38. Under which of the following conditions will the FIFO method produce the same cost of
goods manufactured as the weighted-average method?
39. Which of the following statements is (are) true?
I. For cost control, the FIFO method of process costing is better than the weighted-average
method.
II. The weighted-average method of process costing assigns more cost to units completed
(transferred out) than the FIFO method.
40. Which of the following statements is (are) false?
(A) Operations costing accounts for material costs like job costing and conversion costs like
process costing.
(B) An automobile manufacturer is more likely to use an operations costing system than a process
costing system.
41. Operations costing systems are used when the products have:
42. An operations costing system is:
43. Predetermined manufacturing overhead rates can be used in all of the following costing
systems except:
44. The Blue Corporation started and completed 4,800 units during February. Blue started the
month with 700 units in process (40% complete) and ended the month with 400 units in process
(40% complete). How many units were transferred to the Finished Goods Inventory during
February?
45. The ALG Manufacturing Company has gathered the following information for the month of
September:
• 6,000 units in the beginning Work–in-Process Inventory (75% complete as to materials, 1/3
complete with respect to the conversion costs).
• 60,000 units were started into production.
• 50,000 units were completed and transferred to the next department.
• The ending Work–in-Process Inventory is complete as to materials but only 3/8 complete with
respect to conversion costs.
What are the equivalent units of production (EUP) for materials in the month of September
assuming ALG uses weighted-average process costing?
46. The ALG Manufacturing Company has gathered the following information for the month of
September:
• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3
complete with respect to the conversion costs)
• 60,000 units were started into production
• 50,000 units were completed and transferred to the next department
• The ending Work–in-Process Inventory is complete as to materials but only 3/8 complete with
respect to conversion costs.
What are the equivalent units of production (EUP) for the conversion costs in the month of
September assuming ALG uses weighted-average process costing?
47. ABC Company has a beginning Work–in-Process Inventory of 25,000 units (40% complete).
During the period, 110,000 units were started and the ending Work–in-Process Inventory consisted
of 20,000 units (80%). What are the equivalent units for conversion costs using weighted-average
process costing?
48. The Wisco Company has a process cost system. All materials are added when the process
is first begun. At the beginning of September, there were no units of product in process. During
September 50,000 units were started; 5,000 of these were still in process at the end of September
and were 3/5 finished. The equivalent units of material in September were:
49. The Wisco Company has a process cost system. All materials are added when the process
is first begun. At the beginning of September, there were no units of product in process. During
September 50,000 units were started; 5,000 of these were still in process at the end of September
and were 3/5 finished. The equivalent units for the conversion costs in September were:
50. Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory
of 300 units, 2/3 completed, and received 900 units during the period from Department A. What
was the equivalent unit production of Department B, assuming weighted-average process
costing?
51. Sussex Corporation’s production cycle starts in the Mixing Department. The following
information is available for April:
Materials are added at the beginning of the process in the Mixing Department. What are the
equivalent units of production for the month of April, assuming Sussex uses the weighted-average
method?
52. Department A had no Work–in-Process at the beginning of the period, 1,000 units were
completed during the period, 200 units were 50% completed at the end of the period, and the
following manufacturing costs were debited to the departmental Work–in-Process account during
the period
Assuming that all direct materials are added at the beginning of production and Department A
uses weighted-average process costing, what is the total cost of the departmental Work–in–
Process Inventory at the end of the period?
53. Read, Inc. instituted a new process in October 2012. During October, 10,000 units were
started in Department A. Of the units started, 8,000 were transferred to Department B, and 2,000
remained in Work–in-Process at October 31, 2012. The Work–in-Process at October 31, 2012, was
100% complete as to material costs and 50% complete as to conversion costs. Material costs of
$27,000 and conversion costs of $36,000 were charged to Department A in October. What were
the total costs transferred to Department B assuming Department A uses weighted-average
process costing?
54. The Viva Company had 20,000 units in process on December 31, 2012 which was 80%
complete as to materials but only 40% complete as to conversion costs. The company’s records
show 40,000 units were transferred to the Finished Goods Inventory during January 2013. On
January 31, 2013, 15,000 units were on hand which were 30% complete as to conversion costs and
60% complete as to materials. What are the equivalent units of production for the conversion
costs in January, assuming Viva uses first-in, first-out (FIFO)?
55. RST Company incurred $126,000 in material costs during July. Additionally, the 12,000
units in the Work-in-Process Inventory on July 1 had materials assigned to them of $32,000, even
though they were only 5% complete as to materials. No additional units were started during July,
and there were no unfinished units on hand on July 31. What is the material cost per unit for July,
assuming RST uses weighted-average process costing?
56. Beattie Company completed and transferred out 2,300 units in May 2012. There were 200
units in the Work-in-Process Inventory on May 31, 2012, 30% complete as to conversion costs and
100% complete as to materials. The month’s charges for conversion costs and material costs were
$9,440 and $6,250, respectively. There was no beginning inventory on May 1, 2012. What is the
cost of the work transferred-out during May?
57. The WISCO Company uses a weighted-average process costing system. The following
data are available:
Equivalent units of production for material are:
58. The WISCO Company uses a weighted-average process costing system. The following
data are available:
Equivalent units of production for labor and overhead are:
59. The WISCO Company uses a weighted-average process costing system. The following
data are available:
Unit cost of material is:
60. The WISCO Company uses a weighted-average process costing system. The following
data are available:
Unit cost of labor and overhead is: