Chapter 6—Process Costing MULTIPLE CHOICE
1. Which cost cost accumulation accumulation procedure procedure is most applicable applicable in continuous mass-production manufacturing environments? a. standard b. actual c. process d. job or order ANS: C !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 0. roces rocesss costin costing g is used used in comp compani anies es that that a. engage engage in in road road and and bridg bridgee constr construct uction ion.. b. produce sailboats made to customer specifications. specifications. c. produc producee bric, bric,ss for for sale sale to to the the publ public. ic. d. construct construct hous houses es accord according ing to customer customer plans. plans. ANS: C !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting . A pro produ duce cerr of 222 2222 2 3oul 3ould d not use a process costing s&stem. a. gasoline b. potato chips c. blan blan, , vide videot otap apes es d. stai staine ned d gla glass ss 3ind 3indo3 o3ss ANS: " !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
0
4. A proces processs costing costing s&stem s&stem is is used b& a compan& compan& that that a. produc produces es hetero heterogen geneou eouss prod product ucts. s. b. produces items b& special special re5uest of customers. customers. c. produc produces es hom homoge ogeneo neous us produ products cts.. d. accum accumul ulat ates es cos costs ts b& b& job job.. ANS: C !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 6. Which is the best cost accumulation accumulation procedure procedure to use for continuous continuous mass production production of li,e units? units? a. actual b. standard c. job order d. process ANS: " !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting *. %5uivalent %5uivalent units units of produ production ction are e5ual e5ual to to the a. units units complet completed ed b& a product production ion departm department ent in in the the period. period. b. number of units 3or,ed 3or,ed on during the period b& a production department. department. c. numb number er of 3hole 3hole units that that could could have been been completed completed if all all 3or, of the the period had had been used to produce 3hole units. d. identifia identifiable ble units units e7isting e7isting at the the end of the period period in a produc production tion departm department. ent. ANS: C !S: 1 "#$: oderate '(): *-0 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 8. #n a process costing s&stem s&stem using the 3eighted 3eighted average method/ method/ cost per e5uivalent e5uivalent unit for a given given cost component is found b& dividing 3hich of the follo3ing b& %9? a. onl& onl& curr curren entt per perio iod d cos costt b. current period cost plus plus the cost of beginning beginning inventor& c. current current period period cost less the cost cost of beginni beginning ng invent inventor& or& d. current current period period cost plus the cost cost of of ending ending inven inventor& tor& ANS: ( !S: 1 "#$: %as& '(): *-0 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting . !he 3eighted 3eighted average average method method is thought thought b& some some accountants accountants to be inferior inferior to the $#$' method method because it a. is mor moree diff diffic icul ultt to appl& appl&.. b. onl& considers the last units 3or,ed on. on. c. ignore ignoress 3or, 3or, perform performed ed in subse5 subse5uen uentt period periods. s. d. commin commingle gless cost costss o off t3o t3o peri periods ods.. ANS: " !S: 1 "#$: oderate '(): *- NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
0
4. A proces processs costing costing s&stem s&stem is is used b& a compan& compan& that that a. produc produces es hetero heterogen geneou eouss prod product ucts. s. b. produces items b& special special re5uest of customers. customers. c. produc produces es hom homoge ogeneo neous us produ products cts.. d. accum accumul ulat ates es cos costs ts b& b& job job.. ANS: C !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 6. Which is the best cost accumulation accumulation procedure procedure to use for continuous continuous mass production production of li,e units? units? a. actual b. standard c. job order d. process ANS: " !S: 1 "#$: %as& '(): *-1 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting *. %5uivalent %5uivalent units units of produ production ction are e5ual e5ual to to the a. units units complet completed ed b& a product production ion departm department ent in in the the period. period. b. number of units 3or,ed 3or,ed on during the period b& a production department. department. c. numb number er of 3hole 3hole units that that could could have been been completed completed if all all 3or, of the the period had had been used to produce 3hole units. d. identifia identifiable ble units units e7isting e7isting at the the end of the period period in a produc production tion departm department. ent. ANS: C !S: 1 "#$: oderate '(): *-0 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 8. #n a process costing s&stem s&stem using the 3eighted 3eighted average method/ method/ cost per e5uivalent e5uivalent unit for a given given cost component is found b& dividing 3hich of the follo3ing b& %9? a. onl& onl& curr curren entt per perio iod d cos costt b. current period cost plus plus the cost of beginning beginning inventor& c. current current period period cost less the cost cost of beginni beginning ng invent inventor& or& d. current current period period cost plus the cost cost of of ending ending inven inventor& tor& ANS: ( !S: 1 "#$: %as& '(): *-0 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting . !he 3eighted 3eighted average average method method is thought thought b& some some accountants accountants to be inferior inferior to the $#$' method method because it a. is mor moree diff diffic icul ultt to appl& appl&.. b. onl& considers the last units 3or,ed on. on. c. ignore ignoress 3or, 3or, perform performed ed in subse5 subse5uen uentt period periods. s. d. commin commingle gless cost costss o off t3o t3o peri periods ods.. ANS: " !S: 1 "#$: oderate '(): *- NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
;. !he first step step in determining determining the cost per %9 per cost component under under the 3eighted 3eighted average method is to a. add the beginnin beginning g Wor, Wor, in rocess rocess #nventor& #nventor& cost to the the current period< period
Chapter *
4
14. !he $#$' method method of process process costing 3ill produce produce the same cost of goods transferred transferred out amount amount as the 3eighted average method 3hen a. the goo goods ds prod produce uced d are are homog homogene eneous ous.. b. there is no beginning beginning Wor, Wor, in rocess #nventor&. #nventor&. c. there is no no ending ending Wor, or, in rocess rocess #nvento #nventor& r&.. d. beginning beginning and and ending Wor Wor, , in rocess #nvento #nventories ries are each 6= percent percent complete complete.. ANS: ( !S: 1 "#$: %as& '(): *-4 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 16. !he primar& primar& differenc differencee bet3een the the $#$' and 3eighted 3eighted average average methods methods of process process costing costing is a. in the the treatment treatment of of beginning beginning Wor, in rocess rocess #nven #nventor& tor&.. b. in the treatment of current period production costs. costs. c. in the treatm treatment ent of spo spoile iled d unit units. s. d. none of the above. ANS: A !S: 1 "#$: %as& '(): *-4 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 1*. aterial is added at the beginning beginning of a process in a process costing s&stem. s&stem. !he beginning beginning Wor, Wor, in rocess #nventor& for the process 3as = percent complete as to conversion costs. 9sing the $#$' method of costing/ the number of e5uivalent units of material for the process during this period is e5ual to the a. beginning beginning inventor& inventor& this period period for for the the process process.. b. units started and completed this period in the process. c. units units started started this period period in the process process plus the the beginning beginning Wor Wor, , in rocess #nventor& #nventor&.. d. units started started and completed this this period plus the units in ending Wor, Wor, in in rocess #nventor&. #nventor&. ANS: " !S: 1 "#$: oderate '(): *-4 NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 18. #n a. b. c. d.
a cost cost of production report using using process process costing/ costing/ transferred-in transferred-in costs are similar to the cost of materia materiall added added at the beginning beginning of produc production tion.. conversion cost added added during the period. period. cost cost transf transferr erred ed out out to the the ne7t ne7t depart departmen ment. t. cost cost include included d in beginn beginning ing inve invent ntor& or&..
