x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 4-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Professional exam adapted Other topics LO5: WAC Cost reconciliation LO4: WAC assignment of costs Difficulty E E M M E H M M E M M M M E E E E M E H H M M E E E E E M LO3: WAC cost per EU LO2: WAC equivalent units LO1: Cost flows 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Question Type T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Conceptual M/C Single Part M/C Single Part M/C CH04-Ref1 CH04-Ref2 CH04-Ref3 CH04-Ref4 CH04-Ref5 CH04-Ref6 CH04-Ref7 CH04-Ref8 CH04-Ref9 CH04-Ref10 CH04-Ref11 CH04-Ref12 CH04-Ref13 CH04-Ref14 CH04-Ref15 CH04-Ref16 CH04-Ref17 CH04-Ref18 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48-50 51-52 53-54 55-57 58-59 60-62 63-67 68-70 71-73 74-80 81-82 83-88 89-92 93-98 99-100 101-102 103-104 105-106 107 108 109 110 Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Single Part M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Problem Problem Problem Problem E M E M M M M M M M H M E M M E E E M M M E-M M M M M M E-M M M E-M E-M M M E-M E-M E E E M x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 4-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem E E E M M M E E M M M M E E E E x x x x x x x x x x x x x x x x x x x 4-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. x x x Chapter 04 Process Costing True / False Questions 1. When materials are purchased in a process costing system, a materials account is debited with the cost of the materials. True False 2. Costs are accumulated by department in a process costing system. True False 3. 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 False 4-4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4. The units in beginning work in process inventory plus the units in ending work in process inventory must equal the units transferred out of the department plus the units started into production. True False 5. In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values. True False 6. Under the weighted-average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period. True False 7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs. True False 8. Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs. True False 9. Using process costing, it is necessary to consider the stage of completion of the units when assigning conversion cost to partially completed units in the ending work in process inventory. True False 4-5 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out. True False 11. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the costs added during the period. True False 12. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added to production during the period. True False 13. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period. True False 14. Process costing is used in those situations where many different products or services are produced each period to customer specifications. True False 15. A job-order cost system would be used to account for the cost of building an oil tanker. True False 4-6 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16. Operation costing is a hybrid system that employs certain aspects of both job-order and process costing. True False 17. Both job-order and process costing systems use averaging to compute unit product costs. True False Multiple Choice Questions 18. Pulo Corporation uses a weighted-average process costing system. The company has two processing departments. Production starts in the Assembly Department and is completed in the Finishing Department. The units completed and transferred out of the Assembly department during April will become the: A. units in April's ending work in process in Finishing. B. units in May's beginning work in process in Finishing. C. units started in production in Finishing for April. D. units started in production in Finishing for May. 4-7 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19. Which of the following journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing departments, department A and department B? A. Option A B. Option B C. Option C D. Option D 20. Which of the following statements about a process costing system is incorrect? A. In a process costing system, each processing department has a work in process account. B. In a process costing system, equivalent units are separately computed for materials and for conversion costs. C. In a process costing system, overhead can be underapplied or overapplied just as in job-order costing. D. In a process costing system, materials costs are traced to units of products. 4-8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 21. Barraza Corporation uses a weighted-average process costing system. Barraza has two direct materials. One of these materials is added at the beginning of the production process. The other material is added when processing is 50% complete. When will the equivalent units of production for these two materials be equal? A. when processing on beginning work in process is less than 50% complete at the start of the period. B. when processing on beginning work in process is more than 50% complete at the start of the period. C. when processing on ending work in process is over 50% complete. D. when processing on ending work in process is less than 50% complete. 22. When the weighted-average method of process costing is used, a department's equivalent units are computed by: A. subtracting the equivalent units in beginning inventory from the equivalent units in ending inventory. B. subtracting the equivalent units in beginning inventory from the equivalent units for work performed during the period. C. adding the units transferred out to the equivalent units in ending inventory. D. subtracting the equivalent units in beginning inventory from the sum of the units transferred out and the equivalent units in ending inventory. 4-9 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 23. Which of the following are needed to compute the cost per equivalent unit for materials under the weighted-average method of process costing? A. Option A B. Option B C. Option C D. Option D 24. For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system? A. a paper mill that processes wood pulp into large rolls of paper B. a shop that restores old cars to "showroom" quality C. a framing shop that builds picture frames to order for individual customers D. a masonry company that builds brick walls, bulkheads, and walkways designed by architects 25. Costs in an operation costing system are accumulated by: A. department. B. by individual job. C. by both job and departments. D. by neither job nor department. 4-10 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26. Which of the following companies would be most likely to use a process costing system? A. a shipbuilder B. a furniture manufacturer C. a law firm D. a utility producing natural gas 27. Which of the following companies would be most likely to use a process costing system? A. Ship builder. B. Movie studio. C. Oil refinery. D. Hospital. 28. The Assembly Department started the month with 35,000 units in its beginning work in process inventory. An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 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. 507,000 B. 473,000 C. 471,000 D. 541,000 4-11 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29. Health Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Health's two departments for the month of January: How many cases of cola were completed and transferred to Finished Goods Inventory during January? A. 66,000 B. 71,000 C. 72,000 D. 74,000 4-12 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30. Fabian Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department. There were 12,000 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. 93,000 B. 83,100 C. 87,000 D. 89,400 31. Jawson Corporation 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. 67,300 B. 68,820 C. 70,520 D. 63,900 4-13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32. Narver 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. 43,100 B. 37,100 C. 44,780 D. 47,780 33. Baker Corporation 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 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 94,700 B. 101,900 C. 98,000 D. 92,000 4-14 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34. Larner Corporation uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 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. $6.892 B. $6.806 C. $5.575 D. $7.090 4-15 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35. Harker Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $29,440. An additional 59,000 units were started into production during the month and 61,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 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. $4.176 B. $4.600 C. $3.375 D. $4.421 4-16 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36. Paxton 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 accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 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. $5.348 B. $4.038 C. $5.080 D. $4.704 4-17 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 37. Barnett Corporation uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in Department M. Conversion costs were 75% complete with respect to the 4,000 units in work in process at May 1 and 50% complete with respect to the 6,000 units in work in process at May 31. During May, 12,000 units were completed and transferred to the next department. An analysis of the costs relating to work in process at May 1 and to production activity for May follows: The total cost per equivalent unit for May was: A. $5.02 B. $5.10 C. $5.12 D. $5.25 4-18 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38. David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 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. $7.547 B. $7.700 C. $4.634 D. $5.988 39. Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account? A. $41,625 B. $33,750 C. $45,000 D. $31,500 4-19 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40. Stay Corporation uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 8,000 units, 60% complete with respect to materials and 80% complete with respect to conversion costs. If the total cost in this inventory is $200,000 and if the cost for materials is $16 per equivalent unit for the period, the conversion cost per equivalent unit of the production for the period must be: A. $19.25 B. $16.00 C. $25.67 D. $31.25 41. Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was: A. $207,000 B. $184,600 C. $204,980 D. $182,580 4-20 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 42. Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was: A. $39,600 B. $45,000 C. $45,400 D. $35,400 43. Valley Manufacturing Corporation's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was: A. $255,000 B. $270,000 C. $240,000 D. $285,000 4-21 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 44. Sarver 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 $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? A. $482,287.20 B. $502,640.00 C. $523,240.00 D. $561,144.00 4-22 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 45. Rariton 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 $5.37. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? A. $4,081.20 B. $10,203.00 C. $10,310.40 D. $6,121.80 46. In May, one of the processing departments at Stitzel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be: A. $358,000 B. $43,000 C. $374,000 D. $187,000 4-23 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 47. In February, one of the processing departments at Manger Corporation had beginning work in process inventory of $25,000 and ending work in process inventory of $34,000. During the month, $290,000 of costs were added to production and the cost of units transferred out from the department was $281,000. In the department's cost reconciliation report for February, the total cost to be accounted for under the weighted-average method would be: A. $59,000 B. $605,000 C. $630,000 D. $315,000 Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 320 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 540 canoes in process that were 30% complete with respect to conversion cost. During July, the Fabrication Department completed 6,700 canoes and transferred them to the Waterproofing Department. 48. What are the Fabrication Department's equivalent units related to materials for July? A. 6,160 B. 6,380 C. 6,920 D. 7,240 4-24 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 49. What are the Fabrication Department's equivalent units related to conversion costs for July? A. 6,542 B. 6,798 C. 6,862 D. 7,078 50. What journal entry should Arizaga make to record the completion of the production process by the Waterproofing Department? A. Option A B. Option B C. Option C D. Option D 4-25 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The following information relates to the Blending Department of Kedakai Products Corporation for the month of May. Kedakai uses a weighted-average process costing system. 51. What are the Blending Department's equivalent units related to materials for May? A. 260,000 B. 277,000 C. 290,000 D. 307,000 52. What are the Blending Department's equivalent units related to conversion costs for May? A. 266,400 B. 290,400 C. 293,400 D. 303,600 4-26 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Jublot Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 53. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.31 B. $17.89 C. $14.48 D. $15.88 4-27 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 54. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $21.76 B. $19.45 C. $23.22 D. $24.38 Dodd Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: A total of 5,400 units were started and 4,700 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 85% complete with respect to materials and 30% 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. 4-28 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 55. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 700 B. 5,000 C. 900 D. 1,100 56. What are the equivalent units for conversion costs for the month in the first processing department? A. 5,800 B. 5,030 C. 4,700 D. 330 57. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $21.37 B. $19.47 C. $20.04 D. $20.76 4-29 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Ibarra Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 58. What are the equivalent units for conversion costs for the month in the first processing department? A. 7,070 B. 6,800 C. 8,600 D. 270 4-30 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 59. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $11.76 B. $13.20 C. $12.65 D. $12.27 Evans Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,100 units were started and 6,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 60% 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. 4-31 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 60. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000 B. 7,020 C. 6,800 D. 220 61. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $10.09 B. $11.18 C. $9.85 D. $8.89 62. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $342,904 B. $453,843 C. $366,300 D. $327,400 4-32 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,200 units were started and 8,300 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 15% 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. 63. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,300 B. 240 C. 9,900 D. 8,540 4-33 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 64. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $22.40 B. $20.28 C. $21.14 D. $21.49 65. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $26.64 B. $26.41 C. $27.97 D. $22.98 66. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $485,486 B. $407,024 C. $426,300 D. $440,300 4-34 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 67. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $33,273 B. $11,769 C. $78,462 D. $58,847 Lumb Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 4-35 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 68. What are the equivalent units for materials for the month in the first processing department? A. 595 B. 7,995 C. 8,100 D. 7,400 69. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $35.88 B. $32.54 C. $34.17 D. $33.83 70. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $32,892 B. $23,325 C. $17,413 D. $38,696 4-36 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Yoder Corporation 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: 71. How many units were completed and transferred to the next department during the month? A. 750,000 units B. 790,000 units C. 760,000 units D. 740,000 units 72. What was the cost per equivalent unit for materials during the month? A. $0.30 B. $0.25 C. $0.20 D. $0.15 4-37 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 73. How much cost, in total, was assigned to the ending work in process inventory? A. $2,600 B. $4,300 C. $15,000 D. $5,400 Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,700 units were started and 9,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 85% complete with respect to materials and 75% 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. 4-38 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 74. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 900 B. 1,100 C. 600 D. 9,200 75. What are the equivalent units for materials for the month in the first processing department? A. 935 B. 9,100 C. 10,200 D. 10,035 76. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,925 B. 10,200 C. 9,100 D. 825 4-39 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 77. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $23.31 B. $23.70 C. $24.43 D. $24.03 78. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $37.11 B. $38.14 C. $40.05 D. $37.92 79. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $623,600 B. $638,122 C. $614,200 D. $569,301 4-40 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 80. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $54,299 B. $51,613 C. $58,495 D. $68,817 Kuzuck Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 4-41 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 81. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $562,368 B. $543,200 C. $527,219 D. $536,200 82. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $28,118 B. $15,981 C. $35,148 D. $5,272 4-42 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 83. What are the equivalent units for materials for the month in the first processing department? A. 750 B. 5,900 C. 4,400 D. 5,150 4-43 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 84. What are the equivalent units for conversion costs for the month in the first processing department? A. 5,900 B. 4,400 C. 4,850 D. 450 85. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.66 B. $15.31 C. $17.53 D. $19.09 86. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $28.89 B. $22.61 C. $27.51 D. $25.90 4-44 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 87. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $231,700 B. $274,893 C. $205,007 D. $215,900 88. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $26,693 B. $69,888 C. $34,944 D. $20,966 4-45 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Carmon Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,900 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 70% complete with respect to materials and 35% 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. 89. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 900 B. 1,700 C. 1,000 D. 7,200 4-46 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 90. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,600 B. 7,495 C. 6,900 D. 595 91. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $23.23 B. $19.94 C. $21.85 D. $21.20 92. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $334,200 B. $367,616 C. $294,947 D. $308,600 4-47 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Barker Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 300 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,100 units were started and 8,700 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 85% complete with respect to materials and 20% 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. 93. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 8,800 B. 900 C. 400 D. 700 4-48 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 94. What are the equivalent units for conversion costs for the month in the first processing department? A. 140 B. 8,840 C. 8,700 D. 9,400 95. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $26.35 B. $25.85 C. $26.65 D. $25.56 96. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $26.31 B. $27.42 C. $29.38 D. $27.98 4-49 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 97. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $482,700 B. $513,466 C. $495,000 D. $475,229 98. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $32,501 B. $7,647 C. $38,237 D. $19,773 4-50 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Fulton Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,900 units were started and 8,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 70% complete with respect to materials and 60% 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. 99. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $323,168 B. $388,528 C. $349,400 D. $364,800 4-51 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 100.The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $39,216 B. $65,360 C. $45,752 D. $41,633 The following information relates to the Assembly Department of Jataca Corporation for the month of November. Jataca uses a weighted-average process costing system. All materials at Jataca are added at the beginning of the production process. On November 1, the work in process inventory account contained $6,400 of material cost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for materials and $2.80 for conversion costs. 101.What total amount of cost should be assigned to the units transferred out during November? A. $1,337,300 B. $1,348,100 C. $1,369,500 D. $1,380,300 4-52 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 102.What total amount of cost should be assigned to the units in work in process on November 30? A. $17,800 B. $38,700 C. $40,200 D. $43,000 In September, one of the processing departments at Wielgus Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $10,000. During the month, $296,000 of costs were added to production. 103.In the department's cost reconciliation report for September, the cost of units transferred out of the department would be: A. $313,000 B. $323,000 C. $303,000 D. $286,000 104.In the department's cost reconciliation report for September, the total cost to be accounted for would be: A. $37,000 B. $323,000 C. $619,000 D. $646,000 4-53 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000. 105.In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be: A. $32,000 B. $78,000 C. $89,000 D. $10,000 106.In the department's cost reconciliation report for December, the total cost accounted for would be: A. $230,000 B. $120,000 C. $31,000 D. $240,000 Essay Questions 4-54 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 107.Zhang Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $41,700 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $47,700 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $56,900 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $128,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $133,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $129,200 are sold. Required: Prepare journal entries for each of the transactions listed above. 4-55 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 108.During February, the following transactions were recorded at Cuenca Corporation. The company uses process costing. (1) Raw materials that cost $38,300 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $21,700 are incurred, but not yet paid, in the Assembly Department. (3) Manufacturing overhead of $45,200 is applied in the Assembly Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $86,500 finish processing in the Assembly Department and are transferred to the Painting Department for further processing. (5) Units with a carrying cost of $109,100 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $106,100 are sold. Required: Prepare journal entries for each of the transactions listed above. 4-56 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 109.Lagana Corporation uses process costing. The following data pertain to its Assembly Department for February. Required: Determine the equivalent units of production for the Assembly Department for February using the weighted-average method. 4-57 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 110.Carver Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs. 4-58 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 111.Jordon Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for November. Required: Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method. 4-59 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 112.Chargualaf Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September. Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method. 4-60 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 113.The following data have been provided by Allton Corporation, which uses the weighted-average method in its process costing. The data are for the company's Shaping Department for October. Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method. 4-61 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 114.Barker Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department. 4-62 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 115.Able Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work in process inventory. d. Determine the cost of the units transferred to the next department. 4-63 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 116.Kamp Company uses the weighted-average method in its process costing. Information about units processed during a recent month in the Curing Department follow: The beginning work in process inventory had $4,600 in conversion cost. During the month, the Department incurred an additional $210,000 in conversion cost. Required: a. Determine the equivalent units of production for conversion for the month. b. Determine the cost per equivalent unit of production for conversion for the month. c. Determine the conversion cost assigned to the ending work in process inventory. d. Determine the total conversion cost transferred out during the month. 4-64 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 117.Gupta Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December. Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. 4-65 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 118.Lafollette Inc. uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of November. Required: Compute the costs per equivalent unit for the Assembly Department for November. 4-66 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 119.Oleksy Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. During the month, 4,900 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method. 4-67 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 120.Sydnor Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing. During the month, 7,000 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method. 4-68 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 121.In December, one of the processing departments at Weisz Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $14,000. During the month, the cost of units transferred out from the department was $244,000. Required: Construct a cost reconciliation report for the department for the month of December. 122.In September, one of the processing departments at Farquer Corporation had beginning work in process inventory of $34,000. During the month, $342,000 of costs were added to production and the cost of units transferred out from the department was $357,000. Required: Construct a cost reconciliation report for the department for the month of September. 4-69 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 123.In July, one of the processing departments at Gulbranson Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $18,000. During the month, $165,000 of costs were added to production and the cost of units transferred out from the department was $161,000. Required: Construct a cost reconciliation report for the department for the month of July. 4-70 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 124.A number of companies in different industries are listed below: 1. Synthetic rubber manufacturer 2. Contract printer that produces posters, books, and pamphlets to order 3. Dress manufacturer that makes clothing on contract for department stores 4. Aluminum refiner that makes aluminum ingots from bauxite ore 5. Asparagus cannery 6. Winery that produces a number of varietal wines Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 4-71 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 125.Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below: 1. Contract printer that produces posters, books, and pamphlets to order 2. Asparagus cannery 3. Brick manufacturer 4. Contract oil drilling company 5. Custom boat builder 6. Flour mill Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 4-72 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 126.Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below: 1. Contract printer that produces posters, books, and pamphlets to order 2. Corn meal mill 3. Cattle feedlot that fattens cattle prior to slaughter 4. Shirt manufacturer that makes clothing on contract for department stores 5. Commercial photographer Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 4-73 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 04 Process Costing Answer Key True / False Questions 1. When materials are purchased in a process costing system, a materials account is debited with the cost of the materials. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 2. Costs are accumulated by department in a process costing system. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 4-74 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3. 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: FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 4. The units in beginning work in process inventory plus the units in ending work in process inventory must equal the units transferred out of the department plus the units started into production. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 5. In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values. FALSE AACSB: Reflective Thinking 4-75 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 6. Under the weighted-average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 3 Hard Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 8. Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs. TRUE AACSB: Reflective Thinking 4-76 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 9. Using process costing, it is necessary to consider the stage of completion of the units when assigning conversion cost to partially completed units in the ending work in process inventory. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Assign costs to units using the weighted-average method. 10. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 11. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the costs added during the period. FALSE AACSB: Reflective Thinking 4-77 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 12. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added to production during the period. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 13. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 14. Process costing is used in those situations where many different products or services are produced each period to customer specifications. FALSE AACSB: Reflective Thinking 4-78 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Industry AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 15. A job-order cost system would be used to account for the cost of building an oil tanker. TRUE AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 16. Operation costing is a hybrid system that employs certain aspects of both job-order and process costing. TRUE AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 17. Both job-order and process costing systems use averaging to compute unit product costs. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember 4-79 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Difficulty: 1 Easy Learning Objective: Other topics Multiple Choice Questions 18. Pulo Corporation uses a weighted-average process costing system. The company has two processing departments. Production starts in the Assembly Department and is completed in the Finishing Department. The units completed and transferred out of the Assembly department during April will become the: A. units in April's ending work in process in Finishing. B. units in May's beginning work in process in Finishing. C. units started in production in Finishing for April. D. units started in production in Finishing for May. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 4-80 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19. Which of the following journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing departments, department A and department B? A. Option A B. Option B C. Option C D. Option D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 4-81 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20. Which of the following statements about a process costing system is incorrect? A. In a process costing system, each processing department has a work in process account. B. In a process costing system, equivalent units are separately computed for materials and for conversion costs. C. In a process costing system, overhead can be underapplied or overapplied just as in joborder costing. D. In a process costing system, materials costs are traced to units of products. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 3 Hard Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 21. Barraza Corporation uses a weighted-average process costing system. Barraza has two direct materials. One of these materials is added at the beginning of the production process. The other material is added when processing is 50% complete. When will the equivalent units of production for these two materials be equal? A. when processing on beginning work in process is less than 50% complete at the start of the period. B. when processing on beginning work in process is more than 50% complete at the start of the period. C. when processing on ending work in process is over 50% complete. D. when processing on ending work in process is less than 50% complete. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement 4-82 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Understand Difficulty: 3 Hard Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 22. When the weighted-average method of process costing is used, a department's equivalent units are computed by: A. subtracting the equivalent units in beginning inventory from the equivalent units in ending inventory. B. subtracting the equivalent units in beginning inventory from the equivalent units for work performed during the period. C. adding the units transferred out to the equivalent units in ending inventory. D. subtracting the equivalent units in beginning inventory from the sum of the units transferred out and the equivalent units in ending inventory. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-83 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 23. Which of the following are needed to compute the cost per equivalent unit for materials under the weighted-average method of process costing? A. Option A B. Option B C. Option C D. Option D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 24. For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system? A. a paper mill that processes wood pulp into large rolls of paper B. a shop that restores old cars to "showroom" quality C. a framing shop that builds picture frames to order for individual customers D. a masonry company that builds brick walls, bulkheads, and walkways designed by architects AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement 4-84 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 25. Costs in an operation costing system are accumulated by: A. department. B. by individual job. C. by both job and departments. D. by neither job nor department. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 26. Which of the following companies would be most likely to use a process costing system? A. a shipbuilder B. a furniture manufacturer C. a law firm D. a utility producing natural gas AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 4-85 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 27. Which of the following companies would be most likely to use a process costing system? A. Ship builder. B. Movie studio. C. Oil refinery. D. Hospital. AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: Other topics 28. The Assembly Department started the month with 35,000 units in its beginning work in process inventory. An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 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. 