6) In a process costing system, calculating the cost per unit is used for a number of purposes. Which of the
following is NOT one of those purposes?
A) To set selling prices
B) To manage and control administrative expenses
C) To manage and control production costs
D) To calculate the ending work in process inventory
7) Which of the following best describes the term equivalent units?
A) Partially completed units counted in terms of the equivalent number of completed units
B) Partially completed units that will be sold as is
C) Different types of units that can be used for the equivalent purpose or length of time as other units
D) Different products that have the same selling price
8) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was
60% complete with respect to conversion costs. With respect to direct materials costs, how many equivalent units
were calculated for the product that was completed, and how many equivalent units were calculated for the ending
balance?
A) 32,000 equivalent units and 4,800 equivalent units
B) 32,000 equivalent units and 8,000 equivalent units
C) 19,200 equivalent units and 4,800 equivalent units
D) 40,000 equivalent units, and 8,000 equivalent units
9) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was
60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were
calculated for the product that was completed, and how many equivalent units were calculated for the ending
balance?
A) 32,000 equivalent units and 4,800 equivalent units
B) 32,000 equivalent units and 8,000 equivalent units
C) 19,200 equivalent units and 4,800 equivalent units
D) 40,000 equivalent units, and 8,000 equivalent units
10) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
At the end of the month, LDR calculated equivalent units in the Mixing Department as shown below:
EQUIVALENT UNITS
Equivalent Units
Units to account for
Transferred In
Direct Mtls Cost
Conversion Cost
Completed
32,000
0
32,000
32,000
End bal WIP *
8,000
0
8,000
4,800
40,000
0
40,000
36,800
* % of completion for
direct materials costs:
100%
% of completion for
conversion costs:
60%
During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs.
How much was the cost per equivalent unit for materials and for conversion costs?
(Please round all amounts to the nearest cent.)
A) $6.00 for materials, $44.08 for conversion
B) $1.20 for materials, $6.61 for conversion
C) $1.50 for materials, $6.61 for conversion
D) $1.20 for materials, $5.75 for conversion
11) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
At the end of January, the equivalent unit data for the Mixing Department were as follows:
EQUIVALENT UNITS
Equivalent Units
Units to account for
Transferred In
Direct Mtls Cost
Conversion Cost
Completed
32,000
0
32,000
32,000
End bal WIP
8,000
0
8,000
4,800
40,000
0
40,000
36,800
In addition to the above, the costs per equivalent unit were $1.20 for direct materials and $5.75 for conversion costs.
Using this data, please calculate the full cost of the ending balance in the Mixing Department.
A) $211,600
B) $48,000
C) $37,200
D) $222,400
12) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
At the end of January, the equivalent unit data for the Mixing Department were as follows:
EQUIVALENT UNITS
Equivalent Units
Units to account for
Transferred In
Direct Mtls Cost
Conversion Cost
Completed
32,000
0
32,000
32,000
End bal WIP
8,000
0
8,000
4,800
40,000
0
40,000
36,800
In addition to the above, the costs per equivalent unit were $1.20 for direct materials and $5.75 for conversion costs.
Using this data, please calculate the full cost of the units that were transferred out of the Mixing Department and into
the Refining Department.
A) $211,600
B) $48,000
C) $222,400
D) $37,200
13) Rankin Food Products produces cane sugar syrup in bulk quantities, and uses process costing. There are three
processing departments-Mixing, Refining, and Packaging. Using process costing analysis, Rankin determined that
the cost of the units completed and transferred out of the Mixing Department during the month was $11,000. Which
of the following is the correct journal entry to record the cost of the units completed and transferred out to the next
department?
A) Debit $11,000 to Finished goods inventory, credit $11,000 to Work in process – Mixing
B) Debit $11,000 to Work in process — Refining, credit $11,000 to Work in process – Mixing
C) Debit $11,000 to Work in process — Refining, credit $11,000 to Materials inventory
D) Debit $11,000 to Work in process — Mixing, credit $11,000 to Work in process – Refining
14) Rankin Food Products produces cane sugar syrup in bulk quantities, and uses process costing. There are three
processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a
zero beginning balance. During January, 80,000 gallons of syrup were started into production. During the month,
79,100 gallons were completed, and 900 remained in process, partially completed. During January, the Mixing
Department incurred $7,500 of materials costs, $900 direct labor costs, and was allocated $2,500 of manufacturing
overhead costs. Which of the following is the correct journal entry to record the costs added during January to the
Mixing Department?
A)
Work in process – Mixing
10,900
Accounts payable
10,900
B)
Work in process – Mixing
10,900
Materials inventory
7,500
Wages payable
900
Manufacturing overhead
2,500
C)
Work in process – Mixing
10,900
Work in process – Refining
10,900
D)
Materials inventory
7,500
Wages payable
900
Manufacturing overhead
2,500
Work in process – Mixing
10,900
15) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs.
At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to
conversion costs. First, calculate the equivalent units, then calculate the cost per equivalent unit, and then calculate
the total cost of the product that was remaining in ending inventory at January 31.
The total cost of product in ending inventory was:
A) $211,600.
B) $48,000.
C) $37,200.
D) $222,400.
16) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero
beginning balance. During January, 40,000 liters of chemicals were started into production. During the month,
32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all
raw materials are added at the beginning of the production process, and conversion costs are applied evenly through
the process.
During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs.
At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to
conversion costs. First, calculate the equivalent units, then calculate the cost per equivalent unit, and then calculate
the total cost of the product that was completed and transferred out during January.
The total cost of product transferred out was:
A) $211,600.
B) $48,000.
C) $37,200.
D) $222,400.
17) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters completed and transferred out. At the end of the month, there were 5,000 liters of
partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total number of equivalent units with respect to
transferred in costs?
A) 32,000
B) 34,000
C) 29,000
D) 5,000
18) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total number of equivalent units with respect to
direct materials costs?
A) 33,500
B) 34,000
C) 29,000
D) 4,500
19) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total number of equivalent units with respect to
conversion costs?
A) 3,750
B) 32,750
C) 29,000
D) 4,500
20) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was cost per equivalent unit with respect to transferred
in costs? (Please round to nearest cent.)
A) $6.54
B) $3.00
C) $1.40
D) $7.00
21) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was cost per equivalent unit with respect to direct
materials costs? (Please round to nearest cent.)
A) $1.40
B) $3.00
C) $1.34
D) $7.00
22) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was cost per equivalent unit with respect to conversion
costs? (Please round to nearest cent.)
A) $1.40
B) $3.00
C) $1.34
D) $2.86
23) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total cost of product completed and transferred
out? (Please round to nearest whole dollar.)
A) $238,000
B) $383,150
C) $52,550
D) $330,600
24) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing
departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of
partially processed product in production. During January, 32,000 liters were transferred in from the Mixing
Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters
of partially processed product remaining in the Refining Department. See additional details below.
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed)
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed)
% completion for materials cost: 90%
% completion for conversion cost: 75%
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total cost of ending inventory? (Please round to
nearest whole dollar.)
A) $35,000
B) $52,550
C) $46,250
D) $33,600
25) Rankin Food Products produces cane sugar syrup in bulk quantities and uses process costing. There are three
processing departments-Mixing, Refining, and Packaging. Using process costing analysis, Rankin determined that
the cost of the units completed and transferred out of the Refining Department during the month was $20,000.
Which of the following is the correct journal entry to record the cost of the units completed and transferred out to the
next department?
A) Debit $20,000 to Work in process — Refining, credit $20,000 to Work in process – Packaging
B) Debit $20,000 to Work in process — Refining, credit $20,000 to Work in process – Mixing
C) Debit $20,000 to Work in process — Packaging, credit $20,000 to Work in process – Refining
D) Debit $20,000 to Work in process — Packaging, credit $20,000 to Finished goods