ANS: A !S: 1 "#$: %as& '(): *- NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 1. #n a process costing s&stem/ s&stem/ the journal journal entr& to record the the transfer of goods from "epartment >0 to $inished oods #nventor& is a a. debit debit Wor Wor, , in rocess rocess #nventor& #nventor& >0/ >0/ credit $inish $inished ed oods oods #nventor& #nventor&.. b. debit $inished oods oods #nventor&/ #nventor&/ credit Wor, Wor, in rocess #nventor& >1. c. debit debit $inished $inished oods oods #nventor& #nventor&// credit credit Wor Wor, , in rocess rocess #nventor& #nventor& >0. >0. d. debit debit Cost of of oods Sold/ Sold/ credit credit Wor, or, in rocess rocess #nvento #nventor& r& >0. ANS: C !S: 1 "#$: %as& '(): *- NA! NA!: AACS(: +eflective !hin,ing !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
6
1;. !ransferred-in cost represents the cost from a. the last department onl&. b. the last production c&cle. c. all prior departments. d. the current period onl&. ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 0=. Which of the follo3ing is@are the same bet3een the 3eighted average and $#$' methods of calculating %9s? 9nits to account for a. b. c. d.
no yes yes yes
%9 calculations yes yes no no
!otal cost to account for no yes no yes
ANS: " !S: 1 "#$: %as& '(): *-4 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 01. rocess costing techni5ues should be used in assigning costs to products a. if a product is manufactured on the basis of each order received. b. 3hen production is onl& partiall& completed during the accounting period. c. if a product is composed of mass-produced homogeneous units. d. 3henever standard-costing techni5ues should not be used. ANS: C !S: 1 "#$: %as& '(): *-1 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 00. Averaging the total cost of completed beginning 3or,-in-process inventor& and units started and completed over all units transferred out is ,no3n as a. strict $#$'. b. modified $#$'. c. 3eighted average costing. d. normal costing. ANS: ( !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
*
0. A process costing s&stem a. cannot use standard costs. b. restates Wor, in rocess #nventor& in terms of completed units. c. accumulates costs b& job rather than b& department. d. assigns direct labor and manufacturing overhead costs separatel& to units of production. ANS: ( !S: 1 "#$: %as& '(): *-0 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 04. A process costing s&stem does 3hich of the follo3ing? Calculates %9s a. b. c. d.
Assigns costs to inventories
no no yes yes
no yes yes no
ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 06. A process costing s&stem Calculates average cost per 3hole unit a. b. c. d.
yes no yes no
"etermines total units to account for yes no no yes
ANS: " !S: 1 "#$: %as& '(): *-0 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 0*. A h&brid costing s&stem combines characteristics of a. job order and standard costing s&stems. b. job order and process costing s&stems. c. process and standard costing s&stems. d. job order and normal costing s&stems. ANS: ( !S: 1 "#$: %as& '(): *-* NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
8
08. When standard costs are used in process costing/ a. variances can be measured during the production period. b. total costs rather than current production and current costs are used. c. process costing calculations are made simpler. d. the 3eighted average method of calculating %9s ma,es computing transferred-out costs easier. ANS: " !S: 1 "#$: oderate '(): *-6 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 0. Which of the follo3ing is subtracted from 3eighted average %9 to derive $#$' %9? a. beginning W# %9 completed in current period b. beginning W# %9 produced in prior period c. ending W# %9 not completed d. ending W# %9 completed ANS: ( !S: 1 "#$: %as& '(): *-4 NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 0;. !he cost of abnormal continuous losses is a. considered a product cost. b. absorbed b& all units in ending inventor& and transferred out on an e5uivalent unit basis. c. 3ritten off as a loss on an e5uivalent unit basis. d. absorbed b& all units past the inspection point. ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting =. Abnormal spoilage can be continuous
discrete
a. b. c. d.
no no &es &es
&es no &es no
ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 1. When the cost of lost units must be assigned/ and those same units must be included in an e5uivalent unit schedule/ these units are considered a. normal and discrete. b. normal and continuous. c. abnormal and discrete. d. abnormal and continuous. ANS: " !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
0. A continuous loss a. occurs unevenl& throughout a process. b. never occurs during the production process. c. al3a&s occurs at the same place in a production process. d. occurs evenl& throughout the production process. ANS: " !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting . Which of the follo3ing 3ould be considered a discrete loss in a production process? a. adding the correct ingredients to ma,e a bottle of ,etchup b. putting the appropriate components together for a stereo c. adding the 3rong components 3hen assembling a stereo d. putting the appropriate pieces for a bi,e in the bo7 ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 4. !he method of neglect handles spoilage that is a. discrete and abnormal. b. discrete and normal. c. continuous and abnormal. d. continuous and normal. ANS: " !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 6. !he cost of normal discrete losses is a. absorbed b& all units past the inspection point on an e5uivalent unit basis. b. absorbed b& all units in ending inventor&. c. considered a period cost. d. 3ritten off as a loss on an e5uivalent unit basis. ANS: A !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting *. !he cost of abnormal continuous losses is a. considered a product cost. b. absorbed b& all units in ending inventor& and transferred out on an e5uivalent unit basis. c. 3ritten off as a loss on an e5uivalent unit basis. d. absorbed b& all units past the inspection point. ANS: C !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
;
8. Normal spoilage units resulting from a continuous process a. are e7tended to the %9 schedule. b. result in a higher unit cost for the good units produced. c. result in a loss being incurred. d. cause estimated overhead to increase. ANS: ( !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting . When the cost of lost units must be assigned/ and those same units must be included in an e5uivalent unit schedule/ these units are considered a. normal and discrete. b. normal and continuous. c. abnormal and discrete. d. abnormal and continuous. ANS: " !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting ;. Which of the follo3ing accounts is credited 3hen abnormal spoilage is 3ritten off in an actual cost s&stem? a. iscellaneous +evenue b. oss from Spoilage c. $inished oods d. Wor, in rocess ANS: " !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 4=. !he cost of abnormal discrete units must be assigned to good units
lost units
a. b. c. d.
&es no no &es
&es no &es no
ANS: " !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
1=
41. Which of the follo3ing statements is false? !he cost of re3or, on defective units/ if a. abnormal/ should be assigned to a loss account. b. normal and if actual costs are used/ should be assigned to material/ labor and overhead costs of the good production. c. normal and if standard costs are used/ should be considered 3hen developing the overhead application rate. d. abnormal/ should be prorated among Wor, #n rocess/ $inished oods/ and Cost of oods Sold. ANS: " !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 40. #f normal spoilage is detected at an inspection point 3ithin the process @rather than at the end/ the cost of that spoilage should be a. included 3ith the cost of the units sold during the period. b. included 3ith the cost of the units completed in that department during the period. c. allocated to ending 3or, in process units and units transferred out based on their relative values. d. allocated to the good units that have passed the inspection point. ANS: " !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 4. "allas Co. has a production process in 3hich the inspection point is at *6 percent of conversion. !he beginning inventor& for )ul& 3as 6 percent complete and ending inventor& 3as = percent complete. Normal spoilage costs 3ould be assigned to 3hich of the follo3ing groups of units/ using $#$' costing? (eginning #nventor& a. b. c. d.
