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Chapter 08 Process Costing Answer Key
True / False Questions
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Multiple Choice Questions
21.
In process 2, material G is added when a batch is 60% complete. Ending work-in-process
units, which are 50% complete, would be included in the computation of equivalent units
for: (CPA adapted)
Conversion Costs
Material G
A.
Yes
No
B.
No
Yes
C.
No
No
D.
Yes
Yes
22.
The following examples briefly describe the manufacture of two different products. Which
costing method (job-order or process) would be the best method to use for each project?
I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the
statement, "People can have any flavor of Lawless Fine Wine Coolers they want as long
it's strawberry."
II. Northridge Spacetronics is manufacturing three space shuttles for the country of
Xanadu. Each shuttle is slightly different and production will last approximately two years.
I
II
A.
Process
Process
B.
Job-Order
Job-Order
C.
Process
Job-Order
D.
Job-Order
Process
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Equivalent units for a process costing system, using the weighted-average method, would
be equal to:
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29.
Sigman Co.'s inventories in process were at the following stages of completion at April 30:
No. of Units
Percent Complete
100
90
50
80
200
10
30.
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