Managerial accounting, 5th by jiambalvo test bank ch03

units in Work in Process inventory is multiplied by the cost per equivalent unit separately for material, and separately for conversion costs.. If the total conversion cost in the Work i

Process CostingSummary of Questions by Objectives and Bloom’s Taxonomy

using a continuous production process

shampoo and toothpaste, is likely to use a process costing system

directly to the Cost of Goods Sold account

pass through two or more departments

when materials are purchased from a supplier

the beginning of the process

overhead costs rather than predetermined overhead rates

credit to a Work in Process account

known as the cost per equivalent unit

costs in each department, but will often differ from equivalent units of other departments

used and processing costs in a particular accounting period is referred to as equivalent units

equivalent units for materials

beginning inventory, ending inventory, units completed during the period, along with the total product costs incurred during the period

18 The cost per equivalent unit is determined by dividing the cost incurred in the current period by

the total equivalent units produced

adding the number of units completed to the equivalent units in the ending Work in Process inventory

period

units in Work in Process inventory is multiplied by the cost per equivalent unit separately for material, and separately for conversion costs

were started during the period, the number of units completed during the period was 8,700

the cost of the ending Work in Process inventory

equivalent unit times the number of units completed

MULTIPLE CHOICE

large number of homogeneous units in a continuous production process?

managerial accounting

costing

and averages the costs among the units worked on during the period

moved from

moved from

33 Which of the following sequences describes the typical flow of costs in a company that is using

process costing?

costing?

department

department

will be transferred to Finished Goods inventory

closed correctly at the end of the last period

called a

transaction includes a

40 In a process costing system, manufacturing overhead is added to Work in Process

initial production department?

for

Work in Process

inventory

the period, the department received another 78,000 units from the previous department, and at theend of the period, 9,000 units remained which were 40% complete Conversion costs are added evenly throughout the process and materials are added at the beginning of the process How muchare equivalent units for conversion costs in the Baking Department’s Work in Process inventory atthe end of the period?

46 The Shaping Department began June with 5,000 units which were 50% complete During June,

the department received another 60,000 units from the prior department and completed 62,000 units The remaining units were 75% complete as to conversion costs Materials are added at the beginning of the process How much are equivalent units for conversion costs in the Shaping Department’s Work in Process inventory at the end of June?

completed units

Work in Process inventory on May 31 consists of 1,100 units If 22,000 units were completed during the period, how many units were started in the Molding Department during the month of May?

different rates

52 HTC Calculators uses process costing At the beginning June, there were 1,100 units in process,

70% complete with respect to material and 60% complete with respect to conversion costs During June, 24,000 units were started and 23,600 units were completed The units in ending Work in Process inventory were 90% complete with respect to material and 30% complete with respect to conversion costs How many equivalent units will be used in calculating the cost per unit for materials?

divided by equivalent units

costs, all divided by equivalent units

2,300 units were in process During May, 11,000 units were completed and 2,000 units were in process at the end of May The units in process at the end of May were 80% complete with respect to material and 30% complete with respect to conversion costs Other information is as follows:

Work in process, May 1:

$63,250 for conversion The beginning inventory was 1,500 units and 9,700 units were

transferred to the Varnishing Department from the Sanding Department during March The Varnishing Department’s conversion costs in beginning inventory totaled $5,554 The ending inventory consisted of 1,200 units that were 25% complete with respect to conversion costs Materials are added at the beginning of the process What is the cost per equivalent unit for conversion costs?

56 Hanover Glassware produces crystal serve ware and uses process costing At the start of May,

2,300 units were in process During May, 11,000 units were completed and 2,000 units were in process at the end of May These units in process were 80% complete with respect to material and30% complete with respect to conversion costs Other information is as follows:

Work in process, May 1:

inventory

inventory, and the costs incurred in the current period

61 If materials are entered into a production process at the beginning of the process, the number of

units accounted for is

Department’s Work in Process inventory at month end These tires are 90% and 40% complete with regard to materials and conversion costs, respectively There were 6,500 tires completed and transferred out during the period Conversion costs during the beginning of the month were

$69,300 and added during the period were $116,340 How much is the conversion cost of the ending Work in Process?

inventory account at March 31 consists of 7,000 units that are 100% complete with respect to materials and 70% complete with respect to conversion costs If the total conversion cost in the Work in Process inventory account is $552,000 and the cost per equivalent unit for conversion costs is $6.00, how many units were completed and transferred out?

