Chapter 6
113. Excellent Manufacturing uses a process cost system to manufacture sensors for the security industry. The following
information pertains to operations for the month of March:
Units
Beginning work-in-process inventory, March 1 12,600
Started production during March 115,500
Completed production during March 92,400
Ending work-in–process inventory, March 31 35,700
The beginning inventory was 65% complete for materials and 25% complete for conversion costs. The ending inventory
was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
Using the weighted average method, the total equivalent units of production for direct materials is calculated as:
a. 120,000.
b. 120,960.
c. 116,000.
d. 105,850.
Chapter 6
114. Excellent Manufacturing uses a process cost system to manufacture sensors for the security industry. The following
information pertains to operations for the month of March:
Units
Beginning work-in-process inventory, March 1 12,600
Started production during March 115,500
Completed production during March 92,400
Ending work-in–process inventory, March 31 35,700
The beginning inventory was 65% complete for materials and 25% complete for conversion costs. The ending inventory
was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
Which of the following is the total cost of the units in ending work-in-process inventory by using the weighted average
method? (Note: Round the unit direct material cost, the unit conversion cost, and the answer to two decimal places.)
a. $253,960.70.
b. $258,646.50.
c. $250,670.60.
d. $256,962.50.
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115. Since transferred-in material is treated as a separate material category for calculating equivalent units, the department
receiving transferred-in goods would have:
a. four input categories.
b. two input categories.
c. three input categories.
d. five input categories.
116. Which of the following is true of conversion costs?
a. Conversion costs include direct labor and overhead.
b. Conversion costs include direct materials and direct labor.
c. Conversion costs include direct labor and selling expenses.
d. Conversion costs include direct materials and indirect labor.
Chapter 6
117. The Planet Corporation produces a product that passes through two processes. During June, the first department
transferred 63,000 units to the second department. The cost of the units transferred was $94,500. Materials are added
uniformly in the second process. The following information was provided about the second department’s operations
during June:
Units in process, June 1 5,250
Units in process, June 30 13,650
Units started in Planet Corporation’s second department during June would be:
a. 63,000.
b. 55,000.
c. 73,000.
d. 48,000.
118. The Planet Corporation produces a product that passes through two processes. During June, the first department
transferred 63,000 units to the second department. The cost of the units transferred was $94,500. Materials are added
uniformly in the second process. The following information was provided about the second department’s operations
during June:
Units in process, June 1 5,250
Units in process, June 30 13,650
Chapter 6
Units completed in Planet Corporation’s second department during June would be:
a. 48,000.
b. 54,600.
c. 49,000.
d. 55,000.
119. The Planet Corporation produces a product that passes through two processes. During June, the first department
transferred 63,000 units to the second department. The cost of the units transferred was $94,500. Materials are added
uniformly in the second process. The following information was provided about the second department’s operations
during June:
Units in process, June 1 5,250
Units in process, June 30 13,650
Units started and completed in Planet Corporation’s second department during June would be:
a. 48,280.
b. 37,000.
c. 49,350.
d. 55,000.
Chapter 6
120. In process manufacturing, the manufacturing input categories include
a. only work in process.
b. only cost of goods sold.
c. only raw materials.
d. transferred-in materials, materials added, and conversion costs.
121. The cost of a department’s transferred-in goods is the cost of
a. its materials, labor, and overhead.
b. the goods transferred out as computed in the prior department.
c. its materials and conversion costs.
d. None of these.
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122. Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent
department are
a. equal to the equivalent units plus the materials added.
b. equal to the equivalent units of that department.
c. equal to the materials added plus conversion costs.
d. equal to the units transferred out from the prior department.
123. Nonuniform manufacturing inputs affect
a. the calculation of equivalent units, unit cost, and valuation of ending work in process.
b. only the calculation of equivalent units, and valuation of ending work in process.
c. only the valuation of ending work in process.
d. only the manufacturing outputs.
Chapter 6
124. Process accounting’s solution for nonuniform manufacturing inputs is
a. calculate equivalent units for each category of manufacturing input.
b. calculate total unit cost as if there were uniform manufacturing inputs.
c. to use the weighted average method.
d. to use FIFO method or the weighted average method.
125. The following information is available for Department Z for the month of July:
Units Cost
Work in process, July 1 (70% complete) 2,000
Direct materials $ 6,000
Direct labor 3,000
Manufacturing overhead 4,000
Total work in process, July 1 $13,000
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Started in production during July 20,000
Costs added:
Direct materials $18,000
Direct labor 8,000
Manufacturing overhead 10,000
Total costs added during July $36,000
Work in process, July 31, (80% complete) 2,000
Materials are added at the beginning of the process. Department Z’s cost per equivalent unit of production for materials
using the FIFO method would be
a. $1.20.
b. $1.04.
c. $0.96.
d. $0.90.
126. The following information is available for Department Z for the month of July:
Units Cost
Work in process, July 1 (70% complete) 2,000
Direct materials $ 6,000
Direct labor 3,000
Manufacturing overhead 4,000
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Total work in process, July 1 $13,000
Started in production during July 20,000
Costs added:
Direct materials $18,000
Direct labor 8,000
Manufacturing overhead 10,000
Total costs added during July $36,000
Work in process, July 31, (80% complete) 2,000
Materials are added at the beginning of the process. Department Z’s cost per equivalent unit of production for conversion
costs using the FIFO method would be
a. $1.18.
b. $1.02.
c. $0.85.
d. $0.73.
