Question 1

A local post office sorts letters by zip code.During the month of July, 200,000 letters were sorted.The cost of sorting includes the following:
   Required:

Accepted Answer

The answer of A local post office sorts letters by...

Question 2

Figure 6-16 Peck 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 $30,000.Materials are added uniformly in the second process.The following information is provided about the second department's operations during October:
 
- Refer to Figure 6-16.The number of units started in the second department during October is

Accepted Answer

A)  20,000 units. 
B)  14,500 units. 
C)  16,000 units. 
D)  24,000 units. 
A)  20,000 units. 
B)  14,500 units. 
C)  16,000 units. 
D)  24,000 units.

Question 3

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

Accepted Answer

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

Question 4

Figure 6-22 The following information is available for Department A for the month of January:
 
Materials are added at the beginning of the process.Inspection takes place at the 50 percent point in the conversion process to determine spoiled units.Round unit costs to two decimal places.The company uses the weighted average cost flow assumption.
- 
Refer to Figure 6-22.Department A's cost per unit for materials using the weighted average method is

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 5

Figure 6-14 The following information is available for Department A for the month of January:
  Materials are added at the beginning of the process.Round unit costs to two decimal places.
-
Refer to Figure 6-14.The cost of ending work in process using the weighted average method is

Accepted Answer

A)  $23,760. 
B)  $21,312. 
C)  $16,992. 
D)  none of these. 
A)  $23,760. 
B)  $21,312. 
C)  $16,992. 
D)  none of these.

Question 6

Figure 6-19 Takon manufactures specialized plastic boxes in two processes: Molding and Packaging.In the Packaging Department, materials are added at the end of the process.The following data are given:
  The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-
Refer to Figure 6-19.Rounded to two decimal places, Takon's cost per equivalent unit for conversion using weighted average would be

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 7

Figure 6-12 Reed Company manufactures steno pads.There are two processes: printing and binding.
The following information is given for the printing department for November.
 
The company uses FIFO inventory assumption.
- 
Refer to Figure 6-12.What are the FIFO cost per unit for conversion?

Accepted Answer

A)  $0.90 
B)  $0.11 
C)  $0.66 
D)  $0.10 
E)  none of these 
A)  $0.90 
B)  $0.11 
C)  $0.66 
D)  $0.10 
E)  none of these

Question 8

Toyco manufactures a wooden toy product in a two-stage production process.Wood material is brought into the Forming Department where it is shaped.Shaped products are then moved to the Finishing Department where metal is added.The following data is given for the Forming Department for April: 
   Round to two decimal places.
Required:

a.	How many units were transferred to Finishing?
b.	How many units were started and completed during April?
c.	How many equivalent units of conversion does it take to complete the beginning inventory in the current period?
d.	What is the FIFO cost assigned to the ending inventory?
e.	What is the FIFO cost assigned to the units transferred out?
f.	Show the T-account for the forming process.

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 9

Figure 6-19 Takon manufactures specialized plastic boxes in two processes: Molding and Packaging.In the Packaging Department, materials are added at the end of the process.The following data are given:
  The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-
Refer to Figure 6-19.Takon's equivalent units for conversion using FIFO would be

Accepted Answer

A)  9. 
B)  93. 
C)  105. 
D)  114. 
A)  9. 
B)  93. 
C)  105. 
D)  114.

Question 10

Figure 6-15 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%.
  
-Refer to Figure 6-15.What is the cost assigned to the units completed and transferred to finishing?

Accepted Answer

A)  $843,750 
B)  $708,750 
C)  $777,500 
D)  $976,000 
E)  none of these 
A)  $843,750 
B)  $708,750 
C)  $777,500 
D)  $976,000 
E)  none of these

Question 11

Figure 6-21 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:
  In the Mixing Department, conversion costs are applied on the basis of direct labor hours.Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead.Budgeted direct labor 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 Figure 6-21.What is Ring Company's journal entry to apply conversion costs in the Mixing Department for Work Order 10?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 12

_______________ accumulates production costs by process and uses a work-in-process account for each process.

Accepted Answer

A)  Process costing 
B)  Joint costing 
C)  Variable costing 
D)  Job-order costing 
A)  Process costing 
B)  Joint costing 
C)  Variable costing 
D)  Job-order costing

Question 13

Figure 6-3 Bill Berry, CPA, prepares tax returns.The production costs and the number of tax returns prepared for the month of August are as follows:
  Number of tax returns 200
-
Refer to Figure 6-3.What is the cost of services sold?

