test bank chapter 4 process costing

F Medium When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weigh

Work in Process, Department Y XXX Work in Process, Department Z XXX2.

F

Easy

The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:

Finished Goods XXX Materials XXX3

T

Hard

Appendix) The "Quantity schedule" and the "Costs to be accounted for" sections of the production report are the same for the weighted-average method and the FIFO method of process costing

7

F

Medium

When assigning costs to partially completed units in the ending work

in process inventory, it is not necessary to consider the percentage completion of the units under the weighted-average method

T

Easy

(Appendix) Under the FIFO process costing method, the equivalent units

of production in the production report relate only to work done duringthe current period

a The quantity schedule deals with whole units

b The total "Costs to be accounted for" must equal the total cost

of the units completed and transferred out plus the cost of the ending work in process inventory

c The equivalent units in the ending work in process inventory will

be different if the weighted-average method is used than it is if theFIFO method is used

d The total of the "Units to be accounted for" will equal the

total of the "Units accounted for"

a the same as the units completed.

b the same as the units started during the period

c less than the units completed

d less than the units started during the period

a the same as that computed under the weighted-average method

b higher than that computed under the weighted-average method

c lower than that computed under the weighted-average method

d could be the lower than, the same as, or higher than that

computed under the weighted-average method

a there was no beginning work in process inventory

b processing centers are arranged in a sequential pattern

c the FIFO cost method is being used

d the weighted-average cost method is being used

An operation costing system is:

a identical to a process costing system except that actual

manufacturing overhead costs are traced to units of product

b the same as a process costing system except that direct materials costs are accounted for in the same way as in job order costing

c the same as a job order system except that direct materials

costs are accounted for in the same way as in process costing

d identical to a job order costing system except that actual

manufacturing overhead costs are traced to units of product

Materials Units Cost Work in process on October 1 6,000 P 3,000 Units started during October 50,000 P25,560 Units completed and transferred to

the next Department during October 44,000What was the materials cost of work in process at October 31?

a P3,060

b P5,520

c P6,000

d P6,12023

A

Medium

David Company uses the weighted-average method in its process costing system The first processing department, the Welding Department, started the month with 20,000 units that were 80% complete with respect to conversion costs The conversion cost in this beginning work in process inventory was P123,200 An additional 65,000 units were started into production during the month There were 19,000 units

in the ending work in process inventory of the Welding Department thatwere 10% complete with respect to conversion costs A total of

P389,250 in conversion costs were incurred in the department during the month

What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

a P7.547

b P7.700

c P4.634

d P5.988

Percentage Units complete Beginning work in process inventory 24,000 40%

Started into production during June 86,000 Ending work in process inventory 19,000 20%

According to the company's records, the conversion cost in beginning work in process inventory was P68,064 at the beginning of June

Additional conversion costs of P585,324 were incurred in the department during the month

What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

a P6.892

b P6.806

c P5.575

d P7.09025

Inventory at April 1:

Work in process None Finished goods 37,500 units Inventory at April 30:

Work in process (75% complete

as to conversion costs) 8,000 units Finished goods 30,000 unitsWhat were the equivalent units of production for conversion costs for April?

a 126,500

b 125,500

c 123,500

d 117,500

a consisted of 5,000 units.

b consisted of 2,500 units

c was 65% complete with respect to conversion costs

d was 40% complete with respect to conversion costs

Beginning work in process inventory (100% complete as to materials;

70% complete as to conversion) 30,000 units Started in process during the period 90,000 units Ending work in process inventory

transferred in from the prior department during the month to begin processing in the Assembly Department There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs

What were the equivalent units of production for conversion costs inthe Assembly Department for the month?

a 94,700

b 101,900

c 98,000

d 92,000

Percentage Units complete Beginning work in process inventory 6,300 10%

Transferred in from the prior department during April 65,600 Ending work in process inventory 4,600 70%

What were the equivalent units of production for conversion costs in the Painting Department for April?

a 67,300

b 68,820

c 70,520

d 63,90030

Transferred in from the prior department during March 61,000 Ending work in process inventory 4,600 30%

The Fitting Department's production report indicates that the cost perequivalent unit for conversion cost for March was P8.24

How much conversion cost was assigned to the units transferred out

of the Fitting Department during March?

a P482,287.20

b P502,640.00

c P523,240.00

d P561,144.00

a 507,000

b 473,000

c 471,000

d 541,00033

Number Cost of

of units materials Beginning work in process 30,000 P11,000 Started in May 80,000 P36,000 Units completed 85,000

Ending work in process 25,000All materials are added at the beginning of the process The cost per equivalent unit for materials is closest to:

a P0.43

b P0.45

c P0.55

d P0.59

What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

a P4.176

b P4.600

c P3.375

d P4.42135

Transferred in from the prior department during January 57,000 Completed and transferred to the next

department during January 50,300 Ending work in process inventory 9,400 20%

The accounting records indicate that the conversion cost that had beenassigned to beginning work in process inventory was P10,973 and a total of P268,107 in conversion costs were incurred in the department during January

What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.)

a P5.348

b P4.038

c P5.080

d P4.704

of 18,000 units The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead If the cost per equivalent unit for August was P2.75 for materials and P4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:

transferred in from the prior department during the month to begin processing in the Assembly Department During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department There were 12,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs

What were the equivalent units of production for conversion costs inthe Assembly Department for the month?

a 93,000

b 83,100

c 87,000

d 89,400

Percentage Units complete Beginning work in process inventory 6,600 60%

Transferred in from the prior department during October 40,100 Completed and transferred to the next

department during October 37,100 Ending work in process inventory 9,600 80%

What were the equivalent units of production for conversion costs in the Lubricating Department for October?

a 43,100

b 37,100

c 44,780

d 47,78040

B

Hard

Black Company uses the weighted-average method in its process costing system The company's ending work in process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labor and overhead If the total Peso value of the inventory is P60,000 and the cost per equivalent unit for labor and overhead is P8.00, the cost per equivalent unit for materials must be:

a P5.00

b P10.00

c P8.00

d P4.00

B

Hard

Department 2 is the second of three sequential processes All materials are added at the beginning of processing in Department 2 During October, Department 2 reported the following data:

Number of Conversion Costs Units Percentage Completed

Units started 60,000

Completed and transferred 50,000

-Work in process, October 1 26,000 60%

Work in process, October 31 36,000 20%

Costs for October: Transferred In Materials Conversion Costs Work in process,

October 1 P45,000 P 25,000 P 54,000 Added during

the month P81,000 P115,000 P315,000 The company uses the weighted-average method in its process costing system The cost per equivalent unit on the production report for conversion costs would have been to the nearest cent:

a P5.51

b P6.45

c P6.30

d P7.38

42

B

Medium

Overland, Inc., uses the weighted-average method in its process costing system The company’s work in process inventory on April 30 consists of 25,000 units The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs If the cost per equivalent unit is P3.00 for materials and P5.50 for conversion costs, the total cost in the April

30 work in process inventory is:

a P212,500

b P178,125

c P159,375

d P109,375

in the beginning inventory was P30,000 During the month, 50,000 unitswere transferred out The equivalent unit cost was computed to be P2.00 for materials and P3.70 for conversion costs under the weighted-average method Given this information, the total cost of the units completed and transferred out was:

Materials Conversion Cost Work in process, beginning P 8,000 P 6,000 Current added during January P40,000 P32,000 Equivalent units of production 100,000 95,000 Cost per equivalent unit P 0.48 P 0.40 Units completed and transferred

to the next department 90,000 units Work in process, ending 10,000 unitsMaterials are added at the beginning of the process The ending work

in process is 50% complete with respect to conversion costs What costwould be recorded for the ending work in process inventory?

a P6,800

b P8,800

c P3,400

d P4,40045

B

Easy

Trapp Company uses the weighted-average method in its process costing system The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs The cost of the beginning work in process inventory in the department was recorded as P10,000 During the period, 9,000 units were completed and transferred on to the next department The costs per equivalent unit for the period were P2.00 for material and P3.00 for conversion costs The cost of units transferred out during the month was:

a P39,600

b P45,000

c P45,400

d P35,400

operations in January.

Percentage Units complete Beginning work in process inventory 4,800 60%

Transferred in from the prior department during January 78,000 Completed and transferred to the next

department during January 80,900 Ending work in process inventory 1,900 40%

The Molding Department's production report indicates that the cost perequivalent unit for conversion cost for January was P5.37

How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

a P4,081.20

b P10,203.00

c P10,310.40

d P6,121.8048

D

Medium

(Appendix) Ebis Company uses the FIFO method in its process costing system The first processing department, the Welding Department, started the month with 13,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs Theconversion cost in this beginning work in process inventory was P12,610 An additional 89,000 units were started into production during the month There were 22,000 units in the ending work in process inventory of the Welding Department that were 30% complete with respect to conversion costs A total of P806,085 in conversion costs were incurred in the department during the month

What would be the cost per equivalent unit for conversion costs for the month on the department's production report? (Round off to three decimal places.)

a P8.026

b P9.700

c P9.057

d P9.45049

C

Medium

(Appendix) Marten Company uses the FIFO method in its process costing system Operating data for the Casting Department for the month of September appear below:

Percentage Units complete Beginning work in process inventory 19,000 80%

Transferred in from the prior department during September 74,000

Ending work in process inventory 17,000 90%

According to the company's records, the conversion cost in beginning work in process inventory was P83,600 at the beginning of September Additional conversion costs of P427,682 were incurred in the

department during the month

What would be the cost per equivalent unit for conversion costs for September on the Casting Department's production report? (Round off

to three decimal places.)

a P5.498

b P5.779

c P5.620

d P5.500

to conversion costs During the month, 42,000 units were started and 40,000 units were completed and transferred out of the department Thecompany had 40,000 equivalent units of production for conversion costs The ending work in process inventory in the department consisted of:

a 8,000 units, 25% complete with respect to conversion costs

b 0 units

c 8,000 units, 50% complete with respect to conversion costs

d 4,000 units, 100% complete with respect to conversion costs

transferred in from the prior department during the month to begin processing in the Assembly Department There were 8,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs

What were the equivalent units of production for conversion costs inthe Assembly Department for the month?

a 72,000

b 75,600

c 76,000

d 76,80052

A

Medium

(Appendix) Karmen Company uses the FIFO method in its process costing system Operating data for the Enameling Department for the month of May appear below:

Percentage Units complete Beginning work in process inventory 2,400 40%

Transferred in from the prior department during May 87,000 Ending work in process inventory 8,600 60%

What were the equivalent units of production for conversion costs in the Enameling Department for May?

a 85,000

b 85,960

c 93,200

d 80,800

beginning work in process inventory were completed and transferred outduring the month What was the total cost attached to these units whenthey were transferred to the next department?

What would be the cost per equivalent unit for conversion costs for the month on the Forming Department's production report? (Round off

to three decimal places.)

a P5.050

b P5.300

c P5.867

d P5.150

Percentage Units complete Beginning work in process inventory 4,500 20%

Transferred in from the prior department during March 74,000 Completed and transferred to the next

department during March 74,500 Ending work in process inventory 4,000 60%

According to the company's records, the conversion cost in beginning work in process inventory was P1,656 at the beginning of March

Additional conversion costs of P129,960 were incurred in the department during the month

What would be the cost per equivalent unit for conversion costs for March on the Cutting Department's production report? (Round off to three decimal places.)

a P1.710

b P1.677

c P1.756

d P1.84057

B

Medium

(Appendix) Roger Company uses the FIFO method in its process costing system The following data are taken from the accounting records of a particular department for June:

Beginning work in process inventory:

Cost P17,500 Units 20,000 units Percentage completion:

a P151,250

b P145,250

c P131,500

d P168,750

UnitsWork in process, beginning (40% complete) 40,000Started in April 320,000Completed in April and transferred to Department Two 340,000Work in process, ending (60% complete) 20,000The equivalent units of production for conversion costs are:

transferred in from the prior department during the month to begin processing in the Grinding Department During the month 115,000 units were completed in the Grinding Department and transferred to the next processing department There were 1,000 units in the ending work in process inventory of the Grinding Department that were 20% complete with respect to conversion costs

What were the equivalent units of production for conversion costs inthe Grinding Department for the month?

a 81,000

b 115,200

c 115,000

d 113,400

Percentage Units complete Beginning work in process inventory 3,800 20%

Transferred in from the prior department during November 46,700 Completed and transferred to the next

department during November 43,200 Ending work in process inventory 7,300 80%

What were the equivalent units of production for conversion costs in the Brazing Department for November?

a 49,040

b 50,200

c 43,200

d 48,28062

C

Medium

(Appendix) Tarten Company uses the FIFO method in its process costing system Operating data for the Curing Department for the month of March appear below:

Percentage Units complete Beginning work in process inventory 9,000 10%

Transferred in from the prior department during March 57,000 Completed and transferred to the next

department during March 65,000 Ending work in process inventory 1,000 70%

According to the company's records, the conversion cost in beginning work in process inventory was P7,470 at the beginning of March The cost per equivalent unit for conversion costs for March was P8.20

How much conversion cost would be assigned to the units completed and transferred out of the department during March?

a P525,530

b P592,040

c P533,090

d P533,000

Reference: 4-1

A sporting goods manufacturer buys wood as a direct material for baseball bats The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied There was no beginning work in process inventory in the Forming Department in May The Forming Department began

manufacturing 10,000 Casey Slugger baseball bats during May Costs for the Forming Department for the month of May were as follows:

Direct materials P33,000

Conversion costs P17,000

A total of 8,000 bats were completed and transferred to the Finishing Department

during May The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs The company uses the weighted-average method of process costing

The cost of the work in process inventory in the Finishing Department

at the end of May was:

Adam Company uses the weighted-average method in its process costing system The

following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process):

Number Labor and Overhead

of Units Percent Completed

Work in process inventory, Sept 1 60,000 15%

Transferred in during the month 105,000

Work in process inventory, Sept 30 40,000 20%

Transferred Labor &

Reference: 4-3

Madsen Company uses the weighted-average method in its process costing system DuringOctober, the Mixing Department transferred out 40,000 units The October 31 work in process inventory in the Mixing Department consisted of 4,000 equivalent units of material and 5,000 equivalent units of labor and overhead The cost per equivalent unit was P2.50 for materials and P6.25 for labor and overhead

Number Labor and Overhead

of Units Percent Complete

Work in process

inventory, April 1 8,000 50%

Started into process

during the month 50,000

Number Percent Complete

Units Materials Conversion

Work in process inventory, March 1 5,000 65% 30%

Started into production during March 65,000

Work in process inventory, March 3 3,000 35% 25%

Reference: 4-6

The following data relate to the Blending Department of Tru-Color Paint Company for arecent month:

Number Percent Complete

of Units Conversion Costs

Beginning work in process inventory 9,000 60%

Units started into production 45,000

Units completed and transferred out 46,000

-Ending work in process inventory 8,000 25%

All materials are added prior to the beginning of work in the Blending Department.75

a 44,400

b 42,600

c 46,000

d 48,000

Reference: 4-7

The information below was obtained from the records of the first processing

department of Christine Corporation for the month of July The company uses the

weighted-average method in its process costing system

Labor and Overhead

Units Percent Completed

Work in process inventory, July 1 20,000 40%

Started during the month 70,000

Completed during the month 80,000

Work in process inventory, July 31 ? 25%

All materials are added at the beginning of the manufacturing process

The information below was obtained from the records of the first processing

department of Moore Company for the month of May The company uses the

weighted-average method in its process costing system

Labor and Overhead

Units Percentage Complete

Work in process, May 1 10,000 40%

Units started 64,000

Completed and transferred out 60,000

Work in process, May 31 14,000 70%

All materials are added at the beginning of the process