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Managerial Accounting Ray H. Garrison, Eric W. Noreen, Peter C. Brewer Chapter – 4 Process Costing

Managerial Accounting

Managerial Accounting Ray H. Garrison, Eric W. Noreen, Peter C. Brewer Chapter – 4 Process Costing

Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

Chapter – 4
Chapter – 4

Process Costing

Chpter 04: process costing

Chapter 04 Process Costing

True / False Questions

  • 1. The following journal entry would be made in a processing costing system when units that

have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

Chpter 04: process costing Chapter 04 Process Costing True / False Questions 1. The following journal

TRUE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 2. In a process costing system, overhead costs are traced to units of product as they are

incurred.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 3. A process cost system would be used to account for the cost of manufacturing an oil

tanker.

FALSE

AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

  • 4. A process costing system would be best suited for production of a large quantity of a

homogeneous product.

TRUE

AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 5. In process costing, costs are accumulated in processing departments, rather than by job.

TRUE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 6. Process costing would be used by companies producing the following items: bricks, bolts,

pharmaceutical items, natural gas, and electricity.

TRUE

AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 7. The job cost sheet is used in both job-order and process costing.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

8. In process costing, the equivalent units computed for materials is generally the same as that computed for direct labor.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

9. The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

10. Under the weighted-average method, the cost of materials in the beginning work in process inventory is not used in the computation of the cost per equivalent unit for materials.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

11.

When computing the cost per equivalent unit, it is not necessary to consider the

percentage completion of the units in beginning inventory under the weighted-average

 

method.

TRUE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

12.

When assigning costs to partially completed units in the ending work in process inventory,

it is not necessary to consider the percentage completion of the units under the weighted-

 

average method.

FALSE

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

 

Multiple Choice Questions

13.

In a process costing system, manufacturing overhead applied is usually recorded as a debit

to:

  • A. Finished goods.

  • B. Work in process.

  • C. Manufacturing overhead.

  • D. Cost of goods sold.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

  • 14. A company has two processing departments: A and B. Which of the following entries or

sets of journal entries would be used to record the transfer between processing departments

and from the final processing department to finished goods?

A. Option A B. Option B C. Option C D. Option D
A.
Option A
B.
Option B
C.
Option C
D.
Option D

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium

  • 15. A process costing system:

  • A. uses a separate Work in Process account for each processing department.

  • B. uses a single Work in Process account for the entire company.

  • C. uses a separate Work in Process account for each type of product produced.

  • D. does not use a Work in Process account in any form.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium

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Chpter 04: process costing

  • 16. A company should use process costing, rather than job order costing, if:

  • A. production is only partially completed during the accounting period.

  • B. the product is manufactured in batches only as orders are received.

  • C. the product is composed of mass-produced homogeneous units.

  • D. the product goes through several steps of production.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 17. Which of the following characteristics applies to process costing, but does not apply to job

order costing?

  • A. The need for averaging.

  • B. The use of equivalent units of production.

  • C. Separate, identifiable jobs.

  • D. The use of predetermined overhead rates.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

  • 18. Equivalent units for a process costing system using the weighted-average method would

be equal to:

  • A. units completed during the period and transferred out.

  • B. units started and completed during the period plus equivalent units in the ending work in

process inventory.

  • C. units completed during the period less equivalent units in the beginning inventory, plus

equivalent units in the ending work in process inventory.

  • D. units completed during the period plus equivalent units in the ending work in process

inventory.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

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Chpter 04: process costing

19. The cost of beginning inventory under the weighted-average method is:

  • A. added in with current period costs in determining costs per equivalent unit for a given

period.

  • B. ignored in determining the costs per equivalent unit for a given period.

  • C. considered separately from costs incurred during the current period.

  • D. subtracted from current period costs in determining costs per equivalent unit for a given

period.

AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy

20. The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work in process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work in

process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

  • A. 24,500 units

  • B. 23,000 units

  • C. 27,000 units

  • D. 21,000 units

Beginning work in process inventory + Units started into production = Ending work in process inventory + Units completed and transferred out Units started into production = Ending work in process inventory + Units completed and transferred out - Beginning work in process inventory = 6,000 + 25,000 - 8,000 = 23,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Medium

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Chpter 04: process costing

21. The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 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?

  • A. 293,000

  • B. 310,000

  • C. 324,000

D.

