Chapter 5 Test Bank Docx Process Costing

Managerial Accounting, 6e (Braun et al.)

Chapter 5 Process Costing

5.1 Distinguish between the flow of costs in process costing and job costing

1) Process costing is typically used for businesses that make unique goods in relatively small amounts.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

2) Process costing is typically used for businesses that make large quantities of identical items.

Diff: 1

LO: 5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

3) Cost for direct materials, direct labor and Manufacturing Overhead are assigned to each job.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

4) A separate Work in Process Inventory account is maintained for each process.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5) Unique or custom-made goods use a process costing system.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

6) Both process costing and job costing assign costs to units as they proceed through the process.

Diff: 2

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

7) Process costing differs from job costing in that process costing doesn't directly trace any materials or labor to any part of the production process.

Diff: 2

LO: 5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

8) In a job cost system, all costs flow to a particular job.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

9) Prime costs include direct labor and direct materials.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

10) Conversion costs are the sum of direct labor and direct materials.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

11) Indirect labor would not be a component of conversion costs.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

12) In process costing, the costs flow from Raw Materials Inventory, to Work in Process Inventory, to Finished Goods Inventory.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

13) To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.

Diff: 1

LO: 5-1

EOC: E5-23

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

14) In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

Diff: 1

LO: 5-1

EOC: E5-23

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

15) The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.

Diff: 2

LO: 5-1

EOC: E5-23

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

16) In a mass-production environment, direct labor is usually a relatively small component of the total manufacturing costs.

Diff: 1

LO: 5-1

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

17) Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct materials and Conversion costs.

Diff: 1

LO: 5-1

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

18) Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct labor and Conversion costs.

Diff: 1

LO: 5-1

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

19) How are manufacturing costs treated in process costing?

A) The manufacturing costs are added only when the goods are in finished inventory.

B) The manufacturing costs are added only when the goods are sold.

C) The manufacturing costs always follow the physical movement of the product.

D) None of the above

Diff: 2

LO: 5-1

EOC: E5-23

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

20) When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called?

A) Transported costs

B) Transmitted costs

C) Transferred costs

D) Conveyed costs

Diff: 2

LO: 5-1

EOC: E5-23

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

21) Whiffle Company produces children's whiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?

A) Finished Goods Inventory

B) WIP Inventory-Coloring

C) WIP Inventory-Finishing

D) WIP Inventory-Molding

Diff: 2

LO: 5-1

EOC: E5-23A

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

22) Disc Company produces Frisbees using a three-step sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?

A) When the Frisbees are in WIP Inventory-Molding

B) When the Frisbees are in WIP Inventory-Finishing

C) When the Frisbees are in WIP Inventory-Coloring

D) All of the above

Diff: 2

LO: 5-1

EOC: E5-23A

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

23) The two basic types of product costing systems are

A) department and plant.

B) FIFO and weighted-average.

C) variable and process.

D) job and process.

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

24) Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

A) Fixed costing

B) Job costing

C) Process costing

D) LIFO costing

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

25) Which of the following product costing systems is normally used to assign costs to goods that are produced in unique batches?

A) Fixed costing

B) Job costing

C) Process costing

D) LIFO costing

Diff: 1

LO: 5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

26) Process costing is most likely used in which of the following industries?

A) Chemicals

B) Aircraft

C) Construction

D) Printing

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

27) Process costing is most likely used in which of the following industries?

A) Pharmaceuticals

B) Health Care

C) Shipbuilding

D) Construction

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

28) Process costing would likely be used by which of the following?

A) Clear Channel Advertising

B) PIP Printing

C) DBA Management Consultants

D) PepsiCo

Diff: 1

LO: 5-1

EOC: S5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

29) Process costing would not be used by which of the following companies?

A) Sherwin-Williams, manufacturer of paint and stains

B) Coca-Cola, soft drink manufacturer

C) American Custom Yachts, Inc., manufacturer of custom yachts

D) Jelly Belly, manufacturer of jelly beans and other candy

Diff: 1

LO: 5-1

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

30) What does direct labor costs plus Manufacturing Overhead equal?

A) Prime costs

B) Operating costs

C) Conversion costs

D) Equivalent costs

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

31) The costing system used by a company producing custom fireplace mantels would be

A) process costing.

B) job costing.

C) equivalent units costing.

D) conversion cost costing.

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

32) The costing system used by a company making computer chips would be

A) process costing.

B) job costing.

C) equivalent units costing.

D) conversion cost costing.

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

33) The costing system used by an oil refinery would be

A) process costing.

B) job costing.

C) equivalent units costing.

D) conversion cost costing.

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

34) A system for assigning costs for products made in a continuous process is

A) process costing.

B) job costing.

C) equivalent units costing.

D) conversion cost costing.

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

35) A company manufactures purses. Last month's costs were:

What were the conversion costs for the month?

A) $221,000

B) $378,000

C) $237,000

D) $458,000

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

36) A company manufactures framed prints. Last month's costs were:

What were the conversion costs for the month?

A) $300,000

B) $388,000

C) $226,000

D) $88,000

Diff: 1

LO: 5-1

EOC: S5-7

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

37) The Candy Factory manufactures healthy candy that it sells to consumers and groups in the marketplace. The business produces chocolate-covered cherries in a three-step process to develop the center of the cherries, coat the cherries in chocolate, and package the final product. The total cost to produce a pound of chocolate covered cherries is the sum of the cost per pound in each of the following processes:

Candy Factory

Chocolate Covered Cherry Process

The managerial accountant reported that there is no Work in Process Inventory. Assuming that there is no work in process inventories, calculate the total cost per pound for each of the three processes listed above and the total cost to produce a pound of chocolate covered cherries. Explain why the cost in each process is important to the managerial accountant. Discuss at least three reasons why the cost in the process is important and how this cost is used at the company.

Diff: 2

LO: 5-1

EOC: S5-1

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

38) In process costing, manufacturing costs are usually combined into two categories: direct materials and conversion costs.

Diff: 1

LO: 5-1

EOC: S5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

39) Conversion costs are generally added evenly throughout a process.

Diff: 1

LO: 5-1

EOC: S5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5.2 Calculate equivalent units

1) Equivalent units express the amount of work done during a period in terms of partially completed units.

Diff: 1

LO: 5-2

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

2) Equivalent units should be computed separately for direct materials and conversion costs.

Diff: 1

LO: 5-2

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

3) The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

Diff: 1

LO: 5-2

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

4) Equivalent units express the amount of work done during a period of time in terms of fully completed units of output.

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5) If a company has 6,000 units that are 60% complete, the equivalent unit figure is 3,600.

Diff: 1

LO: 5-2

EOC: S5-5

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

6) Conversion costs are usually incurred evenly throughout productions.

Diff: 1

LO: 5-2

EOC: S5-5

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

7) In a process costing environment, direct materials and direct labor are usually combined into one cost category called "conversion costs."

Diff: 1

LO: 5-2

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

8) In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion costs."

Diff: 1

LO: 5-2

EOC: S5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

9) Direct materials are often added at a particular point in the production process.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

10) The number of equivalent units is usually the same for direct materials and conversion costs.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

11) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

12) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 50%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

13) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 0%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

14) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

15) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 50%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

16) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 0%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

17) If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is 50%.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

18) The weighted average and FIFO methods differ only in how they treat beginning inventory.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

19) The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

20) The weighted-average method of process costing is simpler than the FIFO method.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

21) In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

A) Cost of Goods Sold

B) equivalent units

C) fixed Manufacturing Overhead costs

D) conversion costs

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

22) Manufacturing costs are usually combined into two categories in a process costing system. These two categories are

A) direct labor and conversion costs.

B) direct materials and conversion costs.

C) Manufacturing Overhead and conversion costs.

D) direct materials and direct labor.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

23) Equivalent units are calculated by

A) multiplying the physical number of units by the percentage of completion.

B) adding the physical number of units with the number of units completed last period.

C) subtracting the physical units finished this period from the physical units in beginning inventory.

D) dividing the physical number of units by the percentage of completion.

Diff: 1

LO: 5-2

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

24) The only difference between the weighted average method of process costing and the FIFO method is

A) the method for calculating ending inventory.

B) the method for calculating units completed.

C) the method for calculating beginning inventory.

D) the method for calculating unit cost.

Diff: 1

LO: 5-2

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

25) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

A) 50%.

B) 100%.

C) 0%.

D) none of the above.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

26) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

A) 100%.

B) 0%.

C) 50%.

D) none of the above.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

27) If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

A) 0%.

B) 100%.

C) 50%.

D) cannot determine

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

28) If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is

A) 0%.

B) 50%.

C) 100%.

D) none of the above.

Diff: 2

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

29) In a process costing system, direct labor and manufacturing overhead are normally

A) incurred at the end of the process.

B) incurred evenly throughout the process.

C) incurred in full at the beginning of the process.

D) not recorded.

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

30) Which of the following is a measure of the amount of work done, expressed in complete units of output?

A) Job costing

B) Process costing

C) Conversion costs

D) Equivalent units

Diff: 1

LO: 5-2

EOC: E5-25

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

31) Lemony Lemonade has 3,300 gallons of lemonade in WIP Inventory, with 77% of materials already added. What are equivalent units in ending WIP Inventory for materials if the lemonade is 44% through the process?

A) 2,541

B) 1,452

C) 0

D) 1,089

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

32) Lemony Lemonade has 3,200 gallons of lemonade in WIP Inventory, with 76% of materials already added. The lemonade is 50% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

A) 0

B) 832

C) 2,432

D) 1,600

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

33) Simply Natural has 3,100 gallons of chocolate milk in WIP Inventory, with 71% of materials already added. What are equivalent units in ending WIP Inventory for materials if the chocolate milk is 59% through the process?

A) 1,829

B) 2,201

C) 0

D) 372

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

34) Simply Natural has 3,500 gallons of chocolate milk in WIP Inventory, with 71% of materials already added. The chocolate milk is 54% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

A) 0

B) 595

C) 1,890

D) 2,485

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

35) Frozen Treats has 2,800 quarts of ice cream in WIP Inventory, with all materials already added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 74% through the process?

A) 2,800

B) 2,072

C) 728

D) 0

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

36) Frozen Treats has 2,600 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 74% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

A) 0

B) 2,600

C) 1,924

D) 676

Diff: 2

LO: 5-2

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5.3 Use process costing in the first production department

1) In process costing, units that are partially completed are accounted for the same as units in Finished Goods Inventory.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

2) The cost per equivalent unit for direct materials will always be equal to the cost per equivalent unit for conversion costs.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

3) The number of equivalent units is computed before computing the cost per equivalent unit.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

4) Wong completed 24,000 units and had another 6,000 units 45% complete. The total equivalent units for the period are 26,700.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5) Total direct materials = $67,500, and there is no beginning WIP Inventory. Units completed are 15,000 with no ending Work in Process Inventory. The cost per unit is $4.50.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

6) The production equivalent unit report summarizes all costs.

Diff: 1

LO: 5-3

EOC: S5-8

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

7) If a company has no ending Work in Process Inventory, it does not need to use the 5-step process costing procedure to determine the cost of making one unit.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

8) If a company has ending Work in Process Inventory it must use the 5-step process costing procedure to determine the cost of making one unit.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

9) If a company has ending Work in Process Inventory it must use the 3-step process costing procedure to determine the cost of making one unit.

Diff: 1

LO: 5-3

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

10) The existence of ending Work in Process Inventory necessitates the use of the 5-step process costing procedure.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

11) The existence of ending Work in Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory, and how much of the cost should be assigned to units completed during the period.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

12) The first step of the 5-step process costing procedure is to summarize the flow of physical units.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

13) The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work in Process Inventory.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

14) The first step of the 5-step process costing procedure is to summarize total costs to account for.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

15) The last step of the 5-step process costing procedure is to summarize the flow of physical units.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

16) The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

17) The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in ending WIP Inventory.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

18) The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units in ending WIP Inventory.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

19) The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in beginning WIP Inventory.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

20) To find the "cost per equivalent unit," the "total costs to account for" are divided by the "total equivalent units."

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

21) To find the "cost per equivalent unit," the "total costs to account for" are divided by the "total direct materials."

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

22) The "total costs to account for" is the sum of the costs in beginning WIP Inventory plus the manufacturing costs added during the period.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

23) To assign costs to the units in ending WIP Inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

24) The first step of the 5-step process costing procedure is

A) compute output in terms of equivalent units.

