ANSWERS-MID TERM QUIZ (PROCESS COSTING)
THE FOLLOWING INFORMATI INFORMATION ON APPLIES TO QUESTIONS 1 AND 2. Injection Moldin! Inc.! "#n$%#ct$&e' (l#'tic "oldin' %o& c#& 'e#t'. It' co'tin ')'te" $tili*e' t+o co't c#teo&ie'! di&ect "#te&i#l' #nd con,e&'ion co't'. E#c- (&od$ct "$'t (#'' t-&o$- De(#&t"ent A #nd De(#&t"ent . Di&ect "#te&i#l' #&e #dded #t t-e /einnin o% (&od$ction. 0on,e&'ion co't' #&e #lloc#ted e,enl) t-&o$-o$t (&od$ction. Data for Department A for for February 20x3 are Wo& Wo& in (&oce''! /einnin in,ento&)! 345 con,e&ted Unit' 't#&ted d$&in Fe/&$#&) Wo& in (&oce''! endin in,ento&) Costs for Department A for February 20x3 20x 3 are Wo& Wo& in (&oce''! /einnin in,ento&) Di&ect "#te&i#l' 0on,e&'ion co't' Di&ect "#te&i#l' co't' #dded d$&in Fe/&$#&) 0on,e&'ion co't' #dded d$&in Fe/&$#&)
1
W-#t W-#t i' t-e t-e $nit $nit co't co't (e& (e& e9$ e9$i, i,#l #len entt $ni $nitt in in De( De(#&t #&t"e "ent nt A: #. 71!444 /. 71!;84 c. 7244 $nit'? 0on,e&'ion co't' (e& $nit =7144!444>=244 @ 4.34? $nit'? Tot#l co't' (e& $nit
244 $nit' 644 $nit' 144 $nit'
7144!444 7144!444 71!444!444 71!284!444
7 84 4 1!284 71!;84
2.
Ho+ "#n) "#n) $nit $nit'' +e&e +e&e co"(le co"(leted ted #nd #nd t&#n' t&#n'%e& %e&&ed &ed o$t o$t o% De(#& De(#&t"e t"ent nt A d$&in d$&in Fe/& Fe/&$#& $#&): ): #. 144 $nit' /. 644 $nit' c. ;44 $nit' d. 44 $nit' Answer c 244 $nit' B 644 $nit' C 144 14 4 $nit' ;44 $nit'
<.
Inject Injection ion Moldi Moldin! n! Inc.! Inc.! "#n$%# "#n$%#ct$ ct$&e' &e' (l#'t (l#'tic ic "oldin "oldin' ' %o& c#& c#& 'e#t'. 'e#t'. It' It' co'tin co'tin ')'te ')'te" " $tili*e' t+o co't c#teo&ie'! di&ect "#te&i#l' #nd con,e&'ion co't'. E#c- (&od$ct "$'t (#'' t-&o$- De(#&t"ent A #nd De(#&t"ent . Di&ect "#te&i#l' #&e #dded #t t-e /einnin o% (&od$ction. 0on,e&'ion co't' #&e #lloc#ted e,enl) t-&o$-o$t (&od$ction. Data for Department A for for February 20x3 are Wo& in (&oce''! /einnin in,ento&)! 345 con,e&ted Unit' 't#&ted d$&in Fe/&$#&) Wo& in (&oce''! endin in,ento&) <45 co"(lete #' to con,e&'ion co't' 1445 co"(lete #' to "#te&i#l' Costs for the Department A for February 20x3 are Wo& Wo& in (&oce''! /einnin in,ento&) Di&ect "#te&i#l' 0on,e&'ion co't' Di&ect "#te&i#l' co't' #dded d$&in Fe/&$#&) 0on,e&'ion co't' #dded d$&in Fe/&$#&)
P#e 1
244 $nit' 644 $nit' 144 $nit'
7144!444 7144!444 71!444!444 71!284!444
W-#t +e&e t-e e9$i,#lent $nit' o% di&ect "#te&i#l' #nd c on,e&'ion co't'! &e'(ecti,el)! #t t-e end o% Fe/&$#&): A''$"e Injection Moldin! Inc.! $'e' t-e +ei-tedC#,e&#e (&oce'' co'tin "et-od. #. 44! ;<4 /. 44! 44 c. 44! ;44 d. 644! 844 Answer # E9$i,#lent $nit' o% di&ect "#te&i#l' $nde& +ei-ted #,e&#e $nit' co"(leted B e9$i,#lent $nit' in endin in,ento&) ;44 B 144 0on,e&'ion co't' ;44 B =144 @ <45? ;<4 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 3 THROUGH . T-e S+i'' 0loc S-o( "#n$%#ct$&e' cloc' on # -i-l) #$to"#ted #''e"/l) line. It' co'tin ')'te" $tili*e' t+o co't c#teo&ie'! di&ect "#te&i#l' #nd con,e&'ion co't'. E#c- (&od$ct "$'t (#'' t-&o$- t-e A''e"/l) De(#&t"ent #nd t-e Te'tin De(#&t"ent. Di&ect "#te&i#l' #&e #dded #t t-e /einnin o% t-e (&od$ction (&oce''. 0on,e&'ion co't' #&e #lloc#ted e,enl) t-&o$-o$t (&od$ction. S+i'' 0loc S-o( $'e' +ei-tedC#,e&#e co'tin. Data for the Assembly Department for June 20x3 are Wo& in (&oce''! /einnin in,ento&) Di&ect "#te&i#l' =1445 co"(lete? 0on,e&'ion co't' =845 co"(lete?
