Question 1

Under the weighted-average process cost method, we ignore

Accepted Answer

Under the weighted-average process cost method, the timing of when costs are actually incurred is ignored. Costs are averaged out over the units produced during the period, without distinguishing between costs incurred at different times within the period.

Question 2

Tivoli-Ng Company's Assembly Department started 14,000 units and completed 16,000 units.If beginning Work in Process was 2,600 units, how many units are in ending Work in Process?

Accepted Answer

To find out how many units are in ending Work in Process, we need to use the formula:

Ending Work in Process = Beginning Work in Process + Units Started - Units Completed

Plugging in the given values, we get:

Ending Work in Process = 2,600 + 14,000 - 16,000
Ending Work in Process = 600

Therefore, the correct choice is A) 600.

Question 3

If 20,000 units are started into production and 12,000 units are in process at the end of the period, how many units were completed and transferred out if there was no beginning Work in Process?

Accepted Answer

As there was no beginning Work in Process, all 20,000 units are considered as started and only 12,000 units were in process at the end of the period. Therefore, the number of completed and transferred out units would be 20,000 - 12,000 = 8,000 units.

Question 4

The Dolly Company began the period with no units in process and in Finished Goods Inventory.During the period they began 96,000 units and completed 80,000 units.If equivalent units for the period totalled 90,000, then the units in process were what percent complete? (rounded)

Accepted Answer

The answer of The Dolly Company began the period with...

Question 5

In a process with 800 units of beginning Work in Process, the company completed and transferred out 10,000 units during a period.There were 5,000 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 if the weighted-average method is used?

Accepted Answer

The answer of In a process with 800 units of...

Question 6

A process with no beginning Work in Process, completed and transferred out 10,000 units during a period and had 5,000 units in the ending Work in Process that were 50% complete.How much is equivalent units of production for the period for conversion costs if the weighted-average method is used?

Accepted Answer

The equivalent units of production for conversion costs using the weighted-average method is calculated by adding the units completed and transferred out to the equivalent units in ending Work in Process. Here, it's 10,000 units completed and transferred out + (5,000 units * 50% completion) = 10,000 + 2,500 = 12,500 equivalent units.

Question 7

The Winston Company began the period with no units in process and 80,000 units in Finished Goods Inventory.During the period they sold 280,000 units and also had the following at the end of the period: $\begin{array}{cc}
  \text { Finished goods (units) } &40,000\
 \text { Work in process ( $ 50 \% $ conversion complete)  } &12,000\
\end{array}$ Equivalent units for the period totalled

Accepted Answer

The equivalent units for the period can be calculated by adding the units sold, the ending finished goods inventory, and the work in process (adjusted for the percentage of completion). Here, it's 280,000 (sold) + 40,000 (ending finished goods) + (12,000 * 50%) = 320,000 + 6,000 = 326,000. However, the beginning inventory must be subtracted since those units were not part of this period's production. Thus, 326,000 - 80,000 = 246,000 equivalent units.

Question 8

If beginning Work in Process is 2,000 units, ending Work in Process is 1,000 units, and the units accounted for equals 5,000 units, what must units started in production be?

Accepted Answer

The answer of If beginning Work in Process is 2,000...

Question 9

If equivalent units are 6,000 for conversion costs and units transferred out equals 4,000, what stage of completion should the ending Work in Process be for the 8,000 units remaining?

Accepted Answer

The ending Work in Process for the 8,000 units remaining should be at 25% completion for conversion costs. This is because there are 6,000 equivalent units for conversion costs, and 4,000 units were transferred out, leaving 2,000 equivalent units for the conversion costs of the ending Work in Process. Since there are 8,000 units remaining, and 2,000 of these are equivalent units for conversion costs, this means the remaining units are 25% complete (2,000 equivalent units / 8,000 units remaining = 0.25 or 25%).

Question 10

Halston Company has no beginning Work in Process; 5,000 units are transferred out and 1,000 units in ending Work in Process are 25% finished as to conversion costs and fully complete as to materials cost.If materials added and beginning Work in Process materials cost totals $18,000, how much is the materials cost per unit if the weighted-average method is used?

Accepted Answer

The materials cost per unit is calculated by dividing the total materials cost by the total units accounted for. Since all materials are added at the beginning of the process, the total units accounted for include both the units transferred out (5,000) and the units in ending Work in Process (1,000), regardless of their stage of completion. Therefore, the total units accounted for are 5,000 + 1,000 = 6,000 units. The total materials cost is given as $18,000. Thus, the materials cost per unit is $18,000 / 6,000 units = $3.00.

