1.

The following journal entry would be made in a processing costing system when units that
have been completed with respect to the work done in Processing Department Z are
transferred from Processing Department Z to Processing Department Y:

TRUE

2. In a process costing system, overhead costs are traced to units of product as they are
incurred.
FALSE

3. A process cost system would be used to account for the cost of manufacturing an oil
tanker.
FALSE

4. A process costing system would be best suited for production of a large quantity of a
homogeneous product.
TRUE

5. In process costing, costs are accumulated in processing departments, rather than by job.
TRUE

6. Process costing would be used by companies producing the following items: bricks, bolts,
pharmaceutical items, natural gas, and electricity.
TRUE

7. The job cost sheet is used in both job-order and process costing.
FALSE

8. In process costing, the equivalent units computed for materials is generally the same as that
computed for direct labor.
FALSE

9. The weighted-average method of process costing can only be used if materials are added at
the beginning of the production process.
FALSE

10. Under the weighted-average method, the cost of materials in the beginning work in
process inventory is not used in the computation of the cost per equivalent unit for materials.
FALSE

11. When computing the cost per equivalent unit, it is not necessary to consider the
percentage completion of the units in beginning inventory under the weighted-average
method.
TRUE

12. When assigning costs to partially completed units in the ending work in process inventory,
it is not necessary to consider the percentage completion of the units under the weighted-
average method.
FALSE
13. In a process costing system, manufacturing overhead applied is usually recorded as a debit
to:
A. Finished goods.
B. Work in process.
C. Manufacturing overhead.
D. Cost of goods sold.

14. A company has two processing departments: A and B. Which of the following entries or
sets of journal entries would be used to record the transfer between processing departments
and from the final processing department to finished goods?

A.

B.

C.

D.

15. A process costing system:

A. uses a separate Work in Process account for each processing department.
B. uses a single Work in Process account for the entire company.
C. uses a separate Work in Process account for each type of product produced.
D. does not use a Work in Process account in any form.

16. A company should use process costing, rather than job order costing, if:
A. production is only partially completed during the accounting period.
B. the product is manufactured in batches only as orders are received.
C. the product is composed of mass-produced homogeneous units.
D. the product goes through several steps of production.

17. Which of the following characteristics applies to process costing, but does not apply to job
order costing?
A. The need for averaging.
B. The use of equivalent units of production.
C. Separate, identifiable jobs.
D. The use of predetermined overhead rates.
18. Equivalent units for a process costing system using the weighted-average method would
be equal to:
A. units completed during the period and transferred out.
B. units started and completed during the period plus equivalent units in the ending work in
process inventory.
C. units completed during the period less equivalent units in the beginning inventory, plus
equivalent units in the ending work in process inventory.
D. units completed during the period plus equivalent units in the ending work in process
inventory.

19. The cost of beginning inventory under the weighted-average method is:
A. added in with current period costs in determining costs per equivalent unit for a given
period.
B. ignored in determining the costs per equivalent unit for a given period.
C. considered separately from costs incurred during the current period.
D. subtracted from current period costs in determining costs per equivalent unit for a given
period.

20. The Nichols Company uses the weighted-average method in its process costing system.
The company recorded 29,500 equivalent units for conversion costs for November in a
particular department. There were 6,000 units in the ending work in process inventory on
November 30, 75% complete with respect to conversion costs. The November 1 work in
process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A
total of 25,000 units were completed and transferred out of the department during the month.
The number of units started during November in the department was:
A. 24,500 units
B. 23,000 units
C. 27,000 units
D. 21,000 units

Beginning work in process inventory + Units started into production = Ending work in
process inventory + Units completed and transferred out
Units started into production = Ending work in process inventory + Units completed and
transferred out - Beginning work in process inventory
= 6,000 + 25,000 - 8,000 = 23,000

21. The Assembly Department started the month with 14,000 units in its beginning work in
process inventory. An additional 296,000 units were transferred in from the prior department
during the month to begin processing in the Assembly Department. There were 14,000 units
in the ending work in process inventory of the Assembly Department.
How many units were transferred to the next processing department during the month?
A. 293,000
B. 310,000
C. 324,000
D. 296,000

