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Figure 6-6.
The Martin Company uses the weighted average method. The beginning work in process consists of
6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of
units completed was 120,000. The ending work in process consists of 10,000 units (100% complete as
to materials and 20% complete as to conversion costs).
35. Refer to Figure 6-6. What are the equivalent units of production for conversion costs?
a.
120,000
b.
132,000
c.
122,000
d.
135,000
36. Refer to Figure 6-6. Calculate the number of units started during the period.
a.
124,000
b.
100,000
c.
120,000
d.
130,000
37. Simplicity is the main advantage of which of the following process costing methods?
a.
LIFO
b.
FIFO
c.
weighted average
d.
exact cost method
38. Which of the following does not appear in the production report?
a.
costs transferred from prior departments
b.
costs added in the department
c.
physical units passing through the department
d.
retail value of the units produced
39. A production report is divided into two sections:
a.
work in process and completed goods.
b.
a unit information section and a cost information section.
c.
finished goods and cost of goods sold.
d.
goods produced and goods in process.
40. The production report
a.
is a subsidiary to the work in process account.
b.
provides information about the manufacturing costs incurred by the department.
c.
provides information about the physical units processed by the department.
d.
All of these.
41. What is the major advantage of the weighted average cost method?
a.
simplicity
b.
accuracy
c.
it is the required method
d.
it is the preferred method
42. Burgundy Manufacturing uses a process cost system and computes cost using the weighted average
method. During the current period, the beginning work-in-process inventory cost was $13,525.
Manufacturing cost added was $57,000. If Burgundy's ending work-in-process inventory was valued at
$15,100, then cost of goods transferred must have been
a.
$70,525
b.
$55,425
c.
$84,625
d.
$58,575
43. Which step is cost reconciliation in the general pattern of a process-costing production report?
a.
as part of the physical flow analysis
b.
before calculation of equivalent units
c.
before the computation of unit cost
d.
the last step
1.
physical flow analysis
2.
calculation of equivalent units
3.
computation of unit cost
4.
valuation of inventories (goods transferred out and ending work in process)
5.
cost reconciliation
44. Which step is physical flow analysis in the general pattern of a process-costing production report?
a.
the first step
b.
after calculation of equivalent units
c.
after the computation of unit cost
d.
the last step
1.
physical flow analysis
2.
calculation of equivalent units
3.
computation of unit cost
4.
valuation of inventories (goods transferred out and ending work in process)
5.
cost reconciliation
45. The following amounts were selected from the production report of Chandon Corporation:
Actual units in production
42,000
Equivalent units (materials)
42,000
Equivalent units (conversion)
39,000
Cost per equivalent unit (materials)
$1.10
Cost per equivalent unit (conversion)
$0.90
Chandon uses the weighted average method in preparing its production reports. Chandon's total
production cost to be accounted for must have been
a.
$89,100.
b.
$84,000.
c.
$81,300.
d.
$72,900.
46. Garcia Company uses the weighted average method in its costing system. For the month of May in the
Assembly Department, the equivalent units for conversion costs amounted to 35,000. There were
5,000 units in beginning work-in-process that were 50% complete. During the month, 33,000 units
were started and 31,400 were completed and transferred. The ending work in process consists of
a.
5,000 units.
b.
7,000 units.
c.
3,600 units.
d.
6,600 units.
47. Beginning inventory for the month contained 3,000 units that were 60% complete with respect to
materials. During the month, 50,000 units were completed and transferred out. Ending inventory
contained 5,000 units, 30% complete with respect to materials. The weighted average equivalent units
of production for materials for the month would be
a.
50,000.
b.
51,500.
c.
50,300.
d.
49,500.
Figure 6-3.
Kelley 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 October follows:
Work in process, October 1:
Units (55% complete)
6,000
Direct materials
$35,000
Direct labor
$42,000
Overhead
$12,000
During October, 32,000 units were completed and transferred to the molding department. The
following costs were incurred by the mixing department during October:
Direct materials
$120,000
Direct labor
$160,000
Overhead
$50,000
By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted
average method.
48. Refer to Figure 6-3. Kelley's equivalent units of production using the weighted average method would
be
a.
34,250.
b.
32,000.
c.
35,000.
d.
24,740.
49. Refer to Figure 6-3. Kelley's total costs to account for would be
a.
$304,000.
b.
$264,000.
c.
$419,000.
d.
$155,000.
50. Refer to Figure 6-3. Kelley's total cost per equivalent unit of production would be
a.
$12.23.
b.
$10.76.
c.
$11.26.
d.
$8.52.
51. Refer to Figure 6-3. Kelley's cost of goods transferred to the molding department during October
would be
a.
$310,000.
b.
$261,050.
c.
$391,360.
d.
$294,000.
52. Refer to Figure 6-3. Kelley's cost of October's ending work in process for the mixing department
would be
a.
$27,500.
b.
