1st attempt

Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,000 units, 100% complete with respect to
materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $36,000. During
the month, 40,000 units were transferred out. The equivalent unit cost was computed to be $2.50 for materials and $3.00 for
conversion costs under the weighted-average method. Given this information, the total cost of the units completed and
transferred out was:
$220,000

$184,000

$256,000

$185,600

In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $21,000 and
ending work in process inventory of $27,000. During the month, $244,000 of costs were added to production and the cost of
units transferred out from the department was $238,000. In the department's cost reconciliation report for April, the total cost to
be accounted for under the weighted-average method would be:
$509,000

$265,000

$48,000

$530,000

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory
were:

Percent
Cost
Complete
Materials costs $ 10,600 65%
Conversion costs $ 12,800 30%
A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 142,100
Conversion costs $ 359,500
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

How many units are in ending work in process inventory in the first processing department at the end of the month?
7,70
0
1,10
0
1,90
0
900

Gunes Corporation uses the weighted-average method in its process costing system. This month,
the beginning inventory in the first processing department consisted of 800 units. The costs and
percentage completion of these units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 10,600 65%
Conversion costs $ 12,800 30%
A total of 8,500 units were started and 7,400 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:

Cost
Materials costs $ 142,100
Conversion costs $ 359,500
The ending inventory was 50% complete with respect to materials and 35% complete with respect
to conversion costs.

What are the equivalent units for materials for the month in the first processing department?
8,350

7,400

950

9,300

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:
50,000.

48,000.

45,000.

40,000.

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:

Beginning work-in-process inventory:

Units in beginning work-in-process inventory 900
Materials costs $ 17,100
Conversion costs $ 10,200
Percent complete with respect to materials 70%
Percent complete with respect to conversion 25%
Units started into production during the month 7,300
Units transferred to the next department during the month 6,100
Materials costs added during the month $ 148,200
Conversion costs added during the month $ 247,500
Ending work-in-process inventory:
Units in ending work-in-process inventory 2,100
Percent complete with respect to materials 80%
Percent complete with respect to conversion 35%
What are the equivalent units for materials for the month in the first processing department?
7,150.

1,680.

8,200.

5,200.

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:
Beginning work-in-process inventory:
Units in beginning work-in-process inventory 900
Materials costs $ 17,100
Conversion costs $ 10,200
Percent complete with respect to materials 70%
Percent complete with respect to conversion 25%
Units started into production during the month 7,300
Units transferred to the next department during the month 6,100
Materials costs added during the month $ 148,200
Conversion costs added during the month $ 247,500
Ending work-in-process inventory:
Units in ending work-in-process inventory 2,100
Percent complete with respect to materials 80%
Percent complete with respect to conversion 35%
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.)
$39.31.

$37.44.

$40.57.

$45.33.

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?
67,400 EUPs

73,000 EUPs

72,000 EUPs

66,000 EUPs

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

Beginning inventory -0-

Units started in production 20,000
Units finished during the period 16,000
Units in process at the end of the period
(complete as to materials,
4,000
¼ complete as to labor and overhead)
Cost of materials used $ 35,200
Labor and overhead costs $ 37,400
Total cost of the 16,000 units finished is:
$65,120.

$67,320.

$63,360.

$72,640.

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing
department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory 500
Materials costs $ 7,800
Conversion costs $ 9,100
Percent complete with respect to materials 85%
Percent complete with respect to conversion 55%
Units started into production during the month 7,000
Units transferred to the next department during the month 6,100
Materials costs added during the month $ 102,700
Conversion costs added during the month $ 184,000
Ending work in process inventory:
Units in ending work in process inventory 1,400
Percent complete with respect to materials 60%
Percent complete with respect to conversion 50%
The cost of ending work in process inventory in the first processing department according to the company's cost system is
closest to:
$62,12
9
$31,06
5
$33,29
4
$37,27
8
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing
department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory 800
Materials costs $ 12,900
Conversion costs $ 5,000
Percent complete with respect to materials 75 %
Percent complete with respect to conversion 20 %
Units started into production during the month 9,500
Units transferred to the next department during the month 8,400
Materials costs added during the month $ 172,000
Conversion costs added during the month $ 240,200
Ending work in process inventory:
Units in ending work in process inventory 1,900
Percent complete with respect to materials 90%
Percent complete with respect to conversion 30%

