Question 1

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
 During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Eclypso's cost of goods transferred to the molding department (Note: Round answer to two decimal places.) during October would be:
A) $310,347.
B) $261,050.
C) $465,792.
D) $294,000.

Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 
 11ea8a4c_48d3_5b22_a0e6_a35245d42873_TB5550_00 11ea8a4c_48d3_5b23_a0e6_5d251fc6db37_TB5550_00  
 
 *(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
**(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
 
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13
Cost of goods transferred to the molding department = Units completed and transferred to the molding department × Cost per equivalent unit = 38,400 units × $12.13 = $465,792

Question 2

Beginning inventory of Talisman Inc.for the month had 3,600 units that were 65% complete with respect to materials.During the month, 60,000 units were completed and transferred out.Ending inventory contained 6,000 units that were 40% complete with respect to materials.The weighted average equivalent units of production for materials for the month would be:
A) 50,000.
B) 62,400.
C) 50,300.
D) 49,500.

Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 11ea8a4c_48d2_e6ef_a0e6_3fe46b3a08f5_TB5550_00

Question 3

The Learner Company uses the weighted average method.Learner's beginning work in process consists of 6,600 units (100% complete with respect to materials and 60% complete with respect to conversion costs).The number of units completed is 126,000.The ending work in process consists of 10,500 units (100% complete with respect to materials and 30% complete with respect to conversion costs).What are the equivalent units of production for conversion costs?
A) 120,850
B) 132,000
C) 129,150
D) 135,000

Accepted Answer

SUPPORTING CALCULATIONS
Equivalent Units = Units Completed + Units in EWIP × Fraction Complete= 126,000 units + (10,500 units × 0.30) = 129,150 units

Question 4

The following information is available for Department X for the month of August: ?
?

- Department X's cost per equivalent unit for conversion using the weighted average method would be:
 
A) $8.00.
B) $5.00.
C) $3.00.
D) $9.00.

Accepted Answer

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Question 5

Following is the information of Piper Company for the month of May: Materials and conversion are incurred uniformly throughout the process.
  
The equivalent units of production for conversion using the weighted average method would be:
A) 19,467.
B) 18,900.
C) 21,575.
D) 22,000.

Accepted Answer

Equivalent Units = Units Completed + (Units in EWIP × Fraction Complete)
 11ea8a4c_48d1_d57a_a0e6_c58f5c5824cd_TB5550_00

Question 6

Estimating the degree of completion of ending work in process requires:
A) judgement and ethical behavior
B) The degree of completion of beginning work in process
C) adjusting the degree of completion of completed units
D) use of the weighted average method

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 7

In the current period, Forward Co.started with the production of 21,000 units and completed 8,400 units, leaving 13,200 units in process that are 42% complete.
-If Forward Co.incurred production costs of $34,980, what was Forward's cost per equivalent unit for the period? (Note: Round your answer to two decimal places.)
A) $2.51
B) $3.00
C) $2.75
D) $3.25

Accepted Answer

Equivalent Units = Units Completed + (Units in EWIP × Fraction Complete)
Cost per Equivalent Unit = Total cost / Equivalent Units
 11ea8a4c_48d1_ae68_a0e6_dfb10b8a49e0_TB5550_00 Cost per equivalent unit for the period = $34,980 / 13,944 equivalent units = $2.51 per equivalent unit

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
A) 50,000
B) 51,500
C) 50,300
D) 49,500

Accepted Answer

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Question 9

Simplicity is the main advantage of which of the following process costing methods?
A) LIFO
B) FIFO
C) weighted average
D) exact cost method

Accepted Answer

The weighted average method is the simplest among the options. Both LIFO and FIFO methods require the tracking of specific units and their costs, while the exact cost method involves tracking individual costs for each process. The weighted average method, on the other hand, calculates an average cost for all units in the process, making it simpler and easier to use.

Question 10

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
 During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

- By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is the total cost per equivalent unit of production? (Note: Round answer to two decimal places)
A) $12.13
B) $10.76
C) $11.26
D) $8.52

Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 
 11ea8a4c_48d2_71bd_a0e6_4b1fa675a182_TB5550_00  
 11ea8a4c_48d2_98ce_a0e6_1704ecadef46_TB5550_00  
 
 *(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
*(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13

Question 11

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
 During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is Eclypso's cost of October's ending work in process for the mixing department? (Note: Round answer to two decimal places.)
A) $27,500.40
B) $29,200.60
C) $22,520.50
D) $37,117.80

Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 
 11ea8a4c_48d3_d056_a0e6_83b04bef6c2a_TB5550_00 11ea8a4c_48d3_d057_a0e6_f1ca8eb9f229_TB5550_00  
 
 *(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
**(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13
Cost of October's ending work in process for the mixing department = (Units remained in mixing department) × (Cost per equivalent unit) = 3,060 units × $12.13 = $37,117.80

Question 12

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:
A) 5,043 units.
B) 7,000 units.
C) 3,600 units.
D) 7,920 units.

