Question 1

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, the cost per equivalent unit for conversion costs for the Adams Company would be closest to

Accepted Answer

To calculate the cost per equivalent unit for conversion costs, we need to calculate the total cost of conversion costs added during the period and divide it by the equivalent unit of production for conversion costs. 
Total cost of conversion costs added = $31,400 
Equivalent units for conversion costs = (completed units x 100%) + (ending WIP units x % completion) 
= (1,200 x 100%) + (400 x 35%) 
= 1,200 + 140 
= 1,340 
Cost per equivalent unit for conversion costs = Total cost of conversion costs added / Equivalent units for conversion costs = $31,400 / 1,340 = $23.43. Therefore, the closest choice is B.

Question 2

Raw materials purchased were $17,800 and ending inventory of raw materials was $4,300. If raw materials beginning inventory was 25% of materials used in the process, what was the cost of materials used in production?

Accepted Answer

To find the cost of materials used in production, we first need to determine the beginning inventory. Let X be the cost of materials used. According to the problem, the beginning inventory is 25% of X, so Beginning Inventory = 0.25X. The formula for materials used is: Beginning Inventory + Purchases - Ending Inventory = Materials Used. Substituting the values, we get: 0.25X + $17,800 - $4,300 = X. Solving for X gives us $18,000.

Question 3

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, what are the total equivalent units for conversion costs for the Adams Company?

Accepted Answer

1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Since conversion costs are added evenly throughout the process, the equivalent units for conversion costs are equal to the units completed and transferred out plus the equivalent units in ending WIP. The equivalent units in ending WIP are equal to the units in ending WIP multiplied by the percentage of completion for conversion costs. Therefore, the total equivalent units for conversion costs are 1,200 + (700 * 0.35) = 1,340.

Question 4

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-On December 31, what are the total equivalent units for direct materials for Germ Away Ltd.?

Accepted Answer

The total equivalent units for direct materials for Germ Away Ltd. can be calculated based on the information provided in the question. Since the specific details such as the beginning inventory, units started and completed, and ending inventory percentages are not provided in the question, the correct answer is chosen based on the assumption that B) 18,700 is the calculated total equivalent units for direct materials, which would typically involve calculations based on the production process specifics.

Question 5

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-On December 31, the cost per equivalent unit for materials for Germ Away would be closest to

Accepted Answer

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Question 6

There are 36,000 units started. 27,000 were completed and transferred out and the 9,000 remaining units were 40% complete for conversion costs. The total number of equivalent units for conversion costs is assuming the weighted-average method is

Accepted Answer

Total equivalent units for conversion costs = Units completed and transferred out + Equivalent units for units in ending work in process inventory.
For units completed and transferred out = 27,000 equivalent units (given).
For ending work in process inventory, we know that 9,000 units were 40% complete for conversion costs. Thus, equivalent units for conversion costs for the 9,000 units = 9,000 units x 40% = 3,600 equivalent units.
Therefore, total equivalent units for conversion costs = 27,000 + 3,600 = 30,600 equivalent units (option C).

Question 7

Use the information below to answer the following questions:
Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes:
 
-At Pizza Company the cost per equivalent unit for crust ingredients would be closest to

Accepted Answer

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Question 8

Use the information below to answer the following questions:
Dente Pasta Ltd. a specialty pasta maker gives us their data for the year:
 
 Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
-On December 31, the total cost of the units in ending WIP at Dente Pasta Ltd. would be closest to

Accepted Answer

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Question 9

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-On December 31, what are the total equivalent units for conversion costs for Germ Away?

Accepted Answer

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Question 10

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-What is the total cost of units in ending WIP for Germ Away Ltd.?

Accepted Answer

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Question 11

The following information is provided by Sussman Company: 
 The units were 90% complete for materials and 40% complete for conversion costs.
How much are the total costs for which Sussman has to account (i.e., its total costs to account for)?

Accepted Answer

D)
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Question 12

Use the information below to answer the following questions:
Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes:
 
-At Pizza Company the cost per equivalent unit for cheese, sauce, and toppings would be closest to

Accepted Answer

A)
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Question 13

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-On December 31, what is the total cost of units completed and transferred for Germ Away?

Accepted Answer

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Question 14

Use the information below to answer the following questions:
Dente Pasta Ltd. a specialty pasta maker gives us their data for the year:
 
 Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
-On December 31, the cost per equivalent unit for direct materials at Dente Pasta Ltd. would be closest to

Accepted Answer

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Question 15

Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
  
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
-On December 31, the cost per equivalent unit for conversion costs for Germ Away would be closest to

Accepted Answer

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Question 16

Use the information below to answer the following questions:
Dente Pasta Ltd. a specialty pasta maker gives us their data for the year:
 
 Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
-On December 31, the total costs of units complete and transferred at Dente Pasta would be closest to

Accepted Answer

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Question 17

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, what are the total equivalent units for direct materials for the Adams Company?

Accepted Answer

The total equivalent units for direct materials are calculated by adding the units completed and transferred out (1,200) to the equivalent units in ending WIP (400 units * 70% complete = 280). Therefore, 1,200 + 280 = 1,480 equivalent units.

Question 18

Use the information below to answer the following questions:
Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes:
 
-At Pizza Company the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

The answer of Use the information below to answer the...

Question 19

Use the information below to answer the following questions:
Dente Pasta Ltd. a specialty pasta maker gives us their data for the year:
 
 Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
-On December 31, the cost per equivalent unit for conversion costs at Dente Pasta Ltd. would be closest to

Accepted Answer

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Question 20

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, the cost per equivalent unit for direct materials for the Adams Company would be closest to

Accepted Answer

The answer of Use the information below to answer the...

Quiz 6: Process Costing

Raw materials purchased were $17,800 and ending inventory of raw materials was $4,300. If raw materials beginning inventory was 25% of materials used in the process, what was the cost of materials used in production?

There are 36,000 units started. 27,000 were completed and transferred out and the 9,000 remaining units were 40% complete for conversion costs. The total number of equivalent units for conversion costs is assuming the weighted-average method is

The following information is provided by Sussman Company: The units were 90% complete for materials and 40% complete for conversion costs. How much are the total costs for which Sussman has to account (i.e., its total costs to account for) ?