Principles of Cost Accounting 16Th Edition Vanderbeck Test Bank Full Chapter PDF

Principles of Cost Accounting 16th
Edition Vanderbeck Test Bank

Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/principles-of-cost-accounting-16th-edition-vanderbeck-test-bank/
CHAPTER 6: PROCESS COST
ACCOUNTING--ADDITIONAL PROCEDURES
Student: ___________________________________________________________________________
1. An example of a process where all of the materials would be added at the beginning of the process would be:
A. A bakery where the ingredients for bread are combined and left to rise.
B. The second process of a snack factory where snack chips coming from the frying process are cooled and
dried for an hour, then bagged.
C. A baker where the wet ingredients for a cake are added one-at-a-time after the dry ingredients have been
thoroughly blended.
D. None of the above.
2. An example of a process where all of the materials would be added at the end of the process would be:
thoroughly blended.
3. The following information is available for the month of October from the First department of the Vaughn
Corporation:
Units
Work in process, October 1 (40% complete) 7,500
Started in October 32,000
Transferred to Second Department in October 33,000
Materials are added in the beginning of the process in the First department. Using the average cost method, what are the equivalent units of
production for the month of October?
Materials Conversion
A. 43,000 39,500
B. 39,500 36,000
C. 38,500 34,300
D. 39,500 38,200
4. The following information is available for the month of August from the First department of the Twigg
Corporation:
Units
Work in process, August 1 (60% complete) 50,000
Started in August 190,000
production for the month of August?
A. 192,000 240,000
B. 190,000 192,000
C. 240,000 208,000
D. 240,000 192,000
5. Information concerning Department A of Ali Company for the month of June is as follows:
Materials
Units Costs
Work in process, beginning of month 20,000 $14,550

Started in June 85,000 $66,300
Units completed 90,000
Work in process, end of month 15,000
All materials are added at the beginning of the process. Using the average cost method, the cost (rounded to two places) per equivalent unit for
materials for June is:
A. $0.74.
B. $0.90.
C. $0.77.
D. $0.78.
6. Plemmon Company adds materials at the beginning of the process in the forming department, which is the
first of two stages of its production cycle. Information concerning the materials used in the forming department
in April follows:
Materials
Units Costs
Work in process at April 1 15,000 $ 8,000
Units started during April 60,000 $38,500
Units completed and transferred to next department
during April 65,000
Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?
A. $7,154
B. $6,200
C. $7,750
D. $6,417
7. The following information is available for the month of April from the Second department of the Armque
Corporation:
Units
Work in process, April 1 (50% complete) 90,000
Transferred from First Department in April 250,000
Transferred to Second Department in April 280,000
Materials are added at the end of the process in the Second department. Using the average cost method, what are the equivalent units of production
for materials and conversion costs for the month of April?
A. 304,000 250,000
B. 280,000 295,000
C. 340,000 316,000
D. 280,000 304,000
8. The following information is available for the month of August from the Second department of the Twigg
Corporation:
Units
Transferred from First Department in August 190,000
for materials and conversion costs for the month of August?
A. 192,000 160,000
B. 160,000 192,000
C. 160,000 208,000
D. 240,000 192,000
9. During June, Birch Bay Company's Department B equivalent unit product costs computed under the average
cost method were as follows:
Materials $2
Conversion $3
Transferred-in $5
Materials are introduced at the end of the process in Department B. There were 4,000 units (60 % complete as to conversion costs) in work in
process at June 30. The total costs assigned to the June 30 work in process inventory should be:
A. $20,000.
B. $24,800.
C. $27,200.
D. $35,200.
10. Blanche Corporation adds materials at the end of the process in the injection department, which is the
second of two stages of its production cycle. Information concerning the materials used in the forming
department in April follows:
Materials
Units Costs
Work in process at March 1 30,000 $ 60,000
Units transferred from previous department during March 125,000 $360,000
during March 120,000
Using the average cost method, what is the materials cost of the work in process at March 31 (rounded to nearest dollar)?
A. $108,000
B. $126,000
C. $120,000
D. $0
11. Van Pelt Company uses the average cost method of process costing. The production report for the Mixing
department follows:
In process, beginning of period 1,000 units

800 units - materials 50% complete; conversion costs 40% complete
Placed in process during period 5,000 units
Transferred to packing department 4,800 units
In process, end of period 1,200 units
What are the equivalent units for:
Materials Conversion Costs

A. 5,650 5,450
B. 5,450 5,250
C. 4,850 4,400
D. 5,400 5,220
12. Normal losses that occur in the manufacturing process are properly classified as:
A. Extraordinary items.
B. Product costs.
C. Period costs.
D. Deferred charges.
13. Stanley Company adds materials at the beginning of the process in Department M. Data concerning the
materials used in the March production follows:
Units
Work in process at March 1 15,000
Started during March 38,000
Completed and transferred to next department during March 37,000
Normal spoilage incurred 2,000
Using the average cost method, the equivalent units for the materials unit cost calculation are:
A. 38,000.
B. 51,000.
C. 55,000.
D. 37,000.
14. Materials are added at the end of the process in a company's curing department, the second stage of the
production cycle. The following information is available for the month of July:
Units
Work in process, July 1 (50% complete as to conversion costs) 50,000
Transferred from the previous department 200,000
Transferred to the next department 195,000
Lost in production 15,000
Under the cost accounting system, the costs incurred on the lost units are absorbed by the remaining good units. Using the average cost method,
what are the equivalent units for the materials unit cost calculation?
A. 210,000
B. 195,000
C. 250,000
D. 235,000
15. Boron Refiners had 50,000 gallons started in its process in June. At June 30, 35,000 gallons were
completed and transferred to finished goods and 10,000 gallons were still in process, one-fourth completed as to
materials, labor and overhead. The remaining 5,000 units were lost to evaporation, a normal result of the
process. Costs of production during the month were $75,000, $50,000, and $25,000 for material, labor and
overhead, respectively. What is the cost per equivalent unit in June?
A. $4.00
B. $3.33
C. $3.53
D. $3.75
16. In a process cost system, the cost attributable to abnormal losses that occur due to unexpected circumstances
such as machine operator error should be assigned to:
A. Ending work in process inventory.
B. Cost of goods manufactured and ending work in process inventory in the ratio of units worked on during the
period to units remaining in work in process inventory.
C. A separate loss account in order to highlight production inefficiencies
D. Cost of good manufactured (transferred out)
17. If the amount of loss in a manufacturing process is abnormal, it should be classified as a:

A. Period cost.
B. Deferred charge.
C. Joint cost.
D. Product cost.
18. What losses should not affect the recorded cost of inventories?
A. Normal losses
B. Abnormal losses
C. Seasonal losses
D. Standard losses
19. In a process cost system, how is the unit cost affected in a production cost report when materials are added
in a department subsequent to the first department and the added materials result in additional units?
A. It causes an increase in the preceding department's unit cost that necessitates an adjustment of the
transferred-in unit cost.
B. It causes a decrease in the preceding department's unit cost that necessitates an adjustment of the
C. It causes an increase in the preceding department's unit cost but does not necessitate an adjustment of the
D. It causes a decrease in the preceding department's unit cost but does not necessitate an adjustment of the
20. CPG Company manufactures chemicals. Chemical agent PL62 is refined in the Refining department and,
after it is transferred to the Mixing department, a reactive agent is added to it. In January, 6,000 gallons of
PL62 having a cost of $30,000 were transferred from the refining to the Mixing department where 4,000 gallons
of the reactive agent were added. When calculating the inventory costs in the Mixing department, what will the
cost per unit relating to gallons transferred in from the Refining department be?
A. $3.33
B. $3.00
C. $5.00
D. $7.50
21. 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 from beginning inventory, started and completed during the month, and units in ending
inventory.
B. Completed during the period and units in ending inventory.
C. Started during the period and units transferred out during the period.
D. Processed during the period and units completed during the period.
22. Under which of the following conditions will the first-in, first-out method of process costing produce the
same cost of goods manufactured amount as the average cost method?
A. When goods produced are homogeneous in nature
B. When there is no beginning inventory
C. When there is no ending inventory
D. When beginning and ending inventories are each 50 percent complete
23. The average cost method of process costing differs from the FIFO method of process costing in that the
average cost method:
A. Requires that ending work in process inventory be stated in terms of equivalent units of production.
B. Can be used under any cost-flow assumption.
C. Does not consider the degree of completion of beginning work in process inventory when computing
equivalent units of production.
D. Considers the ending work in process inventory only partially complete.
24. Material is added at the beginning of a process in a process costing system. The beginning work in process
inventory for this process this period was 30 percent complete as to conversion costs. Using the first-in,
first-out method of costing, the total equivalent units for material for this process during this period are equal to
the:
A. Units started this period in this process.
B. Beginning inventory this period for this process.
C. Units started this period in this process plus the beginning inventory.
D. Units started this period in this process plus 70 percent of the beginning inventory.
25. Regina Manufacturing uses the FIFO method of process costing. The production report for the Curing
Department, where the materials are added at the beginning of the period, for September was as follows:
In process, beginning of the period 3,000 units

