Midterm Quiz

Points:
25/30
Correct
1/1 Points
1.Beej adds all materials at the beginning of production and incurs conversion
cost evenly throughout manufacturing. The company completed 50,000 units
during the year and had 15,000 units in process at December 31, 30% complete
with respect to conversion cost. Equivalent units for the year total:
materials, 65,000; conversion, 54,500.
materials, 50,000; conversion, 50,000.
materials, 50,000; conversion, 54,500.
materials, 54,500; conversion, 54,500.
Correct
1/1 Points
2.Department no. 2 receives goods from Department no. 1, adds material,
completes the units, and
transfers the units to Department no. 3 for final processing. The cost of goods
completed by
Department no. 2 would include charges for:
transferred-in costs, direct materials, and conversion cost.
direct materials and conversion cost.
transferred-in costs, and direct materials
transferred-in costs, and conversion cost.
Correct
1/1 Points
3.Process costing is used to account for:
large numbers of identical products that are produced in a continuous manufacturing
small numbers of products that are produced in batches.
raw materials that are converted directly to finished goods.
large numbers of products that are produced in a non-repetitive process.
Correct
1/1 Points
4.Which of the following are needed to calculate the cost assigned to ending
work in process under the FIFO method of process costing?
Unit Cost and Equivalent Units
Cost of In Process Beginning Only
Unit Cost Only
Unit Cost, Equivalent Units, and Cost of In Process Beginning
Incorrect
0/1 Points
5.Using the FIFO method, if the units transferred out exceed the equivalent units
in Work in Process beginning inventory, then the unit cost of the ending Work in
Process inventory will equal the current period units cost.
True
False
Correct
1/1 Points
6.Michelle, Inc., uses a process-costing system. A newly hired accountant has
identified the following procedures that must be performed by the close of
business on Friday:
1—Calculation of equivalent units
2—Analysis of physical flows of units
3—Assignment of costs to completed units and units still in process
4—Calculation of unit costs
Which of the following choices correctly expresses the proper order of the
preceding tasks?

2, 1, 4, 3.
1, 2, 3, 4.
1, 2, 4, 3.
1, 4, 3, 2.
Correct
1/1 Points
7.G Company uses a weighted-average process-costing system. Company records
disclosed that the firm completed 50,000 units during the month and had 10,000
units in process at month-end, 25% complete. Conversion costs associated with
the beginning work-in-process inventory amounted to P105,000, and amounts
that relate to the current month totaled P840,000. If conversion is incurred
uniformly throughout manufacturing, Garrison's equivalent-unit cost is:

18.00
15.75
16.43
18,90
Correct
1/1 Points
8.Youtube Manufacturing uses a weighted-average process-costing system. All
materials are introduced at the start of manufacturing, and conversion costs are
incurred evenly throughout the process. The company's beginning and ending
work-in-process inventories totaled 10,000 units and 15,000 units, respectively,
with the latter units being 2/3 complete at the end of the period. Universal
started 30,000 units into production and completed 25,000 units. Manufacturing
costs follow. Beginning work in process: Materials, P60,000; conversion cost,
P150,000; Current costs: Materials, P180,000; conversion cost,
P480,000. Youtube;s equivalent-unit cost for conversion cost is:

18.00
13.71
25.20
21.99
Incorrect
0/1 Points
9.Cassandra uses a weighted-average process-costing system. All materials are
added at the beginning of the process; conversion costs are incurred evenly
throughout production. The company finished 40,000 units during the period and
had 15,000 units in progress at year-end, the latter at the 40% stage of
completion. Total material costs amounted to P220,000; conversion costs were
P414,000. The cost of goods completed is:
312,000
414,000
520,000
634,000
Correct
1/1 Points
10.Youtube Manufacturing uses a weighted-average process-costing system. All
materials are introduced at the start of manufacturing, and conversion costs are
incurred evenly throughout the process. The company's beginning and ending
work-in-process inventories totaled 10,000 units and 15,000 units, respectively,
with the latter units being 2/3 complete at the end of the period. Universal
started 30,000 units into production and completed 25,000 units. Manufacturing
costs follow. Beginning work in process: Materials, P60,000; conversion cost,
P150,000; Current costs: Materials, P180,000; conversion cost,
P480,000. Youtube;s equivalent-unit cost for materials is:

6
8
9.6
4,5
Correct
1/1 Points
11.Homer Co., manufactures a variety of fabrics. All materials are introduced at
the beginning of production; conversion cost is incurred evenly through
manufacturing. The Weaving Department had 2,000 units of work in process on
April 1 that were 30% complete as to conversion costs. During April, 9,000 units
were completed and on April 30, 4,000 units remained in production, 40%
complete with respect to conversion costs. The equivalent units of direct
materials for April total:
13,000
13,600
14,400
15,000
Correct
1/1 Points
12.Casa Cruz Corporation, a new company, adds material at the beginning of its
production process; conversion cost, in contrast, is incurred evenly throughout
manufacturing. During May, the firm completed 15,000 units and had ending
work in process of 2,000 units, 60% complete. Equivalent-unit costs
were: materials, P15; conversion, P22. The cost of the company's ending work-in-
process inventory is:
56,400
26,640
44,400
74,000
Correct
1/1 Points
13.The equivalent units for conversion costs is 47,500 units. The beginning
inventory consisted of 15,000 units, 60% complete. The ending inventory
consisted of 10,000 units, 75% complete. Assuming a FIFO basis of computing
equivalent units, the number of units started during the month was
44,000 units
41,500 units
31,000 units
34,000 units
Correct
1/1 Points
14.In a process-costing system, manufacturing costs are accumulated by:
Department or process, and time period.
Batch and time period.
Department and time period.
Batch
Correct
1/1 Points
15.Gee began operations on January 1 of the current year. The company uses a
process-costing system, and conversion cost is incurred evenly throughout
manufacturing. By January 31, the firm had completed 56,000 units. Which of the
following statements could be true about the ending work-in-process inventory if
equivalent units for conversion cost totaled 59,000 units?
The ending work-in-process inventory of 10,000 physical units was 30% complete.
The ending work-in-process inventory totaled 3,000 physical units.
There is no ending work-in-process inventory.
 The ending work-in-process inventory of 20,000 physical units was 85% complete.
Correct
1/1 Points
16.Using the FIFO method, if the beginning work in process inventory is zero,
then the unit cost of units transferred out will always equal the unit costs of the
unit sin ending Work in Process.
True
False
Correct
1/1 Points
17.In a process costing system, a Work in Process account is maintained for each
department
True
False
Correct
1/1 Points
18.Homer Co., manufactures a variety of fabrics. All materials are introduced at
the beginning of production; conversion cost is incurred evenly through
manufacturing. The Weaving Department had 2,000 units of work in process on
April 1 that were 30% complete as to conversion costs. During April, 9,000 units
were completed and on April 30, 4,000 units remained in production, 40%
complete with respect to conversion costs. The equivalent units of conversion for
April total:
10,600
11,200
12,000
12,600
Correct
1/1 Points
19.When calculating unit costs under the weighted-average process-costing
method, the unit cost isbased on:

a summation of the costs in the beginning work-in-process inventory plus costs incurred in
only the current period's manufacturing costs.
 only costs incurred in previous accounting periods.
a summation of the costs in the beginning work-in-process inventory plus costs to be incurred
Correct
1/1 Points
20.Using the FIFO method, if for any period, the beginning Finished Goods
Inventory is zero, then the average ending unit cost in Finished Goods Inventory
is either a number between the unit cost in the beginning Work in Process
inventory and the current period units costs, or it is equal to the current period
unit cost.
True
False
Correct
1/1 Points
21.In a process costing system, the cost of production report takes the place of
the job cost sheet.
True
False
Correct
1/1 Points
22.Natalie Company uses the weighted average method. It had P8,000 of
conversion cost in the beginning Work in Process Inventory and added P64,000
of conversion cost during the year. The company completed 40,000 equivalent
units for conversion costs during the year. The Company had 10,000 units in the
Ending Work in Process Inventory that were 30% complete as to conversion. The
amount of conversion cost assigned to the unit in process
5,400
P12,600
P11,200
P4,800
Correct
1/1 Points
23.When computing the conversion cost per equivalent unit under the weighted-
average method of process costing, all of the following information would be
needed except:

the conversion work performed during the current period on the beginning work-in-process
the conversion work performed during the current period on the ending work-in-process
the number of units completed during the current accounting period.
the conversion cost in the beginning work-in-process inventory.
Incorrect
0/1 Points
24.Cruz, Inc., overstated the percentage of work completed with respect to
conversion cost on the ending work-in-process inventory. What is the effect of
this overstatement on conversion-cost equivalent units and physical units
manufactured, respectively?
Overstated, none.
Overstated, overstated.
Overstated, understated.
None, overstated.
Correct
1/1 Points
25.In the computation of manufacturing cost per equivalent unit, the weighted
average method of process costing considers
Current cost plus cost of beginning work in process inventory
Current costs only
Current cost plus cost of ending work in process inventory
Current cost less cost of beginning work in process inventory
Correct
1/1 Points
26.Casa Cruz Corporation, a new company, adds material at the beginning of its
production process; conversion cost, in contrast, is incurred evenly throughout
manufacturing. During May, the firm completed 15,000 units and had ending
work in process of 2,000 units, 60% complete. Equivalent-unit costs
were: materials, P15; conversion, P22. The cost of Casa Cruz's completed
production is:
555,000
333,000
 330,000
225,000
Correct
1/1 Points
27.Cassandra uses a weighted-average process-costing system. All materials are
added at the beginning of the process; conversion costs are incurred evenly
throughout production. The company finished 40,000 units during the period and
had 15,000 units in progress at year-end, the latter at the 40% stage of
completion. Total material costs amounted to P220,000; conversion costs were
P414,000.The cost of the ending work in process is:
114,000
78,000
54,000
195,000
Incorrect
0/1 Points
28.The units transferred in from the first department to the second department
should be included in the computation of the equivalent units for the second
department for which of the following methods of process costing
Weighted Average Method
FIFO Method and Weighted Average Method
FIFO Method
It Depends
Incorrect
0/1 Points
29.Which of the following statements is false?
In process costing, the total cost of each unit is found by dividing the total factory costs by
In job-order costing, costs are accumulated by job order.
In process costing, costs are accumulated by department.
In process costing, the cost per unit in a department is found by spreading the period's
Correct
1/1 Points
30.Equivalent-unit calculations are necessary to allocate manufacturing costs
between:

units completed and ending work in process.

beginning work in process and units completed.
units sold and ending work in process.
cost of goods manufactured and beginning work in process.