Test Bank - Chapter 4 Process Costing

7/17/2019 Test Bank - Chapter 4 Process Costing

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Chapter 4

Systems Design: Process Costing

True/False

1.TEasy

The following journal entry would be made in a processing costingsystem when units that have been completed with respect to the workdone in Processing epartment ! are transferred from Processingepartment ! to Processing epartment "#

$ork in Process% epartment " ......... &&& $ork in Process% epartment ! ..... &&&

'.FEasy

The following journal entry would be made in a processing costingsystem when units that have been completed with respect to the workdone in the final processing department are transferred to thefinished goods warehouse#

Finished (oods ........................ &&& )aterials ......................... &&&

*.T+ard

,ppendi- The 0uantity schedule and the osts to be accounted forsections of the production report are the same for the weighted2average method and the F3F4 method of process costing.

5.FEasy

3n process costing% the same e6uivalent units figure is used for bothmaterials and conversion costs.

7.F+ard

8,ppendi- The cost per e6uivalent unit for conversion costs willalways be the same under both the F3F4 and the weighted2averagemethods if there is no ending work in process inventory.

9.T)edium

8,ppendi- The cost per e6uivalent unit for conversion costs willalways be the same under both the F3F4 and the weighted2averagemethods if there is no beginning work in process inventory.

:.F)edium

$hen assigning costs to partially completed units in the ending workin process inventory% it is not necessary to consider the percentagecompletion of the units under the weighted2average method.

Managerial Accounting, 9/e 89



;.T)edium

$hen computing the cost per e6uivalent unit% it is not necessary toconsider the percentage completion of the units in beginning inventoryunder the weighted2average method.

<.T

Easy

8,ppendi- =nder the F3F4 process costing method% the e6uivalent unitsof production in the production report relate only to work done during

the current period.

1>.F)edium

8,ppendi- The cost per e6uivalent unit under the F3F4 method ofprocess costing is e6ual to the cost of beginning work in processinventory plus the costs added during the period% all divided by thee6uivalent units of production for the period.

11.F)edium

The weighted2average method of process costing can only be used ifmaterials are added at the beginning of the production process.

1'.T)edium

, manufacturer of blank s would ordinarily use process costingrather than job2order costing.

1*.TEasy

3n order to use process costing% the output of a processing departmentmust be homogeneous.

15.TEasy

3n process costing% costs are accumulated in processing departments%rather than by job.

17.FEasy

3f all units go through all processing departments then the processingdepartments are arranged in a parallel% rather than se6uential%fashion.

)ultiple hoice

19.+ard

8,ppendi- ,ll of the following are correct in referring to aproduction report e-cept#a. The 6uantity schedule deals with whole units.b. The total osts to be accounted for must e6ual the total costof the units completed and transferred out plus the cost of theending work in process inventory.c. The e6uivalent units in the ending work in process inventory willbe different if the weighted2average method is used than it is if theF3F4 method is used.d. The total of the =nits to be accounted for will e6ual the

total of the =nits accounted for.




1:.+ardP,adapted

,ssuming that there was no beginning work in process inventory% andthe ending work in process inventory is 7>? complete with respect toconversion costs% the number of e6uivalent units of production withrespect to conversion costs under the weighted2average method wouldbe#a. the same as the units completed.

b. the same as the units started during the period.c. less than the units completed.d. less than the units started during the period.

1;.@+ard

8,ppendi- ,ll production costs have been steadily rising in theonner ompany for several periods. The company maintains large workin process inventories. onner ompanyAs cost per e6uivalent unitcomputed using the F3F4 method would be#a. the same as that computed under the weighted2average method.b. higher than that computed under the weighted2average method.c. lower than that computed under the weighted2average method.d. could be the lower than% the same as% or higher than that

computed under the weighted2average method.

1<.

)edium

8,ppendi- 3f a company uses two different unit cost figures to cost

transfers from one department to another under a process costingsystem% then it is reasonable to assume that#a. there was no beginning work in process inventory.b. processing centers are arranged in a se6uential pattern.c. the F3F4 cost method is being used.d. the weighted2average cost method is being used.

'>.,Easy

Process costing would be appropriate for each of the following e-cept#a. custom furniture.b. oil refining.c. grain milling.d. newsprint production.

'1.@

+ard

,n operation costing system is#a. identical to a process costing system e-cept that actual

manufacturing overhead costs are traced to units of product.b. the same as a process costing system e-cept that direct materialscosts are accounted for in the same way as in job order costing.c. the same as a job order system e-cept that direct materials

costs are accounted for in the same way as in processcosting.

d. identical to a job order costing system e-cept that actualmanufacturing overhead costs are traced to units of product.




''.)edium),adapted

Bucas ompany uses the weighted2average method in its process costingsystem. The company adds materials at the beginning of the process inthe Forming epartment% which is the first of two stages in itsproduction process. 3nformation concerning operations in the Formingepartment in 4ctober follows#

)aterials =nits ost $ork in process on 4ctober 1 ............ 9%>>> P *%>>> =nits started during 4ctober ............ 7>%>>> P'7%79> =nits completed and transferred to the ne-t epartment during 4ctober ... 55%>>>

$hat was the materials cost of work in process at 4ctober *1Ca. P*%>9>b. P7%7'>c. P9%>>>d. P9%1'>

'*.,

)edium

avid ompany uses the weighted2average method in its process costingsystem. The first processing department% the $elding epartment%

started the month with '>%>>> units that were ;>? complete withrespect to conversion costs. The conversion cost in this beginningwork in process inventory was P1'*%'>>. ,n additional 97%>>> unitswere started into production during the month. There were 1<%>>> unitsin the ending work in process inventory of the $elding epartment thatwere 1>? complete with respect to conversion costs. , total ofP*;<%'7> in conversion costs were incurred in the department duringthe month. $hat would be the cost per e6uivalent unit for conversion costs forthe monthC 8Dound off to three decimal places.a. P:.75:b. P:.:>>c. P5.9*5d. P7.<;;




'5.,)edium

Barner ompany uses the weighted2average method in its process costingsystem. 4perating data for the first processing department for themonth of une appear below#

Percentage =nits complete

@eginning work in process inventory ... '5%>>> 5>? tarted into production during une ... ;9%>>> Ending work in process inventory ...... 1<%>>> '>?

,ccording to the companyAs records% the conversion cost in beginningwork in process inventory was P9;%>95 at the beginning of une.,dditional conversion costs of P7;7%*'5 were incurred in thedepartment during the month. $hat was the cost per e6uivalent unit for conversion costs for themonthC 8Dound off to three decimal places.a. P9.;<'b. P9.;>9c. P7.7:7d. P:.><>

'7.+ardP,adapted

(lo o.% a manufacturer of combs% uses the weighted2average method inits process costing system. The company sold 1'7%>>> units during themonth of ,pril. There is only one processing department. The followingadditional information is provided#

3nventory at ,pril 1# $ork in process ................ Gone Finished goods ................. *:%7>> units 3nventory at ,pril *># $ork in process 8:7? complete as to conversion costs....... ;%>>> units Finished goods ................. *>%>>> units

$hat were the e6uivalent units of production for conversion costs for,prilC

a. 1'9%7>>b. 1'7%7>>c. 1'*%7>>d. 11:%7>>




'9.+ard

The )organ ompany uses the weighted2average method in its processcosting system. For a particular department% the company had 75%>>>e6uivalent units of production with respect to conversion costs in)arch. There were :%7>> units in the departmentAs beginning work inprocess inventory% two thirds complete with respect to conversioncosts. uring )arch% 7'%7>> units were started and 7>%>>> were

completed and transferred out of the department. The ending work inprocess inventory in the department#a. consisted of 7%>>> units.b. consisted of '%7>> units.c. was 97? complete with respect to conversion costs.d. was 5>? complete with respect to conversion costs.

':.@)edium

The following data were taken from the accounting records of the +aHelorporation which uses the weighted2average method in its processcosting system#

@eginning work in process inventory 81>>? complete as to materialsI :>? complete as to conversion ............. *>%>>> units tarted in process during the period .......... <>%>>> units

Ending work in process inventory 81>>? complete as to materialsI 9>? complete as to conversion ............. '>%>>> units

The e6uivalent units of production for conversion costs was#a. 1>'%>>> units.b. 11'%>>> units.c. 111%>>> units.d. 1>>%>>> units.

';.@)edium

@aker ompany uses the weighted2average method in its process costingsystem. The ,ssembly epartment started the month with ;%>>> units inits beginning work in process inventory that were <>? complete withrespect to conversion costs. ,n additional <7%>>> units weretransferred in from the prior department during the month to begin

processing in the ,ssembly epartment. There were 11%>>> units in theending work in process inventory of the ,ssembly epartment that were<>? complete with respect to conversion costs. $hat were the e6uivalent units of production for conversion costs inthe ,ssembly epartment for the monthCa. <5%:>>b. 1>1%<>>c. <;%>>>d. <'%>>>




'<.)edium

awson ompany uses the weighted2average method in its process costingsystem. 4perating data for the Painting epartment for the month of,pril appear below#


@eginning work in process inventory ... 9%*>> 1>? Transferred in from the prior department during ,pril ............ 97%9>> Ending work in process inventory ...... 5%9>> :>?

$hat were the e6uivalent units of production for conversion costs inthe Painting epartment for ,prilCa. 9:%*>>b. 9;%;'>c. :>%7'>d. 9*%<>>

*>.)edium

arver ompany uses the weighted2average method in its process costingsystem. The Fitting epartment is the second department in itsproduction process. The data below summariHe the departmentAs

operations in )arch.

Percentage =nits complete @eginning work in process inventory ... :%1>> :>? Transferred in from the prior department during )arch ............ 91%>>> Ending work in process inventory ...... 5%9>> *>?

The Fitting epartmentAs production report indicates that the cost pere6uivalent unit for conversion cost for )arch was P;.'5. +ow much conversion cost was assigned to the units transferred outof the Fitting epartment during )archCa. P5;'%';:.'>b. P7>'%95>.>>

c. P7'*%'5>.>>d. P791%155.>>




*1.@)edium

The Gichols ompany uses the weighted2average method in its processcosting system. The company recorded '<%7>> e6uivalent units ofproduction for conversion costs for Govember in a particulardepartment. There were 9%>>> units in the ending work in processinventory on Govember *>% :7? complete with respect to conversioncosts. The Govember 1 work in process inventory consisted of ;%>>>

units% 7>? complete with respect to conversion costs. , total of'7%>>> units were completed and transferred out of the departmentduring the month. The number of units started during Govember in thedepartment was#a. '5%7>> units.b. '*%>>> units.c. ':%>>> units.d. '1%>>> units.

*'.@Easy

The ,ssembly epartment started the month with *7%>>> units in itsbeginning work in process inventory. ,n additional units 5:'%>>> weretransferred in from the prior department during the month to beginprocessing in the ,ssembly epartment. There were *5%>>> units in theending work in process inventory of the ,ssembly epartment. +ow manyunits were transferred to the ne-t processing department during the

monthCa. 7>:%>>>b. 5:*%>>>c. 5:1%>>>d. 751%>>>

**.,)ediumP,adapted

+uffer ompany uses the weighted2average method in its process costingsystem. The following information pertains to Processing epartment for the month of )ay#

Gumber ost of of units materials @eginning work in process .... *>%>>> P11%>>> tarted in )ay ............... ;>%>>> P*9%>>> =nits completed .............. ;7%>>>

Ending work in process ....... '7%>>>

,ll materials are added at the beginning of the process. The cost pere6uivalent unit for materials is closest to#a. P>.5*.b. P>.57.c. P>.77.d. P>.7<.




*5.)edium

+arker ompany uses the weighted2average method in its process costingsystem. The first processing department% the $elding epartment%started the month with 19%>>> units in its beginning work in processinventory that were 5>? complete with respect to conversion costs. Theconversion cost in this beginning work in process inventory wasP'<%55>. ,n additional 7<%>>> units were started into production

during the month and 91%>>> units were completed in the $eldingepartment and transferred to the ne-t processing department. Therewere 15%>>> units in the ending work in process inventory of the$elding epartment that were 1>? complete with respect to conversioncosts. , total of P'59%5>> in conversion costs were incurred in thedepartment during the month. $hat would be the cost per e6uivalent unit for conversion costs forthe monthC 8Dound off to three decimal places.a. P5.1:9b. P5.9>>c. P*.*:7d. P5.5'1

*7.,

)edium

Pa-ton ompany uses the weighted2average method in its process costingsystem. The )olding epartment is the second department in its

production process. The data below summariHe the departmentAsoperations in anuary.

Percentage =nits complete @eginning work in process inventory ... '%:>> ;>? Transferred in from the prior department during anuary .......... 7:%>>> ompleted and transferred to the ne-t department during anuary .......... 7>%*>> Ending work in process inventory ...... <%5>> '>?

The accounting records indicate that the conversion cost that had beenassigned to beginning work in process inventory was P1>%<:* and atotal of P'9;%1>: in conversion costs were incurred in the department

during anuary. $hat was the cost per e6uivalent unit for conversion costs foranuary in the )olding epartmentC 8Dound off to three decimalplaces.a. P7.*5;b. P5.>*;c. P7.>;>d. P5.:>5




*9.Easy

The Dichmond ompany uses the weighted2average method in its processcosting system. The company has only a single processing department.The companyAs ending work in process inventory on ,ugust *1 consistedof 1;%>>> units. The units in the ending work in process inventorywere 1>>? complete with respect to materials and 9>? complete withrespect to labor and overhead. 3f the cost per e6uivalent unit for

,ugust was P'.:7 for materials and P5.'7 for labor and overhead% thetotal cost assigned to the ending work in process inventory was#a. P1'9%>>>.b. P :7%9>>.c. P ;>%1>>.d. P <7%5>>.

