Chapter 6—Process Costing 7. Mehta Company Co.

uses a FIFO process costing

MULTIPLE CHOICE system. The company had 5,000 units that were 60
percent complete as to conversion costs at the
beginning of the month. The company started 22,000
1. Long Company transferred 5,500 units to Finished units this period and had 7,000 units in ending Work in
Goods Inventory during September. On September 1, Process Inventory that were 35 percent complete as to
the company had 300 units on hand (40 percent conversion costs. What are equivalent units for
complete as to both material and conversion costs). material, if material is added at the beginning of the
On June 30, the company had 800 units (10 percent process?
complete as to material and 20 percent complete as to a. 18,000
conversion costs). The number of units started and b. 22,000
completed during September was: c. 25,000
a. 5,200. d. 27,000
b. 5,380.
c. 5,500. 8. Julia Company makes fabric-covered hatboxes. The
d. 6,300. company began September with 500 boxes in process
that were 100 percent complete as to cardboard, 80
percent complete as to cloth, and 60 percent complete
2. Green Company started 9,000 units in February. The
as to conversion costs. During the month, 3,300 boxes
company transferred out 7,000 finished units and
were started. On September 30, 350 boxes were in
ended the period with 3,500 units that were 40 percent
process (100 percent complete as to cardboard, 70
complete as to both material and conversion costs.
percent complete as to cloth, and 55 percent complete
Beginning Work in Process Inventory units were
as to conversion costs). Using the FIFO method, what
a. 500.
are equivalent units for cloth?
b. 600.
a. 3,295
c. 1,500.
b. 3,395
d. 2,000.
c. 3,450
d. 3,595
3. Bush Company had beginning Work in Process
Inventory of 5,000 units that were 40 percent complete
Reed Company
as to conversion costs. X started and completed
42,000 units this period and had ending Work in Reed Company. has the following information for November:
Process Inventory of 12,000 units. How many units
were started this period?
a. 42,000
Beginning Work in Process Inventory
b. 47,000
c. 54,000 (70% complete as to conversion) 6,000 units
d. 59,000
Started 24,000 units
4. Dixie Company uses a weighted average process Ending Work in Process Inventory
costing system. Material is added at the start of
production. Dixie Company started 13,000 units into (10% complete as to conversion) 8,500 units
production and had 4,500 units in process at the start
of the period that were 60 percent complete as to
conversion costs. If Dixie transferred out 11,750 units, Beginning WIP Inventory Costs:
how many units were in ending Work in Process
Inventory? Material $23,400
a. 1,250
Conversion 50,607
b. 3,000
c. 3,500
d. 5,750 Current Period Costs:

5. Taylor Company uses a weighted average process Material $31,500

costing system and started 30,000 units this month.
Taylor had 12,000 units that were 20 percent complete Conversion 76,956
as to conversion costs in beginning Work in Process
Inventory and 3,000 units that were 40 percent
9. All material is added at the start of the process and
complete as to conversion costs in ending Work in
all finished products are transferred out. Refer to Reed
Process Inventory. What are equivalent units for
Company. How many units were transferred out in
conversion costs?
November?
a. 37,800
b. 40,200 a. 15,500
c. 40,800 b. 18,000
d. 42,000 c. 21,500
d. 24,000
6. Kerry Company makes small metal containers. The
company began December with 250 containers in 10. Refer to Reed Company. Assume that
process that were 30 percent complete as to material weighted average process costing is used. What is
and 40 percent complete as to conversion costs. the cost per equivalent unit for material?
During the month, 5,000 containers were started. At a. $0.55
month end, 1,700 containers were still in process (45 b. $1.05
percent complete as to material and 80 percent c. $1.31
complete as to conversion costs). Using the weighted d. $1.83
average method, what are the equivalent units for
conversion costs?
11. Refer to Reed Company. Assume that FIFO
a. 3,450 process costing is used. What is the cost per
b. 4,560 equivalent unit for conversion?
c. 4,610 a. $3.44
d. 4,910 b. $4.24
c. $5.71
 d. $7.03 d. 8,450
Holiday Company
The Holiday Company makes wreaths in two departments: 16. Refer to Holiday Company. Assume 8,000 units
Forming and Decorating. Forming began the month with 500 were transferred to Decorating. Compute the
wreaths in process that were 100 percent complete as to number of equivalent units in Decorating for
material and 40 percent complete as to conversion. During conversion.
the month, 6,500 wreaths were started. At month end, a. 7,925
Forming had 2,100 wreaths that were still in process that b. 7,985
were 100 percent complete as to material and 50 percent c. 8,360
complete as to conversion. Assume Forming uses the d. 8,465
weighted average method of process costing. Costs in the
Forming Department are as follows: 17. Refer to Holiday Company. Assume that 8,000
units were transferred to Decorating at a total cost
Beginning Work in Process Costs: of $16,000. What is the material cost per equivalent
Material $1,000 unit in Decorating?
a. $8.50
Conversion 1,500
b. $8.65
Current Costs: c. $8.80
Material $3,200 d. $9.04
Conversion 5,045
18. Refer to Holiday Company. Assume that 8,000
units were transferred to Decorating at a total cost
The Decorating Department had 600 wreaths in process at of $16,000. What is the conversion cost per
the beginning of the month that were 80 percent complete as equivalent unit in Decorating?
to material and 90 percent complete as to conversion. The a. $11.32
department had 300 units in ending Work in Process that b. $11.46
were 50 percent complete as to material and 75 percent c. $12.00
complete as to conversion. Decorating uses the FIFO method d. $12.78
of process costing, and costs associated with Decorating are:
Beginning WIP Inventory: 19. Refer to Holiday Company. Assume the material
cost per EUP is $8.00 and the conversion cost per
Transferred In $1,170 EUP is $15 in Decorating. What is the cost of
Material 4,320 completing the units in beginning inventory?
a. $ 960
Conversion 6,210
b. $ 1,380
Current Period: c. $ 1,860
Transferred In ? d. $11,940
Material $67,745
Ryan Company
Conversion 95,820 Ryan Company adds material at the start to its production
process and has the following information available for
March:

Beginning Work in Process Inventory

(40% complete as to conversion) 7,000 units
Started this period 32,000 units
Ending Work in Process Inventory
(25% complete as to conversion)
Transferred out
12. Refer to Holiday Company. How many units
were transferred to Decorating during the month?
a. 600
b. 4,900 20. Refer to Ryan Company. Compute the
c. 5,950 number of units started and completed in
d. 7,000 March.
a. 29,500
b. 34,500
13. Refer to Holiday Company. What was the cost
c. 36,500
transferred out of Forming during the month?
d. 39,000
a. $5,341
b. $6,419
21. Refer to Ryan Company. Calculate equivalent
c. $8,245
units of production for material using FIFO.
d. $8,330
a. 32,000
b. 36,800
14. Refer to Holiday Company. Assume 8,000 units c. 37,125
were transferred to Decorating. Compute the d. 39,000
number of equivalent units as to costs in
Decorating for the transferred-in cost component. 22. Refer to Ryan Company. Calculate equivalent
a. 7,400 units of production for conversion using FIFO.
b. 7,700 a. 30,125
c. 8,000 b. 34,325
d. 8,600 c. 37,125
d. 39,000
15. Refer to Holiday Company. Assume 8,000 units
were transferred to Decorating. Compute the 23. Refer to Ryan Company. Calculate equivalent
number of equivalent units in Decorating for units of production for material using weighted
material. average.
a. 7,970 a. 32,000
b. 8,000 b. 34,325
c. 8,330 c. 37,125
 d. 39,000

24. Refer to Ryan Company. Calculate equivalent

units of production for conversion using
weighted average.
a. 34,325
b. 37,125
c. 38,375
d. 39,925