Test Questions & Answers Process Costing Chapter 8

Fundamentals of Cost Accounting, 6e (Lanen)

Chapter 8 Process Costing

1) Process costing assumes all units are homogeneous and follow the same path through the production process.

2) The equivalent unit concept refers to the actual amount of work during the period stated in terms of the work required to complete an equal number of whole units.

3) The number of units in the beginning Work-in-Process Inventory plus the units transferred out during the period equals the number of units started during the period plus the number of units in the ending Work-in-Process Inventory.

4) If materials are added continuously throughout the production process, then the equivalent units for materials will always equal the equivalent units for the conversion costs.

5) If materials are only added at the beginning of the production process, then the degree of completion for materials in the ending Work-in-Process Inventory is always 100%.

6) If materials are only added at the beginning of the production process, then the degree of completion for materials in the ending Work-in-Process Inventory will be the same as the degree of completion for the conversion costs.

7) If materials are only added at the end of the production process, then the degree of completion for materials of units in the ending Work-in-Process Inventory is always 0%.

8) In the weighted-average approach, the number of physical units transferred out cannot be greater than the equivalent number of units produced during the period.

9) The weighted-average approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period.

10) In a weighted-average process costing system, the costs in the beginning Work-in-Process Inventory are not used to compute the costs transferred-out.

11) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.

12) If the beginning Work-in-Process inventory is zero, first-in, first-out (FIFO) and weighted-average process costing will assign the same amount to the units transferred out.

13) In general, the ending Work-in-Process Inventory value computed using first-in, first-out (FIFO) will be the same as the ending value computed using weighted-average process costing.

14) It is possible for units in the beginning Work-in-Process Inventory to also be part of the ending Work-in-Process Inventory.

15) The more prices change, the greater the difference between the costs assigned to units transferred out using weighted-average costing and the costs assigned to units transferred out using first-in, first-out (FIFO).

16) In general, weighted-average costing is simpler to use while first-in, first-out (FIFO) costing provides greater decision-making benefits to managers.

17) The degree of completion associated with prior department costs is always 100%.

18) Job costing requires more detailed record keeping than process costing.

19) Operation costing is used in manufacturing goods that have some common characteristics and some individual characteristics.

20) Operation costing accounts for material costs like job costing and conversion costs like process costing.

21) In process 2, material G is added when a batch is 60% complete. Ending work-in-process units, which are 50% complete, would be included in the computation of equivalent units for: (CPA adapted)

A) Option A.

B) Option B.

C) Option C.

D) Option D.

22) The following examples briefly describe the manufacture of two different products. Which costing method (job-order or process) would be the best method to use for each project?

I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the statement, "People can have any flavor of Lawless Fine Wine Coolers they want as long it's strawberry."

II. Northridge Spacetronics is manufacturing three space shuttles for the country of Xanadu. Each shuttle is slightly different and production will last approximately two years.

A) Option A.

B) Option B.

C) Option C.

D) Option D.

23) Which of the following statements is (are) true regarding product costing? 

(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.

(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units.

A) Only A is true.

B) Only B is true.

C) Both of these are true.

D) Neither of these is true.

24) A company should use process costing, rather than job costing, if:

A) production is only partially completed during the accounting period.

B) the product is manufactured in batches only as orders are received.

C) the product is composed of mass-produced homogeneous units.

D) the product goes through several steps of production.

25) Which of the following characteristics applies to process costing, but does not apply to job order costing?

A) the need for averaging.

B) the use of equivalent units of production.

C) separate, identifiable jobs.

D) the use of predetermined overhead rates.

26) Equivalent units for a process costing system, using the weighted-average method, would be equal to:

A) units completed during the period and transferred out.

B) units started and completed during the period plus equivalent units in the ending work-in-process inventory.

C) units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work-in-process inventory.

D) units completed during the period plus equivalent units in the ending work-in-process inventory.

27) The Fremont Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work-in-process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

A) 24,500 units.

B) 23,000 units.

C) 27,000 units.

D) 21,000 units.

28) In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA adapted)

A) Finished goods inventory control.

B) Factory overhead control.

C) Cost of goods sold.

D) Work-in-process inventory control.

29) Sigman Co.'s inventories in process were at the following stages of completion at April 30:

Equivalent units of production in ending inventory amounted to: (CPA adapted)

A) 150.

B) 180.

C) 330.

D) 350.

30) An error was made by Marrow Company in computing the percentage-of-completion of the current year's ending Work-in-Process Inventory. The error resulted in the assignment of a lower percentage of completion to each component of the inventory than actually was the case. There was no beginning Work-in-Process Inventory. What is the effect of this error on (1) cost assigned to cost of goods completed for the period and (2) the computation of costs per equivalent unit?

A) Understated; Understated

B) Understated; Overstated

C) Overstated; Understated

D) Overstated; Overstated

31) Which of the following organizations would most likely use a process costing system?

A) Gasoline refinery.

B) Automobile retailer.

C) Airplane manufacturer.

D) Public accounting firm.

32) An equivalent unit of conversion costs is equal to the amount of conversion costs required to:

A) start a unit.

B) start and complete a unit.

C) transfer a unit in.

D) transfer a unit out.

33) Of the following process costing steps, which must be done last?

A) Compute the equivalent units of production.

B) Compute the costs per equivalent unit of production.

C) Measure the physical flow of resources.

D) Identify the product costs to account for.

34) The Phantom Corporation started 4,800 units during February. Phantom started the month with 700 units in process (40% complete) and ended the month with 400 units in process (40% complete). How many units were transferred to the Finished Goods Inventory during February?

A) 5,500 units

B) 5,380 units

C) 5,100 units

D) 4,400 units

35) If the units in the beginning Work-in-Process Inventory are greater than the units in the ending Work-in-Process Inventory, then the units transferred out are:

A) more than the units started during the period.

B) equal to the equivalent units of production.

C) less than the units started during the period.

D) equal to the actual work done during the period.

36) Phantom Company has beginning and ending Work-in-Process Inventories that are 45% and 10% complete, respectively. Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units:

A) transferred out during the period.

B) started and completed during the period.

C) started into the process during the period.

D) started into the process plus the units in the ending inventory.

37) Which of the following statements concerning a process cost accounting system is false?

A) The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month.

B) If material is used evenly throughout a process, the number of equivalent material units will equal the number of equivalent units for the conversion (processing) costs.

C) Actual costing may be used in a process costing system to assign indirect overhead costs to departments.

D) The units in beginning inventory plus the units transferred in during the month should equal the units in the ending inventory plus the units transferred out during the month.

38) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method:

A) can be used under any cost flow assumption.

B) does not require the use of predetermined overhead rates.

C) keeps costs in the beginning inventory separate from current period costs.

D) does not consider the degree of completion of units in the beginning work-in-process inventory when computing equivalent units of production.

39) The Miracle Company had 20,000 units in process on December 31, 2020 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2021. On January 31, 2021, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production (EUPs) for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)?

A) 34,000 EUPs

B) 35,000 EUPs

C) 36,500 EUPs

D) 41,500 EUPs

40) The Townson Manufacturing Company has gathered the following information for the month of September: 

• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).

• 60,000 units were started into production.

• 50,000 units were completed and transferred to the next department.

• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing?

A) 52,000 EUPs

B) 64,500 EUPs

C) 66,000 EUPs

D) 61,500 EUPs

41) The Townson Manufacturing Company has gathered the following information for the month of September: 

• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).

• 60,000 units were started into production.

• 50,000 units were completed and transferred to the next department.

• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

What are the equivalent units of production (EUPs) for the conversion costs in the month of September assuming Townson uses weighted-average process costing?

A) 64,500 EUPs

B) 56,000 EUPs

C) 61,500 EUPs

D) 54,000 EUPs

42) Haberdashery Company has a beginning Work-in-Process Inventory of 25,000 units (40% complete). During the period, 110,000 units were started and the ending Work-in-Process Inventory consisted of 20,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing?

A) 110,000 EUPs

B) 115,000 EUPs

C) 121,000 EUPs

D) 131,000 EUPs

43) Seaside Company uses the weighted-average method in its process costing system. The Sanding Department started the month with 8,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Sanding Department. There were 5,000 units in the ending work-in-process inventory of the Sanding Department that were 20% complete with respect to conversion costs.

What were the equivalent units of production (EUPs) for conversion costs in the Sanding Department for the month?

A) 67,400 EUPs

B) 73,000 EUPs

C) 72,000 EUPs

D) 66,000 EUPs

44) The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished. The equivalent units of material in September were:

A) 40,000.

B) 45,000.

C) 48,000.

D) 50,000.

45) The Chart Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished. The equivalent units for the conversion costs in September were:

A) 40,000.

B) 45,000.

C) 48,000.

D) 50,000.

46) Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed, and received 900 units during the period from Department A. What were the equivalent units of production of Department B, assuming weighted-average process costing?

A) 800 equivalent units.

B) 900 equivalent units.

C) 1,100 equivalent units.

D) 1,200 equivalent units.

47) Madison Corporation's production cycle starts in the Processing Department. The following information is available for April:

Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method?

A) Option A.

B) Option B.

C) Option C.

D) Option D.

48) Department A had no Work-in-Process at the beginning of the period, 1,000 units were completed during the period, 200 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period:

Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

A) $3,650.

B) $2,900.

C) $2,000.

D) $1,825.

