Question 1

Using the weighted-average method of process costing,the cost per unit of direct materials is:

Accepted Answer

A) $1.17. 
B) $1.18. 
C) $1.20. 
D) $1.28. 
E) some other amount.

Question 2

Tesla Corporation,which adds materials at the beginning of production,uses a weighted-average process-costing system.Consider the data that follow. 
The company's cost per equivalent unit for materials is:

Accepted Answer

A) $1.24. 
B) $1.66. 
C) $1.67. 
D) $2.05. 
E) some other amount.

Question 3

Barrett Corporation had 6,500 units of work in process on April 1.During April,19,100 units were completed and as of April 30,5,100 units remained in production.How many units were started during April?

Accepted Answer

A) 11,600. 
B) 17,700. 
C) 20,500. 
D) 30,700. 
E) None of thesE.

Question 4

Lester Corporation had 8,200 units of work in process on November 1.During November,26,800 units were started and as of November 30,7,900 units remained in production.How many units were completed during November?

Accepted Answer

A) 16,100. 
B) 26,500. 
C) 27,100. 
D) 42,800. 
E) None of thesE.

Question 5

Michaella,Inc.uses a process-costing system.A newly-hired accountant identified the following procedures that must be performed by the close of business on Friday:
1-Calculation of equivalent units
2-Analysis of physical flows of units
3-Assignment of costs to completed units and units still in process
4-Calculation of unit costs
Which of the following choices correctly expresses the proper order of the preceding tasks?

Accepted Answer

A) 1,2,3,4. 
B) 1,2,4,3. 
C) 1,4,3,2. 
D) 2,1,4,3. 
E) 2,1,3,4.

Question 6

Gajewski began operations on January 1 of the current year.The company uses a process-costing system,and conversion cost is incurred evenly throughout manufacturing.By January 31,the firm had completed 56,000 units.Which of the following statements could be true about the ending work-in-process inventory if equivalent units for conversion cost totaled 59,000 units?

Accepted Answer

A) There is no ending work-in-process inventory. 
B) The ending work-in-process inventory totaled 3,000 physical units. 
C) The ending work-in-process inventory of 10,000 physical units was 30% complete. 
D) The ending work-in-process inventory of 20,000 physical units was 85% complete. 
E) More than one of the above could be truE.

Question 7

Universal's equivalent-unit cost for conversion cost is:

Accepted Answer

A) $13.71. 
B) $18.00. 
C) $21.00. 
D) $25.20. 
E) some other amount.

Question 8

Colonial Products employs a process-costing system for its manufacturing operations.All materials are added at the beginning of the process,and conversion costs are incurred uniformly throughout production.The information that follows relates to September.
A.Calculate equivalent units of direct material for September.
B.Calculate equivalent units of conversion activity for September.

Accepted Answer

The answer of Colonial Products employs a process-costing system for...

Question 9

CFF,Inc.overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory.This overstatement caused conversion-cost equivalent units to be overstated.

Accepted Answer

A) True 
 B)False

Question 10

Hamilton,which uses a process-costing system,had a balance in its Work-in-Process account of $68,000 on January 1.The account was charged with direct materials,direct labor,and manufacturing overhead of $450,000 throughout the year.If a review of the accounting records determined that $86,000 of goods were still in production at year-end,Hamilton should make a journal entry on December 31 that includes:

Accepted Answer

A) a debit to Cost of Goods Sold for $432,000. 
B) a credit to Finished-Goods Inventory for $432,000. 
C) a credit to Work-in-Process Inventory for $432,000. 
D) a debit to Finished-Goods Inventory for $86,000. 
E) a credit to Work-in-Process Inventory for $86,000.

Question 11

The cost of Chen's completed production is:

Accepted Answer

A) $225,000. 
B) $330,000. 
C) $333,000. 
D) $555,000. 
E) some other amount.

Question 12

Using the weighted-average method of process costing,the equivalent units of direct materials total:

Accepted Answer

A) 68,000. 
B) 69,400. 
C) 74,000. 
D) 75,000. 
E) some other amount.

Question 13

Orville Knitters manufactures sweaters and uses an operation-costing system.All sweaters are processed through Department no.1,with subsequent processing taking place in Department no.2 or Department no.3 depending on the type of fabric used.Twenty thousand sweaters were produced during the year;there was no beginning or ending work in process.Sixty percent of the goods were sent to Department no.2 for manufacturing.
Conversion cost incurred in the three departments totaled $504,000,subdivided as follows: Department no.1,$360,000;Department no.2,$60,000;and Department no.3,$84,000.
Data pertaining to two representative orders,nos.545 and 567,were:
A.Explain the nature of operation costing.
A.Operation costing is used by firms that produce different models of similar products.The products go through essentially the same manufacturing process,so conversion costs can be assigned in a manner similar to that used in process-costing systems.Materials,on the other hand,are unique to the individual goods being produced and,accordingly,the cost is assigned by batch (or in a manner similar to that used in job costing).
B.Conversion cost per sweater:
Department no.1: $360,000 / 20,000 sweaters = $18.00
Department no.2: $60,000 /(20,000 * 60%)sweaters = $5.00
Department no.3: $84,000/(20,000 *40%)sweaters = $10.50
  
B.Determine the cost of order nos.545 and 567.

Accepted Answer

The answer of Orville Knitters manufactures sweaters and uses an...

Question 14

Equivalent-unit calculations are necessary to allocate manufacturing costs between units sold and ending work in process.

Accepted Answer

A) True 
 B)False

Question 15

Process costing would likely be used in all of the following industries except:

Accepted Answer

A) petroleum refining. 
B) chemicals. 
C) truck tire manufacturing. 
D) wood pulp production. 
E) automobile repair.

Question 16

The equivalent units of conversion for April total:

Accepted Answer

A) 9,000. 
B) 10,600. 
C) 11,200. 
D) 12,000. 
E) 12,600.

Question 17

Edge Company had a beginning work-in-process inventory of 30,000 units on June 1.These units contained $120,000 of direct materials and $272,000 of conversion cost.The following data relate to activity during June:
A.Compute the total equivalent units for direct material and conversion cost.
B.Compute the cost per equivalent unit of direct material and conversion cost.
C.Determine the cost of completed production.
D.Determine the cost of the June 30 work in process.

Accepted Answer

The answer of Edge Company had a beginning work-in-process inventory...

Question 18

Gregory,which uses a process-costing system,adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing.The information that follows relates to the period just ended:
Units started and completed: 75,000
Units in ending work-in-process inventory: 15,000,60% complete
Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 19

When calculating unit costs under the weighted-average process-costing method,the unit cost is based on:

Accepted Answer

A) only the current period's manufacturing costs. 
B) only costs in the period's beginning work-in-process inventory. 
C) a summation of the costs in the beginning work-in-process inventory plus costs incurred in the current period. 
D) only costs incurred in previous accounting periods. 
E) a summation of the costs in the beginning work-in-process inventory plus costs to be incurred in the upcoming period.

Question 20

Universal's equivalent-unit cost for materials is:

Accepted Answer

A) $4.50. 
B) $6.00. 
C) $8.00. 
D) $9.60. 
E) some other amount.

Exam 4: Process Costing and Hybrid Product-Costing Systems