Accepted Answer

Ending work in process = Units started - Units started and completed = (6,000 units + 39,600 units ) ? 37,680 units = 7,920 units

Question 13

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:
A) beginning work-in-process units and units started.
B) units started and completed and ending work-in-process units.
C) beginning work-in-process units and units started and completed during the current period.
D) other categories.

Accepted Answer

Under the FIFO (First-In, First-Out) production costing method, the total cost of units completed during a period is computed based on the costs associated with the beginning work-in-process units (those that were started in a previous period and completed in the current period) and the units that were both started and completed within the current period. This approach separates the costs of the beginning inventory from the costs of the production activity occurring entirely within the current period.

Question 14

Following is the information of Unicorn Inc.for the month of June:  
 Materials are added at the beginning of the process.
 
The equivalent units of production for conversion costs using the weighted average method would be:
A) 35,600.
B) 34,800.
C) 36,000.
D) 31,020.

Accepted Answer

Equivalent Units = Units Completed + (Units in EWIP × Fraction Complete)?
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Question 15

Beginning inventory for the month contained 2,000 units that were 70% complete with respect to materials.During the month, 60,000 units were completed and transferred out.Ending inventory contained 3,000 units, 20% complete with respect to materials.The weighted average equivalent units of production for materials for the month would be
A) 62,400
B) 63,000
C) 60,600
D) 60,000

Accepted Answer

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Question 16

The total associated manufacturing costs for beginning work in process units under the FIFO method are:
A) the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process
B) the cost of ending work-in-process units.
C) the cost of units started and completed.
D) conversion costs.

Accepted Answer

Under FIFO method, the cost of beginning work in process units includes the prior-period costs of incomplete units and the costs incurred during the current period to finish those units. Hence, the total associated manufacturing costs for beginning work in process units under the FIFO method is the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process. Options B, C, and D are not correct as they do not accurately describe the calculation of total associated manufacturing costs for beginning work in process units under the FIFO method.

Question 17

Following is the information about Kartval Enterprises's equivalent units in May:  Using the weighted average method, calculate Kartval Enterprises's equivalent units for May.
A) 7,150
B) 10,350
C) 10,235
D) 19,545

Accepted Answer

Equivalent Units = Units Completed + (Units in EWIP × Fraction Complete)
 11ea8a4c_48d1_6046_a0e6_6f9128c508e9_TB5550_00

Question 18

The following information is available for Department X for the month of August: ?
?

- Department X's cost per equivalent unit for materials using the weighted average method would be:
A) $2.00.
B) $7.00.
C) $8.00.
D) $9.00.

Accepted Answer

,
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Question 19

In the current period, Forward Co.started with the production of 21,000 units and completed 8,400 units, leaving 13,200 units in process that are 42% complete
-How many equivalent units of production did Forward Co.have for the period?
A) 13,500
B) 12,000
C) 13,944
D) 8,000

Accepted Answer

Equivalent Units = Units Completed + (Units in EWIP × Fraction Complete)
 11ea8a4c_48d1_8757_a0e6_394560a00058_TB5550_00

Question 20

The Learner Company uses the weighted average method.Learner's beginning work in process consists of 6,600 units (100% complete with respect to materials and 60% complete with respect to conversion costs).The number of units completed is 126,000.The ending work in process consists of 10,500 units (100% complete with respect to materials and 30% complete with respect to conversion costs).Calculate the number of units started during the period.
A) 129,900
B) 100,000
C) 120,000
D) 133,500

Accepted Answer

Units Started = Units Started and Completed + Units in EWIP = (126,000 units ? 6,600 units) + 10,500 units = 129,900 units

Quiz 6: Process Costing

The following information is available for Department X for the month of August: ? ? - Department X's cost per equivalent unit for conversion using the weighted average method would be:

Following is the information of Piper Company for the month of May: Materials and conversion are incurred uniformly throughout the process. The equivalent units of production for conversion using the weighted average method would be:

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

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

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

Following is the information of Unicorn Inc.for the month of June: Materials are added at the beginning of the process. The equivalent units of production for conversion costs using the weighted average method would be:

The total associated manufacturing costs for beginning work in process units under the FIFO method are:

Following is the information about Kartval Enterprises's equivalent units in May: Using the weighted average method, calculate Kartval Enterprises's equivalent units for May.

The following information is available for Department X for the month of August: ? ? - Department X's cost per equivalent unit for materials using the weighted average method would be:

In the current period, Forward Co.started with the production of 21,000 units and completed 8,400 units, leaving 13,200 units in process that are 42% complete -How many equivalent units of production did Forward Co.have for the period?