296,000

Beginning work in process inventory + Units started into production or transferred in = Ending work in process inventory + Units completed and transferred out Units started into production or transferred in = Ending work in process inventory + Units completed and transferred out - Beginning work in process inventory = 14,000 + 296,000 - 14,000 = 296,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

22. Diston Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 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.)

A.

$8.112

  • B. $8.300

  • C. $7.533

  • D. $6.108

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 18,000 + 90,000 - 21,000 = 87,000

Chpter 04: process costing 22. Diston Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

23. Loll Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

Chpter 04: process costing 23. Loll Company uses the weighted-average method in its process costing system.

According to the company's records, the conversion cost in beginning work in process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183

were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

  • A. $8.420

  • B. $6.934

  • C. $8.530

D.

$8.322

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000

Chpter 04: process costing 23. Loll Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

24. The following information pertains to Yap Company's Grinding Department for the month of April:

Chpter 04: process costing 24. The following information pertains to Yap Company's Grinding Department for the

All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is closest to:

  • A. $0.59

  • B. $0.55

  • C. $0.45

D.

$0.43

Chpter 04: process costing 24. The following information pertains to Yap Company's Grinding Department for the
Chpter 04: process costing 24. The following information pertains to Yap Company's Grinding Department for the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium Source: CMA, adapted

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Chpter 04: process costing

25. Hardouin Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 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.)

  • A. $5.300

  • B. $5.458

  • C. $4.603

D.

$5.108

Chpter 04: process costing 25. Hardouin Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

26. Parmentier Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

Chpter 04: process costing 26. Parmentier Company uses the weighted-average method in its process costing system.

The accounting records indicate that the conversion cost that had been assigned to beginning

work in process inventory was $5,096 and a total of $87,668 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.)

  • A. $1.654

B.

$1.752

  • C. $1.490

  • D. $1.499

Chpter 04: process costing 26. Parmentier Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

27. Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for March was

$2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in process inventory was:

  • A. $145,000

B.

$116,500

  • C. $101,500

  • D. $78,500

Chpter 04: process costing 27. Scheney Company uses the weighted-average method in its process costing system.
Chpter 04: process costing 27. Scheney Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

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Chpter 04: process costing

28. The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system:

Chpter 04: process costing 28. The following data were taken from the accounting records of the

The equivalent units for conversion costs was:

  • A. 102,000 units

B.

112,000 units

  • C. 111,000 units

  • D. 100,000 units

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 30,000 + 90,000 - 20,000 = 100,000

Chpter 04: process costing 28. The following data were taken from the accounting records of the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

15/74

Chpter 04: process costing

29. Borwan Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 5,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

  • A. 67,400

B.

73,000

  • C. 72,000

  • D. 66,000

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 8,000 + 69,000 - 5,000 = 72,000

Chpter 04: process costing 29. Borwan Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

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Chpter 04: process costing

30. Jastak Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:

Chpter 04: process costing 30. Jastak Company uses the weighted-average method in its process costing system.

What were the equivalent units for conversion costs in the Painting Department for April?

  • A. 106,100

  • B. 91,500

C.

98,970

  • D. 106,270

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 1,000 + 98,800 - 8,300 = 91,500

Chpter 04: process costing 30. Jastak Company uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

17/74

Chpter 04: process costing

31. Fayard Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 67,000

units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 63,000 units were completed in the Assembly Department and transferred to the next processing department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

  • A. 71,000

  • B. 64,000

  • C. 63,000

D.

67,500

Chpter 04: process costing 31. Fayard Corporation uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

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Chpter 04: process costing

32. Nguyen Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:

Chpter 04: process costing 32. Nguyen Corporation uses the weighted-average method in its process costing system.

What were the equivalent units for conversion costs in the Lubricating Department for October?

  • A. 53,700

  • B. 52,280

C.

54,080

  • D. 50,100

Chpter 04: process costing 32. Nguyen Corporation uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

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Chpter 04: process costing

33. Sanchez Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March.

Chpter 04: process costing 33. Sanchez Corporation uses the weighted-average method in its process costing system.

The Fitting Department's cost per equivalent unit for conversion cost for March was $8.66.

How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

A.

$480,630

  • B. $450,320

  • C. $444,258

  • D. $510,940

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 7,000 + 52,000 - 3,500 = 55,500

Chpter 04: process costing 33. Sanchez Corporation uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

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Chpter 04: process costing

34. The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 10,000 units, 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs

per equivalent unit are $4.50 for the materials and $2.00 for labor and overhead, the balance of the ending work in process inventory account would be:

  • A. $44,500

  • B. $50,500

C.