Stage of completion 30 %
Transferred to stockroom during period 12,000 units

In process, end of the period 6,000 units
The number of units started and completed during the period was:
A. 12,000
B. 9,000
C. 15,000
D. 6,000


The number of equivalent units for conversion costs during the period was:
A. 13,500
B. 16,500
C. 12,300
D. 14,700
27. The following information is available for the month of April from the First department of the Armque
Corporation:
Units
Started in April 250,000
Materials are added in the beginning of the process in the First department. Using the first-in, first-out method, what are the equivalent units of
production for the month of April?
A. 250,000 259,000
B. 340,000 259,000
C. 280,000 271,000
D. 250,000 271,000
Materials
Units Costs

All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two places) per equivalent unit for
A. $0.63.
B. $0.90.
C. $0.77.
D. $0.78.
29. Klug Industries adds materials at the beginning of the process in the molding department, which is the first
of two stages of its production cycle. Information concerning the materials used in the molding department in
August follows:
Materials
Units Costs
Work in process at August 1 8,000 $11,550
Units started during August 20,000 $72,450
during August 21,000
Using the FIFO method, what is the materials cost of the work in process at August 31 (rounded to nearest dollar)?
A. $28,000
B. $29,400
C. $29,639
D. $25,358
30. A major difference between FIFO and average costing is:

A. The number of equivalent units in ending work in process.
B. It is not possible to use FIFO when there is more than one department.
C. FIFO separates beginning inventory from current production.
D. The current month’s cost of production will be less.
Corporation:
Units
Transferred to Finished Goods in April 280,000
Materials are added at the end of the process in the Second department. Using the first-in, first-out method, what are the equivalent units of
production for materials and conversion costs for the month of April?
A. 250,000 259,000
B. 280,000 259,000
C. 340,000 271,000
D. 280,000 271,000
32. During June, Birch Bay Company's Department B equivalent unit product costs computed under the FIFO
method were as follows:
Materials $2
Conversion $3
Transferred-in $5
A. $20,000.
B. $24,800.
C. $27,200.
D. $35,200.
33. When two products are produced during a common process, what is the factor that determines whether the
products are joint products or one principal product and a by-product?
A. Potential marketability for each product
B. Amount of work expended in the production of each product
C. Management policy
D. Relative total sales value
34. Which of the following statements best describes a by-product?
A. A product with a value that can easily and accurately be determined.
B. A product that has a greater value than the main product.
C. A product created along with the main product whose sales value does not cover the cost of its production.
D. A product that usually produces a small amount of revenue when compared to the main product revenue.
35. Which of the following is most likely to be accounted for as a by-product?

A. Heating oil resulting from processing crude oil at a refinery.
B. Cream resulting from processing raw milk at a dairy.
C. Sawdust resulting from processing lumber at a lumber mill.
D. Ground beef resulting from processing beef at a meat packer.
36. If two or more products share a common process before they are separated, the joint costs should be
allocated in a manner that:
A. Assigns a proportionate amount of the total cost to each product equitably.
B. Maximizes total earnings.
C. Minimizes variations in a unit of production cost.
D. Does not introduce an element of estimation into the process of accumulating costs for each product.
37. Each of the following is a method by which to allocate joint costs except:
A. Chemical or engineering analysis.
B. Relative sales value.
C. Relative weight, volume, or linear measure.
D. Relative marketing costs.
38. Joint costs are commonly allocated based upon relative:

A. Sales value.
B. Marketing costs.
C. Conversion costs.
D. Prime costs.
39. Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process,
which last year, cost $300,000. Budde produced 10,000 gallons of X15, which sells for $40 per gallon and
40,000 gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint
cost should be allocated to X15?
A. $100,000
B. $200,000
C. $60,000
D. $75,000
40. If a company using the adjusted sales value method to assign joint costs produces two products, A and B,
from a joint process, and B requires additional processing after the split-off in order to be salable, how is the
joint cost allocated to B determined?
A. The costs of the additional processing are ignored in allocating joint costs.
B. The costs of the additional processing are subtracted from the joint costs allocated to B.
C. The relative sales value used to allocate the joint cost are determined after the costs of further processing are
subtracted from the ultimate sales value of B.
D. None of these are correct.
41. Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same
process, which last year, cost $240,000. Anderson produced 20,000 pounds of Gorp, which sells for $60 per
gallon and 60,000 gallons of Gumm, which sells for $30 per gallon. After the split-off point, Gorp required
additional processing costing $300,000 to make it salable. Using the adjusted sales method, how much of the
joint cost should be allocated to Gorp?
A. $60,000
B. $160,000
C. $80,000
D. $96,000
42. Braun Company produces two chemical compounds, Herzog and Lomax from a joint process. Joint costs to
produce 500 gallons of Herzog and 300 gallons of Lomax were $80,000. A by-product, Horst, results from the
joint process and has a market value of $1,000. Assuming Braun accounts for the by-product as a reduction in
the costs assigned to the products, what are the joint costs assigned to Herzog?
A. $39,500
B. $49,375
C. $50,000
D. $40,000
additional processing costing $300,000 to make it salable. Using the adjusted sales method, what is the
completed cost of Gorp?
A. $300,000
B. $380,000
C. $520,000
D. $540,000
44. Which of the following is not an acceptable method for accounting for by-products in a joint manufacturing
process?
A. Costs before the split-off point are allocated to by-products.
B. The estimated sales value of the by-product reduces the cost of the main product.
C. The value of by-products is included in an account called “By-products Inventory.”
D. In some instances, the revenue from selling by-products may be treated as “other income” on the income
statement.
45. Thomas Lumber Company produces furniture grade lumber and building grade lumber from a joint
process. Sawdust, a by-product of the manufacturing process is sold to a local toy manufacturer to stuff leather
toys for $10 per ton. In February, the company produced 3,000 tons of sawdust. What is the entry to reduce
the cost of the main products by the estimated sales value of the by-product?
A. By-product inventory $30,000
Work in process $30,000
B. Work in process $30,000
Other income $30,000
C. Cost of goods sold $30,000
By-product inventory $30,000
D. By-product inventory $30,000
Gain or loss on sale of by-product $30,000
46. Dover Enterprises has two products, Chalk V and Alabaster X, that come from a joint process,
blending. Alabaster X undergoes additional curing after the split-off before it can be sold. The entry to
account for the movement of products from the blending department is:
A. Debit - Finished Goods
Credit - Work in Process - Blending
B. Debit - Finished Goods
Debit - Work in Process - Curing
C. Debit - Work in Process - Curing
D. Debit - Work in Process - Curing
Credit - Factory Overhead
47. Information for Chaucer, Ltd. in July for the Prep Department, the first stage of the production cycle, is as
follows:
Conv
Materials ersion
Costs
Beginning work in process $ 8,100 $
6,200
Costs added during July 23,400 13,40
0
Total costs $31,500 $19,6
00
Goods completed 60,00

0
units
Ending work in process 15,00
0
units
Material costs are added at the beginning of the process. The ending work in process is two-thirds complete as to conversion costs. How would the
total costs accounted for be distributed using the average cost method?
48. Information for Milton, Inc. in July for the Finishing Department, the second stage of the production cycle,
is as follows:
Conv
Materials ersion
Costs
Beginning work in process $366,200 $237,
000
00
Total costs $434,600 $279,
000

0
units
0
units
Material costs are added at the end of the process. The ending work in process is 40% complete as to conversion costs. Ignoring any transferred in
costs, how would the total costs accounted for be distributed using the average cost method?
49. Highlander Corporation is a manufacturer that uses the average cost method to account for costs of
production. Highlander manufactures a product that is produced in three separate departments: molding,
assembling, and finishing. The following information was obtained for the assembling department for the
month of June:
Work in process, June 1: 4,000 units composed of the following:
Percent of
Amount Completion
Transferred in from the molding department $60,000 100%
Costs added by the assembling department:
Direct materials $ 0 0%
Direct labor 12,300 60%
Factory overhead applied 4,700 50%
$17,000
Work in process, June 1 $77,000
The following activity occurred during the month of June:
(1) 20,000 units were transferred in from the molding department at a cost of $300,000.
(2) Costs were added by the assembling department as follows:
Direct materials $ 93,600

Direct labor 43,200
Factory overhead 19,420
$156,220
(3) Materials are added at the end of the process.
(4) 18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The
degree of completion of work in process at June 30 follows:
Direct labor 70%

Factory overhead applied 35%
Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good
form. The report should include:
a. Equivalent units of production.

b. Total manufacturing costs.
c. Cost per equivalent unit.
d. Dollar amount of ending work in process.
e. Dollar amount of inventory cost transferred out.
50. On September 1, Saranac Enterprises had a work in process inventory of 45,000 units that were complete as
to materials and 60% complete as to labor and overhead. September 1, costs follow:
Materials $39,100
Labor 9,800
Factory Overhead 19,600
During September, the following transactions occurred:
a .Purchased materials costing $105,000 on account.

b. Placed direct materials costing $89,900 into production.
c. Incurred production wages totaling $16,200.
d. Incurred overhead costs for September:
Depreciation $13,700
Utilities (cash payment) 11,800
Supplies (from inventory) 8,000
e. Applied overhead to work in process at a predetermined rate of 200% of direct labor cost.
f. Completed and transferred 100,000 units to Finished Goods.
Saranac uses an average cost system. The ending inventory consisted of 50,000 units that were completed as to materials and 40% complete as to
labor and overhead.
Required:
Prepare the journal entries to record the above information for the month of September.
51. Logan, Inc., had 9,000 units of work in process in Department M on March 1 that were 50 percent
complete as to conversion costs. Materials are introduced at the beginning of the process. During March,
18,000 units were started, 20,000 units were completed, and there were 1,000 units of normal losses. Logan
had 6,000 units of work in process at March 31 that were 60 percent complete as to conversion costs. Under
Logan's cost accounting system, lost units reduce the number of units over which total cost can be
spread. Using the average cost method, what were the equivalent units for March for conversion costs?
52. Kyle, Inc., instituted a new process in October. During October, 18,000 units were started in Department
A. Of the units started, 2,000 were lost in the process, 12,000 were transferred to Department B, and 4,000
remained in work in process at October 31. The work in process at October 31 was 100 percent complete as to
material costs and 15% complete as to conversion costs. Material costs of $78,400 and conversion costs of
$52,920 were charged to Department A in October. What were the total costs transferred to Department B and
assigned to ending work in process using the average cost method?
53. Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These
units were 60 percent complete as to conversion costs. Materials are added in the beginning of the
process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard
had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion
costs.
1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO
method.
2) Using the average cost method determine the equivalent units for materials and conversion costs for the
month of October.
54. Howard Poster Incorporated had 12,000 units of work in process in Department B on October 1. These
units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During
the month of October, 38,000 units were transferred in from Department A and 40,000 units were
completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete
as to conversion costs.
method. (Ignore units transferred in.)
month of October. (Ignore transferred in costs.)
55. The Roberto Company had computed the flow of units for Department A for the month of May as follows:
Work in process, May 1: 10,000

Started into production during May 39,000
Units to be accounted for 49,000
Beginning Added during the current month
work in process
Materials $20,800 $ 97,500
Labor 5,200 34,920
Factory overhead 4,800 32,980
Total $30,800 $165,400
Materials are added at the beginning of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 70
percent complete as to conversion costs and the work in process at May 31 was 60 percent complete as to conversion costs. What was the cost of the
goods transferred out and in ending work in process using the FIFO method?
56. The Roberto Company had computed the flow of units for Department B for the month of May as follows:

Transferred from Department A during May 39,000

work in process
Materials $ -0- $235,750
Labor 12,660 166,320
Total $23,970 $552,550
Materials are added at the end of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 30 percent
complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs. What was the cost of the goods
transferred out and in ending work in process using the FIFO method? (Ignore transferred-in costs).
57. Terrell Corporation manufactures Products X, Y, and Z from a joint process. Additional information is as
follows:
Product
X Y Z Total
Units produced 5,000 2,000 6,000 13,000
Joint costs $60,000 ? ? $150,000
Sales value at split off ? ? $45,000 $375,000
Assuming that joint costs are allocated using the relative sales value at split-off approach, what was the sales value at split off for Product X?
58. Jim Davis Company processes hogs into three products, chops, bacon and sausage. Production and selling
price data follow:
Chops 100,000 lbs. $5.00/ lb.

Bacon 210,000 lbs. $4.00/ lb.
Sausage 410,000 lbs. $2.00/ lb.
Hogs are processed in the Processing Department. From the split-off point, bacon is smoked, sliced and packaged in the Bacon Department. The
cost incurred for these processes was $100,000. In addition, sausage was ground and formed into patties in the Sausage Department after the
split-off. This process cost $60,000.
Required:
a) If joint processing costs were $1,500,000, calculate the total cost of each product using the adjusted sales value method.
b) Prepare the journal entries to 1) record the joint processing and movement of product out of the Processing Department after the split off, and 2)
record the additional processing and completion of the bacon and sausage.
59. Nate Company manufactures Products A and B from a joint process that also yields a by-product, X. Nate
Company accounts for the revenue from its by-product sales as a deduction from the cost of its main
products. Additional information is as follows:
Product
A B X Total
Units produced 15,000 9,000 6,000 30,000
Joint costs ? ? ? $180,000
Sales value at split off $420,000 $140,000 $20,000 $580,000
(1) Assuming that joint product costs are allocated using the relative sales value at split-off approach, what was the joint cost allocated to Products A
and B?
(2) Prepare the journal entry to transfer the finished products to separate inventory accounts.
(3)Assuming the sales value of X is stable, prepare the journal entries to:
(a) place the by-product in stock
(b) record the sale of 3,000 units for $10,500 on account.
CHAPTER 6: PROCESS COST ACCOUNTING--ADDITIONAL
PROCEDURES Key
1. An example of a process where all of the materials would be added at the beginning of the process would be:
thoroughly blended.
2. An example of a process where all of the materials would be added at the end of the process would be:
thoroughly blended.
3. The following information is available for the month of October from the First department of the Vaughn
Corporation:
Units
Started in October 32,000
Transferred to Second Department in October 33,000
production for the month of October?
A. 43,000 39,500
B. 39,500 36,000
C. 38,500 34,300
D. 39,500 38,200
4. The following information is available for the month of August from the First department of the Twigg
Corporation:
Units
Started in August 190,000
production for the month of August?
A. 192,000 240,000
B. 190,000 192,000
C. 240,000 208,000
D. 240,000 192,000
Materials
Units Costs

All materials are added at the beginning of the process. Using the average cost method, the cost (rounded to two places) per equivalent unit for
A. $0.74.
B. $0.90.
C. $0.77.
D. $0.78.
6. Plemmon Company adds materials at the beginning of the process in the forming department, which is the
first of two stages of its production cycle. Information concerning the materials used in the forming department
in April follows:
Materials
Units Costs
Work in process at April 1 15,000 $ 8,000
Units started during April 60,000 $38,500
during April 65,000
Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?
A. $7,154
B. $6,200
C. $7,750
D. $6,417
Corporation:
Units
for materials and conversion costs for the month of April?
A. 304,000 250,000
B. 280,000 295,000
C. 340,000 316,000
D. 280,000 304,000
8. The following information is available for the month of August from the Second department of the Twigg
Corporation:
Units
Transferred from First Department in August 190,000
for materials and conversion costs for the month of August?
A. 192,000 160,000
B. 160,000 192,000
C. 160,000 208,000
D. 240,000 192,000
9. During June, Birch Bay Company's Department B equivalent unit product costs computed under the average
cost method were as follows:
Materials $2
Conversion $3
Transferred-in $5
A. $20,000.
B. $24,800.
C. $27,200.
D. $35,200.
10. Blanche Corporation adds materials at the end of the process in the injection department, which is the
second of two stages of its production cycle. Information concerning the materials used in the forming
department in April follows:
Materials
Units Costs
Work in process at March 1 30,000 $ 60,000
Units transferred from previous department during March 125,000 $360,000
during March 120,000
Using the average cost method, what is the materials cost of the work in process at March 31 (rounded to nearest dollar)?
A. $108,000
B. $126,000
C. $120,000
D. $0
11. Van Pelt Company uses the average cost method of process costing. The production report for the Mixing
department follows:
In process, beginning of period 1,000 units

Placed in process during period 5,000 units
Transferred to packing department 4,800 units
In process, end of period 1,200 units
What are the equivalent units for:
Materials Conversion Costs

A. 5,650 5,450
B. 5,450 5,250
C. 4,850 4,400
D. 5,400 5,220
12. Normal losses that occur in the manufacturing process are properly classified as:
A. Extraordinary items.
B. Product costs.
C. Period costs.
D. Deferred charges.
13. Stanley Company adds materials at the beginning of the process in Department M. Data concerning the
materials used in the March production follows:
Units
Started during March 38,000
Completed and transferred to next department during March 37,000
Normal spoilage incurred 2,000
Using the average cost method, the equivalent units for the materials unit cost calculation are:
A. 38,000.
B. 51,000.
C. 55,000.
D. 37,000.
14. Materials are added at the end of the process in a company's curing department, the second stage of the
production cycle. The following information is available for the month of July:
Units
Transferred from the previous department 200,000
Transferred to the next department 195,000
Lost in production 15,000
Under the cost accounting system, the costs incurred on the lost units are absorbed by the remaining good units. Using the average cost method,
what are the equivalent units for the materials unit cost calculation?
A. 210,000
B. 195,000
C. 250,000
D. 235,000
15. Boron Refiners had 50,000 gallons started in its process in June. At June 30, 35,000 gallons were
completed and transferred to finished goods and 10,000 gallons were still in process, one-fourth completed as to
materials, labor and overhead. The remaining 5,000 units were lost to evaporation, a normal result of the
process. Costs of production during the month were $75,000, $50,000, and $25,000 for material, labor and
overhead, respectively. What is the cost per equivalent unit in June?
A. $4.00
B. $3.33
C. $3.53
D. $3.75
16. In a process cost system, the cost attributable to abnormal losses that occur due to unexpected circumstances
such as machine operator error should be assigned to:
A. Ending work in process inventory.
B. Cost of goods manufactured and ending work in process inventory in the ratio of units worked on during the
period to units remaining in work in process inventory.
C. A separate loss account in order to highlight production inefficiencies
D. Cost of good manufactured (transferred out)
17. If the amount of loss in a manufacturing process is abnormal, it should be classified as a:

A. Period cost.
B. Deferred charge.
C. Joint cost.
D. Product cost.
18. What losses should not affect the recorded cost of inventories?
A. Normal losses
B. Abnormal losses
C. Seasonal losses
D. Standard losses
19. In a process cost system, how is the unit cost affected in a production cost report when materials are added
in a department subsequent to the first department and the added materials result in additional units?
A. It causes an increase in the preceding department's unit cost that necessitates an adjustment of the
B. It causes a decrease in the preceding department's unit cost that necessitates an adjustment of the
C. It causes an increase in the preceding department's unit cost but does not necessitate an adjustment of the
D. It causes a decrease in the preceding department's unit cost but does not necessitate an adjustment of the
20. CPG Company manufactures chemicals. Chemical agent PL62 is refined in the Refining department and,
after it is transferred to the Mixing department, a reactive agent is added to it. In January, 6,000 gallons of
PL62 having a cost of $30,000 were transferred from the refining to the Mixing department where 4,000 gallons
of the reactive agent were added. When calculating the inventory costs in the Mixing department, what will the
cost per unit relating to gallons transferred in from the Refining department be?
A. $3.33
B. $3.00
C. $5.00
D. $7.50
21. 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 from beginning inventory, started and completed during the month, and units in ending
inventory.
B. Completed during the period and units in ending inventory.
C. Started during the period and units transferred out during the period.
D. Processed during the period and units completed during the period.
22. Under which of the following conditions will the first-in, first-out method of process costing produce the
same cost of goods manufactured amount as the average cost method?
A. When goods produced are homogeneous in nature
B. When there is no beginning inventory
C. When there is no ending inventory
D. When beginning and ending inventories are each 50 percent complete
23. The average cost method of process costing differs from the FIFO method of process costing in that the
average cost method:
A. Requires that ending work in process inventory be stated in terms of equivalent units of production.
B. Can be used under any cost-flow assumption.
C. Does not consider the degree of completion of beginning work in process inventory when computing
equivalent units of production.
D. Considers the ending work in process inventory only partially complete.
24. Material is added at the beginning of a process in a process costing system. The beginning work in process
inventory for this process this period was 30 percent complete as to conversion costs. Using the first-in,
first-out method of costing, the total equivalent units for material for this process during this period are equal to
the:
A. Units started this period in this process.
B. Beginning inventory this period for this process.
C. Units started this period in this process plus the beginning inventory.
D. Units started this period in this process plus 70 percent of the beginning inventory.


The number of units started and completed during the period was:
A. 12,000
B. 9,000
C. 15,000
D. 6,000


The number of equivalent units for conversion costs during the period was:
A. 13,500
B. 16,500
C. 12,300
D. 14,700
27. The following information is available for the month of April from the First department of the Armque
Corporation:
Units
Started in April 250,000
Materials are added in the beginning of the process in the First department. Using the first-in, first-out method, what are the equivalent units of
production for the month of April?
A. 250,000 259,000
B. 340,000 259,000
C. 280,000 271,000
D. 250,000 271,000
Materials
Units Costs

All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two places) per equivalent unit for
A. $0.63.
B. $0.90.
C. $0.77.
D. $0.78.
29. Klug Industries adds materials at the beginning of the process in the molding department, which is the first
of two stages of its production cycle. Information concerning the materials used in the molding department in
August follows:
Materials
Units Costs
Work in process at August 1 8,000 $11,550
Units started during August 20,000 $72,450
during August 21,000
Using the FIFO method, what is the materials cost of the work in process at August 31 (rounded to nearest dollar)?
A. $28,000
B. $29,400
C. $29,639
D. $25,358
30. A major difference between FIFO and average costing is:

A. The number of equivalent units in ending work in process.
B. It is not possible to use FIFO when there is more than one department.
C. FIFO separates beginning inventory from current production.
D. The current month’s cost of production will be less.
Corporation:
Units
Transferred to Finished Goods in April 280,000
Materials are added at the end of the process in the Second department. Using the first-in, first-out method, what are the equivalent units of
production for materials and conversion costs for the month of April?
A. 250,000 259,000
B. 280,000 259,000
C. 340,000 271,000
D. 280,000 271,000
32. During June, Birch Bay Company's Department B equivalent unit product costs computed under the FIFO
method were as follows:
Materials $2
Conversion $3
Transferred-in $5
A. $20,000.
B. $24,800.
C. $27,200.
D. $35,200.
33. When two products are produced during a common process, what is the factor that determines whether the
products are joint products or one principal product and a by-product?
A. Potential marketability for each product
B. Amount of work expended in the production of each product
C. Management policy
D. Relative total sales value
34. Which of the following statements best describes a by-product?
A. A product with a value that can easily and accurately be determined.
B. A product that has a greater value than the main product.
C. A product created along with the main product whose sales value does not cover the cost of its production.
D. A product that usually produces a small amount of revenue when compared to the main product revenue.
35. Which of the following is most likely to be accounted for as a by-product?

A. Heating oil resulting from processing crude oil at a refinery.
B. Cream resulting from processing raw milk at a dairy.
C. Sawdust resulting from processing lumber at a lumber mill.
D. Ground beef resulting from processing beef at a meat packer.
36. If two or more products share a common process before they are separated, the joint costs should be
allocated in a manner that:
A. Assigns a proportionate amount of the total cost to each product equitably.
B. Maximizes total earnings.
C. Minimizes variations in a unit of production cost.
D. Does not introduce an element of estimation into the process of accumulating costs for each product.
37. Each of the following is a method by which to allocate joint costs except:
A. Chemical or engineering analysis.
B. Relative sales value.
C. Relative weight, volume, or linear measure.
D. Relative marketing costs.
38. Joint costs are commonly allocated based upon relative:

A. Sales value.
B. Marketing costs.
C. Conversion costs.
D. Prime costs.
39. Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process,
which last year, cost $300,000. Budde produced 10,000 gallons of X15, which sells for $40 per gallon and
40,000 gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint
cost should be allocated to X15?
A. $100,000
B. $200,000
C. $60,000
D. $75,000
40. If a company using the adjusted sales value method to assign joint costs produces two products, A and B,
from a joint process, and B requires additional processing after the split-off in order to be salable, how is the
joint cost allocated to B determined?
A. The costs of the additional processing are ignored in allocating joint costs.
B. The costs of the additional processing are subtracted from the joint costs allocated to B.
C. The relative sales value used to allocate the joint cost are determined after the costs of further processing are
subtracted from the ultimate sales value of B.
D. None of these are correct.
additional processing costing $300,000 to make it salable. Using the adjusted sales method, how much of the
joint cost should be allocated to Gorp?
A. $60,000
B. $160,000
C. $80,000
D. $96,000
42. Braun Company produces two chemical compounds, Herzog and Lomax from a joint process. Joint costs to
produce 500 gallons of Herzog and 300 gallons of Lomax were $80,000. A by-product, Horst, results from the
joint process and has a market value of $1,000. Assuming Braun accounts for the by-product as a reduction in
the costs assigned to the products, what are the joint costs assigned to Herzog?
A. $39,500
B. $49,375
C. $50,000
D. $40,000
additional processing costing $300,000 to make it salable. Using the adjusted sales method, what is the
completed cost of Gorp?
A. $300,000
B. $380,000
C. $520,000
D. $540,000
44. Which of the following is not an acceptable method for accounting for by-products in a joint manufacturing
process?
A. Costs before the split-off point are allocated to by-products.
B. The estimated sales value of the by-product reduces the cost of the main product.
C. The value of by-products is included in an account called “By-products Inventory.”
D. In some instances, the revenue from selling by-products may be treated as “other income” on the income
statement.
45. Thomas Lumber Company produces furniture grade lumber and building grade lumber from a joint
process. Sawdust, a by-product of the manufacturing process is sold to a local toy manufacturer to stuff leather
toys for $10 per ton. In February, the company produced 3,000 tons of sawdust. What is the entry to reduce
the cost of the main products by the estimated sales value of the by-product?
A. By-product inventory $30,000
Work in process $30,000
B. Work in process $30,000
Other income $30,000
C. Cost of goods sold $30,000
By-product inventory $30,000
D. By-product inventory $30,000
Gain or loss on sale of by-product $30,000
46. Dover Enterprises has two products, Chalk V and Alabaster X, that come from a joint process,
blending. Alabaster X undergoes additional curing after the split-off before it can be sold. The entry to
account for the movement of products from the blending department is:
A. Debit - Finished Goods
B. Debit - Finished Goods
Debit - Work in Process - Curing
C. Debit - Work in Process - Curing
D. Debit - Work in Process - Curing
Credit - Factory Overhead
47. Information for Chaucer, Ltd. in July for the Prep Department, the first stage of the production cycle, is as
follows:
Conv
Materials ersion
Costs
Beginning work in process $ 8,100 $
6,200
0
Total costs $31,500 $19,6
00