Unit' 't#&ted d$&in $ne Wo& in (&oce''! endin in,ento&) Di&ect "#te&i#l' =1445 co"(lete? 0on,e&'ion co't' =;85 co"(lete? Costs for June 20x3 Wo& in (&oce''! /einnin in,ento&) Di&ect "#te&i#l' 0on,e&'ion co't' Di&ect "#te&i#l' co't' #dded d$&in $ne 0on,e&'ion co't' #dded d$&in $ne
3.
44 $nit' 184 $nit'
714!444 72;4!444 71!444!444 71!444!444
W-#t #&e t-e e9$i,#lent $nit' %o& di&ect "#te&i#l' #nd con,e&'ion co't'! &e'(ecti,el)! %o& $ne: #. 1!244.8 $nit' 1!164.63 $nit' /. 1!484 $nit' 1!412.8 $nit' c. 1!484 $nit' 1!484 $nit' d. 62 $nit' 4 $nit' Answer
/
0o"(leted #nd t&#n'%e&&ed o$t Wo& in (&oce''! endin Tot#l e9$i,#lent $nit' 8.
284 $nit'
Di&ect "#te&i#l' 44 184 1!484
0on,e&'ion co't' 44.4 112.8 1!412.8
W-#t i' t-e tot#l #"o$nt de/ited to t-e Wo&CinCP&oce'' #cco$nt d$&in t-e "ont- o% $ne: #. 7384!444 /. 72!444!444 c. 72!2;4!444 d. 72!384!444 Answer / 71!444!444 B 71!444!444 72!444!444 P#e 2
6.
W-#t i' t-e di&ect "#te&i#l' co't (e& e9$i,#lent $nit d$&in $ne: #. 71!12<.1 /. 71!;<4.24 c. 71!8;!44 d. 71!4.<8 Answer # 714!444 B 71!444!444 71!14!444 71!14!444>1!484 $nit' 71!12<.1
;.
W-#t i' t-e con,e&'ion co't (e& e9$i,#lent $nit in $ne: #. 71!283.<2 /. 71!8;.13 c. 71!;<4.24 d. 71!4.<8 Answer # 72;4!444 B 71!444!444 71!2;4!444 71!2;4!444>1!412.8 71!283.<2
.
W-#t #"o$nt o% di&ect "#te&i#l' co't' i' #''ined to t-e endin Wo&CinCP&oce'' #cco$nt %o& $ne: #. /. c. d.
716!8;1.84 72
Answer # 71!14!444>1!484 71!123 co't (e& e9$i,#lent $nit 71!123 @ 184 716!8;1.84
.
W-#t #"o$nt o% con,e&'ion co't' #&e #''ined to endin Wo&CinCP&oce'' #cco$nt %o& $ne: #. 7141!86.63 /. 7131!111.44 c. 7126!384.84 d. 71!13.44 Answer / =184 $nit' @ ;85? @ 71!283.<2 7131!111
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 14 THROUGH 1<. T-e Re'tC#CLot 0-#i& 0o"(#n) "#n$%#ct$&e&' # 't#nd#&d &ecline&. D$&in Fe/&$#&)! t-e %i&"' A''e"/l) De(#&t"ent 't#&ted (&od$ction o% ;8!444 c-#i&'. D$&in t-e "ont-! t-e %i&" co"(leted 8!444 c-#i&' #nd t&#n'%e&&ed t-e" to t-e Fini'-in De(#&t"ent. T-e %i&" ended t-e "ont- +it- 14!444 c-#i&' in endin in,ento&). All di&ect "#te&i#l' co't' #&e #dded #t t-e /einnin o% t-e (&od$ction c)cle. Wei-tedC#,e&#e co'tin i' $'ed /) Re'tC#CLot. 14.
Ho+ "#n) c-#i&' +e&e in in,ento&) #t t-e /einnin o% t-e "ont-: 0on,e&'ion co't' #&e inc$&&ed $ni%o&"l) o,e& t-e (&od$ction c)cle. #. 14!444 c-#i&' /. 24!444 c-#i&' c. 18!444 c-#i&' d. 28!444 c-#i&' Answer / einnin in,ento&) B ;8!444 C 8!444 14!444 einnin in,ento&) 24!444 P#e <
11.
W-#t +e&e t-e e9$i,#lent $nit' %o& "#te&i#l' %o& Fe/&$#&): #. 8!444 c-#i&' /. 8!444 c-#i&' c. 4!444 c-#i&' d. ;8!444 c-#i&' Answer # 14!444 B 8!444 8!444
12.
W-#t +e&e t-e e9$i,#lent $nit' %o& con,e&'ion co't' %o& Fe/&$#&) i% /einnin in,ento&) +#' ;45 co"(lete #' to con,e&'ion co't' #nd endin in,ento&) +#' 345 co"(lete #' to con,e&'ion co't': #. !444 /. ;8!444 c. 8!444 d. 8!444 Answer # 8!444 B =4.3? =14!444? !444
1<.
O% t-e ;8!444 $nit' Re'tC#CLot 't#&ted d$&in Fe/&$#&)! -o+ "#n) +e&e %ini'-ed d$&in t-e "ont-: #. ;8!444 /. 8!444 c. 68!444 d. 8!444 Answer c ;8!444 C 14!444 68!444
P#e 3
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 13 THROUGH 16. T-e Re'tC#CLot c-#i& co"(#n) "#n$%#ct$&e&' # 't#nd#&d &ecline&. D$&in Fe/&$#&)! t-e %i&"' A''e"/l) De(#&t"ent 't#&ted (&od$ction o% ;8!444 c-#i&'. D$&in t-e "ont-! t-e %i&" co"(leted 4!444 c-#i&'! #nd t&#n'%e&&ed t-e" to t-e Fini'-in De(#&t"ent. T-e %i&" ended t-e "ont- +it- 14!444 c-#i&' in endin in,ento&). T-e&e +e&e 18!444 c-#i&' in /einnin in,ento&). All di&ect "#te&i#l' co't' #&e #dded #t t-e /einnin o% t-e (&od$ction c)cle #nd con,e&'ion co't' #&e #dded $ni%o&"l) t-&o$-o$t t-e (&od$ction (&oce''. T-e FIFO "et-od o% (&oce'' co'tin i' $'ed /) Re'tC#CLot. einnin +o& in (&oce'' +#' <45 co"(lete #' to con,e&'ion co't'! +-ile endin +o& in (&oce'' +#' 45 co"(lete #' to con,e&'ion co't'. Beginning inventory Di&ect "#te&i#l' 0on,e&'ion co't'
723!444 7<8!444
Manufaturing osts a!!e! !uring the aounting perio! Di&ect "#te&i#l' 716!444 0on,e&'ion co't' 72;!444
13.
Ho+ "#n) o% t-e $nit' t-#t +e&e 't#&ted d$&in Fe/&$#&) +e&e co"(leted d$&in Fe/&$#&): #. 8!444 /. 4!444 c. ;8!444 d. 68!444 Answer d ;8!444 C 14!444 68!444
18.
W-#t +e&e t-e e9$i,#lent $nit' %o& con,e&'ion co't' d$&in Fe/&$#&): #.
16.
W-#t i' t-e #"o$nt o% di&ect "#te&i#l' co't #''ined to endin +o&CinC(&oce'' in,ento&) #t t-e end o% Fe/&$#&): #. 71!244 /. 722!344 c. 728!644 d. 722!844 Answer / 716!444>;8!444 72.23 @ 14!444 722!344
P#e 8
P#e 6