$59,000

  • D. $65,000

Chpter 04: process costing 34. The Gasson Company uses the weighted-average method in its process costing

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Easy

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Chpter 04: process costing

35. Ravalt Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

Chpter 04: process costing 35. Ravalt Corporation uses the weighted-average method in its process costing system.

The Molding Department's cost per equivalent unit for conversion cost for January was $7.90. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

A.

$27,729

  • B. $30,810

  • C. $3,081

  • D. $5,056

Chpter 04: process costing 35. Ravalt Corporation uses the weighted-average method in its process costing system.
Chpter 04: process costing 35. Ravalt Corporation uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Easy

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Chpter 04: process costing

  • 36. In February, one of the processing departments at Carpentier Corporation had beginning

work in process inventory of $14,000 and ending work in process inventory of $29,000. During the month, $148,000 of costs were added to production and the cost of units

transferred out from the department was $133,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be:

  • A. $310,000

B.

$162,000

  • C. $324,000

  • D. $43,000

Chpter 04: process costing 36. In February, one of the processing departments at Carpentier Corporation had

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Easy

  • 37. In February, one of the processing departments at Whisenhunt Corporation had beginning

work in process inventory of $35,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $410,000. In the

department's cost reconciliation report for February, the total cost to be accounted for would be:

  • A. $46,000

  • B. $807,000

  • C. $842,000

D.

$421,000

Chpter 04: process costing 36. In February, one of the processing departments at Carpentier Corporation had

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium

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Chpter 04: process costing

Jumper Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

Chpter 04: process costing Jumper Company uses the weighted-average method in its process costing system. The

38. How many units were in the ending work in process inventory?

  • A. 600 units

B.

1,000 units

  • C. 800 units

  • D. 1,400 units

Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 400 + 15,000 - 14,400 = 1,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

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Chpter 04: process costing

  • 39. What was the cost per equivalent unit for conversion cost?

  • A. $5.00

  • B. $12.30

  • C. $8.50

D.

$14.75

Chpter 04: process costing 39. What was the cost per equivalent unit for conversion cost? A.
Chpter 04: process costing 39. What was the cost per equivalent unit for conversion cost? A.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

  • 40. How much cost, in total, was transferred to the next department during the month?

  • A. $315,200

B.

$306,000

  • C. $312,000

  • D. $317,100

Chpter 04: process costing 39. What was the cost per equivalent unit for conversion cost? A.
Chpter 04: process costing 39. What was the cost per equivalent unit for conversion cost? A.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

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Chpter 04: process costing

Atwich Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing Atwich Corporation uses the weighted-average method in its process costing system. This

A total of 5,100 units were started and 4,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing Atwich Corporation uses the weighted-average method in its process costing system. This

The ending inventory was 75% complete with respect to materials and 10% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

41. What are the equivalent units for conversion costs for the month in the first processing department?

  • A. 4,400

B.

4,530

  • C. 130

  • D. 5,700

Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300

Chpter 04: process costing Atwich Corporation uses the weighted-average method in its process costing system. This

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

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Chpter 04: process costing

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

A.

$21.28

  • B. $20.07

  • C. $19.29

  • D. $18.19

Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300

Chpter 04: process costing 42. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

43. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

  • A. $34.18

  • B. $39.93

C.

$43.00

  • D. $45.15

Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 600 + 5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300

Chpter 04: process costing 43. The cost per equivalent unit for conversion costs for the first
Chpter 04: process costing 43. The cost per equivalent unit for conversion costs for the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

28/74

Chpter 04: process costing

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

  • A. $366,430

  • B. $284,600

  • C. $309,200

D.

$282,858

Chpter 04: process costing 44. The total cost transferred from the first processing department to the
Chpter 04: process costing 44. The total cost transferred from the first processing department to the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

29/74

Chpter 04: process costing

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

A.

$26,342

  • B. $62,679

  • C. $8,357

  • D. $83,572

Chpter 04: process costing 45. The cost of ending work in process inventory in the first
Chpter 04: process costing 45. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Byklea Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing 45. The cost of ending work in process inventory in the first

A total of 7,000 units were started and 6,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing 45. The cost of ending work in process inventory in the first

The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

30/74

Chpter 04: process costing

  • 46. How many units are in ending work in process inventory in the first processing

department at the end of the month?