*:.+ardP,adapted

8,ppendi- 4n Govember 1% "ankee ompany had '>%>>> units of work inprocess in epartment Go. 1 that were 1>>? complete with respect tomaterial costs and '>? complete with respect to conversion costs.uring Govember% 19>%>>> units were started in epartment Go. 1 and1:>%>>> units were completed and transferred to epartment Go. '. Thework in process on Govember *>% was 1>>? complete with respect tomaterial costs and 5>? complete with respect to conversion costs. @ywhat amount would the e6uivalent units of production for conversion

costs for the month of Govember differ if the F3F4 method were usedinstead of the weighted2average methodCa. '>%>>> decrease.b. 19%>>> decrease.c. ;%>>> decrease.d. 5%>>> decrease.

*;.Easy

Fabian ompany uses the weighted2average method in its process costingsystem. The ,ssembly epartment started the month with <%>>> units inits beginning work in process inventory that were :>? complete withrespect to conversion costs. ,n additional <>%>>> units weretransferred in from the prior department during the month to beginprocessing in the ,ssembly epartment. uring the month ;:%>>> unitswere completed in the ,ssembly epartment and transferred to the ne-tprocessing department. There were 1'%>>> units in the ending work in

process inventory of the ,ssembly epartment that were '>? completewith respect to conversion costs. $hat were the e6uivalent units of production for conversion costs inthe ,ssembly epartment for the monthCa. <*%>>>b. ;*%1>>c. ;:%>>>d. ;<%5>>




*<.Easy

Garver ompany uses the weighted2average method in its process costingsystem. 4perating data for the Bubricating epartment for the month of4ctober appear below#


@eginning work in process inventory ... 9%9>> 9>? Transferred in from the prior department during 4ctober .......... 5>%1>> ompleted and transferred to the ne-t department during 4ctober .......... *:%1>> Ending work in process inventory ...... <%9>> ;>?

$hat were the e6uivalent units of production for conversion costs inthe Bubricating epartment for 4ctoberCa. 5*%1>>b. *:%1>>c. 55%:;>d. 5:%:;>

5>.

@+ard

@lack ompany uses the weighted2average method in its process costing

system. The companyAs ending work in process inventory consists of7%>>> units% ;>? complete with respect to materials and 7>? completewith respect to labor and overhead. 3f the total Peso value of theinventory is P9>%>>> and the cost per e6uivalent unit for labor andoverhead is P;.>>% the cost per e6uivalent unit for materials must be#a. P7.>>.b. P1>.>>.c. P;.>>.d. P5.>>.




51.@+ard

epartment ' is the second of three se6uential processes. ,llmaterials are added at the beginning of processing in epartment '.uring 4ctober% epartment ' reported the following data#

Gumber of onversion osts =nits Percentage ompleted

=nits started ............. 9>%>>> 2ompleted and transferred 7>%>>> 2$ork in process% 4ctober 1 '9%>>> 9>?$ork in process% 4ctober *1 *9%>>> '>?

osts for 4ctober# Transferred 3n )aterials onversion osts$ork in process% 4ctober 1 ...... P57%>>> P '7%>>> P 75%>>>,dded during the month ...... P;1%>>> P117%>>> P*17%>>>

The company uses the weighted2average method in its process costingsystem. The cost per e6uivalent unit on the production report forconversion costs would have been to the nearest cent#a. P7.71.

b. P9.57.c. P9.*>.d. P:.*;.

5'.@)edium

4verland% 3nc.% uses the weighted2average method in its processcosting system. The companyJs work in process inventory on ,pril *>consists of '7%>>> units. The units in the ending inventory are 1>>?complete with respect to materials and :7? complete with respect toconversion costs. 3f the cost per e6uivalent unit is P*.>> formaterials and P7.7> for conversion costs% the total cost in the ,pril*> work in process inventory is#a. P'1'%7>>.b. P1:;%1'7.c. P17<%*:7.d. P1><%*:7.




5*.)edium

Kalley )anufacturing ompanyJs beginning work in process inventoryconsisted of 1>%>>> units% 1>>? complete with respect to materialscost and 5>? complete with respect to conversion costs. The total costin the beginning inventory was P*>%>>>. uring the month% 7>%>>> unitswere transferred out. The e6uivalent unit cost was computed to beP'.>> for materials and P*.:> for conversion costs under the weighted2

average method. (iven this information% the total cost of the unitscompleted and transferred out was#a. P'77%>>>.b. P':>%>>>.c. P'5>%>>>.d. P';7%>>>.

55.,)ediumP,adapted

4gden ompany uses the weighted2average method in its process costingsystem. 3nformation for the month of anuary concerning epartment ,%the first stage of the companyJs production process% follows# )aterials onversion ost $ork in process% beginning ...... P ;%>>> P 9%>>> urrent added during anuary .... P5>%>>> P*'%>>> E6uivalent units of production .. 1>>%>>> <7%>>> ost per e6uivalent unit ........ P >.5; P >.5>

=nits completed and transferred to the ne-t department ........ <>%>>> units $ork in process% ending ......... 1>%>>> units

)aterials are added at the beginning of the process. The ending workin process is 7>? complete with respect to conversion costs. $hat costwould be recorded for the ending work in process inventoryC

a. P9%;>>b. P;%;>>c. P*%5>>d. P5%5>>

57.@

Easy

Trapp ompany uses the weighted2average method in its process costingsystem. The beginning work in process inventory in its Painting

epartment consisted of *%>>> units that were :>? complete withrespect to materials and 9>? complete with respect to conversioncosts. The cost of the beginning work in process inventory in thedepartment was recorded as P1>%>>>. uring the period% <%>>> unitswere completed and transferred on to the ne-t department. The costsper e6uivalent unit for the period were P'.>> for material and P*.>>for conversion costs. The cost of units transferred out during themonth was#a. P*<%9>>.b. P57%>>>.c. P57%5>>.d. P*7%5>>.




59.@+ard

trap ompany uses the weighted2average method in its process costingsystem. The company has only one processing department. The endingwork in process inventory consists of 1>%>>> units% 9>? complete withrespect to materials. The total Peso value of this inventory isP*;%>>>. The costs per e6uivalent unit are P7.>> for materials andP5.>> for conversion costs for the period. $ith respect to conversion

costs% the ending work in process inventory is#a. 1>? complete.b. '>? complete.c. *;? complete.d. *>? complete.

5:.,Easy

Dariton ompany uses the weighted2average method in its processcosting system. The )olding epartment is the second department in itsproduction process. The data below summariHe the departmentAsoperations in anuary.

Percentage =nits complete @eginning work in process inventory ... 5%;>> 9>? Transferred in from the prior

department during anuary .......... :;%>>> ompleted and transferred to the ne-t department during anuary .......... ;>%<>> Ending work in process inventory ...... 1%<>> 5>?

The )olding epartmentAs production report indicates that the cost pere6uivalent unit for conversion cost for anuary was P7.*:. +ow much conversion cost was assigned to the ending work in processinventory in the )olding epartment for anuaryCa. P5%>;1.'>b. P1>%'>*.>>c. P1>%*1>.5>d. P9%1'1.;>

5;.

)edium

8,ppendi- Ebis ompany uses the F3F4 method in its process costing

system. The first processing department% the $elding epartment%started the month with 1*%>>> units in its beginning work in processinventory that were 1>? complete with respect to conversion costs. Theconversion cost in this beginning work in process inventory wasP1'%91>. ,n additional ;<%>>> units were started into productionduring the month. There were ''%>>> units in the ending work inprocess inventory of the $elding epartment that were *>? completewith respect to conversion costs. , total of P;>9%>;7 in conversioncosts were incurred in the department during the month. $hat would be the cost per e6uivalent unit for conversion costs forthe month on the departmentAs production reportC 8Dound off to threedecimal places.a. P;.>'9b. P<.:>>c. P<.>7:

d. P<.57>

5<.)edium

8,ppendi- )arten ompany uses the F3F4 method in its process costingsystem. 4perating data for the asting epartment for the month ofeptember appear below#

Percentage =nits complete @eginning work in process inventory ... 1<%>>> ;>? Transferred in from the prior department during eptember ........ :5%>>>




Ending work in process inventory ...... 1:%>>> <>?

,ccording to the companyAs records% the conversion cost in beginningwork in process inventory was P;*%9>> at the beginning of eptember.,dditional conversion costs of P5':%9;' were incurred in thedepartment during the month. $hat would be the cost per e6uivalent unit for conversion costs for

eptember on the asting epartmentAs production reportC 8Dound offto three decimal places.a. P7.5<;b. P7.::<c. P7.9'>d. P7.7>>




7>.+ard

8,ppendi- +erston ompany uses the F3F4 method in its process costingsystem. The beginning work in process inventory in a particulardepartment consisted of 9%>>> units% two2thirds complete with respectto conversion costs. uring the month% 5'%>>> units were started and5>%>>> units were completed and transferred out of the department. Thecompany had 5>%>>> e6uivalent units of production for conversion

costs. The ending work in process inventory in the departmentconsisted of#a. ;%>>> units% '7? complete with respect to conversion costs.b. > units.c. ;%>>> units% 7>? complete with respect to conversion costs.d. 5%>>> units% 1>>? complete with respect to conversion costs.

71.@)edium

8,ppendi- arson ompany uses the F3F4 method in its process costingsystem. The ,ssembly epartment started the month with 9%>>> units inits beginning work in process inventory that were '>? complete withrespect to conversion costs. ,n additional :5%>>> units weretransferred in from the prior department during the month to beginprocessing in the ,ssembly epartment. There were ;%>>> units in theending work in process inventory of the ,ssembly epartment that were9>? complete with respect to conversion costs.

$hat were the e6uivalent units of production for conversion costs inthe ,ssembly epartment for the monthCa. :'%>>>b. :7%9>>c. :9%>>>d. :9%;>>

7'.,)edium

8,ppendi- Larmen ompany uses the F3F4 method in its process costingsystem. 4perating data for the Enameling epartment for the month of)ay appear below#

Percentage =nits complete @eginning work in process inventory ... '%5>> 5>? Transferred in from the prior

department during )ay .............. ;:%>>> Ending work in process inventory ...... ;%9>> 9>?

$hat were the e6uivalent units of production for conversion costs inthe Enameling epartment for )ayCa. ;7%>>>b. ;7%<9>c. <*%'>>d. ;>%;>>




7*.,)edium

8,ppendi- reer ompany uses the F3F4 method in its process costingsystem. epartment , had '>%>>> units in process at the beginning ofanuary% that were 5>? complete with respect to conversion costs. ,llmaterials are added at the beginning of the process in epartment ,.The anuary 1 work in process inventory in epartment , containedP1>%>>> in materials cost and P11%9>> in conversion cost. uring

anuary% materials costs were P>.7> per e6uivalent unit and conversioncosts were P1.7> per e6uivalent unit. ,ll of the units in thebeginning work in process inventory were completed and transferred outduring the month. $hat was the total cost attached to these units whenthey were transferred to the ne-t departmentCa. P*<%9>>.b. P**%9>>.c. P57%9>>.d. P*:%9>>.

75.)edium

8,ppendi- )ukluk ompany uses the F3F4 method in its process costingsystem. The conversion cost for the month of ,pril is P7.>> pere6uivalent unit and the material cost is P'.<> per e6uivalent unit. ,tthe beginning of the month% 1%>>> units were in process that were 1>>?complete with respect to materials and *>? complete with respect to

conversion% with a total cost at that point of P'%5>>. 3f these unitsare fully complete by the end of the month% their total cost will be#a. P*%7>>.b. P*%<>>.c. P7%<>>.d. P;%>>>.

77.,)edium

8,ppendi- 3nde- ompany uses the F3F4 method in its process costingsystem. The first processing department% the Forming epartment%started the month with 1:%>>> units in its beginning work in processinventory that were 1>? complete with respect to conversion costs. Theconversion cost in this beginning work in process inventory wasP<%>1>. ,n additional :9%>>> units were started into production duringthe month and ;*%>>> units were completed and transferred to the ne-tprocessing department. There were 1>%>>> units in the ending work in

process inventory of the Forming epartment that were :>? completewith respect to conversion costs. , total of P557%<17 in conversioncosts were incurred in the department during the month. $hat would be the cost per e6uivalent unit for conversion costs forthe month on the Forming epartmentAs production reportC 8Dound offto three decimal places.a. P7.>7>b. P7.*>>c. P7.;9:d. P7.17>




79.,)edium

8,ppendi- 0art ompany uses the F3F4 method in its process costingsystem. 4perating data for the utting epartment for the month of)arch appear below#

Percentage =nits complete @eginning work in process inventory ... 5%7>> '>?

Transferred in from the prior department during )arch ............ :5%>>> ompleted and transferred to the ne-t department during )arch ............ :5%7>> Ending work in process inventory ...... 5%>>> 9>?

,ccording to the companyAs records% the conversion cost in beginningwork in process inventory was P1%979 at the beginning of )arch.,dditional conversion costs of P1'<%<9> were incurred in thedepartment during the month. $hat would be the cost per e6uivalent unit for conversion costs for)arch on the utting epartmentAs production reportC 8Dound off tothree decimal places.a. P1.:1>b. P1.9::

c. P1.:79d. P1.;5>

7:.@)edium

8,ppendi- Doger ompany uses the F3F4 method in its process costingsystem. The following data are taken from the accounting records of aparticular department for une#

@eginning work in process inventory# ost ................................ P1:%7>> =nits ............................... '>%>>> units Percentage completion# )aterials ........................ 1>>? onversion ....................... 9>?

=nits completed and transferred out .... :7%>>> units

ost per e6uivalent unit# )aterial ............................ P1.:7 onversion .......................... P>.7>

The cost of the :7%>>> units transferred out of the department duringune is#a. P171%'7>.b. P157%'7>.c. P1*1%7>>.d. P19;%:7>.




7;.,)edium

8,ppendi- $inkle ompany uses the F3F4 method in its process costingsystem. ,t the beginning of )arch% the work in process inventory inthe @lending Processing enter consisted of 7%>>> units% <>? completewith respect to conversion costs. ,t the end of the month% the work inprocess inventory consisted of '%>>> units that were 9>? complete withrespect to conversion costs. 3f 1>%>>> units were transferred to the

ne-t processing center during the month% the e6uivalent units ofproduction for conversion costs were#a. 9%:>> units.b. 11%:>> units.c. 1>%*>> units.d. 1*%>>> units.

7<.@EasyP,adapted

8,ppendi- $inder ompany uses the F3F4 method in its process costingsystem. epartment 4ne is the first stage of the companyAs productionprocess. The following information pertains to conversion costs for,pril for epartment 4ne#

=nits$ork in process% beginning 85>? complete ............. 5>%>>>tarted in ,pril ...................................... *'>%>>>

ompleted in ,pril and transferred to epartment Two .. *5>%>>>$ork in process% ending 89>? complete ................ '>%>>>

The e6uivalent units of production for conversion costs are#a. *'>%>>>.b. **9%>>>.c. *7'%>>>.d. *9>%>>>.

9>.)edium

8,ppendi- (arson ompany uses the F3F4 method in its process costingsystem. The (rinding epartment started the month with 1;%>>> units inits beginning work in process inventory that were 1>? complete withrespect to conversion costs. ,n additional <;%>>> units weretransferred in from the prior department during the month to beginprocessing in the (rinding epartment. uring the month 117%>>> units

were completed in the (rinding epartment and transferred to the ne-tprocessing department. There were 1%>>> units in the ending work inprocess inventory of the (rinding epartment that were '>? completewith respect to conversion costs. $hat were the e6uivalent units of production for conversion costs inthe (rinding epartment for the monthCa. ;1%>>>b. 117%'>>c. 117%>>>d. 11*%5>>




91.)edium

8,ppendi- 4-yrom ompany uses the F3F4 method in its process costingsystem. 4perating data for the @raHing epartment for the month ofGovember appear below#


@eginning work in process inventory ... *%;>> '>? Transferred in from the prior department during Govember ......... 59%:>> ompleted and transferred to the ne-t department during Govember ......... 5*%'>> Ending work in process inventory ...... :%*>> ;>?

$hat were the e6uivalent units of production for conversion costs inthe @raHing epartment for GovemberCa. 5<%>5>b. 7>%'>>c. 5*%'>>d. 5;%';>

9'.

)edium

8,ppendi- Tarten ompany uses the F3F4 method in its process costing

system. 4perating data for the uring epartment for the month of)arch appear below#

Percentage =nits complete @eginning work in process inventory ... <%>>> 1>? Transferred in from the prior department during )arch ............ 7:%>>> ompleted and transferred to the ne-t department during )arch ............ 97%>>> Ending work in process inventory ...... 1%>>> :>?

,ccording to the companyAs records% the conversion cost in beginningwork in process inventory was P:%5:> at the beginning of )arch. Thecost per e6uivalent unit for conversion costs for )arch was P;.'>.

+ow much conversion cost would be assigned to the units completedand transferred out of the department during )archCa. P7'7%7*>b. P7<'%>5>c. P7**%><>d. P7**%>>>




Deference# 521, sporting goods manufacturer buys wood as a direct material for baseball bats. TheForming epartment processes the baseball bats% and the bats are then transferred tothe Finishing epartment where a sealant is applied. There was no beginning work inprocess inventory in the Forming epartment in )ay. The Forming epartment beganmanufacturing 1>%>>> asey lugger baseball bats during )ay. osts for the Forming

epartment for the month of )ay were as follows#

irect materials ........ P**%>>> onversion costs ........ P1:%>>>

, total of ;%>>> bats were completed and transferred to the Finishing epartmentduring )ay. The ending work in process inventory was 1>>? complete with respect todirect materials and '7? complete with respect to conversion costs. The company usesthe weighted2average method of process costing.

9*.)edium),adapted

Defer To#521

The cost of the units transferred to the Finishing epartment during)ay was#a. P7>%>>>.b. P5>%>>>.c. P7*%>>>.

d. P5'%5>>.

95.,)edium),adaptedDefer To#521

The cost of the work in process inventory in the Finishing epartmentat the end of )ay was#a. P:%9>>.b. P1>%>>>.c. P'%7>>.d. P5%>>>.

Deference# 52',dam ompany uses the weighted2average method in its process costing system. Thefollowing information for the ,ssembly epartment was obtained from the accounting

records for eptember 8all materials are added at the beginning of the process#

Gumber Babor and 4verhead of =nits Percent ompleted $ork in process inventory% ept. 1 ... 9>%>>> 17? Transferred in during the month ...... 1>7%>>> $ork in process inventory% ept. *> .. 5>%>>> '>?

Transferred Babor M 3n )aterials 4verhead @eginning work in process inventory ............ P 9>%>>> P*>%>>> P 19%>>> ost added during the month ..... P117%7>> P9*%>>> P*'>%>>>

97.

,)ediumDefer To#52'

The Total cost to be accounted for section of the production report

for the month will show an amount e6ual to#a. P9>5%7>>.b. P5<;%7>>.c. P5'<%>>>.d. P1>9%>>>.

99.)ediumDefer To#52'

The e6uivalent units of production for material for the month is#a. 1>7%>>>.b. 157%>>>.c. 1''%>>>.d. 197%>>>.




Deference# 52*)adsen ompany uses the weighted2average method in its process costing system. uring4ctober% the )i-ing epartment transferred out 5>%>>> units. The 4ctober *1 work inprocess inventory in the )i-ing epartment consisted of 5%>>> e6uivalent units ofmaterial and 7%>>> e6uivalent units of labor and overhead. The cost per e6uivalent

unit was P'.7> for materials and P9.'7 for labor and overhead.

9:.,)ediumDefer To#52*

The total cost of the 4ctober *1 work in process inventory was#a. P51%'7>.b. P*7%>>>.c. P5*%:7>.d. P:;%:7>.

9;.@)ediumDefer To#52*

The Total cost to account for section of the production report for4ctober will show an amount e6ual to#a. P11>%>>>.b. P*<1%'7>.c. P*7>%>>>.d. P5';%:7>.

Deference# 5258,ppendi- The activity in Golan ompanyAs @lending epartment for the month of ,prilis given below#

Gumber Babor and 4verhead of =nits Percent omplete $ork in process inventory% ,pril 1 ....... ;%>>> 7>? tarted into process during the month ......... 7>%>>> $ork in process inventory% ,pril *> ...... 1>%>>> :>?

,ll materials are added at the beginning of processing in the @lending epartment.

9<.,)ediumDefer To#525

8,ppendi- The e6uivalent units of production for material for themonth% using the F3F4 method% are#a. 7>%>>> units.b. 7;%>>> units.c. 75%>>> units.d. 9>%>>> units.

:>.@)ediumDefer To#525

8,ppendi- The e6uivalent units of production for labor and overheadfor the month% using the F3F4 method% are#a. 5:%>>> units.b. 71%>>> units.c. 7%>>> units.d. 75%>>> units.

:1.)ediumDefer To#525

The e6uivalent units of production for material for the month% usingthe weighted2average method% are#a. 5;%>>> units.b. 7>%>>> units.c. 7;%>>> units.d. 7'%>>> units.

:'.)ediumDefer To#

The e6uivalent units of production for labor and overhead for themonth% using the weighted2average method% are#a. 7>%>>> units.b. 71%>>> units.




525 c. 5:%>>> units.d. 77%>>> units.

Deference# 527,ctivities in the hallenger ompanyJs ,ssembly epartment for the month of )archfollow#

Gumber Percent omplete =nits )aterials onversion$ork in process inventory% )arch 1 7%>>> 97? *>?tarted into production during )arch 97%>>>$ork in process inventory% )arch * *%>>> *7? '7?

:*.)ediumDefer to#527

The e6uivalent units of production for materials for )arch% using theweighted2average method% would be#a. 97%>>>.b. 9:%>>>.c. 9;%>7>.d. :>%>>>.

:5.,

+ardDefer to#527

8,ppendi- The e6uivalent units of production for conversion for )archusing the F3F4 method% would be#

a. 99%'7>.b. 9:%>>>.c. 95%'7>.d. 9:%:7>.




Deference# 529The following data relate to the @lending epartment of Tru2olor Paint ompany for arecent month#

Gumber Percent omplete of =nits onversion osts

@eginning work in process inventory ..... <%>>> 9>?=nits started into production ........... 57%>>> 2=nits completed and transferred out ..... 59%>>> 2Ending work in process inventory ........ ;%>>> '7?

,ll materials are added prior to the beginning of work in the @lending epartment.

:7.@+ardDefer to#529

8,ppendi- ,ssuming that Tru2olor Paint ompany uses the F3F4 method%the e6uivalent units of production for materials would be#a. 5'%9>>.b. 57%>>>.c. 7*%>>>.d. 59%>>>.

:9.

,+ardDefer to#529

8,ppendi- ,ssuming Tru2olor Paint ompany uses the F3F4 method% the

e6uivalent units of production for conversion costs would be#a. 5'%9>>.b. 55%5>>.c. 59%>>>.d. 75%>>>.

::.)ediumDefer to#529

,ssuming that Tru2olor Paint ompany uses the weighted2averagemethod% the e6uivalent units of production for materials would be#a. 5;%>>>.b. 59%>>>.c. 75%>>>.d. 57%>>>.

:;.

)ediumDefer to#529

,ssuming that Tru2olor Paint ompany uses the weighted2averagemethod% the e6uivalent units of production for conversion costs would

be#a. 55%5>>.b. 5'%9>>.c. 59%>>>.d. 5;%>>>.




Deference# 52:The information below was obtained from the records of the first processingdepartment of hristine orporation for the month of uly. The company uses theweighted2average method in its process costing system.

Babor and 4verhead

=nits Percent ompleted $ork in process inventory% uly 1 ....... '>%>>> 5>? tarted during the month ................ :>%>>> ompleted during the month .............. ;>%>>> $ork in process inventory% uly *1 ...... C '7?

,ll materials are added at the beginning of the manufacturing process.

:<.@)ediumDefer To#52:

The e6uivalent units of production for material for the month is#a. :>%>>>.b. <>%>>>.c. ;>%>>>.d. ;'%7>>.

;>.

)ediumDefer To#52:

The e6uivalent units of production for labor and overhead for the

month is#a. :>%>>>.b. <>%>>>.c. ;>%>>>.d. ;'%7>>.

Deference# 52;The information below was obtained from the records of the first processingdepartment of )oore ompany for the month of )ay. The company uses the weighted2average method in its process costing system.

Babor and 4verhead =nits Percentage omplete $ork in process% )ay 1 ............ 1>%>>> 5>?

=nits started ..................... 95%>>> ompleted and transferred out ..... 9>%>>> $ork in process% )ay *1 ........... 15%>>> :>?

,ll materials are added at the beginning of the process.

;1.@)ediumDefer To#52;

The e6uivalent units of production for materials for the month of )aywere#a. 9>%>>> units.b. :5%>>> units.c. 95%>>> units.d. 9<%;>> units.

;'.@

)ediumDefer To#52;

The e6uivalent units of production for labor and overhead for themonth of )ay were#

a. 9>%>>> units.b. 9<%;>> units.c. 97%;>> units.d. :*%;>> units.

Deference# 52<3nformation about units processed and processing costs incurred during a recent monthin the Defining epartment of a manufacturing company follow#

Gumber of Percent ompletion =nits onversion osts




@eginning work in process inventory .... 11%>>> *7?=nits started into production .......... 1'>%>>> 2=nits completed and transferred out .... 115%>>> 2Ending work in process inventory ....... 1:%>>> *>?

The beginning work in process inventory included P11%>>> of conversion cost. uringthe month% the epartment incurred an additional P'<>%>>> in conversion costs.

;*.,)ediumDefer to#52<

,ssuming that the company uses the weighted2average cost method% whatare the e6uivalent units of production for conversion costs for the@lending epartment for the monthCa. 11<%1>>b. 1'>%>>>c. 115%>>>d. 1*1%>>>

;5.@)ediumDefer to#52<

,ssuming that the company uses the weighted2average cost method% whatis the cost per e6uivalent unit for conversion costs for the month inthe @lending epartment to the nearest centCa. P'.77b. P'.7*c. P'.7>

d. P'.55

;7.)ediumDefer to#52<

8,ppendi- ,ssuming that the company uses the F3F4 method% what arethe e6uivalent units of production for conversion costs for the@lending epartment for the monthCa. 11<%1>>b. 111%<7>c. 117%'7>d. 115%>>>




;9.,+ardDefer to#52<

8,ppendi- ,ssuming that the company uses the F3F4 method% what is thecost per e6uivalent unit for conversion costs for the month in the@lending epartment to the nearest centCa. P'.7'b. P'.75c. P'.55

d. P'.7<

Deference# 521>8,ppendi- Limbeth )anufacturing makes ust ensity ensors 8% a safety devicefor the mining industry. The company uses a process costing system and has only asingle processing department. The following information pertains to operations forthe month of )ay#

=nits @eginning work in process inventory ..... 19%>>> tarted into production during )ay ...... 1>>%>>> ompleted during )ay .................... <'%>>> Ending work in process inventory ........ '5%>>>

The beginning work in process inventory was 9>? complete with respect to materialsand '>? complete with respect to conversion costs. The ending work in processinventory was <>? complete with respect to materials and 5>? complete with respect toconversion costs. The costs were as follows#

)aterials onversion @eginning work in process inventory .... P75%79> P*7%79> osts incurred during )ay .............. P59;%>>> P7:5%>5>

;:.@)ediumType# ),adaptedDefer To#

521>

8,ppendi- =sing the F3F4 method% the e6uivalent units of productionfor )ay for materials are#a. ;'%5>> units.b. 1>5%>>> units.c. 1>:%'>> units.d. 1>;%>>> units.

;;.)edium),adaptedDefer To#521>

8,ppendi- =sing the F3F4 method% the e6uivalent units of productionfor )ay for conversion costs are#a. ;7%9>> units.b. ;;%;>> units.c. <7%'>> units.d. <;%5>> units.

;<.@)edium),adapted

Defer To#521>

8,ppendi- =sing the F3F4 method% the cost per e6uivalent unit ofmaterials for )ay is closest to#a. P5.1'.b. P5.7>.c. P5.9>.

d. P5.;>.




<>.@)edium),adaptedDefer To#

521>

8,ppendi- =sing the F3F4 method% the cost per e6uivalent unit ofconversion cost for )ay is closest to#a. P7.97.b. P7.;*.c. P9.>>.d. P9.'>.

<1.,)edium),adaptedDefer To#521>

8,ppendi- =sing the F3F4 method% the total cost of units in theending work in process inventory is closest to#a. P17*%'>>.b. P175%;>>.c. P177%*>>.d. P17:%>>>.

<'.)edium),adapted

Defer To#521>

=sing the weighted2average method% the cost per e6uivalent unit ofmaterials for )ay is closest to#a. P5.1'.b. P5.7>.c. P5.9>.

d. P7.>*.

<*.)edium),adaptedDefer To#521>

=sing the weighted2average method% the cost per e6uivalent unit ofconversion cost for )ay is closest to#a. P7.97.b. P7.;*.c. P9.>>.d. P9.51.

<5.,)edium),

adaptedDefer To#521>

=sing the weighted2average method% the total cost of the units inending work in process inventory is closest to#a. P179%<9>.b. P;9%5>>.

c. P17*%<9>.d. P175%;>>.

Deference# 5211Deid ompany uses a process costing system in which units go through severaldepartments. 3n the utting epartment for une% units in the beginning work inprocess inventory were ;>? complete with respect to conversion costs. =nits in theending work in process inventory were '7? complete with respect to conversion costs.4ther data for the department for une are as follows#

=nits onversion ost$ork in process inventory on une 1 .......... 17%>>> P 7>%'>>=nits started into production ................ 157%>>>onversion costs incurred during une ........ P1:7%:>>

=nits completed and transferred to the ne-t department during une .................. 1*>%>>>




<7.@+ardDefer to#5211

8,ppendi- ,ssuming that the company uses the F3F4 cost method% whatis the cost per e6uivalent unit for conversion costs for une to thenearest whole centCa. P1.;>b. P1.5>c. P1.95

d. P1.*7

<9.,+ardDefer to#5211

,ssuming that the company uses the weighted2average method% what isthe cost per e6uivalent unit for conversion costs for une to thenearest whole centCa. P1.95b. P1.79c. P1.:5d. P1.5;

Deference# 521'herrington ompany uses a process costing system. For )ay% the month just completed%the beginning work in process inventory consisted of 7>%>>> units which were 9>?complete with respect to conversion costs. The ending inventory for the month was '>?

complete with respect to conversion costs. , summary of cost data for the monthfollows#

=nits onversion osts$ork in process inventory% )ay 1 ......... 7>%>>> P *>%>>>=nits started into production ............ 1;>%>>>onversion costs incurred during )ay ..... P 9<>%>>>=nits completed and transferred out during the month ...................... 1<>%>>>

<:.+ardDefer to#521'

,ssuming that herrington ompany uses the weighted2average method%what is the cost per e6uivalent unit for conversion costs for )ay tothe nearest whole centCa. P5.1<b. P5.>>

c. P*.95d. P*.;*

<;.+ardDefer to#521'

8,ppendi- ,ssuming that herrington ompany uses the F3F4 method%what is the cost per e6uivalent unit for conversion costs for )ay tothe nearest centCa. P5.*1b. P*.5<c. P5.'<d. P5.11




Deference# 521*Gando ompany uses the weighted2average method in its process costing system.epartment is the second of three se6uential processes at the company. uring4ctober% epartment collected the following data#

Babor and 4verhead

=nits Percentage omplete $ork in process% 4ctober 1 ....... ;%>>> 9>? =nits started .................... '7%>>> ompleted and transferred ........ '>%>>> $ork in process% 4ctober *1 ...... 1*%>>> '>?

Babor and osts for 4ctober# Transferred 3n )aterials 4verhead $ork in process% 4ctober 1 .... P**%>>> P19%7>> P *1%'>> ,dded during the month ........ P7<%5>> P;'%7>> P1<5%;>>


<<.@

)ediumDefer To#521*

The total cost assigned to units transferred out during 4ctober was#a. P'95%9>>.

b. P*19%>>>.c. P*5'%>>>.d. P*7;%5>>.

1>>.@)ediumDefer To#521*

The total cost assigned to ending work in process inventory was#a. P:7%5>>.b. P1>1%5>>.c. P17'%;>>.d. P7<%>>>.

Deference# 52158,ppendi- The following information was obtained from the records of the firstprocessing department of Leith )anufacturing ompany for the month of February. Thecompany uses the F3F4 method in its process costing system.

Babor and 4verhead =nits Percent omplete $ork in process inventory% Feb. 1 ....... 17%>>> *>? tarted in assembly during the month .... 9>%>>> $ork in process inventory% Feb. '; ...... '>%>>> '>?