$29,200.
c.
$22,520.
d.
$27,518.
Figure 6-4.
The following information is available for Department X for August:
Work in process, August 1:
Materials
$ 8,000
Conversion costs
$15,000
Costs added during August:
Materials
$28,000
Conversion costs
$25,000
Equivalent units of production (weighted average):
Materials
4,000
Conversion
5,000
53. Refer to Figure 6-4. Department X's cost per equivalent unit for materials using the weighted average
method would be
a.
$2.00.
b.
$7.00.
c.
$8.00.
d.
$9.00.
54. Refer to Figure 6-4. Department X's cost per equivalent unit for conversion using the weighted average
method would be
a.
$8.00.
b.
$5.00.
c.
$3.00.
d.
$9.00.
Figure 6-7.
Geller 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
12,000
Started in production during March
110,000
Completed production during March
88,000
Ending work-in-process inventory, March 31
34,000
The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The
ending inventory was 905 complete for materials and 50% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.
Costs incurred during March are: materials used, $588,000; conversion cost $624,000.
55. Refer to Figure 6-7. Using the weighted average method, the unit cost of materials for March is
a.
$4.50.
b.
$5.33.
c.
$5.00.
d.
$5.46.
56. Refer to Figure 6-7. Using the weighted average method, the equivalent unit conversion cost for March
is
a.
$5.95.
b.
$6.00.
c.
$5.13.
d.
$6.23.
57. Refer to Figure 6-7. Using the weighted average method the total equivalent units of production for
direct materials is
a.
120,000.
b.
118,600.
c.
116,000.
d.
105,000.
58. Refer to Figure 6-7. Using the weighted average method, the total cost of the units in the ending work-
in-process inventory at March 31 is
a.
$253,960.
b.
$269,008.
c.
$250,000.
d.
$256,960.
59. Assuming conversion costs represent a single category, how many input categories would a
department receiving transferred-in goods normally have?
a.
4
b.
5
c.
3
d.
2
60. Conversion costs include:
a.
direct labor and overhead.
b.
direct materials, direct labor and overhead.
c.
direct materials and overhead.
d.
selling and administrative.
Figure 6-2.
The Bing Corporation produces a product that passes through two processes. During June, the first
department transferred 60,000 units to the second department. The cost of the units transferred was
$90,000. Materials are added uniformly in the second process. The following information was
provided about the second department's operations during June:
Units, beginning work in process
5,000
Units, ending work in process
13,000
61. Refer to Figure 6-2. Units started in the second department during June for Bing Corporation would be
a.
60,000.
b.
55,000.
c.
73,000.
d.
48,000.
62. Refer to Figure 6-2. Units completed in the second department during June for Bing Corporation
would be
a.
48,000.
b.
52,000.
c.
49,000.
d.
55,000.
63. Refer to Figure 6-2. Units started and completed in Bing Corporation's second department during June
would be
a.
48,000.
b.
37,000.
c.
47,000.
d.
55,000.
64. 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.
65. 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.
66. Assuming that there is a one-to-one relationship between the output measures, the units started in a
subsequent department is
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.
67. 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.
68. 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.
Figure 6-1.
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. (Round unit costs to two decimal places.)
69. Refer to Figure 6-1. 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.
70. Refer to Figure 6-1. 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.
71. Refer to Figure 6-1. 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.
72. Refer to Figure 6-1. 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.
73. Under the FIFO production costing method, the two categories of completed units used to compute the
total cost of units completed during a period are:
a.
beginning work-in-process units and units started.
b.
units started and completed and ending work-in-process units.
c.
beginning work-in-process units and units started and completed during the current period.
d.
other categories.
74. The total associated manufacturing costs for beginning work in process units under the FIFO method
are
a.
the sum of the prior-period costs plus the costs incurred in the current period to finish the
units in beginning work in process
b.
the cost of ending work-in-process units.
c.
the cost of units started and completed.
d.
conversion costs.
75. Information concerning Department A of Ali Company for the month of June is as follows:
Materials
Units
Costs
Work in process, beginning of month
20,000
$14,250
Started in June
85,000
$66,600
Units completed
90,000
Work in process, end of month
15,000
All materials are added at the beginning of the process. Using the first-in, first-out method, the
equivalent units for materials would be
a.
105,000.
b.
85,000.
c.
90,000.
d.
110,000.
76. Information concerning Department A of Ali Company for the month of June is as follows:
Materials
Units
Costs
Work in process, beginning of month
20,000
$14,250
Started in June
85,000
$66,600
Units completed
90,000
Work in process, end of month
15,000
All materials are added at the beginning of the process. Using the first-in, first-out method, the cost
(rounded to two decimal places) per equivalent unit for materials is:
a.
$0.74.
b.
$0.90.
c.
$0.77.
d.
$0.78.
77. 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
PROBLEM
1. 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.
2. 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
3. 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.
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.
