Question 1

What journal entry should Arizaga make to record the completion of the production process by the Waterproofing Department?

Accepted Answer

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

Question 2

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Accepted Answer

A) $7.547 
B) $7.700 
C) $4.634 
D) $5.988 
A) $7.547 
B) $7.700 
C) $4.634 
D) $5.988 A

Question 3

A job-order cost system would be used to account for the cost of building an oil tanker.

Accepted Answer

A) True 
 B)False  True

Question 4

What are the equivalent units for materials for the month in the first processing department?

Accepted Answer

A) 595 
B) 7,995 
C) 8,100 
D) 7,400 
A) 595 
B) 7,995 
C) 8,100 
D) 7,400

Question 5

In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Accepted Answer

A) $32,000 
B) $78,000 
C) $89,000 
D) $10,000 
A) $32,000 
B) $78,000 
C) $89,000 
D) $10,000

Question 6

Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:   What were the equivalent units for conversion costs in the Lubricating Department for October?

Accepted Answer

A) 43,100 
B) 37,100 
C) 44,780 
D) 47,780 
A) 43,100 
B) 37,100 
C) 44,780 
D) 47,780

Question 7

Which of the following companies would be most likely to use a process costing system?

Accepted Answer

A) Ship builder. 
B) Movie studio. 
C) Oil refinery. 
D) Hospital. 
A) Ship builder. 
B) Movie studio. 
C) Oil refinery. 
D) Hospital.

Question 8

The total cost transferred from the first processing department to the next processing department during the month is closest to:

Accepted Answer

A) $342,904 
B) $453,843 
C) $366,300 
D) $327,400 
A) $342,904 
B) $453,843 
C) $366,300 
D) $327,400

Question 9

In September, one of the processing departments at Farquer Corporation had beginning work in process inventory of $34,000. During the month, $342,000 of costs were added to production and the cost of units transferred out from the department was $357,000.
Required:
Construct a cost reconciliation report for the department for the month of September.

Accepted Answer

Cost of beginning work in process invent

Question 10

How many units are in ending work in process inventory in the first processing department at the end of the month?

Accepted Answer

A) 900 
B) 1,700 
C) 1,000 
D) 7,200 
A) 900 
B) 1,700 
C) 1,000 
D) 7,200

Question 11

Barker Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.   Required:
Using the weighted-average method:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of units transferred out of the department during the month.
d. Determine the cost of ending work in process inventory in the department.

Accepted Answer

Weighted-a

Question 12

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Accepted Answer

A) $28,118 
B) $15,981 
C) $35,148 
D) $5,272 
A) $28,118 
B) $15,981 
C) $35,148 
D) $5,272

Question 13

The Assembly Department started the month with 35,000 units in its beginning work in process inventory. An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

Accepted Answer

A) 507,000 
B) 473,000 
C) 471,000 
D) 541,000 
A) 507,000 
B) 473,000 
C) 471,000 
D) 541,000

Question 14

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Accepted Answer

A) $22.40 
B) $20.28 
C) $21.14 
D) $21.49 
A) $22.40 
B) $20.28 
C) $21.14 
D) $21.49

Question 15

What are the equivalent units for materials for the month in the first processing department?

Accepted Answer

A) 935 
B) 9,100 
C) 10,200 
D) 10,035 
A) 935 
B) 9,100 
C) 10,200 
D) 10,035

Question 16

Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
1. Contract printer that produces posters, books, and pamphlets to order
2. Corn meal mill
3. Cattle feedlot that fattens cattle prior to slaughter
4. Shirt manufacturer that makes clothing on contract for department stores
5. Commercial photographer
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing.

Accepted Answer

1. Contract printer that produces poster

Question 17

What total amount of cost should be assigned to the units in work in process on November 30?

Accepted Answer

A) $17,800 
B) $38,700 
C) $40,200 
D) $43,000 
A) $17,800 
B) $38,700 
C) $40,200 
D) $43,000

Question 18

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was:

Accepted Answer

A) $207,000 
B) $184,600 
C) $204,980 
D) $182,580 
A) $207,000 
B) $184,600 
C) $204,980 
D) $182,580

Question 19

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Accepted Answer

A) $26.35 
B) $25.85 
C) $26.65 
D) $25.56 
A) $26.35 
B) $25.85 
C) $26.65 
D) $25.56

Question 20

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Accepted Answer

A) $11.76 
B) $13.20 
C) $12.65 
D) $12.27 
A) $11.76 
B) $13.20 
C) $12.65 
D) $12.27

What journal entry should Arizaga make to record the completion of the production process by the Waterproofing Department?

A job-order cost system would be used to account for the cost of building an oil tanker.

What are the equivalent units for materials for the month in the first processing department?

In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units for conversion costs in the Lubricating Department for October?

Which of the following companies would be most likely to use a process costing system?

The total cost transferred from the first processing department to the next processing department during the month is closest to:

How many units are in ending work in process inventory in the first processing department at the end of the month?

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

The cost per equivalent unit for materials for the month in the first processing department is closest to:

What are the equivalent units for materials for the month in the first processing department?

What total amount of cost should be assigned to the units in work in process on November 30?

The cost per equivalent unit for materials for the month in the first processing department is closest to:

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters

Exam 7: Process Costing

What journal entry should Arizaga make to record the completion of the production process by the Waterproofing Department?

A job-order cost system would be used to account for the cost of building an oil tanker.

What are the equivalent units for materials for the month in the first processing department?

In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units for conversion costs in the Lubricating Department for October?

Which of the following companies would be most likely to use a process costing system?

The total cost transferred from the first processing department to the next processing department during the month is closest to:

How many units are in ending work in process inventory in the first processing department at the end of the month?

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

The cost per equivalent unit for materials for the month in the first processing department is closest to:

What are the equivalent units for materials for the month in the first processing department?

What total amount of cost should be assigned to the units in work in process on November 30?

The cost per equivalent unit for materials for the month in the first processing department is closest to:

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters