10 questions | Accounting homework help
1
Which of the following statements is (are) true?
[removed]A)
A manufacturer of paper would ordinarily use process costing rather than job-order costing.
[removed]B)
If a company uses a process costing system it accumulates costs by processing department rather than by job.
[removed]C)
The output of a processing department must be homogeneous in order to use process costing.
[removed]D)
All of the above are true statements.
2
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
[removed]A)
Work in Process – Department A and a credit to Work in Process – Department B.
[removed]B)
Work in Process – Department B and a credit to Work in Process – Department A.
[removed]C)
Work in Process – Department B and a credit to Materials.
[removed]D)
Finished Goods and a credit to Work in Process – Department B.
3
Goethe Company uses the weighted-average method in its process costing system. The following information was available about one of the company’s processing departments:
- There were 108,000 equivalent units of production with respect to conversion costs during the current month.
- There were 15,000 units in the department’s beginning work in process inventory, which were two-thirds complete with respect to conversion costs.
- During the current month, 105,000 units were started and 100,000 were completed and transferred out of the department.
The ending work in process inventory in the department:
[removed]A)
was 40% complete with respect to conversion costs.
[removed]B)
was 65% complete with respect to conversion costs.
[removed]C)
consisted of 5,000 units.
[removed]D)
consisted of 10,000 units.
4
Golden Company uses the weighted-average method in its process costing system. The following information was available for one of its processing departments:
- The beginning work in process inventory consisted of 16,000 units, which were 75% complete with respect to conversion costs.
- The department converted the equivalent of 59,000 units of production during the current month.
- A total of 50,000 units were completed and transferred out of that department during the current month.
- The ending work in process inventory consisted of 12,000 units, which were 50% complete with respect to conversion costs.
The number of units started during the month in that department was:
[removed]A)
29,000 units.
[removed]B)
42,000 units.
[removed]C)
46,000 units.
[removed]D)
54,000 units.
5
Barnes Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. The following data were taken from the company’s accounting records:
What were the equivalent units of production for conversion costs in the Packing Department for the current month?
[removed]A)
153,000
[removed]B)
235,000
[removed]C)
247,000
[removed]D)
251,000
6
Zook Company uses the weighted-average method in its process costing system. The following data for the Mixing Department were taken from the company’s accounting records.
The equivalent units of production for conversion costs were:
[removed]A)
200,000 units.
[removed]B)
204,000 units.
[removed]C)
222,000 units.
[removed]D)
224,000 units.
7
Addingly Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month:
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
[removed]A)
$0.25.
[removed]B)
$0.34.
[removed]C)
$0.44.
[removed]D)
$1.48.
8
Erie Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company’s ending work in process inventory consisted of 36,000 units. The units in the ending work in process inventory were 50% complete with respect to materials and 30% complete with respect to labor and overhead. If the costs per equivalent unit for the current period were $5.50 for materials and $8.50 for labor and overhead, the total cost assigned to the ending work in process inventory was:
[removed]A)
$151,200.
[removed]B)
$160,200.
[removed]C)
$252,000.
[removed]D)
$190,800.
9
Ontario Company uses the weighted-average method in its process costing system. The Baking Department is the third department in its production process. The data below summarize the department’s operations during the current month:
The Baking Department’s production report indicates that the cost per equivalent unit for conversion cost for the current month was $8.24. How much conversion cost was assigned to the units transferred out of the Baking Department during the current month?
[removed]A)
$964,574.40
[removed]B)
$1,005,280
[removed]C)
$1,046,480
[removed]D)
$1,122,288
10
The beginning work in process inventory in the Milling Department consisted of 10,000 units, 50% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost of the beginning inventory was $60,000. During the month, 50,000 units were transferred out of this department. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out of this department during the month was:
[removed]A)
$480,000.
[removed]B)
$510,000.
[removed]C)
$540,000.
[removed]D)
$570,000.
