CHAPTER 17 QUIZ
Use the following information for questions 1 through 10.
Top That manufactures baseball-style hats. Material is introduced at the beginning of the
process in the Cutting Department. Conversion costs are incurred (and allocated)
uniformly throughout the process. As the cutting of material is completed, the pieces are
immediately transferred to the Sewing Department. Data for the Cutting Department for
the month of February 2009 follow:
Work-in-process, January 31—50,000 units
100 percent complete for direct materials; 40 percent completed for conversion costs
actual costs of direct materials, $70,500; actual costs of conversion, $34,050
Units started during February, 225,000
Units completed during February 200,000
Work-in-process, February 28 75,000 units
100 percent complete for direct materials; 20 percent completed for conversion costs
Direct materials added during February [actual costs] $342,000
Conversion costs added during February [actual costs] $352,950
1. Assuming Top That uses the weighted-average method to account for inventories, the
equivalent units of work for the month of February are
Direct Materials Conversion Costs
a. 225,000 225,000
b. 200,000 200,000
c. 275,000 215,000
d. 225,000 200,000
2. Assuming Top That used the weighted-average method to account for inventories, the
cost per equivalent whole unit produced during February is
a. $3.30.
b. $3.55.
c. $3.77.
d. $4.00.
3. Assuming Top That uses the weighted-average method to account for inventories, the
assignment of costs to work-in-process at the end of February is
a. $300,000.
b. $266,250.
c $166,525.
d. $139,500.
4. If Top That uses the first-in, first-out (FIFO) method to account for inventories, the
equivalent units of work for the month of February are
Direct Materials Conversion Costs
a. 225,000 225,000
b. 225,000 195,000
c. 275,000 200,000
d. 200,000 195,000
5. If Top That uses the FIFO method to account for inventories, the costs per equivalent
unit for February are
Direct Materials Conversion Costs
a. $1.50 $1.76
b. $1.83 $1.72
c. $1.71 $1.81
d. $1.52 $1.81
6. Assuming Top That uses the first-in, first-out (FIFO) method to account for inventories,
the assignment of costs to units completed and transferred to the Sewing Department
during February is
a. $658,350.
b. $636,450.
c. $666,000.
d. $652,000.
7. In the Sewing Department, additional direct materials are added to the product at the end
of production. Without prejudice to your answer for questions 1 through 9, assume that
200,000 units were transferred from the Cutting Department and that the weighted-average
method is used. Data for February follow:
Work-in-process, January 31—70,000 units (30 percent complete as to conversion)
Units completed during February—240,000 units
Work-in-process, February 28—30,000 units (80 percent complete as to conversion)
For the Sewing Department, the equivalent units of work done in February is
Transferred In Direct Materials Conversion Costs
a. 200,000 200,000 200,000
b. 200,000 170,000 194,000
c. 240,000 240,000 245,000
d. 270,000 240,000 264,000
The following additional data apply to questions 8 through 10.
Standard costs for the Cutting Department—Direct materials: $1.50 per unit; Conversion
costs $1.75 per unit
8. The standard costs of units completed and transferred from the Cutting Department
during February is
a. $731,250.
b. $650,000.
c. $678,750.
d. $600,000.
9. The conversion costs variance for the month of February is
a. $40,800 favorable.
b. $94,250 favorable.
c. $11,700 unfavorable.
d. $29,750 unfavorable.
10. The journal entry to record inventory costs and direct-material variances for the month
of February is
a. Cutting Department Control 342,000
Direct Material Variances 4,500
Work-in-Process—Cutting Department 337,500
b. Work-in-Process—Cutting Department 337,500
Direct Material Variances 4,500
Cutting Department Control 342,000
c. Work-in-Process—Cutting Department 342,000
Direct Material Variances 4,500
Cutting Department Control 337,500
d. Work-in-Process—Cutting Department 341,250
Direct Material Variances 750
Cutting Department Control 342,000
CHAPTER 17 QUIZ SOLUTIONS