0
units
0
units
Material costs are added at the beginning of the process. The ending work in process is two-thirds complete as to conversion costs. How would the
total costs accounted for be distributed using the average cost method?
Materials Labor
Equivalent units:
Goods completed 60,000 60,000
Ending in process:
Material (15,000 x 100% complete) 15,000
Conversion costs (15,000 x 2/3 complete) 10,000
75,000 70,000
Material costs ($31,500 / 75,000 units) $.42 unit cost

Conversion costs ($19,650 / 70,000 units) .28 unit cost
Total $ .70 unit cost
Cost of units completed (60,000 units ´ $.70) $42,000

Ending work in process:
Materials (15,000 units ´ $.42) $6,300
Conversion costs (15,000 units ´ 2/3 ´ $.28) 2,800 9,100
Total costs accounted for $51,100
48. Information for Milton, Inc. in July for the Finishing Department, the second stage of the production cycle,
is as follows:
Conv
Materials ersion
Costs
Beginning work in process $366,200 $237,
000
00
Total costs $434,600 $279,
000

0
units
0
units
Material costs are added at the end of the process. The ending work in process is 40% complete as to conversion costs. Ignoring any transferred in
costs, how would the total costs accounted for be distributed using the average cost method?
Materials Labor
Equivalent units:
Goods completed 82,000 82,000
Ending in process:
Material - none 0
Conversion costs (20,000 x 40% complete) 8,000
82,000 90,000
Material costs ($434,600 / 82,000 units) $5.30 unit cost

Conversion costs ($279,000 / 90,000 units) 3.10 unit cost
Total $8.40 unit cost
Cost of units completed (82,000 units ´ $8.40) $688,800

Materials - none
Conversion costs (20,000 units ´ .4 ´ $3.10) 24,800
Total costs accounted for $713,600
49. Highlander Corporation is a manufacturer that uses the average cost method to account for costs of
production. Highlander manufactures a product that is produced in three separate departments: molding,
assembling, and finishing. The following information was obtained for the assembling department for the
month of June:
Work in process, June 1: 4,000 units composed of the following:
Percent of
Amount Completion
Transferred in from the molding department $60,000 100%
Costs added by the assembling department:
Direct materials $ 0 0%
Direct labor 12,300 60%
Factory overhead applied 4,700 50%
$17,000
Work in process, June 1 $77,000
The following activity occurred during the month of June:
(1) 20,000 units were transferred in from the molding department at a cost of $300,000.
(2) Costs were added by the assembling department as follows:
Direct materials $ 93,600

Direct labor 43,200
$156,220
(3) Materials are added at the end of the process.
(4) 18,000 units were completed and transferred to the finishing department. At June 30, 6,000 units were still in process. The
degree of completion of work in process at June 30 follows:
Direct labor 70%

Factory overhead applied 35%
Prepare in good form a cost of production report for the assembling department for the month of June. Show supporting computations in good
form. The report should include:
a. Equivalent units of production.

b. Total manufacturing costs.
c. Cost per equivalent unit.
d. Dollar amount of ending work in process.
e. Dollar amount of inventory cost transferred out.
Highlander Corporation
Cost of Production Summary--Assembling Department
For the Month Ended June 30, 20--
Cost of work in process, beginning of month:
Cost in molding dept. $60,000
Cost in assembling dept.:
Labor $12,300
Factory overhead 4,700 17,000 $ 77,000
Cost of goods received from molding
dept. during month 300,000
Cost of production for month:
Materials $93,600
Labor 43,200
Total costs to be accounted for $533,220
Unit output for month:

Materials:
Finished and transferred to finishing
dept. during month 18,000
Equivalent units of work in process, end
of month (6,000 units, 0% completed)
0
Total equivalent production 18,000
Labor:
Finished and transferred to finishing dept. 18,000
during month
Equivalent units of work in process, end
of month (6,000 units, 70% completed) 4,200
Factory overhead:
Finished and transferred to finishing dept.
during month 18,000
Equivalent units of work in process, end of
month (6,000 units, 35% completed) 2,100
20,100
Unit cost for month:
Materials [($0 + $93,600) / 18,000] $ 5.20
Labor [($12,300 + $43,200) / 22,200] 2.50
Factory overhead [($4,700 + 19,420) / 20,100] 1.20
Total $8.90
Inventory costs:
Cost of goods finished and transferred
to finishing dept. during month:
Cost in molding dept. (18,000 ´ $15.00*) $270,000
Cost in assembling dept. (18,000 ´ $8.90) 160,200 $430,200
Cost of work in process, end of month:
Cost in molding dept. (6,000 ´ $15.00) $90,000
Cost in assembling dept.
Materials (6,000 ´ 0% ´ $4.00) $ -0-
Labor (6,000 ´ 70% ´ $2.50) 10,500
Factory overhead (6,000 ´ 35% x
$1.20) 2,520 13,020 103,020
Total production cost accounted for $533,220
* Costs from Molding department ($60,000 + $300,000) /24,000 = $15.00

50. On September 1, Saranac Enterprises had a work in process inventory of 45,000 units that were complete as
to materials and 60% complete as to labor and overhead. September 1, costs follow:
Materials $39,100
Labor 9,800
During September, the following transactions occurred:
a .Purchased materials costing $105,000 on account.

b. Placed direct materials costing $89,900 into production.
c. Incurred production wages totaling $16,200.
d. Incurred overhead costs for September:
Depreciation $13,700
Utilities (cash payment) 11,800
Supplies (from inventory) 8,000
e. Applied overhead to work in process at a predetermined rate of 200% of direct labor cost.
f. Completed and transferred 100,000 units to Finished Goods.
Saranac uses an average cost system. The ending inventory consisted of 50,000 units that were completed as to materials and 40% complete as to
labor and overhead.
Required:
Prepare the journal entries to record the above information for the month of September.
Materials 105,000
Accounts Payable 105,000
Work in Process 89,900

Materials 89,900

Payroll 16,200

Accumulated Depreciation 13,700
Cash 11,800
Materials 8,000

Applied Factory Overhead 32,400
Finished Goods 151,100

Cost of units transferred to Finished Goods:
Material Conversion Costs

Units completed and transferred to Finished Goods
100,000 100,000
Work in Process, December 31
Material (50,000, all materials) 50,000
Labor (50,000 x .4) 20,000
Equivalent units 150,000 120,000
Costs in Work in Process, December 1:

Material $ 39,100
Labor $ 9,800
Costs added in December
Material 89,900
Labor 16,200
Applied factory overhead 32,400
$129,000 $ 78,000
Equivalent units 150,000 120,000
Cost per equivalent unit $.86 $.65
Cost of units transferred out = 100,000 x (.86 + .65) = $151,100
Note to instructor: This problem includes concepts from chapter 5.
51. Logan, Inc., had 9,000 units of work in process in Department M on March 1 that were 50 percent
complete as to conversion costs. Materials are introduced at the beginning of the process. During March,
18,000 units were started, 20,000 units were completed, and there were 1,000 units of normal losses. Logan
had 6,000 units of work in process at March 31 that were 60 percent complete as to conversion costs. Under
Logan's cost accounting system, lost units reduce the number of units over which total cost can be
spread. Using the average cost method, what were the equivalent units for March for conversion costs?
Unit output--Conversion costs:

Transferred out 20,000
Ending work in process (6,000 units ´ 60%) 3,600
Equivalent production for conversion costs 23,600
52. Kyle, Inc., instituted a new process in October. During October, 18,000 units were started in Department
A. Of the units started, 2,000 were lost in the process, 12,000 were transferred to Department B, and 4,000
remained in work in process at October 31. The work in process at October 31 was 100 percent complete as to
material costs and 15% complete as to conversion costs. Material costs of $78,400 and conversion costs of
$52,920 were charged to Department A in October. What were the total costs transferred to Department B and
assigned to ending work in process using the average cost method?
Cost of production for month:

Materials $ 78,400
Conversion costs 52,920
Total costs to be accounted for $131,320
Unit output for month:
Materials:
Finished and transferred to Department B 12,000
Equivalent units of work in process,
end of month (all materials) 4,000
Conversion costs:
Finished and transferred to Department B 12,000
Equivalent units of work in process,
end of month (4,000 units, 15% completed) 600
Unit cost for month:

Materials ($78,400 / 16,000) $ 4.90
Conversion costs ($52,920 / 12,600) 4.20
Total $ 9.10
Inventory costs:
Cost of goods transferred to Department B (12,000 ´ $9.10) $109,200

Material (4,000 x 4.90) 19,600
Labor (600 x 4.20) 2,520
Total ending work in process inventory 22,120
Total production costs accounted for $131,320
53. Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These
units were 60 percent complete as to conversion costs. Materials are added in the beginning of the
process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard
had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion
costs.
method.
month of October.
FIFO equivalent units:
Conversion
Materials Costs
To complete beginning work in process:

Materials added -0-
40% ´ 12,000 4,800
Started and finished during month:
40,000 units completed - 12,000 units in process,
beginning of month 28,000 28,000
All materials added 10,000
75% ´ 10,000 7,500
Total 38,000 40,300
Average cost equivalent units:

Finished during month 40,000 40,000
75% ´ 10,000 7,500
Total 50,000 47,500
54. Howard Poster Incorporated had 12,000 units of work in process in Department B on October 1. These
units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During
the month of October, 38,000 units were transferred in from Department A and 40,000 units were
completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete
as to conversion costs.
method. (Ignore units transferred in.)
month of October. (Ignore transferred in costs.)
FIFO equivalent units:
Conversion
Materials Costs

Materials added 12,000
40% ´ 12,000 4,800
40,000 units completed - 12,000 units in process,
beginning of month 28,000 28,000
All materials added 0
75% ´ 10,000 7,500
Total 40,000 40,300
Average cost equivalent units:

Finished during month 40,000 40,000
Materials added 0
75% ´ 10,000 7,500
Total 40,000 47,500
55. The Roberto Company had computed the flow of units for Department A for the month of May as follows:

Started into production during May 39,000

work in process
Materials $20,800 $ 97,500
Labor 5,200 34,920
Total $30,800 $165,400
Materials are added at the beginning of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 70
percent complete as to conversion costs and the work in process at May 31 was 60 percent complete as to conversion costs. What was the cost of the
goods transferred out and in ending work in process using the FIFO method?
Unit output for the month:
Conversion
Materials Costs
Materials needed -0-
30% ´ 10,000 units 3,000
All costs added 31,000 31,000
60% ´ 8,000 4,800
Total 39,000 38,800
Unit costs for month:

Materials $97,500 / 39,000 $2.50
Labor $34,920 / 38,800 .90
Factory overhead $32,980 / 38,800 .85
Total $4.25
Inventory Costs:
Cost of goods finished and transferred out during month:
Beginning units in process:
Prior month’s cost $30,800
Current cost to complete:
Materials (already complete) 0
Labor (10,000 x 30% x $.90) 2,700
Factory overhead (10,000 x 30% x $.85) 2,550 $ 36,050
Units started and completed during month

(31,000 x $4.25) 131,750
Total cost transferred $167,800

Materials (8,000 x $2.50) $20,000
Labor (8,000 x 60% x $.90) 4,320
Factory overhead (8,000 x 60% x $.85) 4,080 28,400
56. The Roberto Company had computed the flow of units for Department B for the month of May as follows:

Transferred from Department A during May 39,000

work in process
Materials $ -0- $235,750
Labor 12,660 166,320
Total $23,970 $552,550
Materials are added at the end of the process. There were 8,000 units of work in process at May 31. The work in process at May 1 was 30 percent
complete as to conversion costs and the work in process at May 31 was 20 percent complete as to conversion costs. What was the cost of the goods
transferred out and in ending work in process using the FIFO method? (Ignore transferred-in costs).
Unit output for the month:
Conversion
Materials Costs
Materials needed 10,000
70% ´ 10,000 units 7,000
All costs added 31,000 31,000
No materials added -0-
20% ´ 8,000 1,600
Total 41,000 39,600
Unit costs for month:

Materials $235,750 / 41,000 $ 5.75
Labor $166,320 / 39,600 4.20
Factory overhead $150,480 / 39,600 3.80
Total $13.75
Inventory Costs:
Cost of goods finished and transferred out during month:
Beginning units in process:
Prior month’s cost $23,970
Current cost to complete:
Materials (10,000 x 5.75) 57,500
Labor (10,000 x 70% x $4.20) 29,400
Factory overhead (10,000 x 70% x $3.80) 26,600 $137,470
Units started and completed during month

(31,000 x $13.75) 426,250
Total cost transferred $563,720

Materials (None added) $ -0-
Labor (8,000 x 20% x $4.20) 6,720
Factory overhead (8,000 x 20% x $3.80) 6,080 12,800
57. Terrell Corporation manufactures Products X, Y, and Z from a joint process. Additional information is as
follows:
Product
X Y Z Total
Units produced 5,000 2,000 6,000 13,000
Joint costs $60,000 ? ? $150,000
Sales value at split off ? ? $45,000 $375,000
Another random document with
no related content on Scribd:
in all his dealings; he was punctual in the performance of promises;
he was a man of prayer, and an observer of the Sabbath. And the
point here to be noticed by youth, is, that all these qualities which we
have been noticing appear to be the fruit of seed sown in his youth.
They appear all to have taken root in one great principle—
obedience—obedience to his mother, obedience to his teachers—
obedience to a sense of duty, formed into habit in early life. This is
the real source of Washington’s greatness. He was not made greater
or better than most others, but he adopted good habits, and under
their influence he became great.
Another thing to be observed is, that in adopting good habits,
Washington rejected bad ones. He was guilty of no profanity; no
rudeness or harshness of speech; he was not addicted to sprees; he
was no haunter of bar-rooms or taverns; he had no vulgar love of
eccentricity; he affected not that kind of smartness which displays
itself in irregularity or excess; he did not think it clever to disobey
teachers or parents; he was no lover of scandal, or of profane and
rude society.
The teaching, then, of Washington’s example is this: study
obedience, patience, industry, thoroughness, accuracy, neatness,
respect to the rights and feelings of others, and make these things
habitual—rail-tracks in the mind. The path of obedience is the path to
glory; the path of disobedience is the path of failure and
disappointment in the race of life.
The Poet and the Child.
There is a man in England by the name of Thomas Campbell. He

is a poet, and wrote two famous pieces, “The Pleasures of Hope,”
and “Gertrude of Wyoming,”—besides many other smaller poems,
which are among the most beautiful in our language. A short time
since he was passing through one of the parks of London, which are
extensive fields ornamented with fine trees, and he there saw a
beautiful girl, four years old, led along by a woman. Mr. Campbell
seems to be a lover of children, and so he wrote the following lines
about this little girl. They are very pleasing lines; and I introduce
them here that my fair young readers may see how kindly a famous
poet looks on the face of a child, which bespeaks goodness.
LINES ON HIS NEW CHILD-SWEETHEART.

I hold it a religious duty
To love and worship children’s beauty;
They’ve least the taint of earthly clod,—
They’re freshest from the hand of God.
With heavenly looks, they make us sure
The heaven that made them must be pure.
We love them not in earthly fashion,
But with a beatific passion.
I chanced to, yesterday, behold

A maiden child of beauty’s mould;
’Twas near (more sacred was the scene)
The palace of our patriot Queen.
The little charmer to my view
Was sculpture brought to life anew;
Her eyes had a poetic glow—
Her pouting mouth was Cupid’s bow,
And through her frock I could descry
Her neck and shoulders’ symmetry.
’Twas obvious, from her walk and gait,
Her limbs were beautifully straight.
I stopped th’ enchantress, and was told,
Though tall, she was but four years old.
Her guide so grave an aspect wore
I could not ask a question more—
But followed her. The little one
Threw backward ever and anon
Her lovely neck, as if to say,
I know you love me, Mister Grey.
For, by its instinct, childhood’s eye
Is shrewd in physiognomy;
They well distinguish fawning art
From sterling fondness of the heart.
And so she flirted, like a true

Good woman, till we bade adieu!
’Twas then I with regret grew wild—
Oh! beauteous, interesting child!
Why asked I not thy home and name?
My courage failed me—more’s the shame.
But where abides this jewel rare?