Question 11

If 20,000 units are transferred out of a department, there is no beginning inventory, and there are 6,000 units still in process at the end of a period, how many units were started into production during the period?

Accepted Answer

The number of units started into production during the period can be calculated as follows:

Units started = Units transferred out + Ending inventory - Beginning inventory

Since there is no beginning inventory, we can simply add the units transferred out and the ending inventory.

Units started = 20,000 + 6,000 
Units started = 26,000

Therefore, the answer is C) 26,000.

Question 12

Cohen Manufacturing is trying to determine the equivalent units for conversion costs with 2,000 units of ending Work in Process at 80% completion and 14,000 physical 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 are the equivalent units for conversion costs for the current period if the weighted-average method is used?

Accepted Answer

The equivalent units for conversion costs are calculated by adding the full units that are 100% complete (14,000 units) to the equivalent units for the ending Work in Process based on their completion percentage for conversion costs (2,000 units * 80% = 1,600 units). Therefore, 14,000 + 1,600 = 15,600 equivalent units for conversion costs.

Question 13

Equivalent units for materials total 9,000.There were 7,000 units completed and transferred out.Equivalent units for conversion costs equal 8,000.How much are the physical units for conversion costs if ending Work in Process is 25% complete?

Accepted Answer

Physical units for conversion costs can be calculated by adding the units completed and transferred out to the units in ending Work in Process, adjusted for their percentage of completion. Here, 7,000 units were completed and transferred out. The ending Work in Process, which is 25% complete, refers to the conversion costs, not the physical units directly. However, since the equivalent units for conversion costs are 8,000, and we know that 7,000 units were completed and transferred out, we can infer that the remaining 1,000 equivalent units for conversion costs come from the Work in Process inventory. To find the physical units that correspond to these 1,000 equivalent units at 25% completion, we calculate 1,000 / 0.25 = 4,000. Adding these 4,000 units in process to the 7,000 units completed gives us a total of 11,000 physical units for conversion costs.

Question 14

Gloria Company had no beginning Work in Process.During the period, 5,000 units were completed, and there were 500 units of ending Work in Process.How many units were started in production?

Accepted Answer

Since there was no beginning Work in Process and 5,000 units were completed with an additional 500 units still in process at the end, Gloria Company must have started 5,500 units in production.

Question 15

Hanker Company had the following department data on physical units: $\begin{array}{cc}
  \text { Work in process, beginning } &7,000\
 \text { Completed and transferred out } &12,000\
 \text { Work in process, ending } &9,000\
\end{array}$
 
Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period if the weighted-average method is used?

Accepted Answer

The department data on physical units is not enough to determine the correct answer. More information is needed, such as the department name, unit of measurement, and context of the data. Therefore, the best choice is option C) 21,000, which is the only option that includes the given numbers as a possible answer.

Question 16

When using the weighted-average method, equivalent units are

Accepted Answer

Equivalent units are the measurement of production output that accounts for partially completed units. In the weighted-average method, equivalent units are calculated by adding the fully completed units to the equivalent units of the partially completed units at the end of the period, which is calculated by multiplying the number of units in process by the percentage of completion. Therefore, the correct answer is B.

Question 17

What is a production cost report used for?

Accepted Answer

A production cost report is used to show the costs charged to a department and the costs accounted for during a specific period. It helps to track the production process and identify any inefficiencies or areas for improvement. Option A is not correct as a production cost report is an internal document and is not provided to shareholders. Option C is also not correct as a production cost report includes both equivalent units and physical units. Option D is not entirely accurate as a production cost report shows the actual overhead incurred and not just the basis on which it is allocated.

Question 18

Harms Company enters materials at beginning of the process.On January 1, there was no beginning Work in Process, but there were 100 units in ending Work in Process inventory.To what is the 'number of units completed' equal?

Accepted Answer

The number of units completed must be equal to the number of units started minus the 100 units in ending Work in Process inventory. This is because the units in ending Work in Process inventory are considered partially completed units, so they are not yet considered completed units.

Question 19

A department had the following information for the month: $\begin{array}{cc}
  \text {Total materials costs.  } &\$ 90,000\
 \text { Conversion cost per unit } &\$ 3.00\
 \text { Total manufacturing cost per unit } &\$ 5.00\
\end{array}$

What are the equivalent units of production for materials if the weighted-average methor 5 used?

Accepted Answer

The answer of A department had the following information for...

Question 20

In order to arrive at equivalent units, what adjustments are made to physical units?

Accepted Answer

To arrive at equivalent units, adjustments are made based on the percentage of completion for each unit. This takes into account the amount of work that has been done on each unit and therefore provides a more accurate measure of the total production.

Quiz 4: Process Costing