$55,040 and conversion costs of $88,660 during the month of July Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department During the month, 40,000 units were completed At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs Which one of the following

is a correct cost per equivalent unit for materials?

complete with respect to conversion costs The beginning inventory of units totaled 350 units that were 40% complete with respect to conversion costs During the period, 7,000 units were started How many equivalent units for conversion costs are present in the ending inventory?

66 Weed Wackers uses process costing and has provided data for its Processing Department for June

as follows:

All materials are added at the beginning of the manufacturing process How much is the cost per equivalent unit for materials?

Beginning Work in Process Inventory consists of 2,000 units with a direct materials cost of

$31,860 During the period, 15,000 units are started and direct materials costing $250,000 are charged to the department If there are 1,000 units in ending inventory, what is the cost per equivalent unit for materials, assuming the company uses a process costing system?

$650,820 during January, and had a beginning Work in Process inventory of $30,430 for

conversion costs 54,000 units were transferred out of the department, and the ending inventory consisted of 2,500 units that are 20% complete with respect to conversion costs What is the conversion cost per equivalent unit?

Process Inventory of 160 units, which had direct material costs of $17,215 During June, 8,600 units were started and costs of $213,600 were incurred for direct materials Ending inventory consists of 250 units, which are 80% complete with respect to direct materials What is the cost per equivalent unit for direct materials?

70 A company that uses process costing has 1,000 units in ending Work in Process Inventory that are

100% complete with respect to materials and 80% complete with respect to conversion costs Thecost per unit for inventory is $2.15 for materials and $1.65 for conversion costs What is the cost assigned to the ending Work in Process inventory?

molding, and packaging Its Melting Department had 500 units in Work in Process inventory at

at the beginning of the process The beginning cost of materials totaled $900 The cost of

materials added during June was $3,960 If the material cost per unit for June was $1.35, how many units would have been completed and transferred out during the period?

Process inventory The department added direct materials of $200,000 and conversion costs of

$321,300 during the period Materials are added at the beginning of the process and conversion costs are added evenly throughout the process During the period 75,000 units were completed, and at the end of the period, 5,000 units remained which were 30% complete How much is transferred to the Finished Goods inventory account during the period?

inventory, though it added materials of $120,000 and conversion costs totaling $160,000 during May Materials are added at the beginning of the process and conversion costs are added evenly throughout the process During May, 75,000 units were completed The May 31 Work in Process inventory balance consisted of 25,000 units that were 20% complete What is the cost of the ending Work in Process inventory?

out 65,000 units On August 31, the Mixing Department held 22,000 equivalent units of material and 20,150 equivalent units of labor and overhead The cost per equivalent unit was $5.50 for materials and $5.00 for labor and overhead How much was the total balance in the Work in Process inventory account on August 31?

75 For the month of June, Starlight Chocolates had a cost per equivalent unit of $2.50 for materials

and $0.40 for conversion costs in its Mixing Department The company began June with 12,000 pounds of chocolate in production By the end of the month, the company had completed 180,000pounds of chocolate, and 9,000 pounds were in process The in-process units were 100 percent complete with respect to material and 40 percent complete with respect to labor and overhead How much is the cost of the ending Work in Process Inventory in the Mixing Department?

its Mixing Department and $0.40 for conversion costs The company began June with 12,000 pounds of chocolate in production By the end of June, the company had completed 180,000 pounds, and 9,000 pounds were in process The in-process units were 100 percent complete with respect to material and 40 percent complete with respect to labor and overhead How much is the cost of the pounds completed and transferred out of the Mixing Department?

the current period must be

Process inventory

Department to the Baking Department Which one of the following indicates the amount of this journal entry?