Oh! ye that own her, tell me, where?
For sad it makes my heart, and sore,
To think I ne’er may meet her more.
The Ostrich.
Every one who looks at an ostrich can see that, having very long
legs, he can run pretty fast if he tries. The ostrich is, in fact, swifter of
foot than any other animal. He will outstrip the fleetest dog, or horse,
or even the antelope.
Not only is he the fleetest of running animals, but he is the largest
of birds; but though he is a bird, he cannot fly. In running, he only lifts
his wings a little, flapping them slightly, but deriving no aid from them
in his progress. The ostrich, therefore, is a remarkable bird, and
seems to have been quite a puzzle to a great many wise heads.
Pliny, the old Roman, thought it was rather a beast than a bird, and
the Greeks and Asiatics esteemed it so like a quadruped in some of
its qualities, that they called it a camel-bird.
When a thing is wonderful, people always strive to make it more
wonderful; so they tell very large stories about ostriches eating iron
and brass with a right good appetite! Upon hearing some people talk
about this creature, you would fancy that a shovel and tongs, and a
pair of andirons, would be but a good breakfast for it! Now this is all
nonsense. Iron and brass can no more give nutriment to an ostrich
than a man; it may be that an ostrich, which, it must be confessed,
has a good appetite, sometimes swallows down a spike or a
tenpenny-nail to aid his digestion, just as other birds eat gravel; but
this is no doubt all that can be said about the matter.
The ostrich is a native of most parts of Africa, and of Arabia in
Asia. It is scarce now in all countries, but in the days of ancient
Rome it appears that they were abundant, for the brains of six
hundred were served up at one famous dinner! It is a bird that likes
the company of its own kind very well, and several are often seen
together; but it has not a good opinion of mankind. It seeks places
remote from the haunts of men, and seems to prefer the desert and
the solitude. When pursued, it does not run straight forward, but
wheels round in circles, keeping pretty near its enemy, and is thus
often killed by being shot, or struck with a kind of spear. The creature
is generally inoffensive, and seeks safety by flight; but
when attacked, he resorts to the ungenteel trick of kicking violently,
and he often exercises his skill in this way with serious effect.
In some parts of Africa, the ostrich is tamed, and generally
behaves like a quiet, well-bred bird; it is said, however, not to like
strangers, and to have a spite against ill-dressed people. This is in
bad taste, for the ostrich, having fine silky feathers itself, may seem
to show foolish vanity and pride by picking flaws in the dress of other
people.
There has been a good deal of discussion among learned authors
about the manner in which the female ostrich manages her eggs—
which, by the way, are large and heavy, one of them weighing as
much as a small baby. It is generally agreed, however, that several
ostriches lay in one nest, and that one undertakes to hatch them, but
often covers them up in the sand and leaves them during the day,
knowing that the heat of the sun will carry on the process of hatching
as well without her as with her. I need only add that the ostrich is
about as tall as the Belgian giant, it being between seven and eight
feet high!
What do we mean by Nature?
By Nature, we mean the laws by which God works. And what are
these? Have they power to plan, devise, or execute, of themselves?
Have the laws of God any energy independent of him? Have they,
indeed, any existence independent of him? The seed that is
imbedded in the soil, shoots up into a plant. Is not this God’s work?
Is there any being concerned in this but God? Certainly not. What,
then, has nature to do? Nothing—nothing whatever. The Creator
makes the soil, the seed, the moisture, the heat, and he gives them
their quickening impulse. The stem, the stalk, the unfolding leaf, the
fragrant flower, the blushing fruit, are his. He supplies and guides
every particle of earth, air, water, and heat, concerned in the process
of vegetation; without him, these would remain dead, inert and
motionless. The seed would remain but a seed, and the shapeless
elements would pause forever in their state of original chaos.
Nature, then, is not an efficient power; it is not a being; it contrives
nothing, it does nothing, it plans nothing, it produces nothing. It is
only a term, signifying the ways and means by which God chooses
to perform his various works. Nature is but a word, used to designate
the laws of the material universe. But what are laws without the
lawgiver? Even if enacted, where is their efficiency without the
executive power? What would be our book of statutes, if we had no
government to sustain and enforce them? Instead of creating plants
outright, God produces them by a certain process, in which earth, air,
water, and heat are employed. This process is uniform, and we call it
nature. So animals are produced by a certain established process,
and this, again, we call nature.
Nature, then, and the laws of nature, are nothing more than the
beaten path of the Creator; they show his footsteps, but they should
never be confounded with God himself. We should never permit his
works to become idols which stand between us and him, casting a
shadow over his Almighty image. We should never look upon God’s
works as God, nor abuse our minds by substituting the thing created
for the Creator. This is mere idolatry, and the worshipper of nature as
truly bows down before senseless images, as he who kneels to Baal
or Moloch. Nature may, indeed, declare the glory of God, and show
forth his handy-work; it may serve to raise our minds from earth to
heaven; it may be a ladder by which we should climb to the skies.
But he who goes not beyond nature, stays forever upon the ladder,
and reaches not his proper destination. And yet, are we not in the
habit of doing this? In referring the seasons to nature; in speaking of
the rain, the frost, and the snow—the spring-time, with its bursting
buds and flowers; the summer, with its harvest; the autumn, with its
fruits; the winter, with its white winding-sheet for the death-bed of the
leaves, as the works of nature—do we not lead our minds from their
true Author? Do we not wrap up in the mist of words the idea that all
these are the works of a being who designs, contrives, thinks, and
acts?
A Vision.
“On parent knees, a naked, new-born child,
Weeping thou sat’st, while all around thee smiled;
So live that, sinking in thy last long sleep,
Calm thou may’st smile while all around thee weep.”
The beautiful sentiment in the above stanza, translated from the

Persian by Sir William Jones, struck me so much the other day, while
I was reading the life of that excellent man, that I laid down the book
to meditate upon it. It was a rainy, dull afternoon—the fog hung
heavily on the mountains—the smoke rose drowsily from the
chimneys—the cat and dog had forgotten their feeds, and were
sleeping on the rug at my feet. I caught the sluggish spirit of the day,
and leaning my head back in my rocking-chair, the room and its
furniture gradually faded from my sight, and the following dream or
vision occupied my imagination.
A little girl appeared before me in her freshest childhood, and her
mind just opening to the outward world. She held in her hand a pure
white blank tablet, which had been given her at her birth, and from
which she was never to part, in this world or the world to come.
At first she ran recklessly and gaily forward without heeding the
tablet, which, nevertheless, received certain impressions from every
circumstance of her life. These impressions were, for the most part,
gradually effaced as she proceeded, though a portion of them were
deepened, and some became brighter and more precious. Among
these last were the marks made by the tender love of brothers and
sisters, and the watchings, and gentle rebukes, and prayers of
parents. These, at first, were scarcely perceived, and often quite
unheeded; but I saw afterwards, when the child had become a
woman, and had gone far on in her journey in life, she would gather
from them courage to go forward, and strength to resist temptation.
As she proceeded on her youthful course, I inferred her diligence
from the number and distinctness of the images on her tablet; and
their value, from the frequency with which she recurred to them,
through her whole progress, as to a well-filled store-house for
constant use.
As my eye followed her course, I perceived some figures,
scarcely visible, hovering around her. I looked long and intently
before they were quite defined to my sight; but, by degrees, they
became more and more distinct, till at last I saw every expression—
every movement—and even fancied I detected their purposes.
On one side was a female of thoughtful and tranquil aspect, who
evidently regulated all her steps in relation to far-distant objects, to
which her clear, penetrating glance extended. I at first thought, from
her expression of purity, and her simple robe of snowy whiteness,
that she must be Innocence; but I looked again, and saw her glossy
hair was wreathed with amaranths:
“Immortal amaranth—a flower which once
In Paradise, fast by the tree of life,
Began to bloom;”
and which has since ever been, among “the spirits elect,” the
emblem of Virtue. While the young maiden (for she who started a
child had now become a tall and slender girl) kept her eye fixed on
Virtue, and followed her footsteps, her tablet was being inscribed
with beautiful and ever-brightening characters; and though her way
sometimes lay through entangled paths, and clouds were over her
head, and darkness round about her, yet, when it was again light,
and I could see her tablet, I perceived that during these dark
passages of her course she had ineffaceable images. I wondered
that Virtue—since, after all, it was but Virtue in the human form—
never faltered, or was bewildered in these difficult passages, and
while I wondered, a new keenness was imparted to my vision, and I
saw the radiant form of Religion bending from Heaven and
communicating her holy energy to Virtue.
But there were other figures in the maiden’s train, and one in
particular, whom I knew at once, by the miraculous variety of alluring
forms which she assumed, to be Temptation. She was always full of
smiles, and promises, and winning ways, and she carried in her
hand a magic glass, by which she excluded the distance from the
maiden’s eyes, and gave false and beautiful aspects to whatever
was present or near; and often did she lure her from the side of
Virtue, and plunge her into troubles, from which she could only be
extricated by the intervention and struggles of her true friend.
Though sometimes, when the maiden yielded to Temptation, that
deceitful spirit led her through the flowery paths, yet she always left
her in the hands of Remorse, a withered hag, whose name was
written in letters of fire on her breast, and who held an iron pen, with
which she engraved black and frightful images on the tablet.
The maiden looked at them with affright and sorrow; and
Penitence, a tender and pitiful nymph, tried to wash them out with
her tears; but, though they became fainter, it was impossible to
efface them; and the maiden, grieving that these records of her
wandering with Temptation must forever and forever remain on her
tablet, appealed to Virtue for aid; and Virtue pointed her to Religion,
who, it seemed, could alone enable her to resist the wiles of
Temptation. And now I saw, that, as her communications with
Religion became more frequent, and their intercourse more intimate,
though often assailed by Temptation, the maiden was always
victorious in the contest, and at every step she gave more and more
attention to her tablet, and felt a more intense desire that it should be
impressed with beautiful and brightening images.
I know not how much farther I might have traced her course, had
not my little Helen come bounding in from school—the dog barked,
and I was waked. I told my dream to the little girl.
“And what did the tablet mean?” she asked.
“Oh, it was but a dream, Helen.”
“Yes, but all the rest had a meaning, and there ought to be one to
the tablet.”
“Well, then, my child, let it mean Memory; and, if you like my
dream, let it persuade you to store your memory with beautiful and
indelible images.”—Stories for the Young, by Miss Sedgwick.
The Sun and Wind.
a fable.
The Sun and Wind once fell into a dispute as to their relative
power. The Sun insisted, as he could thaw the iceberg, and melt the
snows of winter, and bid the plants spring out of the ground, and
send light and heat over the world, that he was the most powerful. “It
may be,” said he, “that you can make the loudest uproar; but I can
produce the greatest effect. It is not always the noisiest people that
achieve the greatest deeds.”
“This may seem very well,” said the Wind, “but it is not just. Don’t I
blow the ships across the sea, turn windmills, drive the clouds across
the heavens, get up squalls and thundergusts, and topple down
steeples and houses, with hurricanes?”
Thus the two disputed, when, at last, a traveller was seen coming
along; and they agreed each to give a specimen of what he could do,
and let the traveller decide between them. So the Wind began, and it
blew lustily. It nearly took away the traveller’s hat and cloak, and very
much impeded his progress; but he resisted stoutly. The Wind
having tried its best, then came the Sun’s turn. So he shone down
with his summer beams, and the traveller found himself so hot that
he took off his hat and cloak, and so decided that the Sun had more
power than the Wind.
Thus our fable shows that the gentle rays of the Sun were more
potent than the tempest; and we generally find in life that mild means
are more effective, in the accomplishment of any object, than
violence.
The Kamschatka Lily.