no yes no yes
%nding #nventor& yes yes no no
9nits Started B Completed yes yes yes no
ANS: ( !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 44. Which of the follo3ing is not a 5uestion that needs to be ans3ered 3ith regard to 5ualit& control? a. What happens to the spoiled units? b. What is the actual cost of spoilage? c. o3 can spoilage be controlled? d. Wh& does spoilage happen? ANS: A !S: 1 "#$: oderate '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
11
46. Normal spoilage units resulting from a continuous process a. are e7tended to the %9 schedule. b. result in a higher unit cost for the good units produced. c. result in a loss being incurred. d. cause estimated overhead to increase. ANS: ( !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 4*. !he addition of material in a successor department that causes an increase in volume is called a. accretion. b. re3or,ed units. c. comple7 procedure. d. undetected spoilage. ANS: A !S: 1 "#$: %as& '(): *- NA!: AACS(: +eflective !hin,ing 'C: A#CA $unctional Competencies: easurement/ +eporting 48. Wood Compan& transferred 6/6== units to $inished oods #nventor& during 'ctober. 'n 'ctober 1/ the compan& had == units on hand @4= percent complete as to both material and conversion costs. 'n 'ctober 1/ the compan& had == units @1= percent complete as to material and 0= percent complete as to conversion costs. !he number of units started and completed during 'ctober 3as: a. 6/0==. b. 6/=. c. 6/6==. d. */==. ANS: A 9nits !ransferred 'ut ess: 9nits in (eginning #nventor& 9nits Started and Completed
6/6== @== 6/0==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 4. Cole Compan& transferred */=== units to $inished oods #nventor& during August. 'n August 1/ the compan& had 4== units on hand @6 percent complete as to both material and conversion costs. 'n August 1/ the compan& had 86= units @0= percent complete as to material and = percent complete as to conversion costs. !he number of units started and completed during August 3as: a. 6/*== b. 6/*= c. */=== d. */86= ANS: A 9nits !ransferred 'ut ess: 9nits in (eginning #nventor& 9nits Started and Completed
*/=== @4== 6/*==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
10
4;. (oggs Compan& started ;/=== units in arch. !he compan& transferred out 8/=== finished units and ended the period 3ith /6== units that 3ere 4= percent complete as to both material and conversion costs. (eginning Wor, in rocess #nventor& units 3ere a. 6==. b. *==. c. 1/6==. d. 0/===. ANS: C Beginning Wor in Process Add: 9nits Started
!"#$$ ;/===
"educt: 9nits !ransferred 'ut
@8/===
%nding Wor, in rocess
/6==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6=. Williams Compan& started /*== units in April. !he compan& transferred out */4== finished units and ended the period 3ith /0== units that 3ere 4= percent complete as to both material and conversion costs. (eginning Wor, in rocess #nventor& units 3ere a. 4==. b. 1/===. c. 1/0=. d. 0/0==. ANS: ( Beginning Wor in Process Add: 9nits Started
!"$$$ /*==
"educt: 9nits !ransferred 'ut
@*/4==
%nding Wor, in rocess
/0==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 61. incoln Compan& had beginning Wor, in rocess #nventor& of 6/=== units that 3ere 4= percent complete as to conversion costs. incoln Compan& started and completed 40/=== units this period and had ending Wor, in rocess #nventor& of 10/=== units. o3 man& units 3ere started this period? a. 40/=== b. 48/=== c. 64/=== d. 6;/=== ANS: C (eginning Wor, in rocess %dd& Units 'tarted "educt: 9nits !ransferred 'ut %nding Wor, in rocess
6/=== #("$$$ @ 48/=== 10/===
!S: 1 "#$: oderate '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
1
60. "ouglas Compan& had beginning Wor, in rocess #nventor& of */=== units that 3ere 46 percent complete as to conversion costs. "ouglas Compan& started and completed 4*/=== units this period and had ending Wor, in rocess #nventor& of 11/=== units. o3 man& units 3ere started this period? a. 4*/=== b. 60/=== c. 68/=== d. */=== ANS: C (eginning Wor, in rocess %dd& Units 'tarted "educt: 9nits !ransferred 'ut %nding Wor, in rocess
*/=== #)"$$$ @ 60/=== 11/===
!S: 1 "#$: oderate '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6. Streete Compan& uses a 3eighted average process costing s&stem. aterial is added at the start of production. Streete Compan& started 1/=== units into production and had 4/6== units in process at the start of the period that 3ere *= percent complete as to conversion costs. #f Streete Compan& transferred out 11/86= units/ ho3 man& units 3ere in ending Wor, in rocess #nventor&? a. 1/06= b. /=== c. /6== d. 6/86= ANS: " (eginning Wor, in rocess Add: 9nits Started "educt: 9nits !ransferred 'ut Ending Wor in Process
4/6== 1/=== @ 11/86= #")#$
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 64. +oache Compan& uses a 3eighted average process costing s&stem. aterial is added at the start of production. +oache Compan& started 14/=== units into production and had 6/=== units in process at the start of the period that 3ere 86 percent complete as to conversion costs. #f +oache Compan& transferred out 10/06= units/ ho3 man& units 3ere in ending Wor, in rocess #nventor&? a. 1/86= b. /=== c. 6/6== d. */86= ANS: " (eginning Wor, in rocess Add: 9nits Started "educt: 9nits !ransferred 'ut Ending Wor in Process
6/=== 14/=== @ 10/06= 6")#$
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
14
66. )ones Compan& uses a 3eighted average process costing s&stem and started =/=== units this month. )ones had 10/=== units that 3ere 0= percent complete as to conversion costs in beginning Wor, in rocess #nventor& and /=== units that 3ere 4= percent complete as to conversion costs in ending Wor, in rocess #nventor&. What are e5uivalent units for conversion costs? a. 8/== b. 4=/0== c. 4=/== d. 40/=== ANS: ( (eginning Wor, in rocess E Completion of 9nits in rocess
10/=== 10/===
0=D =D
0/4== ;/*==
E 9nits Started and Completed E %nding Wor, in rocess
08/=== /===
1==D 4=D
08/=== 1/0==
E*+i,alent Units of Prod+ction
($"-$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6*. Summers Compan& uses a 3eighted average process costing s&stem and started */=== units this month. )ones had 16/=== units that 3ere 06 percent complete as to conversion costs in beginning Wor, in rocess #nventor& and */=== units that 3ere 6 percent complete as to conversion costs in ending Wor, in rocess #nventor&. What are e5uivalent units for conversion costs? a. 4/6= b. 48/1== c. 4/;== d. 61/=== ANS: ( (eginning Wor, in rocess E Completion of 9nits in rocess
16/=== 16/===
06D 86D
/86= 11/06=
E 9nits Started and Completed
=/===
1==D
=/===
*/===
6D
0/1==
E %nding Wor, in rocess E*+i,alent Units of Prod+ction
()"!$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 68. Weston Compan& ma,es small metal containers. !he compan& began April 3ith 06= containers in process that 3ere = percent complete as to material and 4= percent complete as to conversion costs. "uring the month/ 6/=== containers 3ere started. At month end/ 1/8== containers 3ere still in process @46 percent complete as to material and = percent complete as to conversion costs. 9sing the 3eighted average method/ 3hat are the e5uivalent units for conversion costs? a. /46= b. 4/6*= c. 4/*1= d. 4/;1=
Chapter *
16
ANS: " (eginning Wor, in rocess E Completion of 9nits in rocess
06= 06=
4=D *=D
1== 16=
E 9nits Started and Completed
/==
1==D
/==
E %nding Wor, in rocess
1/8==
=D
1/*=
E*+i,alent Units of Prod+ction
("!$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6. eade Compan& ma,es small metal containers. !he compan& began 'ctober 3ith == containers in process that 3ere 6 percent complete as to material and 46 percent complete as to conversion costs. "uring the month/ */=== containers 3ere started. At month end/ 1/;== containers 3ere still in process @4= percent complete as to material and 86 percent complete as to conversion costs. 9sing the 3eighted average method/ 3hat are the e5uivalent units for conversion costs? a. 4/0*6 b. 6/6;= c. 6/06 d. */== ANS: C (eginning Wor, in rocess E Completion of 9nits in rocess E 9nits Started and Completed
== == 4/1==
46D 66D 1==D
16 1*6 4/1==
E %nding Wor, in rocess
1/;==
86D
1/406
E*+i,alent Units of Prod+ction
#"/-#
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6;. 'rmand& Compan& uses a $#$' process costing s&stem. !he compan& had 6/=== units that 3ere *= percent complete as to conversion costs at the beginning of the month. !he compan& started 00/=== units this period and had 8/=== units in ending Wor, in rocess #nventor& that 3ere 6 percent complete as to conversion costs. What are e5uivalent units for material/ if material is added at the beginning of the process? a. 1/=== b. 00/=== c. 06/=== d. 08/=== ANS: ( !he material is added at the beginning of the processF therefore there are 00/=== e5uivalent units of material.
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *=. (ernstein Compan& uses a $#$' process costing s&stem. !he compan& had */=== units that 3ere 86 percent complete as to conversion costs at the beginning of the month. !he compan& started 06/=== units this period and had /=== units in ending Wor, in rocess #nventor& that 3ere 4= percent complete as to conversion costs. What are e5uivalent units for material/ if material is added at the beginning of the process?
Chapter *
a. b. c. d.
1*
1/6== 06/=== 0*/6== 1/===
ANS: ( !he material is added at the beginning of the processF therefore there are 06/=== e5uivalent units of material.
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *1. ontgomer& Compan& ma,es fabric-covered hatbo7es. !he compan& began )ul& 3ith 6== bo7es in process that 3ere 1== percent complete as to cardboard/ = percent complete as to cloth/ and *= percent complete as to conversion costs. "uring the month/ /== bo7es 3ere started. 'n April =/ 6= bo7es 3ere in process @1== percent complete as to cardboard/ 8= percent complete as to cloth/ and 66 percent complete as to conversion costs. 9sing the $#$' method/ 3hat are e5uivalent units for cloth? a. /0;6 b. /;6 c. /46= d. /6;6 ANS: A (eginning Wor, in rocess @#gnored for $#$' E Completion of 9nits in rocess E 9nits Started and Completed E %nding Wor, in rocess
6== 6==
=D 0=D
1==
0/;6=
1==D
0/;6=
6=
8=D
046
E*+i,alent Units of Prod+ction
0"-#
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *0. ahn Compan& ma,es fabric-covered storage totes. !he compan& began )ul& 3ith *== totes in process that 3ere 1== percent complete as to cardboard/ 86 percent complete as to cloth/ and *6 percent complete as to conversion costs. "uring the month/ /*== totes 3ere started. 'n April =/ 46= totes 3ere in process @1== percent complete as to cardboard/ *= percent complete as to cloth/ and 6= percent complete as to conversion costs. 9sing the $#$' method/ 3hat are e5uivalent units for cloth? a. /68= b. /86= c. /8= d. 4/=0= ANS: A (eginning Wor, in rocess @#gnored for $#$' E Completion of 9nits in rocess E 9nits Started and Completed E %nding Wor, in rocess E*+i,alent Units of Prod+ction
*== *==
=D 06D
16=
/16=
1==D
/16=
46=
*=D
08= 0"#)$
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting Bre1er Corporation
Chapter *
18
(re3er Corporation. has the follo3ing information for August: (eginning Wor, in rocess #nventor& @8=D complete as to conversion Started %nding Wor, in rocess #nventor& @1=D complete as to conversion
6,000 units 24,000 units 8,500 units
Beginning WIP In,entor2 Costs& aterial Conversion
$23,400 50,607
C+rrent Period Costs& aterial Conversion
$31,500 76,956
All material is added at the start of the process and all finished products are transferred out. *. +efer to (re3er Corporation. o3 man& units 3ere transferred out in August? a. 16/6== b. 1/=== c. 01/6== d. 04/=== ANS: C (eginning Wor, in rocess Add: 9nits Started 3ed+ct& Units Transferred O+t %nding Wor, in rocess
*/=== 04/=== 4-!"#$$5 /6==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *4. +efer to (re3er Corporation. Assume that 3eighted average process costing is used. What is the cost per e5uivalent unit for material? a. G=.66 b. G1.=6 c. G1.1 d. G1. ANS: " aterial Costs: (eginning Current eriod
G0/4== 1/6== 64/;== H =/=== units I
!./0
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *6. +efer to (re3er Corporation. Assume that $#$' process costing is used. What is the cost per e5uivalent unit for conversion?
Chapter *
a. b. c. d.
1
G.44 G4.04 G6.81 G8.=
ANS: ( Conversion Costs: (eginning @#gnored for $#$' Current eriod
G G
%5uivalent 9nits (eginning #nventor& @*/=== J =D Started and Completed @16/6== %nding #nventor& @/6== J 1=D
8*/;6* 8*/;6* 1/== 16/6== 6= 1/16= e5 units
Cost per e5uivalent unit
G 4.04
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting Collins Corporation
Collins Corporation. has the follo3ing information for a&: (eginning Wor, in rocess #nventor& @86D complete as to conversion Started %nding Wor, in rocess #nventor& @16D complete as to conversion
7,500 units 27,000 units 9,400 units
Beginning WIP In,entor2 Costs& aterial Conversion
$25,500 52,725
C+rrent Period Costs& aterial Conversion
$34,300 80,845
All material is added at the start of the process and all finished products are transferred out. **. +efer to Collins Corporation. o3 man& units 3ere transferred out in a&? a. 18/*== b. 1;/6== c. 06/1== d. 08/===
Chapter *
1;
ANS: C (eginning Wor, in rocess Add: 9nits Started 3ed+ct& Units Transferred O+t %nding Wor, in rocess
8/6== 08/=== 4-#"!$$5 ;/4==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *8. +efer to Collins Corporation. Assume that 3eighted average process costing is used. What is the cost per e5uivalent unit for material? a. G=.;; b. G1.1 c. G1.*4 d. G1.8 ANS: " aterial Costs: (eginning Current eriod
G06/6== 24/== G6;/== H 4/6== units I
!.)0
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *. +efer to Collins Corporation. Assume that $#$' process costing is used. What is the cost per e5uivalent unit for conversion? a. G.=6 b. G.8 c. G4.06 d. G*.4= ANS: ( Conversion Costs: (eginning @#gnored for $#$' Current eriod
G G
%5uivalent 9nits (eginning #nventor& @8/6== J 06D Started and Completed @18/*== %nding #nventor& @;/4== J 16D
=/46 =/46 1/86 18/*== 1/41= 0=/6 e5uivalent units
Cost per e5uivalent unit @G=/46K0=6
0./)
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
0=
7antastic 3ecorations Corporation
!he $antastic "ecorations Corporation ma,es 3reaths in t3o departments: $orming and "ecorating. $orming began the month 3ith 6== 3reaths in process that 3ere 1== percent complete as to material and 4= percent complete as to conversion. "uring the month/ */6== 3reaths 3ere started. At month end/ $orming had 0/1== 3reaths that 3ere still in process that 3ere 1== percent complete as to material and 6= percent complete as to conversion. Assume $orming uses the 3eighted average method of process costing. Costs in the $orming "epartment are as follo3s: Beginning Wor in Process Costs& aterial Conversion C+rrent Costs& aterial Conversion
$1,000 1,500 $3,200 5,045
!he "ecorating "epartment had *== 3reaths in process at the beginning of the month that 3ere = percent complete as to material and ;= percent complete as to conversion. !he department had == units in ending Wor, in rocess that 3ere 6= percent complete as to material and 86 percent complete as to conversion. "ecorating uses the $#$' method of process costing/ and costs associated 3ith "ecorating are: Beginning WIP In,entor2& !ransferred #n aterial Conversion C+rrent Period& !ransferred #n aterial Conversion
$1,170 4,320 6,210 ? $67,745 95,820
*;. +efer to $antastic "ecorations Corporation. o3 man& units 3ere transferred to "ecorating during the month? a. *== b. 4/;== c. 6/;6= d. 8/=== ANS: ( Wreaths completed from (W# Wreaths started and completed
6== 4/4== 4/;==
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 8=. +efer to $antastic "ecorations Corporation. What 3as the cost transferred out of $orming during the month? a. G6/41 b. G*/41; c. G/046 d. G/=
Chapter *
01
ANS: " 9nits !ransferred 'ut 4/;==
Cost per %5. 9nit 1.8=
!otal G/=
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 81. +efer to $antastic "ecorations Corporation. Assume /=== units 3ere transferred to "ecorating. Compute the number of e5uivalent units as to costs in "ecorating for the transferred-in cost component. a. 8/4== b. 8/8== c. /=== d. /*== ANS: C !he transferred-in cost component is the /=== uni ts that 3ere transferred in.
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 80. +efer to $antastic "ecorations Corporation. Assume /=== units 3ere transferred to "ecorating. Compute the number of e5uivalent units in "ecorating for material. a. 8/;8= b. /=== c. /= d. /46= ANS: A Materials& 3ecorating& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E*+i,alent Units of Prod+ction
Units *== 8/8== ==
8 Co9plete 0=D 1==D 6=D
E*i,. Units 10= 8/8== 16= )")$
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 8. +efer to $antastic "ecorations Corporation. Assume /=== units 3ere transferred to "ecorating. Compute the number of e5uivalent units in "ecorating for conversion. a. 8/;06 b. 8/;6 c. /*= d. /4*6
Chapter *
00
ANS: ( Con,ersion& 3ecorating& 7I7O
Units
(eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E*+i,alent Units of Prod+ction
8 Co9plete
E*+i,. Units
*==
1=D
*=
8/8==
1==D
8/8==
==
86D
006 )"/#
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 84. +efer to $antastic "ecorations Corporation. Assume that /=== units 3ere transferred to "ecorating at a total cost of G1*/===. What is the material cost per e5uivalent unit in "ecorating? a. G.6= b. G.*6 c. G.= d. G;.=4 ANS: A When $#$' is used/ consider onl& current costs. C+rrent Costs
G*8/846
E*+i, Units 8/;8=
Cost: E*+i, Unit G.6=
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 86. +efer to $antastic "ecorations Corporation. Assume that /=== units 3ere transferred to "ecorating at a total cost of G1*/===. What is the conversion cost per e5uivalent unit in "ecorating? a. G11.0 b. G11.4* c. G10.== d. G10.8 ANS: C When $#$' is used/ consider onl& current costs. C+rrent Costs
G;6/0=
E*+i, Units 8/;6
Cost: E*+i, Unit G10.==
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
8*.