Beginning work in process inventory + Units started into production or transferred in =

Ending work in process inventory + Units completed and transferred out
Units started into production or transferred in = Ending work in process inventory + Units
completed and transferred out - Beginning work in process inventory
= 14,000 + 296,000 - 14,000 = 296,000
22. Diston Company uses the weighted-average method in its process costing system. The
first processing department, the Welding Department, started the month with 18,000 units in
its beginning work in process inventory that were 30% complete with respect to conversion
costs. The conversion cost in this beginning work in process inventory was $44,820. An
additional 90,000 units were started into production during the month. There were 21,000
units in the ending work in process inventory of the Welding Department that were 10%
complete with respect to conversion costs. A total of $677,970 in conversion costs were
incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to
three decimal places.)
A. $8.112
B. $8.300
C. $7.533
D. $6.108

Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process
= 18,000 + 90,000 - 21,000 = 87,000

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

According to the company's records, the conversion cost in beginning work in process
inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183
were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round off to three
decimal places.)
A. $8.420
B. $6.934
C. $8.530
D. $8.322
Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000

24. The following information pertains to Yap Company's Grinding Department for the month
of April:

All materials are added at the beginning of the process. Using the weighted-average method,
the cost per equivalent unit for materials is closest to:
A. $0.59
B. $0.55
C. $0.45
D. $0.43
25. Hardouin Company uses the weighted-average method in its process costing system. The
first processing department, the Welding Department, started the month with 22,000 units in
its beginning work in process inventory that were 20% complete with respect to conversion
costs. The conversion cost in this beginning work in process inventory was $23,320. An
additional 97,000 units were started into production during the month and 101,000 units were
completed in the Welding Department and transferred to the next processing department.
There were 18,000 units in the ending work in process inventory of the Welding Department
that were 40% complete with respect to conversion costs. A total of $529,380 in conversion
costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to
three decimal places.)
A. $5.300
B. $5.458
C. $4.603
D. $5.108

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

The accounting records indicate that the conversion cost that had been assigned to beginning
work in process inventory was $5,096 and a total of $87,668 in conversion costs were
incurred in the department during January.
What was the cost per equivalent unit for conversion costs for January in the Molding
Department? (Round off to three decimal places.)
A. $1.654
B. $1.752
C. $1.490
D. $1.499
27. Scheney Company uses the weighted-average method in its process costing system. The
company's work in process inventory on March 31 consisted of 20,000 units. The units in the
ending work in process inventory were 100% complete with respect to materials and 70%
complete with respect to labor and overhead. If the cost per equivalent unit for March was
$2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in
process inventory was:
A. $145,000
B. $116,500
C. $101,500
D. $78,500
28. The following data were taken from the accounting records of the Hazel Corporation
which uses the weighted-average method in its process costing system:

The equivalent units for conversion costs was:

A. 102,000 units
B. 112,000 units
C. 111,000 units
D. 100,000 units

Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 30,000 + 90,000 - 20,000 = 100,000

29. Borwan Company uses the weighted-average method in its process costing system. The
Assembly Department started the month with 8,000 units in its beginning work in process
inventory that were 70% complete with respect to conversion costs. An additional 69,000
units were transferred in from the prior department during the month to begin processing in
the Assembly Department. There were 5,000 units in the ending work in process inventory of
the Assembly Department that were 20% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month?
A. 67,400
B. 73,000
C. 72,000
D. 66,000

Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 8,000 + 69,000 - 5,000 = 72,000
30. Jastak Company uses the weighted-average method in its process costing system.
Operating data for the Painting Department for the month of April appear below:

What were the equivalent units for conversion costs in the Painting Department for April?
A. 106,100
B. 91,500
C. 98,970
D. 106,270

Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 1,000 + 98,800 - 8,300 = 91,500