Mixing Department during July

the cost per unit

per equivalent unit

costs incurred in the current period and subtracting the cost of goods transferred out of the department

80 Cheese Heads Cheddar utilizes a process costing system The beginning Work in Process

Inventory in the Cutting Department consisted of 16,000 units which were 100% complete with respect to materials and 20% complete with respect to conversion costs The ending Work in Process Inventory consisted of 12,000 units which were 100% complete with respect to materials and 50% complete with respect to conversion costs The total cost in beginning inventory was

$65,000 with an additional $270,400 added during the period During the month, 62,000 units were transferred out to the next department The equivalent cost per unit was $1.50 for materials and $3.30 for conversion costs How much is the total cost of the inventory transferred out duringthe period?

departments—mixing, melting, and packaging Ending Work in Process Inventory of the MixingDepartment consists of 3,000 cans of wax in process carrying a total cost of $14,400 These unitsare 80% complete with respect to materials The equivalent cost per unit for materials andconversion costs is $2.00 and $8.00, respectively With regard to conversion costs, whatpercentage of completion is the ending inventory?

department

inventory is the same as the number of physical units transferred-in present in the ending Work in Process inventory

the cost of the ending inventory

unit calculation is performed

beginning of the processing in a department?

85 Calhoun Productions uses process costing At the beginning of the month, there were 1,100 units

in process in the Welding Department, 40% complete with respect to conversion costs Materials are added at the beginning of the process A total of 15,000 units were started during the month and there were 1,400 units in the ending Work in Process inventory that were 100% complete with respect to material and 30% complete with respect to conversion costs How many units were completed during the month?

product cost using process costing is $5 per yard and the company has fixed costs of $86,000 per month The company predicts that a $2 decrease in the selling price will generate a 12% increase

in sales during the next period If the company lowers the price, which of the following will occur

in the next period?

the ending Work in Process inventory to be reported on the balance sheet is called a(n)

cost per equivalent unit calculation

91 Assuming no units are lost, the number of “units accounted for” should be the same as

units completed and transferred out of the department

period

Inventory

transferred out 43,000 units The Work in Process Inventory at May 31 in the Processing

Department consisted of 3,200 equivalent units of material and 960 equivalent units of labor and overhead The cost per equivalent unit was $1.50 for materials and $3.20 for labor and overhead Which of the following amounts will you find reported as “Total Cost to Account for” in the production cost report for May?

additional 275,000 units were transferred into this department during the period to be assembled (the final step in the manufacturing process) At the end of the period, 15,000 units remained in the Assembly Department The company utilizes a process costing system How many units were transferred to Finished Goods Inventory during the period?

costs and period costs

97 The production cost report contains the four steps listed below:

Which is the correct order of these steps?

ending inventory is 1,400 units, and 17,000 units were started during the period, how many units were completed and transferred out of the Assembly Department?

hour in the Cutting Department Actual overhead for the year was $65,000 If 1,700 machine hours were used during the year, what is the correct journal entry to record the application of overhead?

process The department transferred 6,500 units to the next department during June and there were 670 units in process on June 30 How many units were received and started by the SolderingDepartment during June?

and transferred 23,100 units to the Cutting Department If the ending Work in Process inventorywas 880 units in the Molding Department, how many units were in process on August 1?

102 The Work in Process Inventory account decreased from 1,832 units to 1,275 units during the

month If 8,653 units were started during the month, how many units were transferred out?

that are 100% complete with respect to materials and 30% complete with respect to conversion costs What are the equivalent units for materials and for conversion costs, respectively, in the ending Work in Process inventory?

beginning of processing At the end of the year, 6,000 units remain in Work in Process inventory

in the department During the year, 54,000 units were completed and transferred out and 55,000 units were started How many equivalent units will be used in the cost per equivalent unit

calculation for material costs?

