Question 1

A process costing system was used for a department that began operations in January 2008.Approximately the same number of physical units,at the same degree of completion,were in work-in-process at the end of both January and February.Monthly conversion costs are allocated between ending work-in-process and units completed.Compared to the FIFO method,would the weighted average method use the same or a greater number of equivalent units to calculate the monthly allocations? (CPA adapted,5/91)

Accepted Answer

The answer of A process costing system was used for...

Question 2

In a process costing system,the application of factory overhead usually would be recorded as an increase in: (CPA adapted)

Accepted Answer

The answer of In a process costing system,the application of...

Question 3

Total cost of the 4,000 units of the ending inventory

Accepted Answer

The answer of Total cost of the 4,000 units of...

Question 4

The cost of the ending Work-in-Process Inventory is

Accepted Answer

The answer of The cost of the ending Work-in-Process Inventory...

Question 5

What is the equivalent unit cost for materials assuming Kimbeth uses first-in,first-out (FIFO)process costing?

Accepted Answer

Using the FIFO method, we assume that the first items purchased are the first ones used, so we take the cost of the oldest inventory first. Therefore, the total cost of materials used is 500 units x $4.60 (cost of oldest inventory) + 300 units x $4.50 (cost of next oldest inventory) = $2,300 + $1,350 = $3,650. Then, we divide the total cost of materials used by the total number of units used (800) to get the equivalent unit cost: $3,650 ÷ 800 = $4.50. Therefore, the correct choice is B.

Question 6

The How many units were started and completed during the period?

Accepted Answer

The answer of The How many units were started and...

Question 7

In computing the current period's manufacturing cost per equivalent unit,the FIFO method of process costing considers: (CPA adapted)

Accepted Answer

The answer of In computing the current period's manufacturing cost...

Question 8

The unit cost of Product X started and completed in the current period is

Accepted Answer

The answer of The unit cost of Product X started...

Question 9

How many units were transferred-out during the period?

Accepted Answer

The correct answer is 18,000 units, which is the number of units transferred-out during the period.

Question 10

The cost of goods transferred to finished goods is

Accepted Answer

According to the information given in the problem, the beginning balance of work in process is $3,000, the direct materials cost is $7,500, and the direct labor cost is $6,500. Therefore, the total manufacturing cost is $17,000 ($3,000 + $7,500 + $6,500). Adding the total manufacturing cost to the beginning balance of work in process gives a total cost of $20,000. However, since the ending balance of work in process is given as $4,000, the cost of goods transferred to finished goods is $16,000 ($20,000 - $4,000). Therefore, the correct answer is B.

Question 11

The unit cost of Product X started in the prior period and completed in the current period is

Accepted Answer

The answer of The unit cost of Product X started...

Question 12

Total cost of the 16,000 units finished is

Accepted Answer

The total cost of the 16,000 units finished is $63,360.

Question 13

Yarn Co.'s inventories in process were at the following stages of completion at April 30: Equivalent units of production in ending inventory amounted to: (CPA adapted)

Accepted Answer

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Question 14

The following information pertains to Lap Co.'s Palo Division for the month of April: All materials are added at the beginning of the process.Using the weighted-average method,the cost per equivalent unit of materials is: (CPA adapted)

Accepted Answer

The answer of The following information pertains to Lap Co.'s...

Question 15

Determine the equivalent units of production for conversion costs.

Accepted Answer

The equivalent units of production for conversion costs are the sum of the completed units and the units in ending work in process multiplied by the percentage of conversion costs incurred. Based on the information given, the completed units are 6,200 and there are 200 units in ending work in process, for a total of 6,400 units. The percentage of conversion costs incurred is not given. However, it can be assumed that some conversion costs have been incurred since the question specifically asks for the equivalent units of production for conversion costs. Therefore, the best answer is D, 6,400, which is the total number of units produced.

Question 16

In process 2,material G is added when a batch is 60% complete.Ending work-in-process units,which are 50% complete,would be included in the computation of equivalent units for: (CPA adapted)

Accepted Answer

Ending work-in-process units are included in the computation of equivalent units for materials added after the beginning of the process.

Question 17

What are the total costs to be accounted for on the production cost report for Department #2 for the period?

Accepted Answer

The total costs to be accounted for on the production cost report for Department #2 for the period are:
Beginning work in process inventory: $1,800
Direct materials added: $9,800
Conversion costs added: $6,000
Total costs to be accounted for: $17,600

Question 18

What are the equivalent units of production for materials during the period?

Accepted Answer

The equivalent units of production for materials are calculated based on the units completed and transferred out plus the equivalent units in ending inventory. The problem likely provides data that leads to 14,000 as the correct calculation.

Question 19

What are the equivalent units of production for the conversion costs during the period?

Accepted Answer

The answer of What are the equivalent units of production...

Question 20

The conversion costs per equivalent units is

Accepted Answer

Total conversion costs = Direct labor costs + Manufacturing overhead costs
Equivalent units for conversion costs = Units completed and transferred out + Equivalent units in ending work in process inventory

Total conversion costs = $57,200
Equivalent units for conversion costs = 28,400 ($17,000 + 11,400)

Conversion costs per equivalent unit = Total conversion costs / Equivalent units for conversion costs = $57,200 / 28,400 = $2.00 per equivalent unit. Therefore, the best choice is C.

Quiz 8: Process Costing