What are the equivalent units for conversion costs for the month in the first processing department?
570

8,970

8,400

10,300

The following data were taken from the accounting records of the Mixing Department of Kappa Corporation which uses the
weighted-average method in its process costing system:

Beginning work in process inventory:

Cost $ 19,000
Units 30,000units
Percent completion with respect to materials 100%
Percent completion with respect to conversion 60%
Units completed and transferred out 82,000units
Cost per equivalent unit:
Material $ 1.50
Material $ 0.75

$167,500

$184,500

$145,000

$149,500

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory
were:

Percent
Cost
Complete
Materials costs $ 15,700 75%
Conversion costs $ 7,700 20%
A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 186,300
Conversion costs $ 329,800
The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

How many units are in ending work in process inventory in the first processing department at the end of the month?
900

7,600

1,200

1,700

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

Percent Complete
with
Units
Respect to
Conversion
Beginning work in process inventory 14,000 50%
Started into production during June 76,000
Ending work in process inventory 20,000 10%

According to the company's records, the conversion cost in beginning work in process inventory was $92,218 at the beginning of
June. Additional conversion costs of $571,618 were incurred in the department during the month. What was the cost per
equivalent unit for conversion costs for the month? (Round off to three decimal places.)
 $9.410

$9.220

$7.521

$5.954

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:
21,000 units.

27,000 units.

23,000 units.

24,500 units.

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?
$13.17.

$10.50.

$15.49.

$11.59.

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.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600
Direct Labor 8,000
Factory OH 4,800
1,000 units, ½ complete ????
What are the total costs to be accounted for on the production cost report for Department #2 for the period?
$11,600.
$17,600.
$16,400.
$12,660.

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.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600
Direct Labor 8,000
Factory OH 4,800
1,000 units, ½ complete ????
The cost of the ending Work-in-Process Inventory is:
$1,000.

$2,600.

$1,600.

$600.

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.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600
Direct Labor 8,000
Factory OH 4,800
1,000 units, ½ complete ????
The conversion costs per equivalent unit is:
$2.00.

$1.50.

$2.55.

$1.00.

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.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600
Direct Labor 8,000
Factory OH 4,800
1,000 units, ½ complete ????
The unit cost of Product X started in the prior period and completed in the current period is:
$2.00.

$2.55.

$3.45.

$3.60.

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.

I II
Proces
A. Process
s
Job- Job-
B.
Order Order
 Job-
C. Process
Order
Job- Proces
D.
Order s
Optio
n A.
Optio
n B.
Optio
n C.
Optio
n D.

Sigman Co.'s inventories in process were at the following

stages of completion at April 30:

No. of Units Percent Complete

100 90
50 80
200 10
Equivalent units of production in ending inventory amounted
to: (CPA adapted)
150.
330.
350.
180.

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.

I II
A. Process Process
B. Job-Order Job-Order
C. Process Job-Order
D. Job-Order Process
Option
A.
Option
B.
Option
C.
Option
D.
Carrington Corporation produces canned vegetable soup. The company uses the weighted-average method in its process costing
system. The company sold 300,000 units in January. Data concerning inventories follow:

Inventory at January 1:
Work in process None
Finished goods 75,000units
Inventory at January 31:
Work in process (75% complete with respect to conversion costs) 24,000units
Finished goods 60,000units
What were the equivalent units for conversion costs for January?
285,000 units.

300,000 units

303,000 units

309,000 units

In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $12,000. During the
month, $404,000 of costs were added to production and the cost of units transferred out from the department was $426,000.

