) $140,160 B) $168,960 C) $862,848 D) $887,040

Exam 14: Job-Order Costing and Process-Costing Systems

A home builder just completed the construction of a new home.The home builder uses job-order costing.Costs of $200,000 were incurred to construct the home.The home is ready for sale and is listed with a real estate broker.Which of the following journal entries is necessary when the home is completed?

(Multiple Choice)

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Question 121

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

(Multiple Choice)

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Question 122

The ________ system is better suited for a single physical unit or a few similar units.

(Multiple Choice)

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Question 123

Diulio Company produces a product in a process-costing system involving several departments.The company uses the weighted-average method of process costing.The first department's data for the month of April follow: Units in beginning work-in-process inventory 15,000 Units started during April 140,000 Units completed during April 120,000 Units in ending work-in-process inventory 35,000 Direct materials added in current month \1 68,000 Conversion costs added in current month \1 86,000 Direct materials-beginning Work-in-process inventory \ 25,750 Conversion costs-beginning work-in-process inventory \ 3,225 Stage of Completion: Materials Conversion Costs Beginning work-in-process inventory 50\% 40\% Ending work-in-process inventory 50\% 30\% Required: A) Compute equivalent units for materials and conversion costs. B) Compute the cost per unit for materials and conversion costs. Round to two decimal places. C) Compute the cost of the units transferred. D) Compute the cost of the ending work-in-process inventory.

(Essay)

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Question 124

Litfin Company has the following information available for the month of March: Units Transterred- Direct Conversion in Costs Materials Costs Work-in-process inventory, March 1 240 \ 33,600 0 \ 18,000 * Percent complete 100\% 0\% 62.5\% Transferred-in during March 400 Completed in March 440 Work-in-process inventory, March 31 200 *Percent complete 100\% 0\% 80\% Costs added in March \5 2,000 \1 3,200 \4 8,600 The company uses the weighted average cost method.What is the cost per equivalent unit for March for direct materials?

(Multiple Choice)

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(83)

Question 125

Brown Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month: Units started and completed 70,000 Units started and not complete 10,000 Units in beginning inventory 0 Direct materials costs \5 60,000 Conversion costs \2 40,000 The partially complete units at the end of the month were 100 percent complete with respect to materials and 60 percent complete with respect to conversion costs.The unit cost of direct materials is ________.

(Multiple Choice)

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Question 126

Zeman Company has the following information available for the month of March: Units Transterred- Direct Conversion in Costs Materials Costs Work-in-process inventory, March 1 240 \ 33,600 0 \ 18,000 * Percent complete 100\% 0\% 62.5\% Transferred-in during March 400 Completed in March 440 Work-in-process inventory, March 31 200 *Percent complete 100\% 0\% 80\% Costs added in March \5 2,000 \1 3,200 \4 8,600 The company uses the weighted average cost method.What is the cost per equivalent unit for March for conversion costs?

(Multiple Choice)

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Question 127

In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?

(Multiple Choice)

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Question 128

Garcia Company manufactures phones in a two-department process that includes Assembly and Finishing.Information about the Assembly Department follows: Direct materials added \ 310,000 Direct labor 460,000 Factory overhead 230,000 Total costs to account for \1 ,000,000 There was no beginning inventory and 80,000 units were started in the Assembly Department.By the end of the month,67,200 units were completed and transferred to the Finishing Department and 12,800 units were still in process.The partially complete units were 100 percent complete with regard to direct materials but 80 percent complete with regard to conversion costs.The equivalent units for conversion costs for the month for the Assembly Department are ________.

(Multiple Choice)

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Question 129

Sherry Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: Direct materials added \ 336,000 Direct labor 460,320 Factory overhead Total costs to account for \1 ,000,320 Units started 80,000 Units completed and transferred 67,200 Units not complete 12,800 Units in beginning inventory 0 The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

(Multiple Choice)

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(84)

Question 130

Bombard Company manufactures plastic cups in one department.The following information is available: Work-In-Process Inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-In-Process Inventory, end 12,000 Direct materials added \ 240,000 Direct labor \1 64,780 Factory overhead \ 82,000 The units in the ending Work-In-Process Inventory are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.The cost of the ending Work-In-Process Inventory is ________.

(Multiple Choice)

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Question 131

In job-order costing,time cards record the materials used in particular jobs.

(True/False)

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Question 132

Measures in equivalent units are found only in manufacturing situations.

(True/False)

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Question 133

Job-order costing is used.Which of the following accounts is debited when direct labor costs are incurred?

(Multiple Choice)

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Question 134

What are transferred-in costs?

(Multiple Choice)

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Question 135

Simeranio Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of June follow: Work-In-Process Inventory,June 1: Units 15,000 Direct materials ( 100 \% complete) \3 5,000 Conversion costs ( 30\% complete) \1 4,000 Units started in June 65,000 Units completed in June 62,000 Work-In-Process Inventory, June 30 18,000 Direct materials added in June \2 85,000 Conversion costs added in June \2 10,000 With regard to the Work-In-Process Inventory on June 30,materials are 100 percent complete and conversion costs are 50 percent complete.The unit cost for conversion costs is ________.

(Multiple Choice)

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Question 136

When using process costing with transferred-in costs,the production report for Department B has columns for different types of costs.Assume Department B adds materials and conversion costs to units received from Department A.

(Multiple Choice)

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Question 137

In a process costing system,which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process?

(Multiple Choice)

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Question 138

Benville Hospital uses a job-order costing system for all patients who have surgery.The following information is available: Budgeted indirect costs-pre-operating room \8 4,000 udgeted indirect costs-operating room \ 66,000 Budgeted indirect costs-surgery recovery floor \ 600,000 Budgeted nursing hours-pre-operating roo 4,000 Budgeted nursing hours-operating room 1,000 Budgeted nursing hours - sur gery recovery floor 7,500 The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the surgery recovery floor is ________.

(Multiple Choice)

4.8/5

(73)

Question 139

Roberts Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month: Direct materials added \ 336,000 Direct labor 460,800 Factory overhead 230,400 Total costs to account for \1 ,027,200 Units started 80,000 Units completed and transferred 67,200 Units not complete 12,800 Units in beginning inventory 0 The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The ending balance in Work-In-Process Inventory--Assembly is ________.

(Multiple Choice)

4.9/5

(75)

Question 140

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

The ________ system is better suited for a single physical unit or a few similar units.

In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?

In job-order costing,time cards record the materials used in particular jobs.

Measures in equivalent units are found only in manufacturing situations.

Job-order costing is used.Which of the following accounts is debited when direct labor costs are incurred?

What are transferred-in costs?

When using process costing with transferred-in costs,the production report for Department B has columns for different types of costs.Assume Department B adds materials and conversion costs to units received from Department A.

In a process costing system,which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 14: Job-Order Costing and Process-Costing Systems

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

The ________ system is better suited for a single physical unit or a few similar units.

In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?

In job-order costing,time cards record the materials used in particular jobs.

Measures in equivalent units are found only in manufacturing situations.

Job-order costing is used.Which of the following accounts is debited when direct labor costs are incurred?

What are transferred-in costs?

When using process costing with transferred-in costs,the production report for Department B has ________ columns for ________ different types of costs.Assume Department B adds materials and conversion costs to units received from Department A.

In a process costing system,which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

When using process costing with transferred-in costs,the production report for Department B has columns for different types of costs.Assume Department B adds materials and conversion costs to units received from Department A.