A.

500

  • B. 900

  • C. 300

  • D. 6,800

Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 200 + 7,000 - 6,700 = 500

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 47. What are the equivalent units for conversion costs for the month in the first processing

department?

A.

6,925

  • B. 7,200

  • C. 6,700

  • D. 225

Chpter 04: process costing 46. How many units are in ending work in process inventory in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

31/74

Chpter 04: process costing

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

  • A. $18.88

  • B. $18.75

  • C. $18.33

  • D. $18.46

Chpter 04: process costing 48. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 48. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

49. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

  • A. $32.03

  • B. $30.81

  • C. $33.63

  • D. $31.64

Chpter 04: process costing 48. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

32/74

Chpter 04: process costing

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

  • A. $351,100

  • B. $366,552

  • C. $356,800

D.

$341,097

Chpter 04: process costing 50. The total cost transferred from the first processing department to the
Chpter 04: process costing 50. The total cost transferred from the first processing department to the
Chpter 04: process costing 50. The total cost transferred from the first processing department to the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

33/74

Chpter 04: process costing

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

  • A. $22,910

B.

$15,703

  • C. $25,455

  • D. $11,455

Chpter 04: process costing 51. The cost of ending work in process inventory in the first
Chpter 04: process costing 51. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing 51. The cost of ending work in process inventory in the first

A total of 8,100 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing 51. The cost of ending work in process inventory in the first

The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

34/74

Chpter 04: process costing

  • 52. How many units are in ending work in process inventory in the first processing

department at the end of the month?

A.

1,100

  • B. 900

  • C. 600

  • D. 7,600

Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 500 + 8,100 -7,500 = 1,100

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 53. What are the equivalent units for conversion costs for the month in the first processing

department?

  • A. 8,600

  • B. 825

  • C. 7,500

D.

8,325

Chpter 04: process costing 52. How many units are in ending work in process inventory in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

35/74

Chpter 04: process costing

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

  • A. $16.32

  • B. $17.17

  • C. $15.91

  • D. $16.73

Chpter 04: process costing 54. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 54. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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

  • A. $486,614

  • B. $472,000

  • C. $459,200

  • D. $424,373

Chpter 04: process costing 54. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 54. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

36/74

Chpter 04: process costing

Epstein Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing Epstein Corporation uses the weighted-average method in its process costing system. This

A total of 7,000 units were started and 6,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing Epstein Corporation uses the weighted-average method in its process costing system. This

The ending inventory was 85% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

56. What are the equivalent units for conversion costs for the month in the first processing department?

  • A. 405

B.

6,905

  • C. 6,500

  • D. 7,400

Chpter 04: process costing Epstein Corporation uses the weighted-average method in its process costing system. This

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

37/74

Chpter 04: process costing

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

  • A. $12.84

  • B. $13.32

  • C. $13.08

  • D. $12.61

Chpter 04: process costing 57. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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

  • A. $248,529

  • B. $218,303

  • C. $236,700

  • D. $228,800

Chpter 04: process costing 57. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 57. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 57. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

38/74

Chpter 04: process costing

Froment Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing Froment Corporation uses the weighted-average method in its process costing system. This

A total of 7,900 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing Froment Corporation uses the weighted-average method in its process costing system. This

The ending inventory was 65% complete with respect to materials and 25% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

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

  • A. $328,155

  • B. $309,200

  • C. $311,600

D.

$299,796

Chpter 04: process costing Froment Corporation uses the weighted-average method in its process costing system. This
Chpter 04: process costing Froment Corporation uses the weighted-average method in its process costing system. This
Chpter 04: process costing Froment Corporation uses the weighted-average method in its process costing system. This

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

39/74

Chpter 04: process costing

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

  • A. $28,359

  • B. $18,433

  • C. $7,090

D.

$11,809

Chpter 04: process costing 60. The cost of ending work in process inventory in the first

Weighted-average method:

Chpter 04: process costing 60. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Grosseiller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing 60. The cost of ending work in process inventory in the first

A total of 6,400 units were started and 5,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing 60. The cost of ending work in process inventory in the first

The ending inventory was 65% complete with respect to materials and 15% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

40/74

Chpter 04: process costing

  • 61. How many units are in ending work in process inventory in the first processing

department at the end of the month?

A.