Accepted Answer

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

Question 14

Figure 6-21 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:
  In the Mixing Department, conversion costs are applied on the basis of direct labor hours.Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead.Budgeted direct labor 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 Figure 6-21.What is Ring Company's unit cost of Large?

Accepted Answer

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

Question 15

Figure 6-22 The following information is available for Department A for the month of January:
 
Materials are added at the beginning of the process.Inspection takes place at the 50 percent point in the conversion process to determine spoiled units.Round unit costs to two decimal places.The company uses the weighted average cost flow assumption.
-
Refer to Figure 6-22.Department A's equivalent units of production for materials using the weighted average method is

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 16

Figure 6-6 Pelosi Company manufactures chairs.The following information was given for the company:
Units, beginning work in process 0
Units started 20,000
Units completed ?
Units, ending work in process 5,000
Cost of direct materials $440,000
Cost of conversion $ 64,000
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.
-
Refer to Figure 6-6.What are the units started and completed?

Accepted Answer

A)  10,000 
B)  15,000 
C)  20,000 
D)  40,000 
E)  none of these 
A)  10,000 
B)  15,000 
C)  20,000 
D)  40,000 
E)  none of these

Question 17

_______________ determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period.

Accepted Answer

A)  Equivalent unit of output 
B)  Cost reconciliation 
C)  Batch production process 
D)  Transferred-in costs 
A)  Equivalent unit of output 
B)  Cost reconciliation 
C)  Batch production process 
D)  Transferred-in costs

Question 18

Figure 6-19 Takon manufactures specialized plastic boxes in two processes: Molding and Packaging.In the Packaging Department, materials are added at the end of the process.The following data are given:
  The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-
Refer to Figure 6-19.Takon's equivalent units for materials using weighted average would be

Accepted Answer

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

Question 19

Figure 6-4 The following information is available for Dale, Inc.:
  
-Refer to Figure 6-4.What are the "total bottling costs to account for" in the Assembly Department?

Accepted Answer

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

Question 20

_______________ is a costing system that uses job-order costing to assign material costs and process costing to assign conversion costs.

Accepted Answer

A)  Operation costing 
B)  Cost reconciliation 
C)  Batch production process 
D)  Equivalent unit of output 
A)  Operation costing 
B)  Cost reconciliation 
C)  Batch production process 
D)  Equivalent unit of output

A local post office sorts letters by zip code.During the month of July, 200,000 letters were sorted.The cost of sorting includes the following: Required:

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

Figure 6-14 The following information is available for Department A for the month of January: Materials are added at the beginning of the process.Round unit costs to two decimal places. - Refer to Figure 6-14.The cost of ending work in process using the weighted average method is

Figure 6-12 Reed Company manufactures steno pads.There are two processes: printing and binding. The following information is given for the printing department for November. The company uses FIFO inventory assumption. - Refer to Figure 6-12.What are the FIFO cost per unit for conversion?

_______________ accumulates production costs by process and uses a work-in-process account for each process.

Figure 6-3 Bill Berry, CPA, prepares tax returns.The production costs and the number of tax returns prepared for the month of August are as follows: Number of tax returns 200 - Refer to Figure 6-3.What is the cost of services sold?

_______________ determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period.

Figure 6-4 The following information is available for Dale, Inc.: -Refer to Figure 6-4.What are the "total bottling costs to account for" in the Assembly Department?

_______________ is a costing system that uses job-order costing to assign material costs and process costing to assign conversion costs.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

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

Filters

Exam 6: Process Costing

A local post office sorts letters by zip code.During the month of July, 200,000 letters were sorted.The cost of sorting includes the following: Required:

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

Figure 6-14 The following information is available for Department A for the month of January: Materials are added at the beginning of the process.Round unit costs to two decimal places. - Refer to Figure 6-14.The cost of ending work in process using the weighted average method is

Figure 6-12 Reed Company manufactures steno pads.There are two processes: printing and binding. The following information is given for the printing department for November. The company uses FIFO inventory assumption. - Refer to Figure 6-12.What are the FIFO cost per unit for conversion?

_______________ accumulates production costs by process and uses a work-in-process account for each process.

Figure 6-3 Bill Berry, CPA, prepares tax returns.The production costs and the number of tax returns prepared for the month of August are as follows: Number of tax returns 200 - Refer to Figure 6-3.What is the cost of services sold?

_______________ determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period.

Figure 6-4 The following information is available for Dale, Inc.: -Refer to Figure 6-4.What are the "total bottling costs to account for" in the Assembly Department?

_______________ is a costing system that uses job-order costing to assign material costs and process costing to assign conversion costs.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

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

Filters