66. Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses
a process costing system. The following information pertains to the final department of
Giddings’s blockbuster drug called Solcax.
Beginning work-in-process (40% completed) 800 units
Transferred-in 4,000 units
Normal spoilage 400 units
Abnormal spoilage 200 units
Good units transferred out 3,600 units
Ending work-in-process (1/3 completed) 600 units
Conversion costs in beginning inventory $2,560
Current conversion costs $6,900
Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled
units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are
charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered
before inspection of finished units. Materials are added at the beginning of the process. Using
the weighted-average method, answer the following question:
What are the unit conversion costs?
67. Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses
a process costing system. The following information pertains to the final department of
Giddings’s blockbuster drug called Solcax.
Beginning work-in-process (40% completed) 800 units
Transferred-in 4,000 units
Normal spoilage 400 units
Abnormal spoilage 200 units
Good units transferred out 3,600 units
Ending work-in-process (1/3 completed) 600 units
Conversion costs in beginning inventory $2,560
Current conversion costs $6,900
Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled
units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are
charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered
before inspection of finished units. Materials are added at the beginning of the process. Using
the weighted-average method, answer the following question:
What are the total conversion costs of abnormal spoilage?
68. Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses
a process costing system. The following information pertains to the final department of
Giddings’s blockbuster drug called Solcax.
Beginning work-in-process (40% completed) 800 units
Transferred-in 4,000 units
Normal spoilage 400 units
Abnormal spoilage 200 units
Good units transferred out 3,600 units
Ending work-in-process (1/3 completed) 600 units
Conversion costs in beginning inventory $2,560
Current conversion costs $6,900
Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled
units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are
charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered
before inspection of finished units. Materials are added at the beginning of the process. Using
the weighted-average method, answer the following question:
What are the total conversion costs transferred to finished goods?
69. Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses
a process costing system. The following information pertains to the final department of
Giddings’s blockbuster drug called Solcax.
Beginning work-in-process (40% completed) 800 units
Transferred-in 4,000 units
Normal spoilage 400 units
Abnormal spoilage 200 units
Good units transferred out 3,600 units
Ending work-in-process (1/3 completed) 600 units
Conversion costs in beginning inventory $2,560
Current conversion costs $6,900
Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled
units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are
charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered
before inspection of finished units. Materials are added at the beginning of the process. Using
the weighted-average method, answer the following question:
What are the total conversion costs in ending inventory?
70. Abnormal spoilage is considered what kind of cost?
71. O’Leary Company manufactures Product Z in a two–stage production cycle in
Departments A and B. Materials are added at the beginning of the process in Department B.
O’Leary uses the weighted-average method. Conversion costs for Department B were 40%
complete as to the 5,000 units in the beginning work–in-process (WIP) inventory and 50%
complete as to the 7,000 units in the ending work–in-process inventory. 10,000 units were
completed and transferred out of Department B during October. An analysis of the costs relating
to work-in-process inventories and production activity in Department B for October follows:
Transferred-
in Costs Materials
Costs Conversion
Costs
WIP, October 1: $10,000 $3,000 $1,000
Costs added in October 24,000 5,500 4,400
The total cost per equivalent unit transferred-out for October of Product Z, rounded to the
nearest penny, was:
72. Universal Automotive Group is a maker of engines for high performance cars and uses a
process costing system. The following information pertains to the final department of
manufacturing for Universal’s most popular engine, the “Atomic 8”.
Beginning work-in-process (40% completed) 400 units
Transferred-in 1,600 units
Normal spoilage 100 units
Abnormal spoilage 100 units
Good units transferred out 1,400 units
Ending work-in-process (25% completed) 400 units
Conversion costs in beginning inventory $180,500
Current conversion costs $728,218
Universal Automotive Group calculates separate costs of spoilage by computing both normal and
abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal
spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of
defects not discovered before inspection of finished units. Using the weighted–average method,
answer the following question:
What are the equivalent units for conversion costs?
73. Universal Automotive Group is a maker of engines for high performance cars and uses a
process costing system. The following information pertains to the final department of
manufacturing for Universal’s most popular engine, the “Atomic 8”.
Beginning work-in-process (40% completed) 400 units
Transferred-in 1,600 units
Normal spoilage 100 units
Abnormal spoilage 100 units
Good units transferred out 1,400 units
Ending work-in-process (25% completed) 400 units
Conversion costs in beginning inventory $180,500
Current conversion costs $728,218
Universal Automotive Group calculates separate costs of spoilage by computing both normal and
abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal
spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of
defects not discovered before inspection of finished units. Using the weighted–average method,
answer the following question:
What are the unit conversion costs?
74. Universal Automotive Group is a maker of engines for high performance cars and uses a
process costing system. The following information pertains to the final department of
manufacturing for Universal’s most popular engine, the “Atomic 8”.
Beginning work-in-process (40% completed) 400 units
Transferred-in 1,600 units
Normal spoilage 100 units
Abnormal spoilage 100 units
Good units transferred out 1,400 units
Ending work-in-process (25% completed) 400 units
Conversion costs in beginning inventory $180,500
Current conversion costs $728,218
Universal Automotive Group calculates separate costs of spoilage by computing both normal and
abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal
spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of
defects not discovered before inspection of finished units. Using the weighted–average method,
answer the following question:
What are the total conversion costs of abnormal spoilage?
75. Universal Automotive Group is a maker of engines for high performance cars and uses a
process costing system. The following information pertains to the final department of
manufacturing for Universal’s most popular engine, the “Atomic 8”.
Beginning work-in-process (40% completed) 400 units
Transferred-in 1,600 units
Normal spoilage 100 units
Abnormal spoilage 100 units
Good units transferred out 1,400 units
Ending work-in-process (25% completed) 400 units
Conversion costs in beginning inventory $180,500
Current conversion costs $728,218
Universal Automotive Group calculates separate costs of spoilage by computing both normal and
abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal
spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of
defects not discovered before inspection of finished units. Using the weighted–average method,
answer the following question:
What are the total conversion costs transferred to finished goods?
76. Backflush costing:
77. A Production Cost Report summarizes:
78. Process costing can be found in which of the following companies (industries)?
79. Conversion costs are the sum of direct labor and:
80. Which of the following is not a step in the preparation of a production cost report?
81. Units accounted for includes units completed and transferred out plus:
82. If a firm has 1,200 completed and transferred out units, 200 equivalent units of beginning
work in process and 500 ending work–in-process equivalent units, what is the total of equivalent
units of production using the weighted-average method?
83. The following table was taken from Firm X’s Production Cost Report:
Completed and transferred out units 44,000
Ending work-in-process equivalent units 6,000
Beginning work-in-process equivalent units 10,000
What is the number of FIFO equivalent units?
84. The following table was taken from Firm X’s Production Cost Report:
Completed and transferred out units 44,000
Ending work-in-process equivalent units 6,000
Beginning work-in-process equivalent units 10,000
What is the number of weighted-average equivalent units?
85. The weighted-average method is most appropriate when:
86. Transferred-in costs are costs of work performed:
87. Backflush costing is a costing method that:
88. The U.S. Department of Agriculture urges the use of process costing together with:
89. JIT (Just in time) methods are designed primarily to:
90. Process costing is not intended to help determine
91. Reichhold Chemical Company uses process costing together with: