Deck 5: Cost Behavior: Analysis and Use

Question 1

When computing the cost per equivalent unit,it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

In process costing,costs are accumulated in processing departments,rather than by job.

Answer 3

True

Question 4

In a sequential manufacturing system (all units produced flow in the same direction through all departments),the production report of the final department will include all manufacturing costs of units produced.

Question 5

The following journal entry would be made in a process 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:

Question 6

If the costs for direct labour,factory overhead and direct material were $873,600,$109,200 and $53,200 respectively for 28,000 equivalent units of production,the conversion cost per equivalent unit was $35.10.

Question 7

If the costs for direct labour,factory overhead and direct material were $873,600,$109,200 and $53,200 respectively for 28,000 equivalent units of production,the conversion cost per equivalent unit was $11.60.

Question 8

In process costing,a separate Work in Process account is maintained for each processing department.

Question 9

A manufacturer of blank CDs would ordinarily use process costing rather than job-order costing.

Question 10

In process costing,costs are accumulated by department,or process,rather than by order.

Question 11

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

Question 12

Process manufacturers typically process a continuous flow of raw materials into a finished state.

Question 13

If the weighted-average method is used,both the material cost and conversion cost per equivalent unit will always be the same.

Question 14

In process costing,the same equivalent units figure is always used for both materials and conversion costs.

Question 15

The weighted-average method of process costing can only be used if materials are added at the beginning of the production process.

Question 16

Instead of using a job cost sheet,production reports are prepared for each department (or process)to accumulate costs of production and to account for units worked on.

Question 17

If a business wishes to track the costs of completing units in beginning work in process,the weighted-average method should be used.

Question 18

Equivalent units of production in a department for a period will be equal to the number of equivalent units in ending work in process inventory.

Question 19

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

Question 20

In order to use process costing,the output of a processing department must be homogeneous.

Question 21

The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system: The equivalent units of production for materials costs were?

A) 90,000.
B) 100,000.
C) 112,000.
D) 120,000.

Question 22

Larner Company uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below: According to the company's records,the conversion cost in beginning work in process inventory was $68,064 at the beginning of June.Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round your answers to three decimal places. )

A) $5.575.
B) $6.806.
C) $6.892.
D) $7.090.

Question 23

Sarver Company uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March. The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

A) $482,287.20.
B) $502,640.00.
C) $523,240.00.
D) $561,144.00.

Question 24

Assuming that there was no beginning work in process inventory,and the ending work in process inventory is 50% complete with respect to conversion costs,the number of equivalent units of production with respect to conversion costs under the weighted-average method would be?

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.

Question 25

Jimbob Co.uses the weighted-average method in its process costing system.The company adds all required materials at the beginning of the process in Department A,which is the first of two stages in its production process.Information concerning operations in the Department A in October follows: What were the equivalent units of production in Department A in October?

A) 6,000 units.
B) 12,000 units.
C) 44,000 units.
D) 56,000 units.

Question 26

Baker Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs.An additional 95,000 units were 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 in the Assembly Department for the month?

A) 92,000.
B) 94,700.
C) 98,000.
D) 101,900.

Question 27

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 $123,200.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 that were 10% complete with respect to conversion costs.A total of $389,250 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 your answers to three decimal places)

A) $4.634.
B) $5.988.
C) $7.547.
D) $7.700.

Question 28

The Nichols Company uses the weighted-average method in its process costing system.The company recorded 29,500 equivalent units of production for conversion costs for November in a particular department.There were 6,000 units in the ending work in process inventory on November 30,75% complete with respect to conversion costs.The November 1 work in process inventory consisted of 8,000 units,50% complete with respect to conversion costs.A total of 25,000 units were completed and transferred out of the department during the month.The number of units started during November in the department was?

A) 21,000 units.
B) 23,000 units.
C) 24,500 units.
D) 27,000 units.

Question 29

The Morgan Company uses the weighted-average method in its process costing system.For a particular department,the company had 54,000 equivalent units of production with respect to conversion costs in March.There were 7,500 units in the department's beginning work in process inventory,two thirds complete with respect to conversion costs.During March,52,500 units were started and 50,000 were completed and transferred out of the department.The ending work in process inventory in the department?

A) consisted of 2,500 units.
B) consisted of 5,000 units.
C) was 40% complete with respect to conversion costs.
D) was 65% complete with respect to conversion costs.

Question 30

The following data were taken from the accounting records of the Hazel Corporation which uses the weighted-average method in its process costing system: The equivalent units of production for conversion costs were?

A) 100,000.
B) 102,000.
C) 111,000.
D) 112,000.

Question 31

In a processing system where labour costs represent a significant portion of total processing costs,it may be useful to track the three categories of processing costs separately - materials,labour and manufacturing overhead costs.

Question 32

Using the first-in-first-out (FIFO)method,the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

Question 33

Lucas Company uses the weighted-average method in its process costing system.The company adds materials at the beginning of the process in the Forming Department,which is the first of two stages in its production process.Information concerning operations in the Forming Department in October follows: What was the materials cost of work in process at October 31? (Round intermediate calculations to 2 decimals)

A) $3,060.
B) $5,520.
C) $6,000.
D) $6,120.

Question 34

Process costing would be appropriate for each of the following except?

A) custom furniture.
B) oil refining.
C) grain milling.
D) newsprint production.

Question 35

Glo Co. ,a manufacturer of combs,uses the weighted-average method in its process costing system.The company sold 125,000 units during the month of April.There is only one processing department.The following additional information is provided: What were the equivalent units of production for conversion costs for April?

A) 117,500.
B) 123,500.
C) 125,500.
D) 126,500.

Question 36

If a business has substantial amounts of manufactured inventory,both the first-in-first-out (FIFO)method and the weighted-average method will be very useful in assessing cost control.

Question 37

Jawson Company uses the weighted-average method in its process costing system.Operating data for the Painting Department for the month of April appear below: What were the equivalent units of production for conversion costs in the Painting Department for April?

A) 63,900.
B) 67,300.
C) 68,820.
D) 70,520.

Question 38

If a business wishes to track the costs of completing units in beginning work in process,the first-in-first-out (FIFO)method should be used.

Question 39

The cost reconciliation prepared within a department's periodic production report is only used for the purpose of costing the units completed and transferred out of the department during the period (either to another department or to finished goods).

Question 40

Using the weighted-average method,the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.

Question 41

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 labour and overhead.If the total dollar value of the inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00,the cost per equivalent unit for materials must be?

A) $4.00.
B) $5.00.
C) $8.00.
D) $10.00.

Question 42

Strap Company uses the weighted-average method in its process costing system.The company has only one processing department.The ending work in process inventory consists of 10,000 units,60% complete with respect to materials.The total dollar value of this inventory is $38,000.The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period.With respect to conversion costs,the ending work in process inventory is?

A) 10% complete.
B) 20% complete.
C) 30% complete.
D) 38% complete.

Question 43

Paxton Company uses the weighted-average method in its process costing system.The Molding Department is the second department in its production process.The data below summarize the department's operations in January. The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 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 your answer to three decimal places. )

A) $4.038.
B) $4.704.
C) $5.080.
D) $5.348.

Question 44

Valley Manufacturing Company's beginning work in process inventory consisted of 10,000 units,100% complete with respect to materials cost and 40% complete with respect to conversion costs.The total cost in the beginning inventory was $30,000.During the month,50,000 units were transferred out.The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method.Given this information,the total cost of the units completed and transferred out was?

A) $240,000.
B) $255,000.
C) $270,000.
D) $285,000.

Question 45

The Richmond Company uses the weighted-average method in its process costing system.The company has only a single processing department.The company's ending work in process inventory on August 31 consisted 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 labour and overhead.If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labour and overhead,the total cost assigned to the ending work in process inventory was? (Do not round intermediate calculations)

A) $75,600.
B) $80,100.
C) $95,400.
D) $126,000.

Question 46

The equivalent units of production for material for the month are?

A) 105,000 units.
B) 122,000 units.
C) 145,000 units.
D) 165,000 units.

Question 47

Harker Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $29,440.An additional 59,000 units were started into production during the month and 61,000 units were completed in the Welding Department and transferred to the next processing department.There were 14,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $246,431 in conversion costs was incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to three decimal places. )

A) $3.375.
B) $4.176.
C) $4.421.
D) $4.600.

Question 48

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: 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? (Round your answer to the nearest cent)

A) $5.51.
B) $6.30.
C) $6.45.
D) $7.38.

Question 49

Ogden Company uses the weighted-average method in its process costing system.Information for the month of January concerning Department A,the first stage of the company's production process,follows: Materials are added at the beginning of the process.The ending work in process is 50% complete with respect to conversion costs.What cost would be recorded for the ending work in process inventory?

A) $3,400.
B) $4,400.
C) $6,800.
D) $8,800.

Question 50

The "Cost to be accounted for" section of the production report for the month will show a total amount equal to?

A) $106,000.
B) $429,000.
C) $498,500.
D) $604,500.

Question 51

Huffer Company uses the weighted-average method in its process costing system.The following information pertains to Processing Department D for the month of May: All materials are added at the beginning of the process.The cost per equivalent unit for materials is ? (Round your answer to the nearest whole cent)

A) $0.43.
B) $0.45.
C) $0.55.
D) $0.59.

Question 52

Rariton Company uses the weighted-average method in its process costing system.The Molding Department is the second department in its production process.The data below summarize the department's operations in January. The Molding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? (Round your answer to one decimal)

A) $4,081.20.
B) $6,121.80.
C) $10,203.00.
D) $10,310.40

Question 53

The Assembly Department started the month with 35,000 units in its beginning work in process inventory.An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 34,000 units in the ending work in process inventory of the Assembly Department.How many units were transferred to the next processing department during the month?

A) 471,000.
B) 473,000.
C) 507,000.
D) 541,000.

Question 54

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 $3.00 for materials and $5.50 for conversion costs,the total cost in the April 30 work in process inventory is? (Do not round intermediate calculations)

A) $109,375.
B) $159,375.
C) $178,125.
D) $212,500.

Question 55

Fabian Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs.An additional 90,000 units were 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 in the Assembly Department for the month?

A) 83,100.
B) 87,100.
C) 89,400.
D) 93,000.

Question 56

The cost of the units transferred to the Finishing Department during May was?

A) $40,000.
B) $42,400.
C) $50,000.
D) $53,000.

Question 57

Narver Company uses the weighted-average method in its process costing system.Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units of production for conversion costs in the Lubricating Department for October?

A) 37,100.
B) 43,100.
C) 44,780.
D) 47,780.

Question 58

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 $10,000.During the period,9,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs.The cost of units transferred out during the month was?

A) $35,400.
B) $39,600.
C) $45,000.
D) $45,400.

Question 59

The cost of the work in process inventory in the Finishing Department at the end of May was?

A) $ 2,500.
B) $ 4,000.
C) $ 7,600.
D) $10,000.

Question 60

The total cost of the October 31 work in process inventory was?

A) $35,000.
B) $41,250.
C) $43,750.
D) $78,750.

Question 61

Using the weighted-average method,the cost per equivalent unit of materials for May is? (Round your answers to the nearest whole cent)

A) $5.00.
B) $5.05.
C) $5.37.
D) $6.63.

Question 62

The equivalent units of production for material for the month,using the weighted-average method,are?

A) 48,000 units.
B) 50,000 units.
C) 52,000 units.
D) 58,000 units.

Question 63

The equivalent units of production for labour and overhead for the month are?

A) 70,000 units.
B) 80,000 units.
C) 82,500 units.
D) 90,000 units.

Question 64

Using the FIFO method,the equivalent units for materials are closest to?

A) 104,000 units.
B) 113,600 units.
C) 120,000 units.
D) 154,800 units.

Question 65

The "Cost to account for" section of the production report for October will show a total amount equal to? (Do not round intermediate calculations)

A) $110,000.
B) $350,000.
C) $391,250.
D) $428,750.

Question 66

Using the FIFO method,the equivalent unit cost of materials is? Round your answers to the nearest whole cent)

A) $4.76.
B) $5.40.
C) $5.52.
D) $6.40.

Question 67

Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for conversion costs for the month in the Blending Department ? (Round your answers to the nearest cent)

A) $2.44.
B) $2.50.
C) $2.53.
D) $2.55.

Question 68

Assuming that Tru-Colour Paint Company uses the weighted-average method,the equivalent units of production for materials would be?

A) 45,000 units.
B) 46,000 units.
C) 48,000 units.
D) 54,000 units.

Question 69

Assuming that the company uses the weighted-average cost method,what is the total value of the ending work in process inventory in the Blending Department? (Round intermediate calculation to the nearest cent and final answers to the nearest dollar)

A) $12,903.
B) $20,060.
C) $32,963.
D) $63,070.

Question 70

Using the weighted-average method,the total cost of the units in ending work in process inventory is ? (Round your answers to the nearest whole cent)

A) $156,960.
B) $165,336.
C) $168,960.
D) $172,336.

Question 71

The equivalent units of production for material for the month are?

A) 70,000 units.
B) 80,000 units.
C) 82,500 units.
D) 90,000 units.

Question 72

Using the weighted-average method,the cost per equivalent unit of conversion cost for May is ? (Round your answers to the nearest whole cent)

A) $5.14.
B) $5.68.
C) $6.00.
D) $6.41.

Question 73

The equivalent units of production for labour and overhead for the month of May were?

A) 60,000 units.
B) 65,800 units.
C) 69,800 units.
D) 73,800 units.

Question 74

Assuming that Tru-Colour Paint Company uses the weighted-average method,the equivalent units of production for conversion costs would be?

A) 42,600 units.
B) 44,400 units.
C) 46,000 units.
D) 48,000 units.

Question 75

The equivalent units of production for labour and overhead for the month,using the weighted-average method,are?

A) 47,000 units.
B) 50,000 units.
C) 51,000 units.
D) 55,000 units.

Question 76

Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for conversion costs for the Blending Department for the month?

A) 114,000 units.
B) 119,100 units.
C) 120,000 units.
D) 131,000 units.

Question 77

The equivalent units of production for materials for the month of May were?

A) 60,000 units.
B) 64,000 units.
C) 69,800 units.
D) 74,000 units.

Question 78

Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for material costs for the Blending Department for the month?

A) 114,000 units.
B) 119,100 units.
C) 120,000 units.
D) 131,000 units.

Question 79

Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for material costs for the month in the Blending Department? (Round your answer to the nearest cent)

A) $1.09.
B) $1.18.
C) $1.22.
D) $1.25.

Question 80

Using the FIFO method,the total cost of units in ending work in process is ?( Round the per unit value to the nearest cent and do not round other intermediate calculations )

A) $104,000.
B) $128,000.
C) $153,000.
D) $164,883.