2,100

  • B. 1,200

  • C. 5,500

  • D. 900

Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 900 + 6,400 -5,200 = 2,100

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 62. What are the equivalent units for materials for the month in the first processing

department?

  • A. 1,365

B.

6,565

  • C. 7,300

  • D. 5,200

Chpter 04: process costing 61. How many units are in ending work in process inventory in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

41/74

Chpter 04: process costing

  • 63. What are the equivalent units for conversion costs for the month in the first processing

department?

  • A. 7,300

B.

5,515

  • C. 5,200

  • D. 315

Chpter 04: process costing 63. What are the equivalent units for conversion costs for the month

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

  • 64. The cost per equivalent unit for materials for the month in the first processing department

is closest to:

  • A. $12.93

  • B. $14.38

C.

$16.38

  • D. $14.73

Chpter 04: process costing 63. What are the equivalent units for conversion costs for the month
Chpter 04: process costing 63. What are the equivalent units for conversion costs for the month

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

42/74

Chpter 04: process costing

65. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

  • A. $26.89

  • B. $22.34

  • C. $31.05

D.

$29.57

Chpter 04: process costing 65. The cost per equivalent unit for conversion costs for the first
Chpter 04: process costing 65. The cost per equivalent unit for conversion costs for the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

43/74

Chpter 04: process costing

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

  • A. $270,600

B.

$238,935

  • C. $335,428

  • D. $242,700

Chpter 04: process costing 66. The total cost transferred from the first processing department to the
Chpter 04: process costing 66. The total cost transferred from the first processing department to the
Chpter 04: process costing 66. The total cost transferred from the first processing department to the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

44/74

Chpter 04: process costing

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

  • A. $62,720

B.

$31,668

  • C. $14,474

  • D. $96,493

Chpter 04: process costing 67. The cost of ending work in process inventory in the first
Chpter 04: process costing 67. The cost of ending work in process inventory in the first
Chpter 04: process costing 67. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Chpter 04: process costing 67. The cost of ending work in process inventory in the first

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

45/74

Chpter 04: process costing

  • 68. What are the equivalent units for materials for the month in the first processing

department?

  • A. 840

B.

9,140

  • C. 9,700

  • D. 8,300

Chpter 04: process costing 68. What are the equivalent units for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

  • 69. What are the equivalent units for conversion costs for the month in the first processing

department?

A.

8,650

  • B. 9,700

  • C. 8,300

  • D. 350

Chpter 04: process costing 68. What are the equivalent units for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

46/74

Chpter 04: process costing

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

  • A. $10.51

  • B. $10.12

  • C. $9.91

  • D. $9.54

Chpter 04: process costing 70. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 70. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

71. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

  • A. $18.29

  • B. $17.42

  • C. $15.54

  • D. $17.10

Chpter 04: process costing 70. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 70. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

47/74

Chpter 04: process costing

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

  • A. $246,800

  • B. $270,979

  • C. $240,400

D.

$231,869

Chpter 04: process costing 72. The total cost transferred from the first processing department to the
Chpter 04: process costing 72. The total cost transferred from the first processing department to the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

48/74

Chpter 04: process costing

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

A.

$14,930

  • B. $23,466

  • C. $9,778

  • D. $39,110

Chpter 04: process costing 73. The cost of ending work in process inventory in the first
Chpter 04: process costing 73. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Kramer Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Chpter 04: process costing 73. The cost of ending work in process inventory in the first

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

49/74

Chpter 04: process costing

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

A.

$306,682

  • B. $353,149

  • C. $334,000

  • D. $341,000

Chpter 04: process costing 74. The total cost transferred from the first processing department to the
Chpter 04: process costing 74. The total cost transferred from the first processing department to the

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

50/74

Chpter 04: process costing

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

  • A. $32,527

  • B. $46,467

C.

$34,317

  • D. $39,497

Chpter 04: process costing 75. The cost of ending work in process inventory in the first
Chpter 04: process costing 75. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Lothian Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Chpter 04: process costing 75. The cost of ending work in process inventory in the first

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

51/74

Chpter 04: process costing

  • 76. What are the equivalent units for materials for the month in the first processing

 

department?

A.

5,200

B.

325

C.

5,525

D.

5,700

department? A. 5,200 B. 325 C. 5,525 D. 5,700 AACSB: Analytic AICPA BB: Critical Thinking AICPA

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

77.

The cost per equivalent unit for conversion costs for the first department for the month is

closest to:

A.