In the department's cost reconciliation report for June, the total cost accounted for would be:
$842,000

$438,000

$46,000

$876,000

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?
52,000 EUPs

64,500 EUPs

66,000 EUPs

61,500 EUPs

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?
 61,500 EUPs

64,500 EUPs

56,000 EUPs

54,000 EUPs

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?
64,500 EUPs

61,500 EUPs

52,000 EUPs

66,000 EUPs

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?
61,500 EUPs

64,500 EUPs

52,000 EUPs

66,000 EUPs

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

Beginning inventory -0-

Units started in production 20,000
Units finished during the period 16,000
Units in process at the end of the period
(complete as to materials,
4,000
¼ complete as to labor and overhead)
Cost of materials used $ 35,200
Labor and overhead costs $ 37,400
Total cost of the 4,000 units of the ending inventory:
$15,840.

$14,520.
 $8,910.

$9,240.

Jersey Corporation has a process costing system in which it uses the weighted-average method. The equivalent units for
conversion costs for the month were 47,500 units. The beginning work in process inventory consisted of 15,000 units, 60%
complete with respect to conversion costs. The ending work in process inventory consisted of 10,000 units, 75% complete with
respect to conversion costs. The number of units started during the month was:
25,000 units

35,000 units

40,000 units

34,000 units

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in
the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning
inventory were:

Percent
Cost
Complete
Materials costs $ 5,200 60%
Conversion costs $ 8,500 55%

A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month:

Materials costs $ 95,000

Conversion costs $ 169,200

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.

The total cost transferred from the first processing department to the next processing department during the month is closest
to:
$277,900

$264,200

$288,935

$244,219

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and
ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production.

In the department's cost reconciliation report for August, the total cost to be accounted for would be:
$37,000

$614,000

$590,000

$307,000

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory
in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning
inventory were:

Percent
Cost
Complete
Materials costs $ 5,700 65%
Conversion costs $ 6,800 45%

A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 125,500
Conversion costs $ 207,000

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost of ending work in process inventory in the first processing department according to the company's cost system is
closest to:
$19,14
8
$27,35
4
$22,22
3
$54,70
8

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory
in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning
inventory were:

Percent
Cost
Complete
Materials costs $ 5,700 65%
Conversion costs $ 6,800 45%
A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 125,500
Conversion costs $ 207,000
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost per equivalent unit for conversion costs for the first department for the month is closest to:
$35.92

$30.99

$34.21

$33.12
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:

Beginning work-in-process inventory:

Units in beginning work-in-process inventory 600
Materials costs $ 6,600
Conversion costs $ 2,700
Percent complete with respect to materials 60%
Percent complete with respect to conversion 10%
Units started into production during the month 7,000
Materials costs added during the month $ 102,200
Conversion costs added during the month $ 259,200
Ending work-in-process inventory:
Units in ending work-in-process inventory 1,500
Percent complete with respect to materials 55%
Percent complete with respect to conversion 10%
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.)
$42.49.

$43.96.

$41.87.

$45.00.

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%.

True

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

True

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

True

False

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

True

False
Job costing requires more detailed record keeping than process costing.

True

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

True

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

True
 False
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.

True

False
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.

True

False
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.

True

False
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.

True

False
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.

True

False

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

True

False
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.

True

False

Which of the following statements concerning a process cost accounting system is false?
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.
Actual costing may be used in a process costing system to assign indirect overhead costs to departments.

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.
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

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with
respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to
conversion costs would be:
the same as the units completed.

the same as the units started during the period.

 less than the units completed.

less than the units started during the period.

In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of
the following items?
Cost of beginning work in process inventory

Cost of ending finished goods inventory

Cost of ending work in process inventory

Cost of units transferred out

An operation costing system is:

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

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.
the same as a job order costing system except that no overhead allocations are made since actual costs are used
throughout.
identical to a process costing system except that actual cost is used for manufacturing overhead.

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:
started during the period and units transferred out during the period.

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

processed during the period and units completed during the period.

Which of the following organizations would most likely use a process costing system?
Gasoline refinery.

Automobile retailer.

Public accounting firm.

Airplane manufacturer.

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the
production process. The equivalent units for materials at Malcolm would be the sum of:
units in ending work in process and the units started.

units in ending work in process and the units started and completed.

units in beginning work in process and the units started.

units in beginning work in process and the units started and completed.

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.
Only A is false.
 Only B is false.

Both of these are false.

Neither of these is false.

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:
units started this period in this process plus the beginning inventory.

units started this period in this process.

beginning inventory this period for this process.

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

A company should use process costing, rather than job costing, if:
the product is manufactured in batches only as orders are received.

the product is composed of mass-produced homogeneous units.

production is only partially completed during the accounting

period.
the product goes through several steps of production.

Equivalent units for a process costing system, using the weighted-average method, would be equal to:
units started and completed during the period plus equivalent units in the ending work-in-process inventory.

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

units completed during the period and transferred out.

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

A process costing system:

does not use a Work-in-process account in any form.
uses a separate Work-in-process account for each type of product produced.
uses a single Work-in-process account for the entire company.
uses a separate Work-in-process account for each processing department.

In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA
adapted)
Cost of goods sold.
Finished goods inventory control.
Work-in-process inventory
control.
Factory overhead control.

In a production cost report using process costing, transferred-in costs are most similar to:
conversion costs added during the process.
costs transferred-out to the next process.
material added at the beginning of the process.
 costs included in beginning inventory.

An equivalent unit of conversion costs is equal to the amount of conversion costs required to:
transfer a unit out.
start and complete a unit.
transfer a unit in.
start a unit.

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

Compute the equivalent units of production.
Measure the physical flow of resources.
Identify the product costs to account for.
Compute the costs per equivalent unit of
production.
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?
1,100 equivalent units.
900 equivalent units.
800 equivalent units.
1,200 equivalent units.

In a production cost report using process costing, transferred-in costs are most similar to:
costs included in beginning inventory.
material added at the beginning of the process.
costs transferred-out to the next process.
conversion costs added during the process.

In June, one of the processing departments at Furbush Corporation had ending work in process inventory of
$12,000. During the month, $404,000 of costs were added to production and the cost of units transferred out from
the department was $426,000.

In the department's cost reconciliation report for June, the total cost accounted for would be:
$876,000
$46,000
$842,000
$438,000

Which of the following journal entries would be used to record direct labor costs in a company having two
processing departments (Department A and Department B)?
 Salaries and Wages Payable XXX
Work in Process XXX

Work in Process-Department A XXX

Work in Process-Department B XXX
Salaries and Wages Payable XXX

Work in Process XXX

Salaries and Wages Payable XXX

Salaries and Wages Expense XXX

Salaries and Wages Payable XXX

Hache Corporation uses the weighted-average method in its process costing system. The first processing
department, the Welding Department, started the month with 17,000 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 $7,480. An additional 89,000 units were started into production during the month and 92,000
units were completed in the Welding Department and transferred to the next processing department. There were
14,000 units in the ending work in process inventory of the Welding Department that were 90% complete with
respect to conversion costs. A total of $202,400 in conversion costs were incurred in the department during the
month. The cost per equivalent unit for conversion costs for the month is closest to:
$1.965
$2.274
$2.007
$2.200

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

Percent Complete with Respect to

Units Conversion
Beginning work-in-process inventory 15,000 20%
Transferred in from the prior
department 89,000
during September
Ending work-in-process inventory 24,000 90%
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.)
$5.213.
$5.340.
$5.220.
 $5.916.

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.

True

False

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first
processing department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory 500
Materials costs $ 7,800
Conversion costs $ 9,100
Percent complete with respect to materials 85%
Percent complete with respect to conversion 55%
Units started into production during the month 7,000
Units transferred to the next department during the month 6,100
Materials costs added during the month $ 102,700
Conversion costs added during the month $ 184,000
Ending work in process inventory:
Units in ending work in process inventory 1,400
Percent complete with respect to materials 60%
Percent complete with respect to conversion 50%

The cost of ending work in process inventory in the first processing department according to the company's cost
system is closest to:
$62,129
$33,294
$37,278
$31,065

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the
beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion
of these units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 5,700 65%
Conversion costs $ 6,800 45%
A total of 6,500 units were started and 5,900 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 125,500
Conversion costs $ 207,000

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion
costs.

The total cost transferred from the first processing department to the next processing department during the
month is closest to:
$332,500
$345,000
$377,485
$322,777

Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first
processing department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory 600
Materials costs $ 7,000
Conversion costs $ 2,300
Percent complete with respect to materials 55%
Percent complete with respect to conversion 25%
Units started into production during the month 6,500
Units transferred to the next department during the month 5,700
Materials costs added during the month $ 110,100
Conversion costs added during the month $ 83,200
Ending work in process inventory:
Units in ending work in process inventory 1,400
Percent complete with respect to materials 70%
Percent complete with respect to conversion 55%

The total cost transferred from the first processing department to the next processing department during the
month is closest to:
$202,600
$193,300
$218,290
$175,246
The following information pertains to Oklahoma Co.'s Tulsa Division for the month of April:

Units Materials
Beginning Work-in-Process 15,000 $ 5,500
Started in April 40,000 $ 18,000
Units completed 42,500
Ending Work-in-Process 12,500
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.)
$0.59.
$0.43.
$0.55.
$0.45.

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 is the equivalent unit cost for materials assuming Bentley uses first-in, first-out (FIFO) process costing?
$4.50.
$4.12.
$4.60.
$4.80.
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 1 16,000
Started in production during November 100,000
Work in process, November 30 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 weighted-average process
costing?
$156,960.
 $86,400.
$153,960.
$154,800.
Carrington Corporation produces canned vegetable soup. The company uses the weighted-average method in its
process costing system. The company sold 300,000 units in January. Data concerning inventories follow:

Inventory at January 1:
Work in process None
Finished goods 75,000units
Inventory at January 31:
Work in process (75% complete with respect to conversion costs) 24,000units
Finished goods 60,000units
What were the equivalent units for conversion costs for January?
303,000
units
300,000
units
309,000
units
285,000
units.

Paceheco Corporation uses the weighted-average method in its process costing system. The Molding
Department is the second department in its production process. The data below summarize the
department's operations in January.

Percent
Complete with
Units
Respect to
Conversion
Beginning work in process inventory 5,100 70%
Transferred in from the prior department during January 59,000
Completed and transferred to the next department during
56,800
January
Ending work in process inventory 7,300 40%

The accounting records indicate that the conversion cost that had been assigned to beginning work in
process inventory was $34,558 and a total of $559,254 in conversion costs were incurred in the
department during January. The cost per equivalent unit for conversion costs for January in the Molding
Department is closest to:
$9.943
$9.479
$9.680
$8.435
Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning
inventory in the first processing department consisted of 800 units. The costs and percentage completion of these
units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 15,700 75%
Conversion costs $ 7,700 20%
A total of 8,400 units were started and 7,500 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 186,300
Conversion costs $ 329,800
The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion
costs.

The total cost transferred from the first processing department to the next processing department during the
month is closest to:
$578,294
$539,500
$471,435
$516,100

Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding
Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred
to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect
costs in both departments.

On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to
direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls.
On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct
materials and 25% complete with respect to conversion cost.

What are the Molding Department's equivalent units related to materials for January?
79,000
86,000
93,000
89,000

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning
inventory in the first processing department consisted of 600 units. The costs and percentage completion of these
units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 5,200 60%
Conversion costs $ 8,500 55%

A total of 7,800 units were started and 7,100 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:

Materials costs $ 95,000

Conversion costs $ 169,200

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion
costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:
$12.21
$11.58
$11.31
$11.93

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%.
True
False selected

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.
True
False selected

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.)
$8.300.
$8.112.
selecte $7.533.
d
$6.108.
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:
started and completed during the period.
started into the process plus the units in the ending inventory.
transferred out during the period.
started into the process during the period. selected

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 1 16,000
Started in production during November 100,000
Work in process, November 30 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 is the equivalent unit cost for the conversion costs assuming Bentley uses weighted-average process costing?
$5.83.
$6.00.
$6.20.
selecte $5.65.
d

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:

Direct materials (1,200 at $10) $ 12,000

Direct labor 5,500
Factory overhead 4,400
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?
Selected $1,825.
$3,650.
$2,900.
$2,000.

When computing the cost per equivalent unit, the weighted-average method of process costing considers:
costs incurred during the current period only.
costs incurred during the current period plus cost of ending work in process inventory.
selecte costs incurred during the current period plus cost of beginning work in process inventory.
d
 costs incurred during the current period less cost of beginning work in process inventory.

Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first
processing department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory 600
Materials costs $ 7,000
Conversion costs $ 2,300
Percent complete with respect to materials 55%
Percent complete with respect to conversion 25%
Units started into production during the month 6,500
Units transferred to the next department during the month 5,700
Materials costs added during the month $ 110,100
Conversion costs added during the month $ 83,200
Ending work in process inventory:
Units in ending work in process inventory 1,400
Percent complete with respect to materials 70%
Percent complete with respect to conversion 55%

The cost of ending work in process inventory in the first processing department according to the company's cost
system is closest to:
$27,355
$30,130
Selected $23,674
$43,043

Janner Corporation uses the weighted-average method in its process costing system. Operating data for the
Painting Department for the month of April appear below:

Percent
Complete with
Units
Respect to
Conversion
Beginning work in process inventory 4,000 50%
Transferred in from the prior department during April 90,400
Ending work in process inventory 1,600 60%

What were the equivalent units for conversion costs in the Painting Department for April?
88,000
Selected 93,760
91,360
92,800
Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning
inventory in the first processing department consisted of 700 units. The costs and percentage completion of these
units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 12,700 85%
Conversion costs $ 10,900 30%
A total of 9,800 units were started and 8,800 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 175,600
Conversion costs $ 420,900
The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion
costs.

The cost of ending work in process inventory in the first processing department according to the company's cost
system is closest to:
$77,994
Selected $104,725
$89,016
$73,308

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.
Only I is true.
Selected Only II is true.
Both of these are true.
Neither of these is true.

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?
$8,510.
$15,690.
Selected $14,950.
$16,250.
Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning
inventory in the first processing department consisted of 700 units. The costs and percentage completion of these
units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 12,700 85%
Conversion costs $ 10,900 30%
A total of 9,800 units were started and 8,800 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:

Cost
Materials costs $ 175,600
Conversion costs $ 420,900
The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion
costs.

The total cost transferred from the first processing department to the next processing department during the
month is closest to:
$542,106
Selected $620,100
$646,832
$596,500

Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication
Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred
to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to
collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the
Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July
31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the
Fabrication Department completed 70 canoes and transferred them to the Waterproofing Department.

What are the Fabrication Department's equivalent units of production related to conversion costs for July?
Selected 78
100
62
90

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:
50,000.
45,000.
40,000.
selected 48,000.

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).
selected True
False

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:
increase the total cost per unit. selected
decrease the value of the transferred-in costs.
increase the equivalent units of production.
decrease the total costs to account for.

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?
4,400 units
5,380 units
selected 5,100 units
5,500 units

The Werner Corporation uses the weighted-average method in its process costing system. The company recorded
24,400 equivalent units for conversion costs for November in a particular department. There were 4,000 units in the
ending work in process inventory on November 30 which were 60% complete with respect to conversion costs. The
November 1 work in process inventory consisted of 5,000 units which were 40% complete with respect to
conversion costs. A total of 22,000 units were completed and transferred out of the department during the month.
The number of units started during November in the department was:
26,000 units
selected 17,000 units
22,000 units
21,000 units

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning
inventory in the first processing department consisted of 600 units. The costs and percentage completion of these
units in beginning inventory were:

Percent
Cost
Complete
Materials costs $ 5,200 60%
Conversion costs $ 8,500 55%

A total of 7,800 units were started and 7,100 units were transferred to the second processing department during
the month. The following costs were incurred in the first processing department during the month:
Materials costs $ 95,000
Conversion costs $ 169,200

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion
costs.

How many units are in ending work in process inventory in the first processing department at the end of the
month?
7,200
Selected 700
900
1,300