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Professional exam adapted
Other topics
LO5: WAC Cost reconciliation
LO4: WAC assignment of costs
Difficulty
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4-3
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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Learning Objective: 04-04 Assign costs to units using the weighted-average method.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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:
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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
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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:
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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:
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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
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