B) summarize total costs to account for.

C) compute the cost per equivalent unit.

D) summarize the flow of physical units.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

25) Which of the following is the first step of the 5-step process costing procedure?

A) Compute output in terms of equivalent units.

B) Summarize total costs to account for.

C) Summarize the flow of physical units.

D) Compute the cost per equivalent unit.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

26) Which of the following is the second step of the 5-step process costing procedure?

A) Compute output in terms of equivalent units.

B) Summarize total costs to account for.

C) Summarize the flow of physical units.

D) Compute the cost per equivalent unit.

Diff: 1

LO: 5-3

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

27) Which of the following is the third step of the 5-step process costing procedure?

A) Compute output in terms of equivalent units.

B) Summarize total costs to account for.

C) Summarize the flow of physical units.

D) Compute the cost per equivalent unit.

Diff: 1

LO: 5-3

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

28) Which of the following is the fourth step of the 5-step process costing procedure?

A) Compute output in terms of equivalent units.

B) Summarize total costs to account for.

C) Summarize the flow of physical units.

D) Compute the cost per equivalent unit.

Diff: 1

LO: 5-3

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

29) Which of the following is not a step of the 5-step process costing procedure?

A) Compute output in terms of equivalent units.

B) Summarize total costs to account for.

C) Summarize the flow of physical units.

D) Compute total manufacturing overhead estimated.

Diff: 1

LO: 5-3

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

30) Which of the following is the last step of the 5-step process costing procedure?

A) Summarize total costs to account for.

B) Assign total costs to units completed and to units in ending WIP Inventory.

C) Compute the cost per equivalent unit.

D) Summarize the flow of physical units.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

31) The five steps of the process costing procedure are scrambled below:

1. Assign total costs to units completed and to units in ending WIP Inventory.

2. Summarize total costs to account for.

3. Compute the cost per equivalent unit.

4. Summarize the flow of physical units.

5. Compute output in terms of equivalent units.

The correct order for these steps is:

A) 3, 1, 4, 2, 5.

B) 5, 3, 1, 4, 2.

C) 2, 4, 5, 1, 3.

D) 4, 5, 2, 3, 1.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

32) In Step 1 of the process costing procedure, the "total units to account for" is the sum of

A) the units in beginning WIP plus the units in ending WIP.

B) the units in ending WIP plus the units started in production during the month.

C) the units in beginning WIP plus the units started in production during the month.

D) the units completed and transferred out plus the units started in production during the month.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

33) In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

A) the units completed and transferred out plus the units in ending WIP.

B) the units in ending WIP plus the units started in production during the month.

C) the units in beginning WIP plus the units in ending WIP.

D) the units in beginning WIP plus the units completed and transferred out.

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

34) How is the cost per equivalent unit computed?

A) Total equivalent units divided by total costs to account for

B) Total costs to account for divided by total equivalent units

C) Costs in beginning WIP Inventory divided by equivalent units in beginning WIP

D) Costs added to production during the month divided by equivalent units in ending WIP

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

35) For which of the following do we prepare calculations for equivalent units?

A) Both direct labor and Manufacturing Overhead

B) Both direct materials and conversion costs

C) Both direct labor and direct materials

D) Neither direct materials nor conversion costs

Diff: 1

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

36) How is the cost per equivalent unit calculated?

A) Total costs to account for divided by total equivalent units

B) Total equivalent units divided by total cost to account for

C) Total estimated costs to account for divided by number of units completed

D) Total product costs divided by equivalent units

Diff: 1

LO: 5-3

AACSB: Reflective thinking

37) What are the ending inventory equivalent units for materials if 15,800 units are completed and transferred out and 4,800 remain in ending WIP at 35% complete?

A) 3,850

B) 4,800

C) 1,680

D) 5,530

Diff: 1

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

38) In a department, 30,000 units are completed and transferred out and 9,400 remain in ending WIP at 65% complete. If an equivalent unit costs $10.00 for direct materials, what is the value of materials transferred out?

A) $61,100

B) $206,000

C) $94,000

D) $300,000

Diff: 1

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

39) Beginning WIP Inventory is 900 units; completed and transferred out were 3,600 units; and Ending WIP Inventory is 800 units. What is the number of units started?

A) 3,500

B) 2,800

C) 3,600

D) 4,400

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

40) Assume that 9,200 units were in beginning WIP Inventory, 35,500 were started, 34,000 were completed, and 10,700 were in ending WIP Inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?

A) 44,700

B) 46,200

C) 43,200

D) 35,500

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

41) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for direct materials?

A) 146,700

B) 133,500

C) 134,900

D) 158,500

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

42) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for conversion costs?

A) 118,300

B) 139,700

C) 124,200

D) 127,300

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

43) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)

A) $2.56

B) $2.78

C) $3.08

D) $2.99

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

44) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for conversion costs? (Round your final answer to the nearest cent.)

A) $2.36

B) $1.93

C) $1.85

D) $2.11

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

45) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units completed and transferred out? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $569,244

B) $607,756

C) $514,908

D) $579,819

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

46) At Global Tech Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units remaining in ending WIP? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $111,152

B) $163,040

C) $151,896

D) $157,625

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

47) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for direct materials?

A) 149,700

B) 132,900

C) 134,900

D) 164,500

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

48) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for conversion costs?

A) 133,200

B) 124,300

C) 137,700

D) 155,700

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

49) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)

A) $2.62

B) $3.74

C) $3.14

D) $2.83

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

50) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for conversion costs?

A) $3.55

B) $2.88

C) $3.15

D) $2.75

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

51) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units completed and transferred out? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $564,713

B) $623,854

C) $518,119

D) $567,149

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

52) At Darwin Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units remaining in ending WIP? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $235,842

B) $157,432

C) $193,660

D) $130,116

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

53) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for direct materials?

A) 174,200

B) 133,200

C) 215,200

D) 144,600

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

54) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What are the total equivalent units for conversion costs?

A) 127,740

B) 176,200

C) 145,600

D) 157,840

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

55) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for direct materials?

A) $2.75

B) $3.37

C) $3.77

D) $2.48

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

56) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the cost per equivalent unit for conversion costs?

