Question 1

The following information concerns Schroeder's equivalent units in May:  Using the weighted average method, what are Schroeder's equivalent units for May?

Accepted Answer

The answer of The following information concerns Schroeder's equivalent units...

Question 2

The following information is provided:  Materials and conversion are incurred uniformly throughout the process.
Equivalent units of production for conversion using the weighted average method would be

Accepted Answer

We are given the following information:
- Process: TB8702-00
- Production Units: 22,000
- Materials and Conversion Costs: Incurred uniformly throughout the process
- Method: Weighted Average

To find the equivalent units of production for conversion, we need to determine the percentage of completion for units that are still in process at the end of the period. We can calculate this as follows:

Units in Process (ending inventory) * Percentage of Completion = Equivalent Units
(4,000 * 100%) + (3,600 * 60%) = 4,000 + 2,160 = 6,160

Now, we can calculate the total equivalent units of production for conversion by adding the fully completed units to the equivalent units for units in process:

Total Equivalent Units = Fully Completed Units + Equivalent Units for Units in Process
Total Equivalent Units = 11,840 + 6,160
Total Equivalent Units = 18,000

Therefore, the equivalent units of production for conversion using the weighted average method is 18,000. The closest answer choice is B (18,600), which is the correct choice.

Question 3

Figure 6-5.
For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete.
-Refer to Figure 6-5. How many equivalent units of production did Haley Co. have for the period?

Accepted Answer

To calculate equivalent units of production, we need to consider both completed units and units in process.
Equivalent units for completed units = 8,000 units
Equivalent units for units in process = 12,000 units x 40% = 4,800 equivalent units
Total equivalent units of production = 8,000 + 4,800 = 12,800
Therefore, the best choice is C.

Question 4

The production report

Accepted Answer

The production report provides information about both the physical units processed by the department and the manufacturing costs incurred by the department, making it a subsidiary to the work in process account.

Question 5

The following amounts were selected from the production report of Chandon Corporation:  Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been

Accepted Answer

The answer of The following amounts were selected from the...

Question 6

Figure 6-6.
The Martin Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 120,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).
-Refer to Figure 6-6. Calculate the number of units started during the period.

Accepted Answer

The answer of Figure 6-6.
The Martin Company uses the weighted...

Question 7

Which of the following does not appear in the production report?

Accepted Answer

The production report typically includes information such as physical units passing through the department, costs added in the department, and costs transferred from prior departments. However, it generally does not include information on the retail value of the units produced.

Question 8

Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Accepted Answer

11ea8a4c_48d0_eb12_a0e6_370999085b9f_TB5550_00

Question 9

Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. During the current period, the beginning work-in-process inventory cost was $13,525. Manufacturing cost added was $57,000. If Burgundy's ending work-in-process inventory was valued at $15,100, then cost of goods transferred must have been

Accepted Answer

To calculate the cost of goods transferred, we need to use the formula:

Cost of goods transferred = Beginning WIP inventory + Manufacturing cost added - Ending WIP inventory

Plugging in the given values, we get:

Cost of goods transferred = $13,525 + $57,000 - $15,100
Cost of goods transferred = $55,425

Therefore, the answer is choice B) $55,425.

Question 10

Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Accepted Answer

11ea8a4c_48d0_eb12_a0e6_370999085b9f_TB5550_00

Question 11

Figure 6-6.
The Martin Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 120,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).
-Refer to Figure 6-6. What are the equivalent units of production for conversion costs?

Accepted Answer

For conversion costs, we need to take into account the units that were partially completed at the beginning and end of the period, in addition to the units that were completed during the period.

Equivalent units of production = Units completed + (Ending WIP units x % complete for conversion costs) + (Beginning WIP units x % complete for conversion costs)

Equivalent units of production = 120,000 + (10,000 x 20%) + (6,000 x 50%)

Equivalent units of production = 120,000 + 2,000 + 3,000

Equivalent units of production = 125,000

Therefore, the answer is C) 122,000.

Question 12

Simplicity is the main advantage of which of the following process costing methods?

Accepted Answer

Weighted average costing method is the simplest and easiest process costing method to implement. It requires only one calculation of the average cost per unit based on the total cost of production and the total number of units produced. In contrast, FIFO and LIFO methods require tracking and accounting for each unit produced, while the exact cost method requires tracking and accounting for each individual cost incurred during production.

Question 13

Figure 6-5.
For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete.
-Refer to Figure 6-5. If Haley Co. incurred $31,800 in production costs what was Haley's cost per equivalent unit for the period?

Accepted Answer

To calculate the cost per equivalent unit, first find the equivalent units of production. Completed units are fully equivalent, so 8,000 units are 100% complete. The 12,000 units in process are 40% complete, so they count as 12,000 * 0.4 = 4,800 equivalent units. The total equivalent units are 8,000 + 4,800 = 12,800. Divide the total costs by the equivalent units: $31,800 / 12,800 units = $2.48 per equivalent unit.

Question 14

Garcia Company uses the weighted average method in its costing system. For the month of May in the Assembly Department, the equivalent units for conversion costs amounted to 35,000. There were 5,000 units in beginning work-in-process that were 50% complete. During the month, 33,000 units were started and 31,400 were completed and transferred. The ending work in process consists of

Accepted Answer

The answer of Garcia Company uses the weighted average method...

Question 15

The following information is provided:  Materials are added at the beginning of the process.
Equivalent units of production for conversion costs using the weighted average method would be

Accepted Answer

The answer of The following information is provided:  Materials...

Question 16

Which step is physical flow analysis in the general pattern of a process-costing production report?

Accepted Answer

The following five steps describe the general pattern of a process-costing production report:
 11ea8a4c_48d5_a51d_a0e6_e367cbfdb1b3_TB5550_00

Question 17

Estimating the degree of completion of ending work in process requires:

Accepted Answer

Estimating the degree of completion of ending work in process involves judgment to assess the extent of work done and ethical behavior to ensure that the estimation is done honestly and accurately. It does not necessarily require knowledge of the beginning work in process, adjustments to completed units, or the use of the weighted average method, although these might be part of broader accounting practices.

Question 18

What is the major advantage of the weighted average cost method?

Accepted Answer

The weighted average cost method is favored for its simplicity, as it averages out the costs of goods, making inventory and cost of goods sold calculations less complex.

Question 19

A production report is divided into two sections:

Accepted Answer

A production report typically includes a unit information section that summarizes the physical quantities of products completed and in process, and a cost information section that summarizes the costs associated with production, such as direct materials, direct labor, and overhead. Therefore, B is the best choice as it describes the two main sections of a production report.

Question 20

Which step is cost reconciliation in the general pattern of a process-costing production report?

Accepted Answer

The following five steps describe the general pattern of a process-costing production report:
 11ea8a4c_48d5_7e0c_a0e6_1372cacae228_TB5550_00

Quiz 6: Process Costing

The following information concerns Schroeder's equivalent units in May: Using the weighted average method, what are Schroeder's equivalent units for May?

The following information is provided: Materials and conversion are incurred uniformly throughout the process. Equivalent units of production for conversion using the weighted average method would be

Figure 6-5. For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete. -Refer to Figure 6-5. How many equivalent units of production did Haley Co. have for the period?