49) DriveTrain, Inc. instituted a new process in October 2020. During October, 10,000 units were started in Department A. Of the units started, 8,000 were transferred to Department B, and 2,000 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $27,000 and conversion costs of $36,000 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing?

A) $46,900.

B) $53,600.

C) $56,000.

D) $57,120.

50) In a process costing system, manufacturing overhead applied is usually recorded as a debit to:

A) Finished goods.

B) Work-in-process.

C) Manufacturing overhead.

D) Cost of goods sold.

51) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Equivalent units of production for materials are:

A) 16,000.

B) 17,000.

C) 19,000.

D) 20,000.

52) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Equivalent units of production for labor and overhead are:

A) 16,000.

B) 17,000.

C) 19,000.

D) 20,000.

53) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Cost per equivalent unit of materials is:

A) $2.20.

B) $2.07.

C) $1.85.

D) $1.76.

54) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Cost per equivalent unit of labor and overhead is:

A) $2.34.

B) $2.20.

C) $1.97.

D) $1.87.

55) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Total cost of the 16,000 units finished is:

A) $63,360.

B) $67,320.

C) $72,640.

D) $65,120.

56) The Lakeside Company uses a weighted-average process costing system. The following data are available:

Total cost of the 4,000 units of the ending inventory:

A) $15,840.

B) $14,520.

C) $9,240.

D) $8,910.

57) The following information pertains to Oklahoma Co.'s Tulsa Division for the month of April: 

All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit of materials is: (CPA adapted) (Round your answer to 2 decimal places.)

A) $0.59.

B) $0.55.

C) $0.45.

D) $0.43.

58) Nebraska Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work-in-process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 in conversion costs were incurred in the department during the month.

What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)

A) $8.112.

B) $8.300.

C) $7.533.

D) $6.108.

59) Kansas Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

According to the company's records, the conversion cost in beginning work-in-process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month.

What was the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)

A) $8.420.

B) $6.934.

C) $8.530.

D) $8.322.

60) Fanciful Structures Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work-in-process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 in conversion costs were incurred in the department during the month.

What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)

A) $5.300.

B) $5.458.

C) $4.603.

D) $5.108.

61) Holcomb Company uses the weighted-average method in its process costing system. The Shaping Department is the second department in its production process. The data below summarize the department's operations in January.

The accounting records indicate that the conversion cost that had been assigned to beginning work-in-process inventory was $5,096 and a total of $87,668 in conversion costs were incurred in the department during January.

What was the cost per equivalent unit for conversion costs for January in the Shaping Department? (Round your answer to 3 decimal places.)

A) $1.654.

B) $1.752.

C) $1.490.

D) $1.499.

62) In the computation of the manufacturing cost per equivalent unit, the weighted-average method of process costing considers:

A) current costs only.

B) current costs plus cost of beginning Work-in-Process Inventory.

C) current costs plus cost of ending Work-in-Process Inventory.

D) current costs less cost of beginning Work-in-Process Inventory.

63) Morgenstern Company had Work-in-Process Inventories that were 45% complete at the start of the month. Work-in-Process at the end of the month was 10% complete. Materials were added at the beginning of the process. If weighted-average process costing is used, the total equivalent units for materials will equal the number of units:

A) transferred out during the period.

B) started and completed during the period.

C) started into the process during the period.

D) transferred out during the process plus the units in the ending inventory.

64) Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for materials are:

A) beginning inventory this period for this process.

B) units started this period in this process.

C) units started this period in this process plus the beginning inventory.

D) units started this period in this process plus 70% of the beginning inventory this period.

65) Parkway Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory on July 1 had materials assigned to them of $32,000, even though they were only 5% complete as to materials. No additional units were started during July, and there were no unfinished units on hand on July 31. What is the material cost per equivalent unit for July, assuming Parkway uses weighted-average process costing?

A) $10.50.

B) $11.59.

C) $13.17.

D) $15.49.

66) Cranford Company completed and transferred out 2,300 units in May 2020. There were 200 units in the Work-in-Process Inventory on May 31, 2020, 30% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $9,440 and $6,250, respectively. There was no beginning inventory on May 1, 2020. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

A) $8,510.

B) $14,950.

C) $15,690.

D) $16,250.

67) A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the disposition of these units and (2) the costs charged to the department and the allocation of these costs is called a:

A) schedule of Cost of Goods Manufactured.

B) production cost report.

C) job order cost sheet.

D) schedule of Cost of Goods Sold.

68) The FIFO method provides a major advantage over the weighted-average method in that:

A) the calculation of equivalent units is less complex under the FIFO method.

B) the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.

C) the FIFO method provides measurements of work done during the current period.

D) the weighted-average method ignores units in the beginning and ending work-in-process inventories.

69) The computation of equivalent units under the FIFO method:

A) treats units in the beginning work-in-process inventory as if they were started and completed during the current period.

B) treats units in the beginning work-in-process inventory as if they represent a batch of goods separate and distinct from goods started and completed during the current period.

C) treats units in the ending work-in-process inventory as if they were started and completed during the current period.

D) ignores units in the beginning and ending work-in-process inventories.

70) Tori Company uses the FIFO method in its process costing system. The first processing department, the Soldering Department, started the month with 17,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $101,150. An additional 68,000 units were started into production during the month. There were 23,000 units in the ending work-in-process inventory of the Soldering Department that were 80% complete with respect to conversion costs. A total of $565,125 in conversion costs were incurred in the department during the month.

What would be the cost per equivalent unit for conversion costs? (Round your answer to 3 decimal places.)

A) $8.500.

B) $8.311.

C) $8.250.

D) $7.839.

71) Sarfina Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:

According to the company's records, the conversion cost in beginning work-in-process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month.

What would be the cost per equivalent unit for conversion costs for September? (Round your answer to 3 decimal places.)

A) $5.916.

B) $5.340.

C) $5.220.

D) $5.213.

72) Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

How many units were started AND completed during the month in the first processing department?

A) 6,100.

B) 5,500.

C) 7,600.

D) 7,000.

73) Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

The cost per equivalent unit for conversion costs for the first department for the month is closest to: (Round your answer to 2 decimal places.)

A) $42.49.

B) $43.96.

C) $45.00.

D) $41.87.

74) Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

What are the equivalent units for materials for the month in the first processing department?

A) 1,680.

B) 7,150.

C) 8,200.

D) 5,200.

75) Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

The cost per equivalent unit for conversion costs for the first department for the month is closest to: (Round your answer to 2 decimal places.) 

A) $40.57.

B) $45.33.

C) $39.31.

D) $37.44.

76) Which of the following statements regarding first-in, first-out (FIFO) process costing is(are) true?

(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.

(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.

A) Only A is true.

B) Only B is true.

C) Both of these are true.

D) Neither of these is true.

77) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:

A) completed during the period and units in ending inventory.

B) started during the period and units transferred out during the period.

C) completed from beginning inventory, started and completed during the month, and units in ending inventory.

D) processed during the period and units completed during the period.

78) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

How many units were transferred-out during the period?

A) 12,000.

B) 13,000.

C) 18,000.

D) 20,000.

79) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

How many units were started and completed during the period?

A) 12,000.

B) 13,000.

C) 18,000.

D) 20,000.

80) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

What are the equivalent units of production for materials during the period?

A) 12,000.

B) 13,000.

C) 14,000.

D) 15,000.

81) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.

What are the equivalent units of production for the conversion costs during the period?

A) 14,500.

B) 15,100.

C) 16,500.

D) 17,100.

82) In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adapted)

A) only current period costs.

B) current period costs plus cost of beginning work-in-process inventory.

C) current period costs less cost of beginning work-in-process inventory.

D) current period costs plus the cost of ending work-in-process inventory.

83) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

What are the total costs to be accounted for on the production cost report for Department #2 for the period?

A) $16,400.

B) $17,600.

C) $11,600.

D) $12,660.

84) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

What are the equivalent units of production for conversion costs?

A) 500.

B) 5,500.

C) 5,900.

D) 6,400.

85) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

The conversion costs per equivalent unit is:

A) $1.00.

B) $1.50.

C) $2.00.

D) $2.55.

86) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

The unit cost of Product X started in the prior period and completed in the current period is:

A) $2.00.

B) $3.60.

C) $2.55.

D) $3.45.

87) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

The unit cost of Product X started and completed in the current period is:

A) $2.00.

B) $2.50.

C) $2.55.

D) $2.60.

88) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

The cost of goods transferred to finished goods is:

A) $17,660.

B) $16,000.

C) $13,000.

D) $12,800.

89) The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

The cost of the ending Work-in-Process Inventory is:

A) $2,600.

B) $1,600.

C) $600.

D) $1,000.

90) In a production cost report using process costing, transferred-in costs are most similar to:

A) material added at the beginning of the process.

B) conversion costs added during the process.

C) costs transferred-out to the next process.

D) costs included in beginning inventory.

91) A process costing system was used for a department that began operations in January 2020. Approximately the same number of physical units, at the same degree of completion, were in work-in-process at the end of both January and February. Monthly conversion costs are allocated between ending work-in-process and units completed. Compared to the FIFO method, would the weighted-average method use the same or a greater number of equivalent units to calculate the monthly allocations? (CPA adapted)

A) Option A

B) Option B

C) Option C

D) Option D

92) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What is the equivalent unit cost for materials assuming Bentley uses first-in, first-out (FIFO) process costing?

A) $4.12.

B) $4.50.

C) $4.60.

D) $4.80.

93) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What is the equivalent unit cost for the conversion costs assuming Bentley uses first-in, first-out (FIFO) process costing?

A) $5.65.

B) $5.83.

C) $6.00.

D) $6.20.

94) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

  Units

Work in process, November 1st  16,000 

Started in production during November  100,000 

Work in process, November 30th  24,000

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing?

A) $153,168.

B) $154,800.

C) $155,328.

D) $156,960.

95) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What is the equivalent unit cost for materials assuming Bentley uses weighted-average process costing?

A) $4.12.

B) $4.50.

C) $4.60.

D) $4.80.

96) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What is the equivalent unit cost for the conversion costs assuming Bentley uses weighted-average process costing?

A) $5.65.

B) $5.83.

C) $6.00.

D) $6.20.

97) Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.

Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.

What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses weighted-average process costing?

A) $86,400.

B) $153,960.

C) $154,800.

D) $156,960.

98) A process costing system:

A) uses a separate Work-in-process account for each processing department.

B) uses a single Work-in-process account for the entire company.

C) uses a separate Work-in-process account for each type of product produced.

D) does not use a Work-in-process account in any form.

99) Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will:

A) increase the equivalent units of production.

B) increase the total cost per unit.

C) decrease the value of the transferred-in costs.

D) decrease the total costs to account for.

100) Under which of the following conditions will the FIFO method produce the same cost of goods manufactured as the weighted-average method?

A) There is no ending inventory.

B) There is no beginning inventory.

C) The beginning and ending inventories are equal.

D) The beginning and ending inventories are both 50% complete.

101) Which of the following statements is(are) true?

I. For cost control, the FIFO method of process costing is better than the weighted-average method.

II. The weighted-average method of process costing assigns more cost to units completed (transferred out) than the FIFO method.

A) Only I is true.

B) Only II is true.

C) Both of these are true.

D) Neither of these is true.

102) Which of the following statements is(are) false?

(A) Operations costing accounts for material costs like job costing and conversion costs like process costing.

(B) An automobile manufacturer is more likely to use an operations costing system than a process costing system.

A) Only A is false.

B) Only B is false.

C) Both of these are false. 

D) Neither of these is false.

103) Operation costing systems are used when the products have:  

A) used a standardized method that is repeatedly performed.

B) common characteristics and no individual characteristics.

C) individual characteristics and no common characteristics.

D) some common characteristics and some individual characteristics.

104) An operation costing system is: 

A) identical to a process costing system except that actual cost is used for manufacturing overhead.

B) the same as a process costing system except that materials are allocated on the basis of batches of production.

C) the same as a job order costing system except that materials are accounted for in the same way as they are in a process costing system.

D) the same as a job order costing system except that no overhead allocations are made since actual costs are used throughout.

105) Predetermined manufacturing overhead rates can be used in all of the following costing systems except:

A) job costing.

B) process costing.

C) operation costing.

D) actual costing.

106) Cordon Processing uses a process costing system to account for its solvent plant. Beginning inventory consisted of 14,000 gallons (80% complete as to materials, 55% complete as to conversion). Cordon added 213,000 gallons into the process during April. On April 30, there were 18,000 gallons still in process (60% complete as to materials, 45% complete as to conversion).

Required:

(a) Calculate the equivalent units of production for each input, assuming Cordon uses weighted-average.

(b) Calculate the equivalent units of production for each input, assuming Cordon uses FIFO.

107) Ralston Fine Hardwoods uses a process costing system to account for its wood processing plant. Beginning inventory consisted of 4,000 board feet of lumber (100% complete as to materials, 35% complete as to conversion). Ralston added 132,000 board feet into the process during April. On April 30, there were 10,000 board feet still in process (100% complete as to materials, 22% complete as to conversion).

Required:

(a) Calculate the equivalent units of production for each input, assuming Ralston uses weighted-average.

(b) Calculate the equivalent units of production for each input, assuming Ralston uses FIFO.

108) Manning Corporation uses the weighted-average method in its process costing. The following data pertain to its Processing Department for September.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Processing Department for September using the weighted-average method.

109) The following data have been provided by Florrisant Corporation, which uses the weighted-average method in its process costing. The data are for the company's Assembly Department for October.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for October using the weighted-average method.

110) Markov Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department, Sculpting, for a recent month.

Required:

Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

111) Roubideaux Corporation uses process costing. The following data pertain to its Packing Department for February.

Required:

Determine the equivalent units of production for materials and conversion costs for the Packing Department for February using the weighted-average method.  Weighted-average method:

112) Highlite Corporation uses the weighted-average method in its process costing. The following data pertain to its Formulation Department for November.

Required:

Determine the equivalent units of production for materials and conversion costs for the Formulation Department for November using the weighted-average method.  

113) Everglades Furniture uses a process costing system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to materials, 55% complete as to conversion) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to conversion. Everglades uses weighted-average costing.

Required:

(Use 4 decimal places in your calculations.)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

114) Toxo Chemicals produces a solvent in its Glendale plant. Three chemicals are combined at the start of the process and blended under pressure for a period of time. At the 75% point of completion, an additional chemical is added. The following information has been gathered:

Toxo completed 98,000 gallons during the month. The process engineer informs you that the beginning WIP was at the 30% completion point, the ending WIP is at 70%. Toxo uses weighted-average costing.

Required:

(Use 4 decimal places in your calculations.)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

115) Tracker Sports is a manufacturer of sportswear. Tracker produces its products in two departments.

The information for the current month for Department #2 is as follows:

Beginning WIP was half complete as to conversion costs. Direct materials for Department #2 are added when the process is 25% complete. Manufacturing overhead is applied at a rate equal to 50 percent of direct labor. Ending WIP was 60 percent complete. Tracker Sports uses weighted-average costing.

Required:

(Use 4 decimal places in your calculations.)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

116) Malcom Industries manufactures a silicone paste wax that goes through three processing departments: cracking, blending, and packing. All raw materials are introduced at the start of work in the cracking department, with conversion costs being incurred uniformly in each department. The Work-in-Process inventory account for the cracking department for July contains the following information:

The beginning balance inventory consists of $43,400 in materials cost. Malcom uses the weighted-average method to account for its operations.

Required:

(Use 4 decimal places for computations.)

(a) What would be the Cracking Department's inventory balance on July 31?

(b) What would be the cost transferred to the Blending Dept. in July?

117) The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.

The following Work-in-Process account for the Blending Department is available for the month of July. The July 1 Work-in-Process balance contains $5,920 in material costs and $1.56/unit in costs transferred in from the Refining Department.

The Safety Chemical Company uses weighted-average costing.

Required:

(Use 4 decimal places for computations.)

(a) Compute the equivalent units of production for Blending.

(b) Compute the unit costs in the Blending Department for the month of July.

(c) Compute the costs transferred out to the Mixing Department for July.

(d) Compute the July 31 Work-in-Process Inventory balance.

118) The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.

The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process balance contains $1,500 in material costs.

The Safety Chemical Company uses weighted-average costing.

Required:

(Use 4 decimal places for computations.)

(a) Compute the equivalent units of production for Refining for July.

(b) Compute the material cost per unit and the conversion cost per unit for July.

(c) Compute the costs transferred to the Blending Department for July.

(d) Compute the July 31 Work-in-Process Inventory balance.

119) The Rosa Lee Manufacturing Company produces a single product in a single processing department. The material is added when 25% of the conversion costs have been added.

The Work-in-Process Inventory account on April 30 includes the following information:

During the month, the company finished and transferred 72,000 units out of the Work-in-Process Inventory. 9,000 units were in process at the beginning of the month and were 40% complete. 8,000 units were in process at the end of the month and were 70% complete. The company uses weighted-average process costing.

Required:

(Use 4 decimal places for computations.)

(a) Compute the equivalent units of production (EUP) for materials and conversion costs in April.

(b) Compute the unit material costs and unit conversion costs for April.

(c) Compute the total cost transferred out of the Work-in-Process inventory during the month of April.

(d) Compute the cost of the ending Work-in-Process inventory for April.

120) Pattern Corporation uses the FIFO method in its process costing. The following data pertain to its Cutting Department for August.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Cutting Department for August using the FIFO method.

121) The following data pertain to the Grinding Department of Dancer Corporation for July. The company uses the FIFO method in its process costing.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Grinding Department for July using the FIFO method.

122) Mobility, Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department, Shaping, for a recent month.

Required:

Using the FIFO method, determine the equivalent units of production for materials and conversion costs.

123) Galaxy Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for June.

Required:

Determine the equivalent units of production for the Assembly Department for June using the FIFO method.

124) The following data have been provided by Brice Corporation for the 3-D Printing Department. The company uses the FIFO method in its process costing.

Required:

Determine the equivalent units of production for the 3-D Printing Department for August using the FIFO method.

125) The Microprocessor Manufacturing Company produces a single product in a single processing department. The material is added when 25% of the conversion costs have been added.

The Work-in-Process Inventory account on April 30 includes the following information:

During the month, the company finished and transferred 72,000 units out of the Work-in-Process Inventory. 9,000 units were in process at the beginning of the month, which were 40% complete. 8,000 units were in process at the end of the month, which were 70% complete. The company uses first-in, first-out (FIFO) process costing.

Required (use 4 decimal places for computations):

(a) Compute the equivalent units of production (EUP) for materials and conversion costs in April.

(b) Compute the unit material costs and unit conversion costs for April.

(c) Compute the total cost transferred out of the Work-in-Process Inventory during the month of April.

(d) Compute the cost of the ending inventory for April.

126) The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.

The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process balance contains $1,500 in material costs.

The following Work-in-Process account for the Blending Department is available for the month of July. The July 1 Work-in-Process balance contains $5,920 in material costs and $1.56/unit in costs transferred in from the Refining Department.

The Safety Chemical Company uses first-in, first-out (FIFO) costing for the Refining Department and weighted-average costing for the Blending Department.

Required (use 4 decimal places for computations):

Part 1: Refining Department

(a) Compute the equivalent units of production for July.

(b) Compute the material cost per unit and the conversion cost per unit for July.

(c) Compute the costs transferred to the Blending Department for July.

(d) Compute the July 31 Work-in-Process Inventory balance.

Part 2: Blending Department

(e) Compute the equivalent units of production.

(f) Compute the unit costs in the Blending Department for the month of July.

(g) Compute the costs transferred out for July.

(h) Compute the July 31 Work-in-Process Inventory balance.

127) The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.

The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process balance contains $1,500 in material costs.

The Safety Chemical Company uses first-in, first-out (FIFO) costing.

Required (use 4 decimal places for computations):

(a) Compute the equivalent units of production for Refining for July.

(b) Compute the material cost per unit and the conversion cost per unit for July.

(c) Compute the costs transferred to the Blending Department for July.

(d) Compute the July 31 Work-in-Process Inventory balance.

128) The Safety Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.

The following Work-in-Process account for the Blending Department is available for the month of July. The July 1 Work-in-Process balance contains $10,370 in conversion costs, and $1.56/unit in costs transferred in from the Refining Department.

The Safety Chemical Company uses first-in, first-out (FIFO) costing.

Required (use 4 decimal places for computations):

(a) Compute the equivalent units of production for Blending.

(b) Compute the unit costs in the Blending Department for the month of July.

(c) Compute the costs transferred out to the Mixing Department for July.

(d) Compute the July 31 Work-in-Process Inventory balance.

129) Tracker Sports is a manufacturer of sportswear. Tracker produces its products in two departments.

The information for the current month for Department #2 is as follows:

Beginning WIP was half complete as to conversion costs. Direct materials for Department #2 are added when the process is 25% complete. Manufacturing overhead is applied at a rate equal to 50 percent of direct  labor. Ending WIP was 60 percent complete. Tracker Sports uses first-in, first-out (FIFO) costing.

Required:

(HINT: use 4 decimal places in your calculations)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

130) Malcom Industries manufactures a silicone paste wax that goes through three processing departments: cracking, blending, and packing. All raw materials are introduced at the start of work in the cracking department, with conversion costs being incurred uniformly in each department. The Work-in-Process inventory account for the cracking department for July contains the following information:

The beginning balance inventory consists of $43,400 in materials cost. Malcom uses the first-in, first-out (FIFO) method to account for its operations.

Required: (use 4 decimal places for computations)

(a) What would be the Cracking Department's inventory balance on July 31?

(b) What would be the cost transferred to the Blending Dept. in July?

131) Everglades Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to labor. Everglades uses first-in, first-out (FIFO) costing.

Required: (use 4 decimal places in your calculations)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

132) Toxo Chemicals produces a solvent in its Glendale plant. Three chemicals are combined at the start of the process and blended under pressure for a period of time. At the 75% point of completion, an additional chemical is added. The following information has been gathered:

Toxo completed 98,000 gallons during the month. The process engineer informs you that the beginning WIP was at the 40% completion point, the ending WIP is at 70%. Toxo uses first-in, first out (FIFO) costing.

Required: (use 4 decimal places in your calculations)

a. Compute the equivalent units of production for each input.

b. Compute the cost per equivalent unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work-in-process inventory balance.

133) Racquet Master (RM) Sports manufactures and distributes two types of tennis rackets: Dominant Drive (DD) and Major Smash (MS). Both types of rackets go through Operations 1 and 3. MS also goes through Operation 2, which adds a layer of graphite for additional strength. All material is added at the beginning of their respective operations.

The following information relates to a work order from Discount Warehouse, Inc. for 30,000 units of DD (Work order #286) and 8,000 units of MS (Work order #354).

Required:

Assume that there are 3,000 units of DD and 2,000 units of MS in Operation 3 at the end of the reporting period that are 45% and 65% complete, respectively. Compute the ending inventory for Operation 3.  

134) Martin Enterprises uses three operations in sequence to manufacture an assortment of flower pots. In each operation, the same procedures, time, and costs are used to perform that operation, regardless of the type of pot being produced. During March, a batch of 500 Clay Pots and a batch of 800 Porcelain Pots were put through the first operation. All materials for a batch are introduced at the beginning of the operation for that batch. The costs shown below were incurred in March for the first operation:

There were no inventories at the beginning of the month; 400 units of Clay Pots and 600 units of Porcelain Pots were transferred to the next operation. The ending inventories were 30% and 60% complete for Clay and Porcelain, respectively.

Required:

What is the total cost of the ending inventory in process for operation #1?

135) Carmen Products makes four models of guitars. All of the models go through the same assembly line but they differ as to the materials used and the degree of finishing. The Basic model has a low gloss finish and goes immediately to Packaging upon completion in Assembly. The Super model and the Premium model go through a Buffing process upon completion in Assembly. They then go on to Packaging. The Deluxe model is the top of the line and goes first to Buffing from the Assembly, then to Special Polishing, then to Packaging.

Carmen uses operations costing and allocates conversion costs based on the number of units processed in each department.

Required:

What is the cost per unit of each of the completed guitars?

136) Sparkle Inc. is a company that produces liquid cleaning products. Sparkle's management is trying to decide whether to install a job or process costing system. The manufacturing vice president has stated that job costing gives the best control because it is possible to assign costs to specific lots of goods. The controller, however, has stated that job costing requires too much record keeping. Would a process costing system meet the manufacturing vice president's control objectives? Explain.

137) What would happen to the equivalent units, production cost per unit and costs transferred out for a company using weighted-average if the degree of completion of the ending inventory were underestimated?

138) Describe the five steps in preparing a production cost report.

139) Explain the major differences between weighted-average costing and FIFO costing.

140) Is cost accumulation easier under a process costing system or a job costing system? 

141) What characteristics of the production process would lead a company to use process costing rather than job costing?

142) The more important individual unit costs are for making decisions, the more likely it is that process costing will be preferred to job costing. Do you agree?

143) Carlton Electronics manufactures three cell phone models, General, Premium, and Deluxe, which differ in the components included. Production takes place in two departments, Assembly and Special Packaging. Batches of General phones are made to service government military contracts. Premium model phones are specific to corporate contracts. Deluxe model phones are sold commercially through big-box stores. Explain why operation costing might be a consideration for Carlton. 

144) Production and cost data for the month of February for Process A of the Packer Manufacturing Company follow:

The company uses the weighted-average cost method in its process costing system.

Required:

a. Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs (use three decimal places in your calculations).

b. Determine the cost transferred to finished goods.

c. Determine the amount of cost that should be assigned to the ending work-in-process.

145) Tiny Villages Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department, Extruding, for a recent month.

Required:

a. Determine the equivalent units of production.

b. Determine the costs per equivalent unit.

c. Determine the cost of ending work-in-process inventory.

d. Determine the cost of the units transferred to the next department.

146) Paradise Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department, Cutting, for a recent month.

Required:

Using the weighted-average method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of units transferred out of the department during the month.

d. Determine the cost of ending work-in-process inventory in the department.

147) In October, one of the processing departments at Radiance Corporation had beginning work-in-process inventory of $29,000 and ending work-in-process inventory of $23,000. During the month, the cost of units transferred out from the department was $311,000.

Required:

Construct a cost reconciliation report for the department for the month of October.

148) In May, one of the processing departments at Patton Corporation had beginning work-in-process inventory of $31,000. During the month, $369,000 of costs were added to production and the cost of units transferred out from the department was $368,000.

Required:

Construct a cost reconciliation report for the department for the month of May.  

149) Dickerson Company uses a process costing system. The following information relates to one month's activity in the company's Mixing Department.

The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.

Required:

a. Assume that the company uses the FIFO method. Compute:

1. The equivalent units of production for conversion for the month.

2. The cost per equivalent unit for conversion for the month.

3. The total cost transferred out during the month.

4. The cost assigned to the ending work-in-process inventory.

b. Assume that the company uses the weighted-average cost method. Compute:

1. The equivalent units of production for conversion for the month.

2. The cost per equivalent unit for conversion for the month.

3. The total cost transferred out during the month.

4. The cost assigned to the ending work-in-process inventory.

150) Vacumatic, Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department, Assembly, for a recent month.

Required:

Using the FIFO method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of ending work-in-process inventory.

d. Determine the cost of units transferred out of the department during the month.

151) Emerson, Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department, Mixing, for a recent month.

Required:

Using the FIFO method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of ending work-in-process inventory.

d. Determine the cost of units transferred out of the department during the month.

152) Hsu Corporation uses the FIFO method in its process costing system. The following data concern the company's Grinding Department for the month of August.

Required:

Determine the cost of units transferred out of the department and the cost of ending work-in-process inventory during August using the FIFO method.  

153) The following data has been provided by Radiotronics Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Wiring Department for the month of March.

Required:

Determine the cost of the units transferred out and the cost of ending work-in-process inventory of the department during March using the FIFO method.