In Kamschatka there is a lily called the Sarana, which almost
covers the ground with blossoms; the roots of this lily are good to eat
when they are baked, and are sometimes made into bread.
There is a little mouse in Kamschatka, which lays these roots by
in its own store-house, and when the weather is fine, it brings them
out to dry in the sun; sometimes the people of that country look for
the store-house of the little mouse, and carry away the roots; but
they always take care to leave some behind for the poor mouse that
has had the trouble of collecting them.
Habits which concern ourselves.
From our first days we are much absorbed in the affairs of self. It
is necessary we should take food, and we do it for ourselves alone.
This leads a very little child to put everything he can reach into his
mouth. Now, here is a habit; and it becomes so easy for him to carry
his hand to his lips, that he does not know, at length, when and how
often he does it.
It is, likewise, a habit of a selfish tendency; for the hand goes to
the mouth merely to gratify a feeling he himself has. But he soon
comes to do many other things; and in all his little actions he thinks
of self. James will not give John a part of his apple, because he is in
the habit of eating apples, and whatever else he can get, always by
himself. This is wrong; and if he do not reform his selfish habit, he
will be a complete miser when he arrives at manhood.
Habit not only effects our impressions, but our active propensities.
Hardly any habit is the source of more faults than heedlessness. It
is especially so in children. Why is that boy sitting idle in his seat at
school? Because he is heedless. He has formed the habit of looking
off his book, and around the school-room, whenever the eyes of his
teacher are turned from him. He has done it so often, that he is not
sensible of being idle, until his teacher calls him to attend to his
studies. The want of attention not only makes us poor scholars, but
poor in purse, and poor as men.
I will tell you an allegory, to show you the sad consequences of
heedlessness.
“There is a hill called Experience. Many people are going up this
hill. On the top of it is a temple, called the Temple of Truth. On the
side of the hill are fruit-trees, bearing good fruits of all kinds; but if
the people are not careful, they make themselves sick by eating it,
and must take medicine, or they become more and more sick.
“Two men set out to ascend this hill. The name of one was
Observation, and that of the other Inattention. Observation looked at
everything near him as he went up the hill; and when he became
sick, he thought of the fruit which had made him so, and was careful
not to eat too much of it and make himself sick again. Inattention,
when sick, thought of nothing but of being well again; and when he
got well, he ate again; and when he had hurt himself, he got up
again and ran on, without minding what hurt him.
“As Observation was going up the hill, he fell in company with
Attention, and they walked on together, and soon became friends.
Inattention preferred to walk alone. As he was going on his way, he
came to a river by the way-side, and, although he did not know how
to swim, he jumped into it without thought, and was near being
drowned; when Observation and Attention, arriving at the place,
pulled him out, and saved his life. The three persons then went on
together.
“They soon came to another river, and Inattention, regardless of
the dangers which he had just escaped, and of the advice of his
fellow-travellers, would go into it, and was drowned, although they
tried to save him. So the friends went on without him; and after many
years’ travelling, they arrived at the Temple of Truth, on the top of the
hill, and were rewarded for their perseverance and care, while
Inattention was punished for his negligence and folly.”
We should form the habit of keeping our good resolutions. If we
wish to improve, we must see our errors, and resolve to correct
them; without such resolutions, we shall always do the same wrong
things which we do now. But one point we must never forget; which
is, that the oftener we break our good resolutions, the less likely are
we to keep any we may form. Samuel is very apt to be passionate.
He will, when he is angry, sometimes speak improperly to his father,
or strike his little sister. He knows this is wrong, and every night he is
sorry for it, and resolves not to get angry the next day. But he has
broken just such a resolution so often, that it is growing more and
more difficult for him to govern his temper. The only way he can
reform, is to form the habit of making resolutions very deliberately,
and always carrying them into full execution.
It is important that we acquire fortitude. We must bear many
disappointments and much pain so long as we live. If we began to
bear them firmly in childhood, we should all make brave, patient, and
submissive men. God does not send us troubles without intending to
make us better by the use of them. But without fortitude, affliction
only hardens our hearts.
We have seen very young children bear pain without a single
complaint. In sickness, some are so calm and patient, that you would
not know, except by their countenance, that they were sick. It is
essential to form the habit of keeping our little bodily afflictions to
ourselves. It is our duty to do it, for we only make others unhappy by
continually talking of our own troubles. And we make the suffering
appear the greater to ourselves, also, the more we dwell upon and
converse about it. So of extreme cold and heat—we should begin in
childhood to bear them without tears and complaints. It will give us
no relief to think of them, and magnify our sufferings by relating them
to others.
Troubles of mind should be borne habitually with fortitude. James
has broken one of his skates, but no one would know it from his
appearance; he does not cry, or fret, or complain to his companions,
or at home. His tears he knows will not mend it; he only determines
to be more careful in future, and, as soon as he is able, to purchase
a new pair of skates.
We should always consider, too, that our Father in Heaven
intends to teach us wisdom and submission to his will, by our
smaller, as well as greater troubles.
Anecdotes of Haydn.
The great musician, Haydn, was the son of a wheelwright. His

father used to play on the harp, and on holidays, his mother would
sing while he played; and whenever the little boy heard this music,
he would get two pieces of wood, like a violin and the bow that plays
on it, and he would seem to be playing to his mother’s singing; and
as long as he lived, Haydn loved to play the airs his mother then
sung.
It happened that a relation of his parents, who was a
schoolmaster, came to see them, and, thinking the child clever, he
offered to bring him up, and his parents accepted the offer. When
Haydn was at school, he found a tambourine, and played on it a tune
so surprising, that everybody in the house came to listen to it.
He was afterwards taught to sing; and a person who understood
good music well, coming to hear him, was so pleased with him, that
he emptied a plate of cherries into his pocket.
Such was the beginning of this famous man, who composed
many of the beautiful tunes with which we are all familiar.

Principles of Cost Accounting 16Th Edition Vanderbeck Test Bank Full Chapter PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Principles of Cost Accounting 16Th Edition Vanderbeck Test Bank Full Chapter PDF

Uploaded by

Copyright:

Available Formats

Principles of Cost Accounting 16th

Edition Vanderbeck Test Bank

Work in process, beginning of month 20,000 $14,550

In process, beginning of period 1,000 units

Materials Conversion Costs

17. If the amount of loss in a manufacturing process is abnormal, it should be classified as a:

In process, beginning of the period 3,000 units

Transferred to stockroom during period 12,000 units

In process, beginning of the period 3,000 units

Transferred to stockroom during period 12,000 units

Work in process, beginning of month 20,000 $14,550

30. A major difference between FIFO and average costing is:

35. Which of the following is most likely to be accounted for as a by-product?

38. Joint costs are commonly allocated based upon relative:

Goods completed 60,00

Goods completed 82,00

Work in process, June 1: 4,000 units composed of the following:

The following activity occurred during the month of June:

(2) Costs were added by the assembling department as follows:

Direct materials $ 93,600

(3) Materials are added at the end of the process.

Direct labor 70%

a. Equivalent units of production.

During September, the following transactions occurred:

a .Purchased materials costing $105,000 on account.

Work in process, May 1: 10,000

Work in process, May 1: 10,000

Beginning Added during the current month

Chops 100,000 lbs. $5.00/ lb.

Work in process, beginning of month 20,000 $14,550

In process, beginning of period 1,000 units

Materials Conversion Costs

17. If the amount of loss in a manufacturing process is abnormal, it should be classified as a:

In process, beginning of the period 3,000 units

Transferred to stockroom during period 12,000 units

In process, beginning of the period 3,000 units

Transferred to stockroom during period 12,000 units

Work in process, beginning of month 20,000 $14,550

30. A major difference between FIFO and average costing is:

35. Which of the following is most likely to be accounted for as a by-product?

38. Joint costs are commonly allocated based upon relative:

Goods completed 60,00

Material costs ($31,500 / 75,000 units) $.42 unit cost

Cost of units completed (60,000 units ´ $.70) $42,000

Goods completed 82,00

Material costs ($434,600 / 82,000 units) $5.30 unit cost

Cost of units completed (82,000 units ´ $8.40) $688,800

Work in process, June 1: 4,000 units composed of the following:

The following activity occurred during the month of June:

(2) Costs were added by the assembling department as follows:

Direct materials $ 93,600

(3) Materials are added at the end of the process.

Direct labor 70%

a. Equivalent units of production.

Unit output for month:

* Costs from Molding department ($60,000 + $300,000) /24,000 = $15.00

During September, the following transactions occurred:

a .Purchased materials costing $105,000 on account.

Work in Process 89,900

Work in Process 16,200

Factory Overhead 33,500

Work in Process 32,400