A) $1.69

B) $2.03

C) $1.83

D) $2.33

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

57) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units completed and transferred out? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $500,964

B) $553,700

C) $736,119

D) $677,395

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

58) At Ruby Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

What is the total cost of units remaining in ending WIP? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $309,665

B) $224,729

C) $179,483

D) $244,923

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

59) Beginning WIP Inventory is 17,500 units, 75% complete for materials. During the month 99,000 units were started; 87,000 were finished; and ending WIP was 29,500 units that were 50% complete for materials. How many equivalent units should be used to allocate costs for materials (assume as usual, that the weighted average method is used, not FIFO)?

A) 100,125

B) 101,750

C) 113,750

D) 109,125

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

60) Assume 14,500 units were in beginning WIP; 43,200 units were started; 48,000 units were completed; and 9,700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

A) 52,900

B) 62,500

C) 43,200

D) 57,700

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

61) Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

A) The denominator would include 100 units for both.

B) The denominator would include 70 units for direct materials and 20 for conversion.

C) The denominator would include 20 units for direct materials and 80 for conversion.

D) You cannot determine what constitutes the denominator.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

62) In a particular department, 8,200 units were started and all but 1,800 were completed at the end of the period. These 1,800 were 70% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for direct materials?

A) 7,660

B) 9,460

C) 6,940

D) 6,400

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

63) In a particular department, 9,200 units were started and all but 1,700 were completed at the end of the period. These 1,700 were 80% complete for materials and 40% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for conversion costs?

A) 9,200

B) 8,860

C) 9,880

D) 8,180

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

64) Assume no beginning WIP Inventory. The ending WIP Inventory is 30% complete for materials. The total number of equivalents for materials would be

A) less than the units started.

B) less than the units completed.

C) equal to the units completed.

D) equal to the units started.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

65) During a period, 46,200 units were completed and 3,500 units were in ending WIP Inventory. Ending WIP was 95% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

A) 49,700

B) 49,525

C) 47,950

D) 47,215

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

66) During a period,47,200 units were completed and 3,700 units were in ending WIP Inventory. Ending WIP was 75% complete for direct materials and 40% complete for conversion costs. What are the equivalent units for conversion costs?

A) 48,680

B) 49,975

C) 50,900

D) 20,360

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

67) During a period, 47,200 units were completed and 4800 units were in ending WIP Inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

A) 52,000

B) 53,920

C) 50,560

D) 36,400

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

68) During a period, 43,200 units were completed and 5,300 units were in ending WIP Inventory. Ending WIP was 70% complete for direct materials and 40% complete for conversion costs. What are the equivalent units for conversion costs?

A) 19,400

B) 48,500

C) 46,910

D) 45,320

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

69) The Augusta Corporation uses a process system. During the current period, 2600 units were started and 2100 units were completed and transferred out. Ending units were 70% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP Inventory and conversion costs are added evenly throughout the process. At the end of the period, the total equivalent units for direct materials are

A) 2825.

B) 2450.

C) 2325.

D) 2600.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

70) The Augusta Corporation uses a process system. During the current period, 2,900 units were started and 1,500 units were completed and transferred out. Ending units were 60% complete for materials and 25% complete for conversion costs. Direct materials costs added were $44,405 and conversion costs added were $30,870. 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 would be closest to

A) $20.58.

B) $18.98.

C) $16.69.

D) $29.60.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

71) The Augusta Corporation uses a process system. During the current period, 2,500 units were started and 2,000 units were completed and transferred out. Ending units were 80% complete for materials and 45% complete for conversion costs. Direct materials costs added were $43,405 and conversion costs added were $27,870. 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 would be closest to

A) $12.53.

B) $18.09.

C) $21.70.

D) $13.94.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

72) The Augusta Corporation uses a process system. During the current period, 3,000 units were started and 2,100 units were completed and transferred out. Ending units were 60% complete for materials and 25% complete for conversion costs. Direct materials costs added were $32,300 and conversion costs added were $35,200. 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?

A) 2,640

B) 900

C) 2,100

D) 2,325

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

73) There are 34,400 units started. 22,600 were completed and transferred out and the 14,800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is

A) 31,480.

B) 22,440.

C) 22,600.

D) 8,880.

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

74) There are 35,000 units started. 19,600 were completed and transferred out and the 11,400 remaining units were 55% complete for conversion costs. The total number of equivalent units for conversion costs is

A) 19,600.

B) 25,870.

C) 17,050.

D) 6,270.

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

75) The following information is provided by Merrel Company:

The units were 80% complete for materials and 30% complete for conversion costs.

How much are the total costs to be accounted for during the year?

A) $37,900

B) $49,500

C) $24,600

D) $24,900

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

76) The following information is provided by Stockdog Company:

The units were 80% complete for materials and 30% complete for conversion costs.

How much are the total costs to be accounted for during the year?

A) $27,400

B) $24,800

C) $40,300

D) $52,200

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

77) A hair product 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? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $1,222,374

B) $488,928

C) $666,336

D) $733,429

Diff: 3

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

78) A hair product 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? (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $640,136

B) $401,467

C) $509,973

D) $1,204,400

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

79) A hair product 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 would be closest to

A) $31.15.

B) $28.09.

C) $41.56.

D) $39.15.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

80) A hair product 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 would be closest to

A) $12.71.

B) $6.66.

C) $12.41.

D) $10.85.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

81) A hair product 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?

A) 22,360

B) 26,440

C) 14,200

D) 42,760

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

82) A hair product 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?

A) 31,600

B) 43,240

C) 19,960

D) 23,840

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

83) A sport equipment manufacturer gives us its data for the year:

Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs.

On December 31, the cost per equivalent unit for direct materials would be closest to

A) $1.91.

B) $1.70.

C) $1.23.

D) $1.48.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

84) A sport equipment manufacturer gives us its data for the year:

Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs.

On December 31, the cost per equivalent unit for conversion costs would be closest to

A) $1.43.

B) $1.75.

C) $1.27.

D) $0.83.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

85) A sport equipment manufacturer gives us its data for the year:

Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs.

On December 31, the total cost of the units in ending WIP would be closest to ________. (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $4,582.

B) $5,494.

C) $7,268.

D) $3,496.

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

86) A sport equipment manufacturer gives us its data for the year:

Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs.