0
+efer to $antastic "ecorations Corporation. Assume the material cost per %9 is G.== and the conversion cost per %9 is G16 in "ecorating. What is the cost of completing the units in beginning inventor&? a. G ;*= b. G 1/= c. G 1/*= d. G11/;4= ANS: C Costs to Co9plete Beg In, aterials Conversion Total Costs to Co9plete
Units *== *==
Percent to Co9plete
Cost per Unit 0=D G 1=D G16
Total G;*= G;== !"/6$
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 7o+r 'easons Co9pan2
$our Seasons Compan& adds material at the start to its production process and has the follo3ing information available for August: (eginning Wor, in rocess #nventor& @4=D complete as to conversion Started this period %nding Wor, in rocess #nventor& @06D complete as to conversion !ransferred out
7,000 units 32,000 units 2,500
units ?
88. +efer to $our Seasons Compan&. Compute the number of units started and completed in August. a. 0;/6== b. 4/6== c. */6== d. ;/=== ANS: A 9nits started this period ess: %nding Wor, in rocess
0/=== 0/6==
9nits started and completed this period
0;/6==
!S: 1 "#$: oderate '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 8. +efer to $our Seasons Compan&. Calculate e5uivalent units of production for material using $#$'. a. 0/=== b. */== c. 8/106 d. ;/===
Chapter *
04
ANS: A aterials are added at the beginning of the process. 0/=== units 3ere started in the current periodF therefore there are 0/=== e5uivalent units for materials.
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 8;. +efer to $our Seasons Compan&. Calculate e5uivalent units of production for conversion using $#$'. a. =/106 b. 4/06 c. 8/106 d. ;/=== ANS: ( E*+i,alent Units for Con,ersion (eginning #nventor& @8/=== J *=D
4/0== 0;/6== *06
Started and Completed @0;/6== %nding #nventor& @0/6== J 06D
4/06 e5. units
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting =. +efer to $our Seasons Compan&. Calculate e5uivalent units of production for material using 3eighted average. a. 0/=== b. 4/06 c. 8/106 d. ;/=== ANS: " %5uivalent 9nits--aterials (eginning #nventor& @8/=== units Started this eriod @0/===
8/=== 0/=== ;/=== e5. units
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1. +efer to $our Seasons Compan&. Calculate e5uivalent units of production for conversion using 3eighted average. a. 4/06 b. 8/106 c. /86 d. ;/;06 ANS: ( %5uivalent 9nits--Conversion (eginning #nventor& @8/=== J 1==D Started and Completed @0;/6== %nding #nventor& @0/6== J 06D
8/=== 0;/6== *06 8/106 e5. units
Chapter *
06
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 'i9pson Co9pan2
Simpson Compan& adds material at the start of production. !he follo3ing production information is available for September: (eginning Wor, in rocess #nventor& @46D complete as to conversion Started this period %nding Wor, in rocess #nventor& @=D complete as to conversion
10,000 units 120,000 units 8,200
units
Beginning Wor in Process In,entor2 Costs& $24,500 aterial 68,905 Conversion C+rrent Period Costs& aterial Conversion
$ 75,600 130,053
0. +efer to Simpson Compan&. o3 man& units must be accounted for? a. 11/0== b. 10/0== c. 1=/=== d. 1/0== ANS: C (eginning Wor, in rocess 9nits Started Total Units
1=/=== 10=/=== !0$"$$$
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting . +efer to Simpson Compan&. What is the total cost to account for? a. G ;/4=6 b. G0=6/*6 c. G084/66 d. G0;;/=6 ANS: " (W#: aterials (W#: Conversion Current eriod: aterials Current eriod: Conversion Total Costs
G 04/6== */;=6 86/*== 1=/=6 -"$#/
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
0*
4. +efer to Simpson Compan&. o3 man& units 3ere started and completed in the period? a. 111/== b. 10=/=== c. 101/== d. 1=/=== ANS: A 9nits started this period ess: %nding Wor, in rocess Units started and co9pleted this period
10=/=== /0== !!!"/$$
!S: 1 "#$: %as& '(): *-0 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 6. +efer to Simpson Compan&. What are the e5uivalent units for material using the 3eighted average method? a. 10=/=== b. 10/*= c. 10/*= d. 1=/=== ANS: " %5uivalent 9nits (eginning #nventor& @1=/=== J 1==D Started and Completed @111/== %nding #nventor& @/0== J 06D
1=/=== 111/== /0== !0$"$$$ e*. +nits
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting *. +efer to Simpson Compan&. What are the e5uivalent units for material using the $#$' method? a. 111/== b. 10=/=== c. 106/6== d. 1=/=== ANS: ( %5uivalent 9nits (eginning #nventor& @#gnored for $#$' Started and Completed @111/== %nding #nventor& @/0== J 06D
= 111/== /0== !-$"$$$ e*. +nits
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 8. +efer to Simpson Compan&. What are the e5uivalent units for conversion using the 3eighted average method? a. 10=/=== b. 10/44= c. 10/*= d. 1=/===
Chapter *
08
ANS: C (eginning Wor, in rocess E Completion of 9nits in rocess E 9nits Started and Completed E %nding Wor, in rocess E*+i,alent Units of Prod+ction
1=/=== 1=/=== 111/== /0==
46D 66D 1==D =D
4/6== 6/6== 111/== */6*= !-/"06$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting . +efer to Simpson Compan&. What are the e5uivalent units for conversion using the $#$' method? a. 11/*= b. 100/*= c. 10/*= d. 10/*= ANS: C (eginning Wor, in rocess @ignored E Completion of 9nits in rocess E 9nits Started and Completed E %nding Wor, in rocess E*+i,alent Units of Prod+ction
1=/=== 1=/=== 111/== /0==
=D 66D 1==D =D
6/6== 111/== */6*= !-0"/6$
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;. +efer to Simpson Compan&. What is the material cost per e5uivalent unit using the 3eighted average method? a. G.6 b. G.*0 c. G.88 d. G.0 ANS: C aterial Costs: (eginning Current eriod
G 04/6== 86/*== 1==/1== H 1=/=== unitsI
$.)) per +nit
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;=. +efer to Simpson Compan&. What is the conversion cost per e5uivalent unit using the 3eighted average method? a. G1.=1 b. G1.=6 c. G1.66 d. G1.*1
Chapter *
0
ANS: C Conversion Costs: (eginning Current eriod
G */;=6 1=/=6 1;/;6 H 10/*= unitsI
!.## per +nit
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;1. +efer to Simpson Compan&. What is the cost of units completed using the 3eighted average method? a. G08/61= b. G0**/840 c. G08/4== d. G00/68* ANS: " Units Co9pleted 101/==
Costs per E*+i,alent Unit @1.66 E .88 I G0.0
Total G00/68*
!S: 1 "#$: "ifficult '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;0. +efer to Simpson Compan&. What is the conversion cost per e5uivalent unit using the $#$' method? a. G1.=6 b. G.;6 c. G1.*1 d. G1.66 ANS: A Conversion Costs: (eginning @#gnored Current eriod
G1=/=6 G1=/=6 H 10/*= unitsI !.$# per +nit
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;. +efer to Simpson Compan&. What is the cost of all units transferred out using the $#$' method? a. G0=4/*04 b. G1;1/0; c. G08/==4 d. G0;/=0; ANS: C (eginning #nventor& 1=/=== units: +a3 aterials @prior period "irect abor @prior period $' @1=/=== J .66 J G1.=6 9nits Started and Completed 111/== units J G @.*E1.=6: !otal
G04/6== */;=6 6/886 G;;/1= G18/04 G08/==4
Chapter *
0;
!S: 1 "#$: "ifficult '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting Merc+r2 Corporation
(eginning inventor& @=D complete as to aterial ( and *=D complete for conversion Started this c&cle %nding inventor& @6=D complete as to aterial ( and =D complete for conversion Beginning in,entor2 costs& aterial A aterial ( Conversion
700
units
2,000 500
units units
$14,270 5,950 5,640
C+rrent Period costs& aterial A aterial ( Conversion
$40,000 70,000 98,100
aterial A is added at the start of production/ 3hile aterial ( is added uniforml& throughout the process. ;4. +efer to ercur& Corporation. Assuming a 3eighted average method of process costing/ compute %9 units for aterials A and (. a. 0/8== and 0/0=/ respectivel& b. 0/8== and 0/46=/ respectivel& c. 0/=== and 0/04=/ respectivel& d. 0/04= and 0/8==/ respectivel& ANS: ( Weighted %,erage (eginning Wor, in rocess 9nits Started and Completed %nding Wor, in rocess EUP Materials
Material %
8== 1/6== 6== -")$$
Material B 8== 1/6== 06= -"(#$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;6. +efer to ercur& Corporation Assuming a $#$' method of process costing/ compute %9 units for aterials A and (. a. 0/8== and 0/0=/ respectivel& b. 0/8== and 0/46=/ respectivel& c. 0/=== and 0/04=/ respectivel& d. 0/46= and 0/=/ respectivel& ANS: C 7I7O (eginning Wor, in rocess 9nits Started and Completed %nding Wor, in rocess
Material %
= 1/6== 6==
Material B 4;= 1/6== 06=
Chapter *
=
EUP Materials
-"$$$
-"-($
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;*. +efer to ercur& Corporation Assuming a 3eighted average method of process costing/ compute %9 for conversion. a. 0/*== b. 0/1= c. 0/=== d. 0/8== ANS: A Weighted %,erage (eginning Wor, in rocess 9nits Started and Completed %nding Wor, in rocess
8== 1/6== 4== 0/*==
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;8. +efer to ercur& Corporation Assuming a $#$' method of process costing/ compute %9 for conversion. a. 0/04= b. 0/1= c. 0/0= d. 0/8== ANS: ( 7I7O (eginning Wor, in rocess @8== J 4=D 9nits Started and Completed %nding Wor, in rocess @6== J =D
0= 1/6== 4== 0/1=
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;. +efer to ercur& Corporation Assuming a 3eighted average method of process costing/ compute the average cost per unit for aterial A. a. G0=.1= b. G0=.== c. G1.06 d. G1.== ANS: A Weighted %,erage& Material % (eginning Current eriod
G
14/08= 4=/=== 64/08= H 0/8== unitsI
-$.!$ per +nit
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
1
;;. +efer to ercur& Corporation Assuming a $#$' method of process costing/ compute the average cost per %9 for aterial A. a. G1.06 b. G0=.1= c. G0=.== d. G1.== ANS: C aterial A Costs @Current eriod G4=/===
%5uivalent 9nits
Average Cost per %9
0/===
G0=.==
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1==. +efer to ercur& Corporation Assuming a $#$' method of process costing/ compute the average cost per %9 for aterial (. a. G0=.1= b. G1.06 c. G0=.== d. G1.== ANS: ( aterial ( Costs @Current eriod G8=/===
%5uivalent 9nits 0/04=
Average Cost per %9 G1.06
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=1. +efer to ercur& Corporation Assuming a 3eighted average method of process costing/ compute the average cost per %9 for aterial (. a. G0=.== b. G1.06 c. G0=.1= d. G1.== ANS: " aterial ( Costs @(eginning #nventor& and Current eriod G86/;6=
%5uivalent 9nits 0/46=
Average Cost per %9 G1.==
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=0. +efer to ercur& Corporation Assuming a $#$' method of process costing/ compute the average cost per %9 for conversion. a. G46.6= b. G46.== c. G4.= d. G48.6;
Chapter *
0
ANS: ( Conversion Costs @Current eriod G;/1==
%5uivalent 9nits
Average Cost per %9 0/1=
G46.==
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=. +efer to ercur& Corporation Assuming a 3eighted average method of process costing/ compute the average cost per %9 for conversion. a. G;.;= b. G46.== c. G4.= d. G48.6; ANS: A Conversion Costs @(eginning W# and Current eriod G@;/1== E G6/*4=IG1=/*4=
%5uivalent 9nits 0/*==
Average Cost per %9 G;.;=
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting ;+thrie Corporation
!he follo3ing information is available for uthrie Corporation for the current &ear: (eginning Wor, in rocess @86D complete Started %nding Wor, in rocess @*=D complete Abnormal spoilage Normal spoilage @continuous !ransferred out
14,500 units 75,000 units 16,000 units 2,500 units 5,000 units
Costs of Beginning Wor in Process& $25,100 aterial 50,000 Conversion C+rrent Costs& $120,000 aterial 300,000 Conversion
66,000 units
All materials are added at the start of production. 1=4. +efer to uthrie Corporation. 9sing 3eighted average/ 3hat are e5uivalent units for material? a. 0/=== b. ;/6== c. 4/6== d. 8=/=== ANS: C Materials& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Abnormal Spoilage E*+i,alent Units of Prod+ction
Units 14/6== 61/6== 1*/=== 0/6==
8 Co9plete 1==D 1==D 1==D 1==D
E*. Units 14/6== 61/6== 1*/=== 0/6== /("#$$
Chapter *
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=6. +efer to uthrie Corporation. 9sing 3eighted average/ 3hat are e5uivalent units for conversion costs? a. =/*== b. 8/1== c. /1== d. 86/*== ANS: ( Con,ersion& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Abnormal Spoilage
Units 14/6== 61/6== 1*/=== 0/6==
8 Co9plete 1==D 1==D *=D 1==D
E*+i,alent Units of Prod+ction
E* Units 14/6== 61/6== ;/*== 0/6== )/"!$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=*. +efer to uthrie Corporation. What is the cost per e5uivalent unit for material using 3eighted average? a. G1.80 b. G1.*0 c. G1.88 d. G0.=8 ANS: A Weighted %,erage& Materials (eginning Current eriod
G
06/1== 10=/=== 146/1== H 4/6== unitsI !.)- per +nit
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=8. +efer to uthrie Corporation. What is the cost per e5uivalent unit for conversion costs using 3eighted average? a. G4.*0 b. G4.01 c. G4.4 d. G4.4 ANS: C Weighted %,erage& Con,ersion (eginning Current eriod
G
6=/=== ==/===
G
6=/=== H 8/1== units I (.(/ per +nit
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
4
1=. +efer to uthrie Corporation. What is the cost assigned to normal spoilage using 3eighted average? a. G1/=== b. G16/6== c. G=/6= d. None of the responses are correct ANS: " No costs are assigned to normal/ continuous spoilage. igher costs are assigned to good units produced.
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=;. +efer to uthrie Corporation. Assume that the cost per %9 for material and conversion are G1.86 and G4.66/ respectivel&. What is the cost assigned to ending Wor, in rocess? a. G1==/== b. G8/4= c. G1=/1= d. G81/*= ANS: " E*+i,alent Units 1*/=== ;/*==
Cost per E*+i,alent Unit G1.86 G4.66
Total G0/=== G4/*= )!"6/$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 11=. +efer to uthrie Corporation. 9sing $#$'/ 3hat are e5uivalent units for material? a. 86/=== b. 80/6== c. 4/6== d. 8=/=== ANS: " Materials& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Abnormal Spoilage E*+i,alent Units of Prod+ction
61/6== 1*/=== 0/6==
=D 1==D 1==D 1==D
61/6== 1*/=== 0/6== )$"$$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 111. +efer to uthrie Corporation. 9sing $#$'/ 3hat are e5uivalent units for conversion costs? a. 80/006 b. *8/006 c. *;/806 d. 8/1==
Chapter *
6
ANS: ( Con,ersion& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Abnormal Spoilage
14/6== 61/6== 1*/=== 0/6==
06D 1==D *=D 1==D
/*06 61/6== ;/*== 0/6==
E*+i,alent Units of Prod+ction
6)"--#
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 110. +efer to uthrie Corporation. 9sing $#$'/ 3hat is the cost per e5uivalent unit for material? a. G1.40 b. G1.** c. G1.81 d. G1.*= ANS: C 7I7O& Materials Current eriod
G
10=/=== 10=/=== H 8=/=== units I !.)! per +nit
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 11. +efer to uthrie Corporation. 9sing $#$'/ 3hat is the cost per e5uivalent unit for conversion costs? a. G4.4* b. G4.16 c. G4.= d. G.4 ANS: A 7I7O& Con,ersion Current eriod
G
==/=== ==/=== H *8/006 units I
(.(6 per +nit
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 114. +efer to uthrie Corporation. Assume that the $#$' %9 cost for material and conversion are G1.6= and G4.86/ respectivel&. 9sing $#$' 3hat is the total cost assigned to the units transferred out? a. G414/1;4 b. G;/=;4 c. G446/444 d. G;*/;86 ANS: A Transferred O+t Units& 7I7O
(eginning Wor, in rocess E Completion of (eginning #nventor& E9nits Started and Completed E*+i,alent Units of Prod+ction
E*+i, Units
@14/6== J 06D
/*06 61/6==
Cost per E*+i, Unit
4.86 *.06
Total
86/1== 18/01; 01/86 (!("!(
Chapter *
*
!S: 1 "#$: "ifficult '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting Crafton Corporation
Crafton Corporation has the follo3ing information for the current month: 9nits started (eginning Wor, in rocess: @6D complete Normal spoilage @discrete Abnormal spoilage %nding Wor, in rocess: @8=D complete !ransferred out (eginning Wor, in rocess Costs: aterial Conversion
100,000 20,000 3,500 5,000 14,500 97,000
units units units units units units
$15,000 10,000
All materials are added at the start of the production process. Crafton Corporation inspects goods at 86 percent completion as to conversion. 116. +efer to Crafton Corporation. What are e5uivalent units of production for material/ assuming $#$'? a. 1==/=== b. ;*/6== c. ;6/=== d. 10=/=== ANS: A Materials& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E Normal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
88/=== /6== 6/=== 14/6==
=D 1==D 1==D 1==D 1==D
E*+i,alent Units of Prod+ction
88/=== /6== 6/=== 14/6== !$$"$$$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 11*. +efer to Crafton Corporation. What are e5uivalent units of production for conversion costs/ assuming $#$'? a. 1=/;== b. 1=/;== c. 1=/*6= d. 1=*/606 ANS: " Con,ersion& 7I7O (eginning Wor, in rocess E 9nits Started and Completed ENormal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
0=/=== 88/=== /6== 6/=== 14/6==
*6D 1==D 86D 86D 8=D
1/=== 88/=== 0/*06 /86= 1=/16=
Chapter *
8
E*+i,alent Units of Prod+ction
!$6"#-#
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 118. +efer to Crafton Corporation. Assume that the costs per %9 for material and conversion are G1.== and G1.6=/ respectivel&. What is the amount of the period cost for )ul& using $#$'? a. G= b. G;/86 c. G1=/*06 d. G10/6== ANS: C Abnormal spoilage is a period cost. aterials Conversion Costs !otal Abnormal Spoilage
6/=== J G1.==Kunit /86= J G1.6=Kunit
G6/=== 6/*06 G1=/*06
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 11. +efer to Crafton Corporation. Assume that the costs per %9 for material and conversion are G1.== and G1.6=/ respectivel&. 9sing $#$'/ 3hat is the total cost assigned to the transferred-out units @rounded to the nearest dollar? a. G046/86= b. G044/4 c. G08/=== d. G004/; ANS: ( Transferred O+t Units& 7I7O (eginning Wor, in rocess E Completion of (eginning #nventor& E 9nits Started and Completed ENormal Spoilage--"iscrete-aterials ENormal Spoilage--"iscrete-Conversion E*+i,alent Units of Prod+ction
@0=/=== J *6D
1/=== 88/=== /6== 0/*06
1.6= 0.6= 1.== 1.6=
G 06/=== 1;/6== 1;0/6== /6== /; -(("(0/
!S: 1 "#$: "ifficult '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 11;. +efer to Crafton Corporation. What are e5uivalent units of production for material assuming 3eighted average is used? a. 1=8/=== b. 11*/6== c. 10=/=== d. 116/===
Chapter *
ANS: C Materials& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed E Normal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
0=/=== 88/=== /6== 6/=== 14/6==
1==D 1==D 1==D 1==D 1==D
E*+i,alent Units of Prod+ction
0=/=== 88/=== /6== 6/=== 14/6== !-$"$$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 10=. +efer to Crafton Corporation. What are e5uivalent units of production for conversion costs assuming 3eighted average is used? a. 11/606 b. 114/4== c. 114/886 d. 116/*6= ANS: A Con,ersion& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed ENormal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
0=/=== 88/=== /6== 6/=== 14/6==
E*+i,alent Units of Prod+ction
1==D 1==D 86D 86D 8=D
0=/=== 88/=== 0/*06 /86= 1=/16= !!0"#-#
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 101. +efer to Crafton Corporation. Assume that the costs per %9 for material and conversion are G1.== and G1.6=/ respectivel&. What is the cost assigned to normal spoilage/ using 3eighted average/ and 3here is it assigned? Lalue a. b. c. d.
G8/4 G8/4 G/86= G/86=
Assigned !o 9nits transferred out and %nding #nventor& 9nits transferred out 9nits transferred out and %nding #nventor& 9nits transferred out
ANS: (
%5uivalent 9nits /6== 0/*06
Cost per %5uivalent 9nit G1.== G1.6=
!otal G/6== /; G8/4
!his amount is transferred out.
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
;
100. +efer to Crafton Corporation. Assume that the costs per %9 for material and conversion are G1.== and G1.6=/ respectivel&. Assuming that 3eighted average is used/ 3hat is the cost assigned to ending inventor&? a. G0;/806.== b. G8/1*0.6= c. G/486.== d. G*/06=.== ANS: A Ending In,entor2& Weighted %,erage aterials 14/6== Conversion @14/6== J 8=D 1=/16= Total
G1.== 1.6=
G
14/6==.== 16/006.== -")-#.$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Mnight Corporation has the follo3ing information for the current month: 9nits started (eginning Wor, in rocess: @=D complete Normal spoilage @discrete Abnormal spoilage %nding Wor, in rocess: @86D complete !ransferred out (eginning Wor, in rocess Costs: aterial Conversion
95,000 15,000 3,000 4,000 15,000 88,000
units units units units units units
$18,000 14,000
All materials are added at the start of the production process. Mnight Corporation inspects goods at 86 percent completion as to conversion. 10. +efer to Mnight Corporation. What are e5uivalent units of production for material/ assuming $#$'? a. ;1/=== b. ;0/=== c. ;6/=== d. 11=/=== ANS: C Materials& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E Normal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess E*+i,alent Units of Prod+ction
8/=== /=== 4/=== 16/===
=D 1==D 1==D 1==D 1==D
8/=== /=== 4/=== 16/=== #"$$$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
4=
104. +efer to Mnight Corporation. What are e5uivalent units of production for conversion costs/ assuming $#$'? a. ;8/86= b. 1==/=== c. 1=1/86= d. 1=4/6== ANS: ( Con,ersion& 7I7O (eginning Wor, in rocess E 9nits Started and Completed ENormal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
16/=== 8/=== /=== 4/=== 16/===
8=D 1==D 86D 86D 86D
1=/6== 8/=== 0/06= /=== 11/06=
E*+i,alent Units of Prod+ction
!$$"$$$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 106. +efer to Mnight Corporation. Assume that the costs per %9 for material and conversion are G0.== and G0.06/ respectivel&. What is the amount of the period cost for )ul& using $#$'? a. G= b. G10/86= c. G14/86= d. G18/=== ANS: C Abnormal spoilage is a period cost. aterials Conversion Costs !otal Abnormal Spoilage
4/=== J G0.==Kunit /=== J G0.06Kunit
G /=== */86= G14/86=
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 10*. +efer to Mnight Corporation. Assume that the costs per %9 for material and conversion are G0.== and G0.06/ respectivel&. 9sing $#$'/ 3hat is the total cost assigned to the transferred-out units @rounded to the nearest dollar? a. G44/; b. G*6/86 c. G8*/; d. G8/*06 ANS: C Transferred O+t Units& 7I7O (eginning Wor, in rocess E Completion of (eginning #nventor& E 9nits Started and Completed ENormal Spoilage--"iscrete-aterials ENormal Spoilage--"iscrete-Conversion Total Costs %ssigned to Transferred Units
@16/=== J 8=D
@/=== J 86D
1=/6== 8/=== /=== 0/06=
G0.06 4.06 0.== 0.06
G 0/=== 0/*06 1=/06= */=== 6/=* 0)6"0/
!S: 1 "#$: "ifficult '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
41
108. +efer to Mnight Corporation. What are e5uivalent units of production for material assuming 3eighted average is used? a. 1=6/6== b. 1=*/=== c. 1=8/=== d. 11=/=== ANS: " Materials& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed E Normal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
16/=== 8/=== /=== 4/=== 16/===
1==D 1==D 1==D 1==D 1==D
E*+i,alent Units of Prod+ction
16/=== 8/=== /=== 4/=== 16/=== !!$"$$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 10. +efer to Mnight Corporation. What are e5uivalent units of production for conversion costs assuming 3eighted average is used? a. 1=/86= b. 1=4/6== c. 1=4/86= d. 1=6/6== ANS: ( Con,ersion& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed ENormal Spoilage--"iscrete E Abnormal Spoilage E %nding Wor, in rocess
16/=== 8/=== /=== 4/=== 16/===
E*+i,alent Units of Prod+ction
1==D 1==D 86D 86D 86D
16/=== 8/=== 0/06= /=== 11/06= !$("#$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 10;. +efer to Mnight Corporation. Assume that the costs per %9 for material and conversion are G0.== and G0.06/ respectivel&. What is the cost assigned to normal spoilage/ using 3eighted average/ and 3here is it assigned? Lalue a. b. c. d.
G11/=* G11/=* G10/86= G10/86=
Assigned !o 9nits transferred out and %nding #nventor& 9nits transferred out 9nits transferred out and %nding #nventor& 9nits transferred out
Chapter *
40
ANS: ( %5uivalent 9nits /=== 0/06=
Cost per %5uivalent 9nit G0.== G0.06
!otal G*/=== 6/=* G11/=*
!his amount is transferred out.
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1=. +efer to Mnight Corporation. Assume that the costs per %9 for material and conversion are G0.== and G0.06/ respectivel&. Assuming that 3eighted average is used/ 3hat is the cost assigned to ending inventor&? a. G66/10.6= b. G*/86=.== c. G**/86.== d. G80/10.6= ANS: A Ending In,entor2& Weighted %,erage aterials 16/=== Conversion @16/=== J 86D 11/06= Total
G0.== 0.06
G
=/===.== 06/10.6= ##"0!-.#$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting Chap9an Corporation
!he follo3ing information is available for Chapman Corporation for the current month: Started this month (eginning W# @4=D complete Normal spoilage @discrete Abnormal spoilage %nding W# @8=D complete !ransferred out (eginning Wor, in rocess Costs: aterial Conversion Current Costs: aterial Conversion
80,000
units
7,500 units 1,100 units 900 units 13,000 units 72,500 units
$10,400 13,800 $120,000 350,000
All materials are added at the start of production and the inspection point is at the end of the process.
Chapter *
4
11. +efer to Chapman Corporation. What are e5uivalent units of production for material using $#$'? a. =/=== b. 8;/1== c. 8/;== d. 8/6== ANS: A Materials& 7I7O
(eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Normal Spoilage @discrete E Abnormal Spoilage E*+i,alent Units of Prod+ction
=D 1==D 1==D 1==D 1==D
*6/=== 1/=== 1/1== ;==
*6/=== 1/=== 1/1== ;== /$"$$$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 10. +efer to Chapman Corporation. What are e5uivalent units of production for conversion costs using $#$'? a. 8;/8== b. 8;/6== c. 1/1== d. =/*== ANS: " 8 Co9plete
Con,ersion& 7I7O
EUP
Units
(eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Normal Spoilage @discrete E Abnormal Spoilage
8/6== *6/=== 1/=== 1/1== ;==
*=D 1==D 8=D 1==D 1==D
E*+i,alent Units of Prod+ction
4/6== *6/=== ;/1== 1/1== ;== /$"6$$
!S: 1 "#$: oderate '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1. +efer to Chapman Corporation. What are e5uivalent units of production for material using 3eighted average? a. */*== b. 8/6== c. */4== d. 6/6== ANS: ( Materials& Weighted %,erage (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Normal Spoilage @discrete E Abnormal Spoilage E*+i,alent Units of Prod+ction
Units
8/6== *6/=== 1/=== 1/1== ;==
8 Co9plete
1==D 1==D 1==D 1==D 1==D
EUP
8/6== *6/=== 1/=== 1/1== ;== /)"#$$
Chapter *
44
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 14. +efer to Chapman Corporation. What are e5uivalent units of production for conversion costs using 3eighted average? a. /*== b. 0/8== c. 0/6== d. 1/*== ANS: A Con,ersion& 7I7O (eginning Wor, in rocess E 9nits Started and Completed E %nding Wor, in rocess E Normal Spoilage @discrete E Abnormal Spoilage
Units
8 Co9plete
8/6== *6/=== 1/=== 1/1== ;==
EUP
1==D 1==D 8=D 1==D 1==D
E*+i,alent Units of Prod+ction
8/6== *6/=== ;/1== 1/1== ;== /0"6$$
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 16. +efer to Chapman Corporation. What is cost per e5uivalent unit for material using $#$'? a. G1.* b. G1.8 c. G1.6= d. G1.6* ANS: C 7I7O& Materials
Current eriod
G 10=/=== G 10=/=== H =/=== unitsI
!.#$ per +nit
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1*. +efer to Chapman Corporation. What is cost per e5uivalent unit for conversion costs using $#$'? a. G4.== b. G4.1; c. G4.4 d. G4. ANS: C 7I7O& Con,ersion
Current eriod
G 6=/=== G 6=/=== H =/*== units I (.0( per +nit
!S: 1 "#$: %as& '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting
Chapter *
46
18. +efer to Chapman Corporation. What is cost per e5uivalent unit for material using 3eighted average? a. G1.4; b. G1.* c. G1.6* d. G1.44 ANS: A Weighted %,erage& Materials
(eginning Current eriod
G 1=/4== 10=/=== 1=/4== H 8/6== units I
!.( :+nit
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1. +efer to Chapman Corporation. What is cost per e5uivalent unit for conversion costs using 3eighted average? a. G4.1; b. G4.41 c. G4.66 d. G4.6 ANS: " Weighted %,erage& Con,ersion
(eginning Current eriod
G 1/== 6=/=== */== H /*== units I (.0# per +nit
!S: 1 "#$: %as& '(): *- NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 1;. +efer to Chapman Corporation. What is the cost assigned to ending inventor& using $#$'? a. G86/;0= b. G6/;;4 c. G6*/40= d. G6/144 ANS: ( Ending In,entor2& 7I7O aterials Conversion @1/=== J 8=D Total
1/=== ;/1==
G 1.6= 4.4
G
1;/6== ;/4;4 #/"(
!S: 1 "#$: oderate '(): *-4 NA!: AACS(: Anal&tical S,ills 'C: A#CA $unctional Competencies: easurement/ +eporting 14=. +efer to Chapman Corporation. What is the cost assigned to abnormal spoilage using $#$'? a. G1/6= b. G/;=* c. G6/06* d. G*/404