$34.05

B.

$32.17

C.

$32.43

D.

$30.30

Chpter 04: process costing 76. What are the equivalent units for materials for the month in
Chpter 04: process costing 76. What are the equivalent units for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

52/74

Chpter 04: process costing

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

A.

$8,919

  • B. $15,405

  • C. $5,925

  • D. $23,700

Chpter 04: process costing 78. The cost of ending work in process inventory in the first
Chpter 04: process costing 78. The cost of ending work in process inventory in the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Duhamel Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were:

Chpter 04: process costing 78. The cost of ending work in process inventory in the first

A total of 7,800 units were started and 7,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Chpter 04: process costing 78. The cost of ending work in process inventory in the first

The ending inventory was 55% complete with respect to materials and 50% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

53/74

Chpter 04: process costing

  • 79. How many units are in ending work in process inventory in the first processing

department at the end of the month?

A.

1,400

  • B. 7,200

  • C. 900

  • D. 800

Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 600 + 7,800 -7,000 = 1,400

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 80. What are the equivalent units for conversion costs for the month in the first processing

department?

  • A. 8,400

B.

7,700

  • C. 7,000

  • D. 700

Chpter 04: process costing 79. How many units are in ending work in process inventory in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

54/74

Chpter 04: process costing

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

  • A. $25.74

  • B. $23.81

  • C. $24.87

D.

$26.89

Chpter 04: process costing 81. The cost per equivalent unit for materials for the month in
Chpter 04: process costing 81. The cost per equivalent unit for materials for the month in

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

Ire Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below

Chpter 04: process costing 81. The cost per equivalent unit for materials for the month in

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

55/74

Chpter 04: process costing

  • 82. What are the equivalent units for conversion costs for the month in the first processing

department?

  • A. 8,800

  • B. 1,045

  • C. 10,700

D.

9,845

Chpter 04: process costing 82. What are the equivalent units for conversion costs for the month

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Medium

  • 83. The cost per equivalent unit for materials for the month in the first processing department

is closest to:

  • A. $10.50

  • B. $9.95

C.

$10.89

  • D. $10.32

Chpter 04: process costing 82. What are the equivalent units for conversion costs for the month
Chpter 04: process costing 82. What are the equivalent units for conversion costs for the month

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

Jaderston Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Chpter 04: process costing Jaderston Corporation uses the weighted-average method in its process costing system. Data

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

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

  • A. $19.55

  • B. $19.20

C.

$20.46

  • D. $20.09

Chpter 04: process costing Jaderston Corporation uses the weighted-average method in its process costing system. Data

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

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Chpter 04: process costing

85. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

  • A. $38.29

B.

$36.47

  • C. $34.68

  • D. $36.06

Chpter 04: process costing 85. The cost per equivalent unit for conversion costs for the first
Chpter 04: process costing 85. The cost per equivalent unit for conversion costs for the first

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Medium

The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system.

Chpter 04: process costing 85. The cost per equivalent unit for conversion costs for the first

All materials are added at the beginning of the process.

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Chpter 04: process costing

  • 86. The equivalent units for materials for the month of May were:

  • A. 60,000 units

B.

74,000 units

  • C. 64,000 units

  • D. 69,800 units

Chpter 04: process costing 86. The equivalent units for materials for the month of May were:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 87. The equivalent units for labor and overhead for the month of May were:

  • A. 60,000 units

B.

69,800 units

  • C. 65,800 units

  • D. 73,800 units

Chpter 04: process costing 86. The equivalent units for materials for the month of May were:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

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Chpter 04: process costing

Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October, Department J collected the following data:

Chpter 04: process costing Nando Company uses the weighted-average method in its process costing system. Department
Chpter 04: process costing Nando Company uses the weighted-average method in its process costing system. Department

All materials are added at the beginning of the process.

88. The total cost assigned to units transferred out during October was:

  • A. $264,600

B.

$316,000

  • C. $342,000

  • D. $358,400

Chpter 04: process costing Nando Company uses the weighted-average method in its process costing system. Department
Chpter 04: process costing Nando Company uses the weighted-average method in its process costing system. Department
Chpter 04: process costing Nando Company uses the weighted-average method in its process costing system. Department

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Hard

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Chpter 04: process costing

89. The total cost assigned to ending work in process inventory was:

  • A. $75,400

B.