50% complete with respect to conversion costs The beginning inventory consisted of 2,000 units.During the month, 6,000 units were started How many equivalent units will be used in the cost per equivalent unit calculation for conversion costs?

during January for conversion costs 15,000 units were transferred out of the Molding Department

to the Finishing Department during the month If the items remaining in ending Work in Process inventory are 40% complete as to conversion costs and 80% complete as to materials, how many physical units are there in ending Work in Process inventory in the Molding Department?

107 Wilson Carver Knives uses process costing In its Cutting Department, all the materials are added

at the beginning of the process and conversion costs are added evenly during the processing During the first month of operations, the Cutting Department transferred 78,000 units to the

Packing Department The Cutting Department’s ending Work in Process inventory consisted of 3,800 units that were 40% complete What are the equivalent units for materials and for

conversion costs in the Cutting Department, respectively?

March, 5,100 units were transferred into the Packaging Department from the Finishing Department and 4,700 units were transferred out to Finished Goods There were 900 units in ending inventory inthe Packaging Department How many equivalent units are used to calculate the cost per equivalent unit for transferred-in costs in the Packaging Department?

there were 8,000 units of beginning inventory in the Cooking Department, and 50,000 units were transferred in from the prior process There were 4,000 units in ending inventory The transferred-

in cost in the beginning inventory was $80,000, with $900,000 of additional cost for units

transferred in during the month What is the cost per equivalent unit for transferred-in cost?

Work in Process inventory had a value of $17,700 for conversion costs and additional conversion costs of $214,000 were incurred by the department during the month There were 2,000 units in ending Work in Process inventory that were 10% complete and 66,000 units were transferred out

of the department during the month The company uses process costing What is the cost per equivalent unit for conversion costs?

111 Riley Company uses process costing Its Forming Department had 10,000 equivalent units of

production for direct materials and 7,500 equivalent units of production for conversion costs in May There were 2,000 units in beginning inventory Costs were incurred in May as follows:

for direct materials of $0.75 and for conversion costs of $0.50 during May There were 20,000 units completed and transferred to Finished Goods, and 8,000 units in ending Work in Process inventory that were 100% complete with respect to direct material and 75% complete with respect

to conversion costs What was the amount transferred to Finished Goods?

materials and $0.70 for conversion costs during May There were 9,000 units completed and transferred to Finished Goods, and 1,200 units in ending Work in Process Inventory that were 100% complete with respect to direct materials and 40% complete with respect to conversion costs What was the ending Work in Process inventory?

materials and $1.80 per unit for conversion costs during May in its Rolling Department There were 11,600 units completed and transferred to Finished Goods, and 1,000 units in ending Work

in Process inventory that were 80% complete with respect to direct material and 60% complete with respect to conversion costs How much is the cost of completed goods transferred to

Finished Goods from the Rolling Department?

115 Realm Company uses process costing and had an equivalent cost of $2.30 per unit for direct

materials and $1.80 per unit for conversion costs during May in its Rolling Department There were 11,600 units completed and transferred to finished goods, and 1,000 units in ending Work in Process inventory for the Rolling Department that were 80% complete with respect to direct material and 60% complete with respect to conversion costs How much is ending Work in Process in the Rolling Department?

materials are added at the start of the Forming Department process The following unit

information is available for March production for the Forming Department:

The following costs are available for March for the Forming Department:

materials are added at the start of the Forming Department process The following information is available for March production for the Forming Department:

The following costs are available for March:

118 Pilot Protectors manufactures pocket knives in three processes and uses process costing All

materials are added at the start of the Forming Department process The following information is available for March production for the Forming Department:

The following costs are available for March:

materials are added at the start of the Forming Department process The following information is available for March production for the Forming Department:

The following costs are available for March:

120 Keystone Snow Boards Manufacturing Company produces entry-level snowboards and uses

process costing All materials are added at the start of the process The following information onunits is available for September production for the company’s Cutting Department:

The following costs are available for September:

process costing All materials are added at the start of the process The following information onunits is available for September production for the company’s Cutting Department:

The following costs are available for September: