Question 1

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?

Accepted Answer

A)   3,000 units
B)   5,250 units
C)   2,250 units
D)   1,250 unitsE) C) and D)
F) All of the above

Question 2

Fox Lane Gifts uses process costing and determined an equivalent cost per unit of $0.90 for direct 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?

Accepted Answer

A)   $6,636
B)   $768
C)   $1,416
D)   $15,816E) A) and C)
F) A) and B)

Question 3

Equivalent units

Accepted Answer

A)   are used in calculating actual physical units completed in a process costing system.
B)   are partially completed units that have been converted to a comparable number of completed units.
C)   represent the cost of producing one unit of product.
D)   All of these answer choices are correct.E) A) and D)
F) C) and D)

Question 4

The number of fully complete units of product that could have been produced with the materials used and processing costs in a particular accounting period is referred to as equivalent units.

Accepted Answer

A) True 
 B)False

Question 5

Ending Work in Process inventory in the Assembly Department consists of 700 units that are 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?

Accepted Answer

A)   7,650 units
B)   7,300 units
C)   8,000 units
D)   6,700 unitsE) A) and C)
F) C) and D)

Question 6

Z-Bar Sweets uses a process costing system. During August, the Mixing Department transferred 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?

Accepted Answer

A)   $271,250
B)   $463,750
C)   $221,750
D)   $192,500E) All of the above
F) A) and D)

Question 7

Rooftop Gutters produces polyurethane gutters and uses process costing. All materials are added at the start of the Forming Department process. The following information is available for units produced in the Forming Department for the month of April:   Beginning Work in Process, in linear feet (20% complete with respect to conversion costs)  11,500 Units started 42,000 Ending Work in Process, in linear feet  ( 60% complete with respect to conversion costs)  9,000 Units completed 44,500\begin{array}{ll}	ext { Beginning Work in Process, in linear feet } & \\quad(20 \% 	ext { complete with respect to conversion costs)  } & 11,500 \	ext { Units started } & 42,000\	ext { Ending Work in Process, in linear feet }\	ext { ( } 60 \% 	ext { complete with respect to conversion costs)  }&9,000\	ext { Units completed }&44,500\end{array} Beginning Work in Process, in linear feet (20% complete with respect to conversion costs)   Units started  Ending Work in Process, in linear feet  ( 60% complete with respect to conversion costs)   Units completed ​11,50042,0009,00044,500​  The following costs are available for April:   Material Conversion Cost Total Cost  Beginning Work in Process $11,600$8,540$20,140 Current cost 63,300‾21,400‾84,700‾ Total cost $74.900$29.940$104.840\begin{array}{lrrr}&	ext { Material }&	ext {Conversion Cost }&	ext {Total Cost }\	ext { Beginning Work in Process } & \$ 11,600 & \$ 8,540 & \$ 20,140 \	ext { Current cost } & \underline{63,300} & \underline{21,400} & \underline{84,700} \	ext { Total cost } & \$ 74.900 & \$ 29.940 & \$ 104.840\end{array} Beginning Work in Process  Current cost  Total cost ​ Material $11,60063,300​$74.900​Conversion Cost $8,54021,400​$29.940​Total Cost $20,14084,700​$104.840​ 
What is the cost per equivalent unit for materials?

Accepted Answer

A)   $0.56
B)   $2.00
C)   $1.40
D)   $1.50 E) All of the above
F) A) and B)

Question 8

The cost per equivalent unit calculation is

Accepted Answer

A)   the cost carried forward from beginning inventory plus the current production costs divided by equivalent units.
B)   based on the costs incurred in this period divided by the equivalent units.
C)   current period costs plus costs of beginning inventory multiplied by the equivalent units.
D)   the total of all transferred-in costs plus beginning inventory costs minus ending inventory costs, all divided by equivalent units.E) A) and C)
F) B) and C)

Question 9

The Packaging Department is the final processing department in Hector Manufacturing. During 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 in the Packaging Department. How many equivalent units are used to calculate the cost per equivalent unit for transferred-in costs in the Packaging Department?

Accepted Answer

A)   4,700 units
B)   5,600 units
C)   5,200 units
D)   5,100 unitsE) All of the above
F) B) and C)

Question 10

Which of the following sequences describes the typical flow of costs in a company that is using process costing?

Accepted Answer

A)   Raw Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold
B)   Work in Process, Finished Goods, Raw Materials Inventory, Cost of Goods Sold
C)   Raw Materials Inventory, Cost of Goods Sold, Work in Process, Finished Goods
D)   Finished Goods, Raw Materials Inventory, Work in Process, Cost of Goods SoldE) A) and B)
F) All of the above

Question 11

Transferred-in costs are the costs of the direct materials that are transferred into the company when materials are purchased from a supplier.

Accepted Answer

A) True 
 B)False

Question 12

In the Assembly Department, all the direct materials are added at the beginning of processing. 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?

Accepted Answer

A)   $15.93
B)   $15.63
C)   $14.83
D)   $16.58E) B) and D)
F) A) and B)

Question 13

Labor and overhead are often grouped together and referred to as

Accepted Answer

A)   prime costs.
B)   conversion costs.
C)   total manufacturing costs.
D)   equivalent unit costs.E) B) and C)
F) A) and D)

Question 14

At the end of July, a journal entry is prepared to record the transfer of goods from the Mixing Department to the Baking Department. Which one of the following indicates the amount of this journal entry?

Accepted Answer

A)   Total costs incurred by Mixing Department during July
B)   Sum of the costs of the direct materials and nonmanufacturing overhead incurred in the Mixing Department during July
C)   Number of units transferred from the Mixing Department to the Baking Department times the cost per unit
D)   Number of equivalent units in the Mixing Department's July 31 inventory times the cost per equivalent unitE) None of the above
F) A) and D)

Question 15

The cost transferred out is the cost of the inventory that was started and completed during the period.

Accepted Answer

A) True 
 B)False

Question 16

Materials and labor are often grouped together and called conversion costs.

Accepted Answer

A) True 
 B)False

Question 17

In the manufacturing operations of a company using process costing, a product must typically pass through two or more departments.

Accepted Answer

A) True 
 B)False

Question 18

Total cost accounted for is the sum of the cost of the units transferred out of the department plus the cost of the ending Work in Process inventory.

Accepted Answer

A) True 
 B)False

Question 19

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. The cost 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?

Accepted Answer

A)   $3,470
B)   $3,800
C)   $3,040
D)   $2,150E) None of the above
F) A) and B)

Question 20

Which of the following will not appear on the production cost report?

Accepted Answer

A)   Number of units in beginning Work in Process inventory
B)   Cost of beginning Raw Materials inventory
C)   Cost of ending Work in Process inventory
D)   Cost of goods soldE) None of the above
F) B) and D)

Exam 3: Process Costing

Correct Answer
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In the manufacturing operations of a company using process costing, a product must typically pass through two or more departments.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Materials and labor are often grouped together and called conversion costs.

Correct Answer
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The cost per equivalent unit calculation is

Correct Answer
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Total cost accounted for is the sum of the cost of the units transferred out of the department plus the cost of the ending Work in Process inventory.

Correct Answer
verified

Which of the following sequences describes the typical flow of costs in a company that is using process costing?

Correct Answer
verified

Transferred-in costs are the costs of the direct materials that are transferred into the company when materials are purchased from a supplier.

Correct Answer
verified

Labor and overhead are often grouped together and referred to as

Correct Answer
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Equivalent units

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

The number of fully complete units of product that could have been produced with the materials used and processing costs in a particular accounting period is referred to as equivalent units.

Correct Answer
verified

Which of the following will not appear on the production cost report?

Correct Answer
verified

Correct Answer
verified

At the end of July, a journal entry is prepared to record the transfer of goods from the Mixing Department to the Baking Department. Which one of the following indicates the amount of this journal entry?

Correct Answer
verified

The cost transferred out is the cost of the inventory that was started and completed during the period.

Correct Answer
verified

Exam 3: Process Costing

Correct AnswerverifiedShow Answer

In the manufacturing operations of a company using process costing, a product must typically pass through two or more departments.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Materials and labor are often grouped together and called conversion costs.

Correct AnswerverifiedShow Answer

The cost per equivalent unit calculation is

Correct AnswerverifiedShow Answer

Total cost accounted for is the sum of the cost of the units transferred out of the department plus the cost of the ending Work in Process inventory.

Correct AnswerverifiedShow Answer

Which of the following sequences describes the typical flow of costs in a company that is using process costing?

Correct AnswerverifiedShow Answer

Transferred-in costs are the costs of the direct materials that are transferred into the company when materials are purchased from a supplier.

Correct AnswerverifiedShow Answer

Labor and overhead are often grouped together and referred to as

Correct AnswerverifiedShow Answer

Equivalent units

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The number of fully complete units of product that could have been produced with the materials used and processing costs in a particular accounting period is referred to as equivalent units.

Correct AnswerverifiedShow Answer

Which of the following will not appear on the production cost report?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At the end of July, a journal entry is prepared to record the transfer of goods from the Mixing Department to the Baking Department. Which one of the following indicates the amount of this journal entry?

Correct AnswerverifiedShow Answer

The cost transferred out is the cost of the inventory that was started and completed during the period.

Correct AnswerverifiedShow Answer

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