$101,400

  • C. $152,800

  • D. $59,000

Chpter 04: process costing 89. The total cost assigned to ending work in process inventory was:
Chpter 04: process costing 89. The total cost assigned to ending work in process inventory was:
Chpter 04: process costing 89. The total cost assigned to ending work in process inventory was:

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

In January, one of the processing departments at Seidl Corporation had ending work in process inventory of $35,000. During the month, $111,000 of costs were added to production and the cost of units transferred out from the department was $86,000.

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Chpter 04: process costing

  • 90. In the department's cost reconciliation report for January, the cost of beginning work in

process inventory for the department would be:

  • A. $51,000

B.

$10,000

  • C. $76,000

  • D. $60,000

Cost of beginning work in process inventory = Cost of ending work in process inventory + Cost of units transferred out - Costs added to production = $35,000 + $86,000 - $111,000 =

$10,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium

  • 91. In the department's cost reconciliation report for January, the total cost accounted for

would be:

  • A. $242,000

  • B. $232,000

C.

$121,000

  • D. $45,000

Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out = $35,000 + $86,000 = $121,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Easy

In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production.

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Chpter 04: process costing

  • 92. In the department's cost reconciliation report for August, the cost of units transferred out

of the department would be:

A.

$182,000

  • B. $195,000

  • C. $169,000

  • D. $165,000

Cost of units transferred out = Cost of beginning work in process inventory + Cost added to production - Cost of ending work in process inventory = $17,000 + $178,000 - $13,000 =

$182,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium

  • 93. In the department's cost reconciliation report for August, the total cost to be accounted for

would be:

  • A. $30,000

  • B. $390,000

C.

$195,000

  • D. $373,000

Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out = $17,000 + $178,000 = $195,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Easy

Essay Questions

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Chpter 04: process costing

94. Larney Corporation uses process costing. A number of transactions that occurred in June are listed below.

Chpter 04: process costing 94. Larney Corporation uses process costing. A number of transactions that occurred

Required:

Prepare journal entries for each of the transactions listed above.

Chpter 04: process costing 94. Larney Corporation uses process costing. A number of transactions that occurred

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

95. During February, the following transactions were recorded at Ferrington Corporation. The company uses process costing.

Chpter 04: process costing 95. During February, the following transactions were recorded at Ferrington Corporation. The

Required:

Prepare journal entries for each of the transactions listed above.

Chpter 04: process costing 95. During February, the following transactions were recorded at Ferrington Corporation. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system Level: Easy

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Chpter 04: process costing

96. Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:

Chpter 04: process costing 96. Production and cost data for the month of February for Process

The company uses the weighted-average cost method in its process costing system.

Required:

  • a. Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs. (Carry calculations out to the nearest tenth of a cent.)

  • b. Determine the cost transferred to finished goods.

  • c. Determine the amount of cost that should be assigned to the ending work in process.

Chpter 04: process costing 96. Production and cost data for the month of February for Process
Chpter 04: process costing 96. Production and cost data for the month of February for Process
Chpter 04: process costing 96. Production and cost data for the month of February for Process
Chpter 04: process costing 96. Production and cost data for the month of February for Process

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Hard

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Chpter 04: process costing

97. Assurer 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.

Chpter 04: process costing 97. Assurer Inc. uses the weighted-average method in its process costing system.

Required:

  • a. Determine the equivalent units of production.

  • b. Determine the costs per equivalent unit.

  • c. Determine the cost of ending work in process inventory.

  • d. Determine the cost of the units transferred to the next department.

Weighted-average method:

Chpter 04: process costing 97. Assurer Inc. uses the weighted-average method in its process costing system.
Chpter 04: process costing 97. Assurer Inc. uses the weighted-average method in its process costing system.
Chpter 04: process costing 97. Assurer Inc. uses the weighted-average method in its process costing system.
Chpter 04: process costing 97. Assurer Inc. uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

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Chpter 04: process costing

98. Barsoux 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.

Chpter 04: process costing 98. Barsoux Inc. uses the weighted-average method in its process costing system.

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.

Weighted-average method:

Chpter 04: process costing 98. Barsoux Inc. uses the weighted-average method in its process costing system.
Chpter 04: process costing 98. Barsoux Inc. uses the weighted-average method in its process costing system.

Level: Medium

Chpter 04: process costing 98. Barsoux Inc. uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method

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Chpter 04: process costing

99. Nygaard Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September.

Chpter 04: process costing 99. Nygaard Corporation uses the weighted-average method in its process costing. The

Required:

Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method.