31. Fayard Corporation uses the weighted-average method in its process costing system. The
Assembly Department started the month with 5,000 units in its beginning work in process
inventory that were 70% complete with respect to conversion costs. An additional 67,000
units were transferred in from the prior department during the month to begin processing in
the Assembly Department. During the month 63,000 units were completed in the Assembly
Department and transferred to the next processing department. There were 9,000 units in the
ending work in process inventory of the Assembly Department that were 50% complete with
respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month?
A. 71,000
B. 64,000
C. 63,000
D. 67,500
32. Nguyen Corporation uses the weighted-average method in its process costing system.
Operating data for the Lubricating Department for the month of October appear below:

What were the equivalent units for conversion costs in the Lubricating Department for
October?
A. 53,700
B. 52,280
C. 54,080
D. 50,100

33. Sanchez Corporation uses the weighted-average method in its process costing system.
The Fitting Department is the second department in its production process. The data below
summarize the department's operations in March.

The Fitting Department's cost per equivalent unit for conversion cost for March was $8.66.
How much conversion cost was assigned to the units transferred out of the Fitting Department
during March?
A. $480,630
B. $450,320
C. $444,258
D. $510,940

Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 7,000 + 52,000 - 3,500 = 55,500
34. The Gasson Company uses the weighted-average method in its process costing system.
The company's ending work in process inventory consists of 10,000 units, 100% complete
with respect to materials and 70% complete with respect to labor and overhead. If the costs
per equivalent unit are $4.50 for the materials and $2.00 for labor and overhead, the balance
of the ending work in process inventory account would be:
A. $44,500
B. $50,500
C. $59,000
D. $65,000

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

The Molding Department's cost per equivalent unit for conversion cost for January was $7.90.
How much conversion cost was assigned to the ending work in process inventory in the
Molding Department for January?
A. $27,729
B. $30,810
C. $3,081
D. $5,056
36. In February, one of the processing departments at Carpentier Corporation had beginning
work in process inventory of $14,000 and ending work in process inventory of $29,000.
During the month, $148,000 of costs were added to production and the cost of units
transferred out from the department was $133,000. In the department's cost reconciliation
report for February, the total cost to be accounted for would be:
A. $310,000
B. $162,000
C. $324,000
D. $43,000

37. In February, one of the processing departments at Whisenhunt Corporation had beginning
work in process inventory of $35,000 and ending work in process inventory of $11,000.
During the month, the cost of units transferred out from the department was $410,000. In the
department's cost reconciliation report for February, the total cost to be accounted for would
be:
A. $46,000
B. $807,000
C. $842,000
D. $421,000
 Jumper Company uses the weighted-average method in its process costing system. The
following data pertain to operations in the first processing department for a recent month:

38. How many units were in the ending work in process inventory?
A. 600 units
B. 1,000 units
C. 800 units
D. 1,400 units

Units in ending work in process = Units in beginning work in process + Units started into
production - Units transferred to the next department = 400 + 15,000 - 14,400 = 1,000

39. What was the cost per equivalent unit for conversion cost?
A. $5.00
B. $12.30
C. $8.50
D. $14.75
40. How much cost, in total, was transferred to the next department during the month?
A. $315,200
B. $306,000
C. $312,000
D. $317,100

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

A total of 5,100 units were started and 4,400 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:

The ending inventory was 75% complete with respect to materials and 10% complete with
respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
41. What are the equivalent units for conversion costs for the month in the first processing
department?
A. 4,400
B. 4,530
C. 130
D. 5,700

Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out
600 + 5,100 = Units in ending work in process inventory + 4,400
Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300

42. The cost per equivalent unit for materials for the month in the first processing department
is closest to:
A. $21.28
B. $20.07
C. $19.29
D. $18.19

Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out
600 + 5,100 = Units in ending work in process inventory + 4,400
Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300
43. The cost per equivalent unit for conversion costs for the first department for the month is
closest to:
A. $34.18
B. $39.93
C. $43.00
D. $45.15

Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out
600 + 5,100 = Units in ending work in process inventory + 4,400
Units in ending work in process inventory = 600 + 5,100 - 4,400 = 1,300

44. The total cost transferred from the first processing department to the next processing
department during the month is closest to:
A. $366,430
B. $284,600
C. $309,200
D. $282,858
45. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to:
A. $26,342
B. $62,679
C. $8,357
D. $83,572