137. Figure 6-15
The Davidson Company uses a weighted average process costing system. The following information was
reported for the Assembly Process for January. Materials are added at the beginning of the process and are
100%.
Units:
units
% complete for conversions
work in process, 1/1
60,000
15%
started
105,000
work in process, 1/31
40,000
20%
Costs:
Materials
Conversion
beginning work in process
$ 16,500
$ 33,250
current costs
$643,500
$332,500
Refer to Figure 6-15. What is the cost assigned to the units completed and transferred to finishing?
138. Which of the following process costing methods is simpler to use?
139. Figure 6-16
Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are
added uniformly in the second process. The following information is provided about the second department’s
operations during October:
Units, beginning work in process
4,000
Units, ending work in process
5,500
Refer to Figure 6-16. The number of units started in the second department during April is
140. Figure 6-16
Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are
added uniformly in the second process. The following information is provided about the second department’s
operations during October:
Units, beginning work in process
4,000
Units, ending work in process
5,500
Refer to Figure 6-16. The number of units completed in the second department during April is
141. Figure 6-16
Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are
added uniformly in the second process. The following information is provided about the second department’s
operations during October:
Units, beginning work in process
4,000
Units, ending work in process
5,500
Refer to Figure 6-16. The number of units started and completed in the second department during April is
142. Materials are added to a second production department and will not increase the number of units produced
in this department. Adding materials to the second department will
143. Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first
department transferred 20,000 units to the second department. The cost of the units transferred was $60,000.
Materials are added uniformly in the second process. The following information is provided about the first
department’s operations during January:
6,000
4,000
Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using weighted average is
144. Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first
department transferred 20,000 units to the second department. The cost of the units transferred was $60,000.
Materials are added uniformly in the second process. The following information is provided about the first
department’s operations during January:
6,000
4,000
Refer to Figure 6-17. The equivalent units for conversion using weighted average is
145. Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first
department transferred 20,000 units to the second department. The cost of the units transferred was $60,000.
Materials are added uniformly in the second process. The following information is provided about the first
department’s operations during January:
6,000
4,000
Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using FIFO would be
146. Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first
department transferred 20,000 units to the second department. The cost of the units transferred was $60,000.
Materials are added uniformly in the second process. The following information is provided about the first
department’s operations during January:
6,000
4,000
Refer to Figure 6-17. The equivalent units for conversion using FIFO would be
147. The cost assigned to goods from a prior process is termed:
148. Figure 6-18
The Round Table Company makes carpenter’s squares and uses a process costing system. There is no spoilage.
Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these
departments are given below:
Forming
Finishing
Packing
Beginning inventory units
(80% complete)
1,000
2,000
3,000
Units started
8,000
?
?
Ending inventory units
(20% complete)
3,000
4,000
1,000
The Finishing Department adds materials at the point where processing is 50 percent complete.
Refer to Figure 6-18. The equivalent units for materials in the Finishing Department is
Weighted Average
FIFO
149. Refer to Figure 6-18. The equivalent units for transferred-in the Finishing Department is
Weighted Average
FIFO
150. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Mountainside’s equivalent units for conversion using FIFO would be
151. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19.Mountainside’s equivalent units for materials using weighted average would be
152. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Mountainside’s equivalent units for transferred-in units using FIFO would be
153. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Mountainside’s equivalent units for transferred-in units using weighted average would be
154. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside’s conversion cost per unit using FIFO would be
155. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside’s cost per equivalent unit for conversion using weighted average would be
156. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside’s cost per equivalent units for transferred-in costs using weighted average
would be
157. Figure 6-19
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In
the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units
Trans.-in
Materials
Conv.
Work in process, July 1
30
$1,590
$-0-
$513
Transferred in during July
?
Completed during July
105
Work in process, July 31
15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside’s costs transferred out using weighted average would be
158. The costing system that uses job-order costing to assign material costs and process costing to assign
conversion costs is called:
159. When job-order costing is used to assign material costs and process costing is used to assign conversion
costs, it is called
160. Figure 6-20
Outrageous Cups Corp. manufactures cups. The company’s manufacturing operations and costs applied to
products for April were:
Molding
Heat-treat
Finishing
Direct labor
$25,000
$12,500
$ 7,500
Factory overhead
30,000
17,500
12,600
Total
$55,000
$30,000
$20,100
Three types of cups were produced in April. The quantities and direct materials costs were:
Type
Quantity
Direct Materials
Casts
5,000
$15,000
Cups
7,000
22,470
Mugs
8,000
32,500
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments.
An operations costing system is used.
Refer to Figure 6-20. What is Outrageous Cups’ conversion cost per unit for the heat-treat operation, rounded to two decimal places?
161. Figure 6-20
Outrageous Cups Corp. manufactures cups. The company’s manufacturing operations and costs applied to
products for April were:
Molding
Heat-treat
Finishing
Direct labor
$25,000
$12,500
$ 7,500
Factory overhead
30,000
17,500
12,600
Total
$55,000
$30,000
$20,100
Three types of cups were produced in April. The quantities and direct materials costs were:
Type
Quantity
Direct Materials
Casts
5,000
$15,000
Cups
7,000
22,470
Mugs
8,000
32,500
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments.
An operations costing system is used.
Refer to Figure 6-20. What is Outrageous Cups’ total cost for Casts in April?
162. Figure 6-20
Outrageous Cups Corp. manufactures cups. The company’s manufacturing operations and costs applied to
products for April were:
Molding
Heat-treat
Finishing
Direct labor
$25,000
$12,500
$ 7,500
Factory overhead
30,000
17,500
12,600
Total
$55,000
$30,000
$20,100
Three types of cups were produced in April. The quantities and direct materials costs were:
Type
Quantity
Direct Materials
Casts
5,000
$15,000
Cups
7,000
22,470
Mugs
8,000
32,500
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments.
An operations costing system is used.
Refer to Figure 6-20. What is Outrageous Cups’ total cost per unit for Cups in April?
163. The process that produces batches of different products which are identical in many ways but differ in
others is called:
164. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What are Golden Ring Company’s conversion costs applied to Large (Work Order 10) from the Mixing Department for each
batch?
165. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s amount transferred from the Mixing Department to the Cooking Department for Work Order
10?
166. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s amount transferred from the Bottling Department to Finished Goods for Work Order 10?
167. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s unit cost of Large?
168. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s unit cost of Larger?
169. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s journal entry to record materials used in the Mixing Department for Work Order 10?
170. Figure 6-21
Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of
the products are shown below, along with some additional cost information:
Large
Larger
Work Order 10
Work Order 11
Direct materials (actual costs)
$45,000
$75,000
Applied conversion costs:
Mixing
?
?
Cooking
$12,000
$12,000
Bottling
$10,000
$15,000
Batch size (bottles)
5,000
5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year
were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for
each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
Refer to Figure 6-21. What is Golden Ring Company’s journal entry to apply conversion costs in the Mixing Department for Work Order 10?
171. Which of the following would NOT be true when there is spoilage?