On December 31, the total costs of units completed and transferred would be closest to ________. (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $6,602.

B) $28,547

C) $6,313

D) $19,902

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

87) The following information is provided by Yellow Bird, Inc.:

The units in ending WIP Inventory were 67% complete for materials and 50% complete for conversion costs.

What are the total equivalent units for direct materials?

A) 11,614

B) 2,814

C) 4,200

D) 13,000

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

88) The following information is provided by Yellow Bird, Inc.:

The units in ending WIP Inventory were 75% complete for materials and 40% complete for conversion costs.

At the end of the year, what are the equivalent units for conversion costs?

A) 5,320

B) 8,600

C) 1,880

D) 10,480

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

89) The following information is provided by Smithfield Corporation:

The units in ending WIP Inventory were 77% complete for materials and 45% complete for conversion costs.

What are the total equivalent units for direct materials?

A) 12,800

B) 4,000

C) 3,080

D) 11,880

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

90) The following information is provided by Smithfield Corporation:

The units in ending WIP Inventory were 80% complete for materials and 71% complete for conversion costs.

At the end of the year, what are the equivalent units for conversion costs?

A) 12,150

B) 9,656

C) 3,550

D) 8,600

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

91) The following information is provided by Shark Company:

The units in ending WIP Inventory were 75% complete for materials and 40% complete for conversion costs.

What are the total equivalent units for direct materials?

A) 1,650

B) 6,450

C) 2,200

D) 7,000

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

92) The following information is provided by Shark Company:

The units in ending WIP Inventory were 80% complete for materials and 46% complete for conversion costs.

At the end of the year, what are the equivalent units for conversion costs?

A) 5,334

B) 1,334

C) 4,000

D) 3,174

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

93) The following information is provided by Met Company:

The units in ending WIP Inventory were 85% complete for materials and 50% complete for conversion costs.

What are the total equivalent units for direct materials?

A) 6,255

B) 3,655

C) 4,300

D) 6,900

Diff: 2

LO: 5-3

EOC: S5-5

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

94) The following information is provided by Met Company:

The units in ending WIP Inventory were 90% complete for materials and 86% complete for conversion costs.

At the end of the year, what are the equivalent units for conversion costs?

A) 6,450

B) 2,400

C) 6,786

D) 4,386

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

95) Raw materials purchased were $22,640 and ending inventory of raw materials was $12,200. If raw materials beginning inventory was 20% of materials used in the process, what was the cost of materials used in production?

A) $8,352

B) $13,050

C) $43,550

D) $28,300

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

96) A 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:

The cost per equivalent unit for crust ingredients would be closest to

A) $1.44.

B) $1.66.

C) $1.39.

D) $0.80.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

97) A 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:

The cost per equivalent unit for cheese, sauce, and toppings would be closest to

A) $1.49.

B) $1.01.

C) $1.40.

D) $1.54.

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

98) A 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:

The cost per equivalent unit for conversion costs would be closest to

A) $0.75.

B) $1.14.

C) $1.48.

D) $1.57.

Diff: 2

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

99) The mixing department has 46,000 equivalent units of direct materials and 25,000 equivalent units of conversion costs. The direct materials cost $34,000, and the conversion costs are $20,000. Assuming no beginning inventory, the total cost per equivalent unit is (Round any intermediary calculations and your final answer to the nearest cent.)

A) $1.17.

B) $0.80.

C) $1.54.

D) $0.74.

Diff: 2

LO: 5-3

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

100) The mixing department has 19,000 units and $54,000 in costs for which to account. Of the 19,000 units, 13,000 were completed and transferred to the next department. The 6,000 remaining were 25% complete for conversion costs. Direct materials are added at the beginning of the process, and the conversion costs are added evenly throughout the process. The cost per equivalent unit is $4.25 for direct materials and $0.70 for conversion costs. The total costs to account for are

A) $77,513.

B) $54,000.

C) $26,550.

D) $29,700.

Diff: 2

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

101) The mixing department has 23,000 units and $50,000 in costs for which to account. Of the 23,000 units, 12,000 were completed and transferred to the next department. The 11,000 remaining were 25% complete for conversion costs. Direct materials are added at the beginning of the process, and the conversion costs are added evenly throughout the process. The cost per equivalent unit is $4.25 for direct materials and $0.50 for conversion costs. The total cost of ending WIP is

A) $48,125.

B) $17,188.

C) $52,250.

D) $46,750.

Diff: 2

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

102) Smith's Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 15,000 gallons of the drink, and the 1,500 gallons left in ending WIP were 20% of the way through the process.

The equivalent units for flavoring is

A) 15,000.

B) 16,500.

C) 13,800.

D) 1,500.

Diff: 1

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

103) Smith's Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 18,000 gallons of the drink, and the 2,300 gallons left in ending WIP were 30% of the way through the process.

The number of equivalent units for vitamins and minerals is

A) 2,300.

B) 16,390.

C) 18,000.

D) 15,700.

Diff: 1

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

104) Smith's Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 17,000 gallons of the drink, and the 2,100 gallons left in ending WIP were 50% of the way through the process.

The number of equivalent units for conversion costs is

A) 2,100.

B) 18,050.

C) 15,950.

D) 17,000.

Diff: 1

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

105) Smith's Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 18,000 gallons of the drink, and the 1,900 gallons left in ending WIP were 20% of the way through the process.

Costs incurred during the period were:

The cost assigned to ending work in process would be closest to ________. (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $3,219.

B) $2,103.

C) $1,467.

D) $1,319.

Diff: 3

LO: 5-3

EOC: S5-12

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

106) Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

Required:

a. What are the total equivalent units for direct materials?

b. What are the total equivalent units for conversion costs?

c. What is the cost per equivalent unit for direct materials?

d. What is the cost per equivalent unit for conversion costs?

e. What is the total cost of units completed and transferred out?

f. What is the total cost of units remaining in ending WIP?

Diff: 3

LO: 5-3

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

107) The following information is provided by CrissCross Company:

The units in ending WIP Inventory were 85% complete for materials and 25% complete for conversion costs.

Required:

a. What are the total equivalent units for direct materials?

b. At the end of the year, what are the equivalent units for conversion costs?

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

108) The following information is provided by Melbourne Company:

The units in ending WIP Inventory were 90% complete for materials and 25% complete for conversion costs.

Required:

a What are the total equivalent units for direct materials?

b. At the end of the year, what are the equivalent units for conversion costs?

Diff: 2

LO: 5-3

EOC: E5-26

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

109) The managerial accountant at Coastal Edge Manufacturing reported the following data:

Coastal Edge Manufacturing

Month Ended November 30, 20XX

Flow of Equivalent Units

Physical Units

The managerial accountant is required to determine the total cost per equivalent unit at Coastal Edge Manufacturing. What were the (a) the total direct material cost per unit; (b) the conversion cost per unit; and, (c) total per unit cost of direct material costs and conversion costs added during January?

Diff: 2

LO: 5-3

EOC: S5-8

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

110) The managerial accountant at Print Manufacturing reported a grand opening at the new facility in Virginia. According to the reports, the direct material costs reported in the new operation are $1,750,000 and there are $1,900,000 total conversion costs. The managerial accountant also reported that there were 600,000 parts started in the operations in December and 500,000 parts completed during the month of December. The ending Work in Process Inventory was 30% complete as to the conversion work.

Calculate (a) the equivalent units for direct materials and conversion costs; (b) calculate the cost per equivalent unit; and, (c) assign the total costs to units completed and transferred out and ending Work in Process Inventory.

Diff: 2

LO: 5-3

EOC: E5-42B

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5.4 Prepare journal entries for a process costing system

1) In process costing, there is only one Work in Process Inventory account for all of the individual processing departments.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

2) When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

3) When units are transferred from Processing Department #1 to Processing Department #2, a credit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

4) When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5) When units are transferred from Processing Department #1 to Processing Department #2, a credit is made to WIP-Processing Department #1 to reflect the transferred-out costs.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

6) The journal entry to record the use of direct materials in Processing Department #1 would include a debit to WIP-Processing Department #1.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

7) The journal entry to record the use of direct materials in Processing Department #1 would include a credit to WIP-Processing Department #1.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

8) The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

9) The journal entry to record the use of direct materials in Processing Department #1 would include a credit to Raw Materials Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

10) The journal entry to record the use of direct labor in Processing Department #1 would include a debit to WIP-Processing Department #1.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

11) The journal entry to record the use of direct labor in Processing Department #1 would include a credit to WIP-Processing Department #1.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

12) The journal entry to record the use of direct labor in Processing Department #1 would include a debit to Wages Payable.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

13) The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

14) The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

15) The journal entry to record the ultimate completion of the units would include a debit to the WIP Inventory account of the last sequential production department.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

16) The journal entry to record the ultimate completion of the units would include a debit to Finished Goods Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

17) The journal entry to record the ultimate completion of the units would include a credit to the WIP Inventory account of the last sequential production department.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

18) When units are sold, Finished Goods Inventory is debited.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

19) When units are sold, Finished Goods Inventory is credited.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

20) When units are sold, Cost of Goods Sold is debited.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

21) When the units are sold, Cost of Goods Sold is credited.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

22) Ping Pong Manufacturing produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When the balls and associated costs are transferred from the coloring process to the finishing process, which account is credited?

A) WIP Inventory-Coloring

B) WIP Inventory-Molding

C) Raw Materials Inventory

D) WIP Inventory-Finishing

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

23) Flying Disks Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is debited?

A) WIP Inventory-Molding

B) WIP Inventory-Coloring

C) Raw Materials Inventory

D) WIP Inventory—Finishing

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

24) Flying Disks Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is credited?

A) WIP Inventory—Molding

B) WIP Inventory—Coloring

C) Raw Materials Inventory

D) WIP Inventory—Finishing

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

25) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

A) WIP Inventory—Finishing

B) Finished Goods Inventory

C) Manufacturing Overhead

D) WIP Inventory—Coloring

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

26) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is credited for direct labor used during the molding process?

A) Wages Payable

B) Manufacturing Overhead

C) Raw Materials Inventory

D) WIP Inventory—Molding

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

27) Flying Disks Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred out of the coloring process and into the finishing process, the journal entry would include a

A) debit to WIP Inventory—Coloring and a credit to WIP Inventory—Finishing.

B) debit to Finished Goods Inventory and a credit to WIP Inventory—Coloring.

C) debit to WIP Inventory—Finishing and a credit to WIP Inventory—Coloring.

D) debit to WIP Inventory—Coloring and a credit to Finished Goods Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

28) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. The purchase of materials includes a

A) debit to WIP Inventory—Molding.

B) debit to Raw Materials Inventory.

C) credit to Manufacturing Overhead.

D) credit to Raw Materials Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

29) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Requisition of materials to molding includes a

A) debit to Raw Materials Inventory.

B) debit to Manufacturing Overhead.

C) credit to Raw Materials Inventory.

D) credit to Finished Goods Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

30) A transfer of $30,000 from the assembly department to the packaging department would require the entry of a

A) debit to Finished Goods Inventory.

B) debit to WIP Inventory—Assembly.

C) credit to WIP Inventory—Assembly.

D) credit to Raw Materials Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

31) What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process department?

A) Debit to WIP Inventory

B) Debit to Manufacturing Overhead

C) Credit to Manufacturing Overhead

D) Credit Finished Goods Inventory

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

32) The entry to record the use of direct materials in production would include a

A) debit to Finished Goods Inventory.

B) debit to Raw Materials Inventory.

C) debit to WIP Inventory.

D) credit to Finished Goods Inventory.

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

33) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is credited when material requests are filled?

A) Finished Goods Inventory

B) WIP Inventory—Finishing

C) Raw Materials Inventory

D) Manufacturing Overhead

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

34) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is credited when the frisbees are totally completed?

A) WIP Inventory—Finishing

B) Finished Goods Inventory

C) Manufacturing Overhead

D) WIP Inventory—Coloring

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

35) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for Manufacturing Overhead?

A) WIP Inventory—Molding

B) WIP Inventory—Finishing

C) WIP Inventory—Coloring

D) All of the above

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

36) Flying Disks Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for conversion costs?

A) WIP Inventory—Finishing

B) Finished Goods Inventory

C) Raw Materials Inventory

D) Cost of Goods Sold

Diff: 1

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

37) The journal entry a company would make under process costing to transfer direct materials into the Assembly Department would be

A) Raw Materials Inventory XXX

Work in Process Inventory—Assembly XXX

B) Finished Goods Inventory XXX

Work in Process Inventory—Assembly XXX

C) Work in Process Inventory—Assembly XXX

Raw Materials Inventory XXX

D) Finished Goods Inventor XXX

Raw Materials Inventory XXX

Diff: 1

LO: 5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

38) The journal entry a company would make under process costing to record direct labor worked in the Assembly Department would be

A) WIP Inventory—Assembly XXX

Wages Payable XXX

B) Finished Goods Inventory XXX

WIP Inventory—Assembly XXX

C) Finished Goods Inventory XXX

Wages Payable XXX

D) CGS XXX

Direct Labor XXX

Diff: 1

LO: 5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

39) The journal entry a company would make under process costing to record allocated manufacturing overhead incurred in the Assembly Department would be

A) WIP Inventory - Assembly XXX

Accounts Payable XXX

B) WIP Inventory - Assembly XXX

Manufacturing Overhead XXX

C) Finished Goods Inventory XXX

Manufacturing Overhead XXX

D) Manufacturing Overhead XXX

Finished Goods Inventory XXX

Diff: 1

LO: 5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

40) The journal entry a company would make under process costing to record the transfer of costs from the Assembly Department to the Packaging Department would be

A) WIP Inventory - Assembly XXX

CGS XXX

B) WIP Inventory - Packaging XXX

WIP Inventory - Assembly XXX

C) Finished Goods Inventory XXX

WIP Inventory - Assembly XXX

D) WIP Inventory - Packaging XXX

Finished Goods Inventory XXX

Diff: 1

LO: 5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

41) The Work in Process Inventory account for process costing accumulates which of the following costs?

A) Direct materials

B) Allocated manufacturing overhead

C) Direct labor

D) All of the above

Diff: 1

LO: 5-4

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

42) Candle Company has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

What would have been the journal entry to record the transfer of product from the assembly department to the Shaping Department?

A) WIP—Assembly (Dr); WIP—Shaping (Cr) $647,000

B) WIP—Shaping (Dr); WIP—Assembly (Cr) $741,000

C) WIP—Assembly (Dr); WIP—Shaping (Cr) $741,000

D) WIP—Shaping (Dr); WIP—Assembly (Cr) $647,000

Diff: 2

LO: 5-4

EOC: E5-28

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

43) Satellite Manufacturing is a company that manufactures satellite parts. The two departments in the company include the Placement Department and the Organization Department. The managerial accountant assigned total costs to units completed and to units in ending Work in Process Inventory and reported the following information:

Satellite Manufacturing

Placement Department

Month Ended July 31, 20XX

Which of the following journal entry is needed to transfer the costs?

A) Work in Process Inventory - Organization Department $46,000

Work in Process Inventory - Placement Department $46,000

B) Work in Process Inventory - Placement Department $46,000

Work in Process Inventory - Organization Department $46,000

C) Accounts Receivable — Placement Department $46,000

Accounts Receivable — Organization Department $46,000

D) Accounts Payable - Placement Department $46,000

Accounts Payable — Organization Department $46,000

Diff: 2

LO: 5-4

EOC: E5-28A

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5.5 Use process costing in a second or later production department

1) In the process costing method, when multiple production steps are required, the five-step process costing procedure must be completed in each production department.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

2) In a process costing system, costs flow into Finished Goods Inventory only from the Work in Process Inventory of the last process.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

3) Costs are transferred, along with the units, from one WIP Inventory to the next.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

4) If a company has a series of processes, the company uses just one work-in-process account.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5) The entry to transfer goods in process from Dept. A to Dept. B includes increasing (debiting) WIP Inventory in Dept. A.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

6) Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

7) Second or subsequent departments must account for units and costs transferred in from previous departments.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

8) Assigning costs to units completed and to units in ending WIP Inventory in a second department is a three-step process.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

9) The cost per equivalent unit must be computed for transferred-in costs, as well as direct materials and conversions costs, in a subsequent department.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

10) Product cost reports are done only for the final department in process costing.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

11) When calculating equivalent units in a second or later processing department, all physical units should be considered 100% complete with respect to transferred-in work and costs.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

12) When calculating equivalent units in a second or later processing department, all physical units should be considered 50% complete with respect to transferred-in work and costs.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

13) The document many process costing companies use to summarize the entire five-step process on one schedule is called the

A) conversion report.

B) income costing statement.

C) bill of materials.

D) production cost report.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

14) In a process costing system, the number of WIP inventories

A) equal the number of production departments.

B) equal the number of products produced.

C) equal the number used in a job cost system.

D) cannot equal the number of parts used in the product.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

15) In a process system with multiple processes, the cost of units completed in Department One is transferred to

A) Finished Goods Inventory.

B) WIP in Department Two.

C) Cost of Goods Sold.

D) overhead.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

16) Which of the following is unique to a process costing system?

A) Work is not started on a product until an order is received.

B) Direct materials, direct labor and Manufacturing Overhead are assigned to the first department only.

C) Costs for each process stay with that process until the goods are moved to Finished Goods Inventory.

D) Each process has its own WIP account.

Diff: 1

LO: 5-5

EOC: E5-34

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

17) Which of the following items would appear first on a production cost report?

A) Total costs accounted for

B) Cost of goods finished for the month

C) Total equivalent units

D) Beginning WIP, if any

Diff: 1

LO: 5-5

EOC: S5-10

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

18) Which item would appear last on a production cost report?

A) Cost of goods finished for the month

B) Total costs accounted for

C) Beginning WIP Inventory, if any

D) Ending WIP Inventory, if any

Diff: 1

LO: 5-5

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

19) On a production cost report, the following cost(s) would appear

A) beginning work in process.

B) costs added during the period.

C) total operating costs during the period.

D) Both A and B are included on a production cost report.

Diff: 1

LO: 5-5

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

20) On a production cost report, where would current costs added during the period appear?

A) After any beginning WIP Inventory cost

B) As part of unit output for the period

C) After any ending WIP Inventory cost

D) As part of beginning WIP Inventory cost

Diff: 1

LO: 5-5

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

21) Which costs comprise WIP Inventory on a production cost report?

A) Direct materials and direct labor

B) Direct materials and Manufacturing Overhead

C) Direct materials, direct labor, and Manufacturing Overhead

D) Direct labor and Manufacturing Overhead

Diff: 1

LO: 5-5

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

22) Which of the following statements is true regarding a production cost report?

A) The production cost report summarizes the 5-step process on one schedule.

B) Each process department prepares its own production cost report each month.

C) The transferred-in costs, direct materials cost, and conversion costs assigned to the units in ending work-in-process inventory become the beginning work-in-process inventory balances on the next month's cost report.

D) All of the above are true statements.

Diff: 1

LO: 5-5

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

23) When the last process of the product has been completed and the product is transferred to storage for sale to the final customer, what journal entry does the company record?

A) Cost of Goods Sold XXX

Finished Goods Inventory XXX

B) WIP Inventory - Shaping XXX

WIP Inventory - Finishing XXX

C) Finished Goods Inventory XXX

Raw Materials Inventory XXX

D) Finished Goods Inventory XXX

WIP Inventory (Last Process) XXX

Diff: 1

LO: 5-5

AACSB: Reflective thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

24) At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly.

The total cost of units remaining in ending WIP Inventory is closest to

A) $466,246.

B) $386,746.

C) $114,199.

D) $436,701.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

25) At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly.

The total cost of units transferred out to Finished Goods Inventory is closest to

A) $800,320.

B) $752,269.

C) $273,623.

D) $980,975.

Diff: 3

LO: 5-5

EOC: E5-27

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

26) The managerial accountant at Seaside Manufacturing reported the following data:

Costs of units transferred to Finished Goods Inventory would be closest to

A) $3,025,300.

B) $1,601,527.

C) $3,078,240.

D) $3,349,200.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

27) The managerial accountant at Corolla Manufacturing reported the following information:

The cost of ending WIP is closest to

A) $104,630.

B) $244,450.

C) $321,900.

D) $327,075.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

28) Materials are added at the beginning of the process and conversion costs are added uniformly.

At period end, what would be the total equivalent units for direct materials?

A) 45,500

B) 67,500

C) 44,000

D) 33,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

29) Materials are added at the beginning of the process and conversion costs are added uniformly.

What is the total number of physical units to account for?

A) 59,500

B) 48,500

C) 33,000

D) 37,500

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

30) Grey Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

What is the total number of equivalent units for direct materials?

A) 53,000

B) 58,400

C) 69,600

D) 62,600

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

31) Grey Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

What is the total number of equivalent units for conversion costs?

A) 53,000

B) 67,000

C) 58,500

D) 53,500

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

32) Brick Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:

The cost per equivalent unit for conversion costs would be closest to

A) $5.15.

B) $4.46.

C) $4.85.

D) $5.52.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

33) Brick Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:

What are the equivalent units for conversion costs?

A) 47,000

B) 52,750

C) 49,500

D) 63,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

34) Brick Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:

What are the equivalent units for direct materials?

A) 61,000

B) 58,000

C) 49,600

D) 55,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

35) Brick Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:

The total number of physical units for which we have to account is

A) 46,000.

B) 61,000.

C) 63,000.

D) 59,000.

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

36) Bluebird Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Shaping Department follows:

The cost per equivalent unit for conversion costs would be closest to

A) $5.56.

B) $4.41.

C) $5.85.

D) $4.92.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

37) Bluebird Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Shaping Department

What are the equivalent units for conversion costs?

A) 64,000

B) 50,000

C) 59,000

D) 54,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

38) Bluebird Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data listed below represents data in the Shaping Department:

What are the equivalent units for direct materials?

A) 71,000

B) 53,000

C) 62,000

D) 52,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

39) Bluebird Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data that represents the Shaping Department is listed below:

Which of the following is the total number of physical units?

A) 46,000

B) 53,000

C) 57,000

D) 55,000

Diff: 2

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

40) Bull Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

The total cost of units transferred out to Finished Goods Inventory would be closest to ________. (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

A) $880,320.

B) $961,990.

C) $414,240.

D) $1,063,720.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

41) Bull Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

The total cost of units in ending WIP Inventory-Shaping would be closest to

A) $40,446.

B) $40,454.

C) $259,560.

D) $181,566.

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

42) At Down to Earth Brewery, direct materials are added at the beginning of the process and conversion costs are added throughout the process. Data for the Finishing Department follows:

Required:

a. What are the equivalent units for conversion costs?

b. What is the cost per equivalent unit for conversion costs?

c. What are the equivalent units for direct materials?

d. What are the total number of physical units for which to account?

Diff: 3

LO: 5-5

EOC: E5-34

AACSB: Analytical thinking

Learning Outcome: Discuss process costing systems and calculate product cost using process costing.

5.6 Analyze process costing information using data analytic tools

1) Pivot tables can only show two data points at any one time; therefore, a new pivot table must be created to analyze two more sets of data.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

2) Pivot tables allow managers to view problem-relevant data from many different angles.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

3) In order to create a pivot table, you must click on the "Insert" tab on the ribbon.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

4) The only numeric value in a pivot table is sum of the field's values.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

5) The numeric value of a field can be changed from sum by simply changing the value field settings.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

6) When creating a pivot table, the ________ tab on the ribbon must be selected, then you click on the ________ icon to produce the PivotTable dialog box.

A) Formulas; Sum

B) Insert; PivotTables

C) Formulas; PivotTables

D) Data, Sum

Diff: 1

LO: 5-6

AACSB: Reflective thinking

7) Which of the following options do you have when creating a pivot table?

A) Filtering

B) Sorting

C) Charting

D) All of the above are options.

Diff: 1

LO: 5-6

AACSB: Reflective thinking

8) Sorting a column in a pivot table is accomplished by

A) a manual cut and paste option.

B) removing the data you want sorted into a new table, then using the sort feature.

C) right-click in any cell in the column and choose sort.

D) extracting just the column you want to sort into a new tab and creating a new pivot table.

Diff: 2

LO: 5-6

AACSB: Analytical thinking

9) The "Value Field Settings" can be changed to display all of the following values except:

A) max.

B) median.

C) min.

D) average.

Diff: 2

LO: 5-6

AACSB: Analytical thinking

10) Explain, in basic step-by-step terms, how to create a pivot table in Excel.

Diff: 2

LO: 5-6

AACSB: Analytical thinking