507,000 B. 473,000 C. 471,000 D. 541,000 Units completed and transferred out = 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 = 35,000 + 472,000 - 34,000 = 473,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement 4-86 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 29. Health Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Health's two departments for the month of January: How many cases of cola were completed and transferred to Finished Goods Inventory during January? A. 66,000 B. 71,000 C. 72,000 D. 74,000 Units completed and transferred out = 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 = 3,000 + 77,000 - 8,000 = 72,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 4-87 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30. Fabian Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department. There were 12,000 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. 93,000 B. 83,100 C. 87,000 D. 89,400 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-88 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31. Jawson Corporation 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. 67,300 B. 68,820 C. 70,520 D. 63,900 Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 6,300 + 65,600 - 4,600 = 67,300 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-89 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32. Narver 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. 43,100 B. 37,100 C. 44,780 D. 47,780 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-90 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 33. Baker Corporation 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 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 94,700 B. 101,900 C. 98,000 D. 92,000 Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 8,000 + 95,000 - 11,000 = 92,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-91 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34. Larner Corporation uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 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. $6.892 B. $6.806 C. $5.575 D. $7.090 Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 24,000 + 86,000 - 19,000 = 91,000 AACSB: Analytic 4-92 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-93 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35. Harker Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $29,440. An additional 59,000 units were started into production during the month and 61,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 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. $4.176 B. $4.600 C. $3.375 D. $4.421 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply 4-94 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-95 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36. Paxton 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 accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 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. $5.348 B. $4.038 C. $5.080 D. $4.704 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking 4-96 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-97 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 37. Barnett Corporation uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in Department M. Conversion costs were 75% complete with respect to the 4,000 units in work in process at May 1 and 50% complete with respect to the 6,000 units in work in process at May 31. During May, 12,000 units were completed and transferred to the next department. An analysis of the costs relating to work in process at May 1 and to production activity for May follows: The total cost per equivalent unit for May was: A. $5.02 B. $5.10 C. $5.12 D. $5.25 Weighted-average method Weighted-average method equivalent units of production Weighted-average method cost per equivalent unit 4-98 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Total cost per equivalent unit = $3.10 + $2.00 = $5.10 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-99 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38. David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 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. $7.547 B. $7.700 C. $4.634 D. $5.988 Weighted-average method Units transferred to the next department = Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process Units transferred to the next department = 20,000 + 65,000 - 19,000 = 66,000 AACSB: Analytic 4-100 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 39. Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account? A. $41,625 B. $33,750 C. $45,000 D. $31,500 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-101 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-102 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40. Stay Corporation uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 8,000 units, 60% complete with respect to materials and 80% complete with respect to conversion costs. If the total cost in this inventory is $200,000 and if the cost for materials is $16 per equivalent unit for the period, the conversion cost per equivalent unit of the production for the period must be: A. $19.25 B. $16.00 C. $25.67 D. $31.25 Weighted-average method Materials: Cost of ending work in process inventory = 4,800 × $16.00 = $76,800 Conversion: Cost of ending work in process inventory = $200,000 - $76,800 = $123,200 Conversion: Cost per equivalent unit = $128,000 ÷ 6,400 = $19.25 4-103 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 41. Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was: A. $207,000 B. $184,600 C. $204,980 D. $182,580 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking 4-104 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 42. Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was: A. $39,600 B. $45,000 C. $45,400 D. $35,400 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-105 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 43. Valley Manufacturing Corporation's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was: A. $255,000 B. $270,000 C. $240,000 D. $285,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-106 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 44. Sarver 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 $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? A. $482,287.20 B. $502,640.00 C. $523,240.00 D. $561,144.00 Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 7,100 + 61,000 - 4,600 = 63,500 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-107 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 45. Rariton 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 $5.37. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? A. $4,081.20 B. $10,203.00 C. $10,310.40 D. $6,121.80 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-108 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 46. In May, one of the processing departments at Stitzel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be: A. $358,000 B. $43,000 C. $374,000 D. $187,000 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 4-109 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 47. In February, one of the processing departments at Manger Corporation had beginning work in process inventory of $25,000 and ending work in process inventory of $34,000. During the month, $290,000 of costs were added to production and the cost of units transferred out from the department was $281,000. In the department's cost reconciliation report for February, the total cost to be accounted for under the weighted-average method would be: A. $59,000 B. $605,000 C. $630,000 D. $315,000 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Prepare a cost reconciliation report. 4-110 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 320 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 540 canoes in process that were 30% complete with respect to conversion cost. During July, the Fabrication Department completed 6,700 canoes and transferred them to the Waterproofing Department. 48. What are the Fabrication Department's equivalent units related to materials for July? A. 6,160 B. 6,380 C. 6,920 D. 7,240 Weighted-average method Equivalent units of production = Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory = 6,700 + 1.00 × 540 = 7,240 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-111 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 49. What are the Fabrication Department's equivalent units related to conversion costs for July? A. 6,542 B. 6,798 C. 6,862 D. 7,078 Weighted-average method Equivalent units of production = Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory = 6,700 + 0.30 × 540 = 6,862 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-112 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 50. What journal entry should Arizaga make to record the completion of the production process by the Waterproofing Department? A. Option A B. Option B C. Option C D. Option D AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. The following information relates to the Blending Department of Kedakai Products Corporation for the month of May. Kedakai uses a weighted-average process costing system. 4-113 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 51. What are the Blending Department's equivalent units related to materials for May? A. 260,000 B. 277,000 C. 290,000 D. 307,000 Weighted-average method equivalent units of production AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-114 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 52. What are the Blending Department's equivalent units related to conversion costs for May? A. 266,400 B. 290,400 C. 293,400 D. 303,600 Weighted-average method equivalent units of production AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-115 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Jublot Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 4-116 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 53. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.31 B. $17.89 C. $14.48 D. $15.88 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-117 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 54. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $21.76 B. $19.45 C. $23.22 D. $24.38 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-118 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Dodd Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: A total of 5,400 units were started and 4,700 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 85% complete with respect to materials and 30% 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. 55. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 700 B. 5,000 C. 900 D. 1,100 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 400 + 5,400 - 4,700 = 1,100 AACSB: Analytic 4-119 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 56. What are the equivalent units for conversion costs for the month in the first processing department? A. 5,800 B. 5,030 C. 4,700 D. 330 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-120 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 57. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $21.37 B. $19.47 C. $20.04 D. $20.76 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-121 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Ibarra Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 58. What are the equivalent units for conversion costs for the month in the first processing department? A. 7,070 B. 6,800 C. 8,600 D. 270 Weighted-average method AACSB: Analytic 4-122 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 59. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $11.76 B. $13.20 C. $12.65 D. $12.27 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-123 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Evans Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,100 units were started and 6,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 60% 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. 4-124 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 60. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000 B. 7,020 C. 6,800 D. 220 Weighted-average method Units in ending work in process inventory = 900 + 8,100 - 6,800 = 2,200 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-125 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 61. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $10.09 B. $11.18 C. $9.85 D. $8.89 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-126 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 62. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $342,904 B. $453,843 C. $366,300 D. $327,400 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-127 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,200 units were started and 8,300 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 15% 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. 4-128 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 63. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,300 B. 240 C. 9,900 D. 8,540 Weighted-average method 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 700 + 9,200 = Units in ending work in process inventory + 8,300 Units in ending work in process inventory = 700 + 9,200 - 8,300 = 1,600 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-129 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 64. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $22.40 B. $20.28 C. $21.14 D. $21.49 Weighted-average method 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 700 + 9,200 = Units in ending work in process inventory + 8,300 Units in ending work in process inventory = 700 + 9,200 - 8,300 = 1,600 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-130 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 65. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $26.64 B. $26.41 C. $27.97 D. $22.98 Weighted-average method 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 700 + 9,200 = Units in ending work in process inventory + 8,300 Units in ending work in process inventory = 700 + 9,200 - 8,300 = 1,600 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-131 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 66. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $485,486 B. $407,024 C. $426,300 D. $440,300 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-132 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 67. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $33,273 B. $11,769 C. $78,462 D. $58,847 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-133 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Lumb Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 68. What are the equivalent units for materials for the month in the first processing department? A. 595 B. 7,995 C. 8,100 D. 7,400 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking 4-134 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 69. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $35.88 B. $32.54 C. $34.17 D. $33.83 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-135 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 70. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $32,892 B. $23,325 C. $17,413 D. $38,696 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-136 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Yoder Corporation 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: 71. How many units were completed and transferred to the next department during the month? A. 750,000 units B. 790,000 units C. 760,000 units D. 740,000 units Units completed and transferred out = 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 = 40,000 + 750,000 - 30,000 = 760,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium 4-137 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 72. What was the cost per equivalent unit for materials during the month? A. $0.30 B. $0.25 C. $0.20 D. $0.15 Weighted-average method equivalent units of production Weighted-average method cost per equivalent unit AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-138 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 73. How much cost, in total, was assigned to the ending work in process inventory? A. $2,600 B. $4,300 C. $15,000 D. $5,400 Weighted-average method equivalent units of production Weighted-average method cost per equivalent unit Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-139 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,700 units were started and 9,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 85% complete with respect to materials and 75% 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. 74. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 900 B. 1,100 C. 600 D. 9,200 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 500 + 9,700 - 9,100 = 1,100 AACSB: Analytic 4-140 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 75. What are the equivalent units for materials for the month in the first processing department? A. 935 B. 9,100 C. 10,200 D. 10,035 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-141 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 76. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,925 B. 10,200 C. 9,100 D. 825 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-142 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 77. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $23.31 B. $23.70 C. $24.43 D. $24.03 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-143 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 78. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $37.11 B. $38.14 C. $40.05 D. $37.92 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-144 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 79. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $623,600 B. $638,122 C. $614,200 D. $569,301 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-145 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 80. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $54,299 B. $51,613 C. $58,495 D. $68,817 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-146 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Kuzuck Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 4-147 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 81. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $562,368 B. $543,200 C. $527,219 D. $536,200 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-148 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 82. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $28,118 B. $15,981 C. $35,148 D. $5,272 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-149 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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. 83. What are the equivalent units for materials for the month in the first processing department? A. 750 B. 5,900 C. 4,400 D. 5,150 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking 4-150 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 84. What are the equivalent units for conversion costs for the month in the first processing department? A. 5,900 B. 4,400 C. 4,850 D. 450 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-151 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 85. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.66 B. $15.31 C. $17.53 D. $19.09 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-152 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 86. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $28.89 B. $22.61 C. $27.51 D. $25.90 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-153 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 87. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $231,700 B. $274,893 C. $205,007 D. $215,900 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-154 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 88. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $26,693 B. $69,888 C. $34,944 D. $20,966 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-155 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Carmon Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,900 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 70% complete with respect to materials and 35% 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. 89. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 900 B. 1,700 C. 1,000 D. 7,200 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 700 + 7,900 - 6,900 = 1,700 AACSB: Analytic AICPA BB: Critical Thinking 4-156 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 90. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,600 B. 7,495 C. 6,900 D. 595 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-157 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 91. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $23.23 B. $19.94 C. $21.85 D. $21.20 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-158 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 92. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $334,200 B. $367,616 C. $294,947 D. $308,600 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-159 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Barker Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 300 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,100 units were started and 8,700 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 85% complete with respect to materials and 20% 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. 93. How many units are in ending work in process inventory in the first processing department at the end of the month? A. 8,800 B. 900 C. 400 D. 700 Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 300 + 9,100 - 8,700 = 700 AACSB: Analytic AICPA BB: Critical Thinking 4-160 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 94. What are the equivalent units for conversion costs for the month in the first processing department? A. 140 B. 8,840 C. 8,700 D. 9,400 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-161 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 95. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $26.35 B. $25.85 C. $26.65 D. $25.56 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-162 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 96. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $26.31 B. $27.42 C. $29.38 D. $27.98 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-163 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 97. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $482,700 B. $513,466 C. $495,000 D. $475,229 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-164 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 98. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $32,501 B. $7,647 C. $38,237 D. $19,773 Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-165 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Fulton Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,900 units were started and 8,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 70% complete with respect to materials and 60% 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. 4-166 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 99. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $323,168 B. $388,528 C. $349,400 D. $364,800 Weighted-average method 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 800 + 9,900 = Units in ending work in process inventory + 8,900 Units in ending work in process inventory = 800 + 9,900 - 8,900 = 1,800 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium 4-167 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 100. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $39,216 B. $65,360 C. $45,752 D. $41,633 Weighted-average method Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium 4-168 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. The following information relates to the Assembly Department of Jataca Corporation for the month of November. Jataca uses a weighted-average process costing system. All materials at Jataca are added at the beginning of the production process. On November 1, the work in process inventory account contained $6,400 of material cost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for materials and $2.80 for conversion costs. 101. What total amount of cost should be assigned to the units transferred out during November? A. $1,337,300 B. $1,348,100 C. $1,369,500 D. $1,380,300 Weighted-average method Units completed and transferred out = 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 = 4,000 + 317,000 - 10,000 = 311,000 AACSB: Analytic 4-169 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 102. What total amount of cost should be assigned to the units in work in process on November 30? A. $17,800 B. $38,700 C. $40,200 D. $43,000 Weighted-average method equivalent units of production Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-170 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. In September, one of the processing departments at Wielgus Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $10,000. During the month, $296,000 of costs were added to production. 103. In the department's cost reconciliation report for September, the cost of units transferred out of the department would be: A. $313,000 B. $323,000 C. $303,000 D. $286,000 Beginning work in process inventory + Costs added during the month = Cost of units transferred out + Ending work in process inventory $27,000 + $296,000 = Cost of units transferred out + $10,000 Cost of units transferred out = $27,000 + $296,000 - $10,000 = $313,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 4-171 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 104. In the department's cost reconciliation report for September, the total cost to be accounted for would be: A. $37,000 B. $323,000 C. $619,000 D. $646,000 Total cost to be accounted for = Beginning work in process inventory + Cost added to production = $27,000 + $296,000 = $323,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Prepare a cost reconciliation report. In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000. 4-172 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 105. In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be: A. $32,000 B. $78,000 C. $89,000 D. $10,000 Cost of beginning work in process inventory = Cost of ending work in process inventory + Cost of units transferred out - Costs added to production = $21,000 + $99,000 - $110,000 = $10,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 4-173 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 106. In the department's cost reconciliation report for December, the total cost accounted for would be: A. $230,000 B. $120,000 C. $31,000 D. $240,000 Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out = $21,000 + $99,000 = $120,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Prepare a cost reconciliation report. Essay Questions 4-174 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 107. Zhang Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $41,700 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $47,700 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $56,900 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $128,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $133,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $129,200 are sold. Required: Prepare journal entries for each of the transactions listed above. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy 4-175 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 108. During February, the following transactions were recorded at Cuenca Corporation. The company uses process costing. (1) Raw materials that cost $38,300 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $21,700 are incurred, but not yet paid, in the Assembly Department. (3) Manufacturing overhead of $45,200 is applied in the Assembly Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $86,500 finish processing in the Assembly Department and are transferred to the Painting Department for further processing. (5) Units with a carrying cost of $109,100 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $106,100 are sold. Required: Prepare journal entries for each of the transactions listed above. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement 4-176 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-01 Record the flow of materials; labor; and overhead through a process costing system. 109. Lagana Corporation uses process costing. The following data pertain to its Assembly Department for February. Required: Determine the equivalent units of production for the Assembly Department for February using the weighted-average method. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-177 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 110. Carver Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method, determine the equivalent units of production for materials and conversion costs. Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-178 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 111. Jordon Corporation uses the weighted-average method in its process costing. The following data pertain to its Materials Preparation Department for November. Required: Determine the equivalent units of production for the Materials Preparation Department for November using the weighted-average method. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-179 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 112. Chargualaf Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September. Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method. Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-180 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 113. The following data have been provided by Allton Corporation, which uses the weightedaverage method in its process costing. The data are for the company's Shaping Department for October. Required: Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method. Weighted-average method AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. 4-181 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 114. Barker Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department. Weighted-average method: 4-182 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-183 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 115. Able Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Required: a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work in process inventory. d. Determine the cost of the units transferred to the next department. Weighted-average method: 4-184 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4-185 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 116. Kamp Company uses the weighted-average method in its process costing. Information about units processed during a recent month in the Curing Department follow: The beginning work in process inventory had $4,600 in conversion cost. During the month, the Department incurred an additional $210,000 in conversion cost. Required: a. Determine the equivalent units of production for conversion for the month. b. Determine the cost per equivalent unit of production for conversion for the month. c. Determine the conversion cost assigned to the ending work in process inventory. d. Determine the total conversion cost transferred out during the month. a. Weighted-average method equivalent units of production b. Weighted-average method cost per equivalent unit c. Weighted-average method: 4-186 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. d. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-187 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 117. Gupta Inc. uses the weighted-average method in its process costing. The following data concern the company's Mixing Department for the month of December. Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-188 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 118. Lafollette Inc. uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of November. Required: Compute the costs per equivalent unit for the Assembly Department for November. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method. 4-189 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 119. Oleksy Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. During the month, 4,900 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-190 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 120. Sydnor Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing. During the month, 7,000 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method. Weighted-average method: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Assign costs to units using the weighted-average method. 4-191 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 121. In December, one of the processing departments at Weisz Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $14,000. During the month, the cost of units transferred out from the department was $244,000. Required: Construct a cost reconciliation report for the department for the month of December. Cost of beginning work in process inventory + Costs added to production = Cost of ending working in process inventory + Cost of units transferred out $20,000 + Costs added to production = $14,000 + $244,000 Costs added to production = $14,000 + $244,000 - $20,000 = $238,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 4-192 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 122. In September, one of the processing departments at Farquer Corporation had beginning work in process inventory of $34,000. During the month, $342,000 of costs were added to production and the cost of units transferred out from the department was $357,000. Required: Construct a cost reconciliation report for the department for the month of September. Cost of beginning work in process inventory + Costs added to production = Cost of ending working in process inventory + Cost of units transferred out $34,000 + $342,000 = Cost of ending working in process inventory + $357,000 Cost of ending working in process inventory = $34,000 + $342,000 - $357,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Prepare a cost reconciliation report. 4-193 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 123. In July, one of the processing departments at Gulbranson Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $18,000. During the month, $165,000 of costs were added to production and the cost of units transferred out from the department was $161,000. Required: Construct a cost reconciliation report for the department for the month of July. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Prepare a cost reconciliation report. 4-194 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 124. A number of companies in different industries are listed below: 1. Synthetic rubber manufacturer 2. Contract printer that produces posters, books, and pamphlets to order 3. Dress manufacturer that makes clothing on contract for department stores 4. Aluminum refiner that makes aluminum ingots from bauxite ore 5. Asparagus cannery 6. Winery that produces a number of varietal wines Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 1. Synthetic rubber manufacturer; Process Costing 2. Contract printer that produces posters, books, and pamphlets to order; Job-Order Costing 3. Dress manufacturer that makes clothing on contract for department stores; Job-Order Costing 4. Aluminum refiner that makes aluminum ingots from bauxite ore; Process Costing 5. Asparagus cannery; Process Costing 6. Winery that produces a number of varietal wines; Job-Order Costing AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: Other topics 4-195 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 125. Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below: 1. Contract printer that produces posters, books, and pamphlets to order 2. Asparagus cannery 3. Brick manufacturer 4. Contract oil drilling company 5. Custom boat builder 6. Flour mill Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 1. Contract printer that produces posters, books, and pamphlets to order; Job-Order Costing 2. Asparagus cannery; Process Costing 3. Brick manufacturer; Process Costing 4. Contract oil drilling company; Job-Order Costing 5. Custom boat builder; Job-Order Costing 6. Flour mill; Process Costing AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: Other topics 4-196 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 126. Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below: 1. Contract printer that produces posters, books, and pamphlets to order 2. Corn meal mill 3. Cattle feedlot that fattens cattle prior to slaughter 4. Shirt manufacturer that makes clothing on contract for department stores 5. Commercial photographer Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. 1. Contract printer that produces posters, books, and pamphlets to order; Job-Order Costing 2. Corn meal mill; Process Costing 3. Cattle feedlot that fattens cattle prior to slaughter; Process Costing 4. Shirt manufacturer that makes clothing on contract for department stores; Job-Order Costing 5. Commercial photographer; Job-Order Costing AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: Other topics 4-197 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.