127. The following information is available for Department Z for the month of July:
Chapter 6
Units Cost
Work in process, July 1 (70% complete) 2,000
Direct materials $ 6,000
Direct labor 3,000
Manufacturing overhead 4,000
Total work in process, July 1 $13,000
Started in production during July 20,000
Costs added:
Direct materials $18,000
Direct labor 8,000
Manufacturing overhead 10,000
Total costs added during July $36,000
Work in process, July 31, (80% complete) 2,000
Materials are added at the beginning of the process. Department Z’s cost of goods transferred out using the FIFO method
would be
a. $40,250.
b. $45,540.
c. $44,500.
d. $45,775.
Chapter 6
128. The following information is available for Department Z for the month of July:
Units Cost
Work in process, July 1 (70% complete) 2,000
Direct materials $ 6,000
Direct labor 3,000
Manufacturing overhead 4,000
Total work in process, July 1 $13,000
Started in production during July 20,000
Costs added:
Direct materials $18,000
Direct labor 8,000
Manufacturing overhead 10,000
Total costs added during July $36,000
Work in process, July 31, (80% complete) 2,000
Materials are added at the beginning of the process. Department Z’s cost of ending work in process using the FIFO method
would be
a. $3,960.
b. $3,552.
c. $3,500.
d. $3,160.
Chapter 6
129. Information concerning Department A of Synergy Company for the month of June is as follows:
Materials
Units Costs
Work in process, beginning of month 22,000 $15,675
Started in June 93,500 $73,260
Units completed 99,000
Work-in-process (WIP), end of month 16,500
All materials are added at the beginning of the process. Using the first-in, first-out method, the equivalent units of
production for materials would be calculated as:
a. 105,000.
b. 93,500.
c. 90,000.
d. 110,500.
Chapter 6
130. Information concerning Department A of Synergy Company for the month of June is as follows:
Materials
Units Costs
Work in process, beginning of month 22,000 $15,675
Started in June 93,500 $73,260
Units completed 99,000
Work in process (WIP), end of month 16,500
All materials are added at the beginning of the process. Which of the following is the cost per equivalent unit for materials
using the first-in, first-out method? (Note: Round answer to two decimal places.)
a. $0.74
b. $0.90
c. $0.77
d. $0.78
Chapter 6
131. Which of the following methods considers the percentage of completion of beginning work-in-process?
a. FIFO
b. weighted average
c. both weighted average and FIFO
d. neither FIFO nor weighted average
132. Montgomery Corporation produces boxes of cookies that go through three departments: Mixing, Cooking and
Packaging. During April, Montgomery produced 250,000 boxes of cookies with the following costs:
Mixing department Cooking department Packaging department
Direct materials $325,000 $110,000 $90,000
Direct labor 65,000 35,000 80,000
Applied Overhead 85,000 30,000 95,000
Required:
A. Calculate the costs transferred out of each department.
B. Prepare journal entries that reflect these cost transfers.
Chapter 6
133. The bottling department had the following data for the month of January:
Units in BWIP –
Units completed 7,500
Units in EWIP (35% complete) 1,200
Total manufacturing costs 13,464
Required:
A. What is the output in equivalent units for January?
B. What is the unit manufacturing cost for January?
C. Calculate the cost of goods transferred out for January.
D. Calculate the value of January’s EWIP
Chapter 6
134. Scott Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs
are added uniformly in the mixing department.
Information for the mixing department for May follows:
Work in process, May 1:
Units (45% complete) 10,000
Direct materials $23,000
Direct labor $37,000
Overhead $15,000
During May, 65,000 units were completed and transferred to the molding department. The following costs were incurred
by the mixing department during May:
Direct materials $115,000
Direct labor $140,000
Overhead $55,000
By May 31, 4,000 units that were 80% complete remained in Mixing. Scott uses the weighted average method.
Required:
A. Calculate the equivalent units of production using the weighted average method.
B. Calculate the total costs to account for.
C. Calculate total cost per equivalent unit of production rounded to 2 decimal places.
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D. Calculate the cost of goods transferred to the molding department during May.
E. Calculate the cost of May’s ending work-in-process for the mixing department.
Chapter 6
135. Barr Inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs
are added uniformly in the mixing department.
Information for the mixing department for June follows:
Work in process, June 1
Units (60% complete) 5,000
Direct materials $20,000
Direct labor $24,000
Overhead $ 4,000
During June, 80,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during June:
Direct materials $180,000
Direct labor 200,000
Overhead 59,200
At June 30, 12,000 units that were 10% complete remained in the mixing department.
Use the weighted average method and round unit costs to two decimal places.
Required:
A. Determine equivalent units of production for June.
B. Determine June’s total costs to account for.
C. Determine total cost per equivalent unit of production.
D. Determine the cost of goods transferred to the packaging department.
E. Determine the cost of June’s ending work in process for the mixing department.
Chapter 6
136. Star Inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs
are added uniformly in the mixing department.
Information for the mixing department for June follows:
Work in process, June 1:
Units (30% complete) 15,000
Direct materials $ 4,000
Direct labor $ 3,000
Overhead $ 2,376
During June, 100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during June: