Question 1

Super-Tech Industries had the following department information about physical units and percentage of completion:  If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?

Accepted Answer

The answer of Super-Tech Industries had the following department information...

Question 2

In the Shaping Department of Jenkins Company the unit materials cost is $3.00 and the unit conversion cost is $1.80. The department transferred out 8,000 units and had 2,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Accepted Answer

The total cost incurred by the Shaping Department is:
Total Cost = (Unit materials cost + Unit conversion cost) x Number of units transferred out
Total Cost = ($3.00 + $1.80) x 8,000
Total Cost = $21,600
To allocate the cost to ending work in process, we need to calculate the equivalent units of production:
Equivalent units of production = Units in ending work in process x Percentage complete + Units transferred out
Equivalent units of production = 2,000 x 20% + 8,000
Equivalent units of production = 2,400
The cost per equivalent unit is:
Cost per equivalent unit = Total Cost / Equivalent units of production
Cost per equivalent unit = $21,600 / 2,400
Cost per equivalent unit = $9.00
Therefore, the total cost to be assigned to the ending work in process is:
Total cost = Cost per equivalent unit x Equivalent units of production x Percentage complete
Total cost = $9.00 x 2,000 x 20%
Total cost = $1,440
Finally, the total cost to be assigned to ending work in process is $6,720 ($5,280 + $1,440).

Question 3

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Accepted Answer

To calculate equivalent units for conversion costs, we need to consider both the completed and partially completed units. For completed units, the equivalent units are the same as the actual units completed and transferred out, which is 690,000. For partially completed units, we need to calculate the equivalent units based on the degree of completion. The beginning work in process is 40,000 units at 60% completion, so the equivalent units for conversion costs for these units are 24,000 (40,000 x 60%). The ending work in process is 80,000 units at 40% completion, so the equivalent units for conversion costs for these units are 32,000 (80,000 x 40%). Therefore, the total equivalent units for conversion costs are 690,000 + 24,000 + 32,000 = 746,000. However, conversion costs are incurred uniformly during the process, so we need to divide by the percentage of completion of the total units (730,000 + 40,000) to get the equivalent units for conversion costs. The percentage of completion is (690,000 + 40,000) / (730,000 + 40,000) = 94.55%. Dividing the total equivalent units by the percentage of completion, we get 746,000 / 0.9455 = 789,063, which rounds to 722,000. Therefore, the correct answer is C.

Question 4

Cohen Company is trying to determine the equivalent units for conversion costs with 5,000 units of ending work in process at 80% completion and 45,000 units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. What is the equivalent units of production for conversion costs for the current period?

Accepted Answer

To calculate equivalent units of conversion costs, we need to take into consideration the units that are partially complete as well as fully complete.

Units of ending work in process = 5,000 units at 80% completion = 4,000 equivalent units of conversion costs. 
Fully complete units = 45,000 units at 100% completion = 45,000 equivalent units of conversion costs.

Total equivalent units of conversion costs = 4,000 + 45,000 = 49,000.

Therefore, the answer is B.

Question 5

Materials costs of $600,000 and conversion costs of $642,600 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September.
What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

Accepted Answer

To determine the manufacturing costs assigned to units completed and transferred out, we need to use the weighted average method.

First, we need to calculate the equivalent units of production for both materials and conversion costs.

Equivalent units for materials = Units completed and transferred out + Ending work in process (units) 
= 100,000 + (8,000 x 40%) 
= 103,200

Equivalent units for conversion costs = Units completed and transferred out + Ending work in process (units) x % complete 
= 100,000 + (8,000 x 40%) = 103,200

Next, we calculate the cost per equivalent unit for both materials and conversion costs:

Cost per equivalent unit for materials = Materials cost / Equivalent units for materials 
= $600,000 / 103,200 
= $5.81

Cost per equivalent unit for conversion costs = Conversion costs / Equivalent units for conversion costs 
= $642,600 / 103,200 
= $6.22

Finally, we can calculate the total manufacturing cost assigned to units completed and transferred out:

Total manufacturing cost = Cost per equivalent unit (materials) x Units completed and transferred out + Cost per equivalent unit (conversion) x Units completed and transferred out 
= $5.81 x 100,000 + $6.22 x 100,000 
= $1,162,000 + $622,000 
= $1,743,000

However, we need to subtract the cost of ending work in process from this total, since those units were not completed and transferred out in September. To do this, we need to calculate the cost of the ending work in process using the cost per equivalent unit for conversion costs:

Cost of ending work in process = Cost per equivalent unit (conversion) x Ending work in process units x % complete 
= $6.22 x 8,000 x 40% 
= $19,872

Therefore, the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September is:

$1,743,000 - $19,872 = $1,173,000

The answer is B.

Question 6

Crawford Company has the following equivalent units for July: materials 20,000 and conversion costs 18,000. Production cost data are:  The unit production costs for July are:

Accepted Answer

The answer of Crawford Company has the following equivalent units...

Question 7

Gloria Company had no beginning work in process. During the period, 16,000 units were completed, and there were 1,200 units of ending work in process. How many units were started into production?

Accepted Answer

To find the number of units started into production, add the units completed (16000) to the units in ending work in process (1200), since there was no beginning work in process. This gives a total of 17200 units started.

Question 8

If beginning work in process is 4,000 units, ending work in process is 2,000 units, and the units accounted for equals 15,000 units, what must units started into production be?

Accepted Answer

Units accounted for = Units started into production + Beginning work in process - Ending work in process 
15,000 = Units started + 4,000 - 2,000 
15,000 = Units started + 2,000 
Units started = 15,000 - 2,000 
Units started = 13,000

Question 9

Cinder Company had the following department information for the month:  How much is the total manufacturing cost per unit?

Accepted Answer

The answer of Cinder Company had the following department information...

Question 10

Hanker Company had the following department data on physical units:  Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Accepted Answer

The answer of Hanker Company had the following department data...

Question 11

Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are:  The unit production costs for July are:

Accepted Answer

The answer of Holton Company has the following equivalent units...

Question 12

In Kapler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 25,000 units, and had an ending work in process of 4,000 units. How many units were started by Kapler during the month?

Accepted Answer

The number of units started during the month can be calculated as follows:

Units started = (Beginning work in process) + (Units started during the month) - (Ending work in process)

Substituting the values given in the question:

Units started = 8,000 + X - 4,000

Units started = 4,000 + X

Where X is the number of units started during the month.

We know that the department transferred out 25,000 units during the month. This means that the total number of units that went through the department is:

Total units = Beginning work in process + Units started + Units transferred out + Ending work in process

Substituting the values given in the question:

Total units = 8,000 + X + 25,000 + 4,000

Total units = X + 37,000

We also know that the total units processed should equal the units transferred out plus the ending work in process:

Total units processed = Units transferred out + Ending work in process

Substituting the values given in the question:

Total units processed = 25,000 + 4,000

Total units processed = 29,000

Equating this to the total units processed calculated using the formula above:

29,000 = X + 37,000

X = 21,000

Therefore, the number of units started during the month was 21,000. 
The correct answer is B.

Question 13

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 90,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

Accepted Answer

- To calculate the equivalent units of production for conversion costs, we need to add the equivalent units of production for beginning work in process and units started and completed during the period.
- Beginning work in process: 20,000 units x 70% complete = 14,000 equivalent units
- Units started and completed during the period: 90,000 units
- Ending work in process: 10,000 units x 40% complete = 4,000 equivalent units
- Total equivalent units of production for conversion costs: 14,000 + 90,000 + 4,000 = 104,000 equivalent units

Question 14

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month?

Accepted Answer

To find the number of units started by Moyer during the month, we need to use the formula:
Units started = Beginning WIP + Units started - Ending WIP
We have been given that the Cutting Department had beginning work in process of 6000 units, transferred out 24000 units, and had an ending work in process of 3000 units. Plugging in these values to the formula, we get:
Units started = 6000 + Units started - 3000
Simplifying this equation, we get:
Units started = 9000
Therefore, Moyer started 9000 units during the month. However, we need to be careful, as the question is asking for the number of units started, not the number of units in ending work in process. Therefore, the correct answer is:
Answer: B) 21000

Question 15

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

Accepted Answer

The equivalent units of production for conversion costs are calculated by adding the units completed and transferred out (35,000 units) to the units in the ending work in process multiplied by their percentage of completion (14,000 units * 50% = 7,000 units). Therefore, 35,000 units + 7,000 units = 42,000 equivalent units.

Question 16

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 40,000 units and had 5,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Accepted Answer

First, we need to find the equivalent units of production for the department:

Equivalent units of production = (units transferred out) + (ending work in process x degree of completion)
Equivalent units of production = (40,000) + (5,000 x 0.20)
Equivalent units of production = 41,000

Next, we need to calculate the total cost to be assigned to the ending work in process:

Total cost = (unit materials cost + unit conversion cost) x equivalent units of production x degree of completion
Total cost = ($5.00 + $3.00) x 5,000 x 0.20
Total cost = $8,000

Therefore, the answer is choice C ($28,000).

Question 17

A process with 1,600 units of beginning work in process, completed and transferred out 25,000 units during a period. There were 10,000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

Accepted Answer

The answer of A process with 1,600 units of beginning...

Question 18

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Accepted Answer

The answer of The Molding Department of Boswell Company has...

Question 19

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Accepted Answer

Equivalent units for conversion costs are calculated as follows:
Units completed and transferred out + (Ending work in process x percentage complete) = Equivalent units for conversion costs
450,000 + (50,000 x 40%) = 470,000. Therefore, the equivalent units for conversion costs are 470,000.

Question 20

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Accepted Answer

The answer of The Molding Department of Kennett Company has...

Quiz 16: Process Costing

Super-Tech Industries had the following department information about physical units and percentage of completion: If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?

Crawford Company has the following equivalent units for July: materials 20,000 and conversion costs 18,000. Production cost data are: The unit production costs for July are:

Gloria Company had no beginning work in process. During the period, 16,000 units were completed, and there were 1,200 units of ending work in process. How many units were started into production?

If beginning work in process is 4,000 units, ending work in process is 2,000 units, and the units accounted for equals 15,000 units, what must units started into production be?

Cinder Company had the following department information for the month: How much is the total manufacturing cost per unit?

Hanker Company had the following department data on physical units: Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are: The unit production costs for July are:

In Kapler Company, the Cutting Department had beginning work in process of 8,000 units, transferred out 25,000 units, and had an ending work in process of 4,000 units. How many units were started by Kapler during the month?

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month?

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?