Weighted-average method

Chpter 04: process costing 99. Nygaard Corporation uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

100. The following data have been provided by Fattig Corporation, which uses the weighted- average method in its process costing. The data are for the company's Shaping Department for October.

Chpter 04: process costing 99. Nygaard Corporation uses the weighted-average method in its process costing. The

Required:

Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method.

Weighted-average method

Chpter 04: process costing 99. Nygaard Corporation uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

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Chpter 04: process costing

101. Canler 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.

Chpter 04: process costing 101. Canler Inc. uses the weighted-average method in its process costing system.

Required:

Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

Weighted-average method

Chpter 04: process costing 101. Canler Inc. uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

102. Garneau Corporation uses process costing. The following data pertain to its Assembly Department for February.

Chpter 04: process costing 101. Canler Inc. uses the weighted-average method in its process costing system.

Required:

Determine the equivalent units of production for the Assembly Department for February using the weighted-average method.

Weighted-average method:

Chpter 04: process costing 101. Canler Inc. uses the weighted-average method in its process costing system.

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

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Chpter 04: process costing

  • 103. Flitter Corporation uses the weighted-average method in its process costing. The

following data pertain to its Materials Preparation Department for November.

Chpter 04: process costing 103. Flitter Corporation uses the weighted-average method in its process costing. The

Required:

Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method.

Weighted-average method:

Chpter 04: process costing 103. Flitter Corporation uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method Level: Easy

  • 104. Jeoffroy Inc. uses the weighted-average method in its process costing. The following

data concern the company's Assembly Department for the month of November.

Chpter 04: process costing 103. Flitter Corporation uses the weighted-average method in its process costing. The

Required:

Compute the costs per equivalent unit for the Assembly Department for November.

Weighted-average method:

Chpter 04: process costing 103. Flitter Corporation uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy

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Chpter 04: process costing

105. Dominick Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December.

Chpter 04: process costing 105. Dominick Inc. uses the weighted-average method in its process costing. The

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December.

Weighted-average method:

Chpter 04: process costing 105. Dominick Inc. uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method Level: Easy

106. Ok Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June.

Chpter 04: process costing 105. Dominick Inc. uses the weighted-average method in its process costing. The

During the month, 7,100 units were completed and transferred from the Assembly Department to the next department. Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method.

Weighted-average method:

Chpter 04: process costing 105. Dominick Inc. uses the weighted-average method in its process costing. The

Level: Medium

Chpter 04: process costing 105. Dominick Inc. uses the weighted-average method in its process costing. The

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method

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Chpter 04: process costing

  • 107. Vanstraten Inc. has provided the following data concerning the Assembly Department

for the month of April. The company uses the weighted-average method in its process costing.

Chpter 04: process costing 107. Vanstraten Inc. has provided the following data concerning the Assembly Department

During the month, 4,800 units were completed and transferred from the Assembly Department to the next department. Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method.

Weighted-average method:

Chpter 04: process costing 107. Vanstraten Inc. has provided the following data concerning the Assembly Department

Level: Medium

Chpter 04: process costing 107. Vanstraten Inc. has provided the following data concerning the Assembly Department

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to units using the weighted-average method

  • 108. In July, one of the processing departments at Wrightsel Corporation had beginning work

in process inventory of $22,000 and ending work in process inventory of $16,000. During the month, $225,000 of costs were added to production and the cost of units transferred out from the department was $231,000. Required:

Construct a cost reconciliation report for the department for the month of July.

Chpter 04: process costing 107. Vanstraten Inc. has provided the following data concerning the Assembly Department

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Easy

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Chpter 04: process costing

  • 109. In November, one of the processing departments at Shelp Corporation had beginning

work in process inventory of $27,000 and ending work in process inventory of $21,000.

During the month, the cost of units transferred out from the department was $311,000. Required:

Construct a cost reconciliation report for the department for the month of November.

Chpter 04: process costing 109. In November, one of the processing departments at Shelp Corporation had

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium

  • 110. In March, one of the processing departments at Perrill Corporation had beginning work

in process inventory of $31,000. During the month, $368,000 of costs were added to production and the cost of units transferred out from the department was $367,000. Required:

Construct a cost reconciliation report for the department for the month of March.

Chpter 04: process costing 109. In November, one of the processing departments at Shelp Corporation had

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost reconciliation report Level: Medium

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