,ll materials are added at the beginning of the manufacturing process.




1>1.@)ediumDefer To#5215

The e6uivalent units of production for material for the month is#a. 7>%>>>.b. 9>%>>>.c. 75%7>>.d. :7%>>>.

1>'.,)ediumDefer To#5215

The e6uivalent units of production for labor and overhead for themonth is#a. 75%7>>.b. 7<%>>>.c. <7%>>>.d. 9>%>>>.

Essay

1>*.+ard

,ble 3nc. uses the weighted2average method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process ................................ *>> tage of completion with respect to materials ... 9>? tage of completion with respect to conversion .. *>? osts in the beginning inventory# )aterials cost ................................ P*5' onversion cost ............................... P'%*<5

=nits started into production during the month .... '1%>>>=nits completed and transferred out ............... '>%:>>

osts added to production during the month# )aterials cost .................................. P55%1*9 onversion cost ................................. P759%:7>

$ork in process% ending# =nits in process ................................ 9>> tage of completion with respect to materials ... ;>? tage of completion with respect to conversion .. *>?

De6uired#

Prepare a production report for the department using the weighted2average method.




,nswer#$eighted ,verage method#0uantity schedule and e6uivalent units

0uantity chedule=nits to be accounted for#

$ork in process% beginning ..... *>> tarted into production ........ '1%>>> Total units .................. '1%*>>

E6uivalent units )aterials onversion=nits accounted for as follows# Transferred to ne-t department '>%:>> '>%:>> '>%:>> $ork in process% ending ........ 9>> 5;> 1;> Total units ................. '1%*>> '1%1;> '>%;;>

osts per e6uivalent unit Total ost )aterials onversionost to be accounted for#

$ork in process% beginning.... P'%:*9 P*5' P'%*<5 ost added during the month...P7<>%;;9 P55%1*9 P759%:7> Total cost 8a .............P7<*%9'' P55%5:; P75<%155

E6uivalent units 8above 8b ... '1%1;> '>%;;>ost per E=% 8a N 8b ......... P'.1>> P'9.*>>ombined cost per E= ........... P';.5>>

ost reconciliation Total E6uivalent =nits 8above ost )aterials onversionost accounted for as follows# Transferred out ........ P7;:%;;> '>%:>> '>%:>> $ork in process% ending# )aterials ............ P1%>>; 5;>

onversion ........... P5%:*5 1;>Total work in process% ending ................. P7%:5'Total cost ............... P7<*%9''




1>5.+ard

@arker 3nc. uses the weighted2average method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process ................................ ;>> tage of completion with respect to materials ... 7>?

tage of completion with respect to conversion .. '>? osts in the beginning inventory# )aterials cost ................................ P'%55> onversion cost ............................... P5%<';

=nits started into production during the month .... 17%>>> =nits completed and transferred out ............... 17%9>>

osts added to production during the month# )aterials cost .................................. P<9%5:> onversion cost ................................. 5:9%*9'

$ork in process% ending# =nits in process ................................ '>> tage of completion with respect to materials ... 7>?

tage of completion with respect to conversion .. <>?

De6uired#

=sing the weighted2average method#a. etermine the e6uivalent units of production for materials andconversion costs.b. etermine the cost per e6uivalent unit for materials and

conversion costs.c. etermine the cost of units transferred out of the departmentduring the month.d. etermine the cost of ending work in process inventory in thedepartment.




,nswer#a. through d. The answers to all of the 6uestions can be found byfilling out a production report as follows.

0uantity schedule and e6uivalent units 0uantity chedule

=nits to be accounted for# $ork in process% beginning ..... ;>> tarted into production ........ 17%>>> Total units ...................... 17%;>>

E6uivalent units )aterials onversiond. =nits accounted for as follows# Transferred to ne-t department 17%9>> 17%9>> 17%9>> $ork in process% ending ....... '>> 1>> 1;> Total units ................. 17%;>> 17%:>> 17%:;>

osts per e6uivalent unit

Total ost )aterials onversion ost to be accounted for# $ork in process% beginning .. P:%*9; P'%55> P5%<'; ost added during the month . P7:'%;*' P<9%5:> P5:9%*9' Total cost 8a ............ P7;>%'>> P<;%<1> P5;1%'<>

E6uivalent units 8above 8b .. 17%:>> 17%:;> ost per E=% 8a N 8b ........ P9.*>> P*>.7>> ombined cost per E= .......... P*9.;>>

ost reconciliation Total E6uivalent =nits 8above ost )aterials onversion ost accounted for as follows#

Transferred out ............. P7:5%>;> 17%9>> 17%9>> $ork in process% ending# )aterials ................. P9*> 1>> onversion ................ P7%5<> 1;> Total work in process% ending . P9%1'> Total cost .................... P7;>%'>>




1>7.)edium

+armon ompany uses the weighted2average method in its process costingsystem. The uring epartment of +armon ompany reported the followinginformation for the month of Govember.

onversion Percentage =nits omplete

$ork in process% Govember 1 ..... 1>%>>> ;>? =nits started ................... ';%>>> ompleted and transferred out ... *>%>>> $ork in process% Govember *> .... ;%>>> *>?

osts for Govember# )aterials onversion $ork in process% Govember 1 ..... P *5%7>> P 5;%9>> ,dded during the month .......... P159%>>> P1<5%5>>


De6uired#

ompute the following items for the companyAs monthly productionreport using the weighted2average method#

a. The e6uivalent units of production for materials.b. The cost per e6uivalent unit for conversion.c. The total cost assigned to units transferred out of the uringepartment during Govember.d. The cost assigned to work in process inventory as of Govember*>.

,nswer#a. =nits transferred out ................ *>%>>> ,dd# E6uivalent units in ending inventory 8;%>>> O 1>>? ........ ;%>>> E6uivalent units for materials ....... *;%>>>

b. =nits transferred out ................ *>%>>> ,dd# E6uivalent units in ending

inventory 8;%>>> O *>? ......... '%5>> E6uivalent units for conversion ...... *'%5>>

Total conversion costs ............... '5*%>>>

8P5;%9>> P1<5%5>>/*'%5>> E=s Q P:.7> per E=

c. )aterials cost per e6uivalent unit# 8P*5%7>> P159%>>>/*;%>>> E=s Q P5.:7 per E=

osts transferred out# *>%>>> units O 8P:.7> P5.:7 Q P*9:%7>>

d. )aterials cost ;%>>> units O P5.:7 per E= .......... P*;%>>> onversion ;%>>> units O *>? complete O P:.7> per E= 1;%>>>

ost assigned to ending inventory .................. P79%>>>




1>9.)edium

arver 3nc. uses the weighted2average method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process ................................ :>> tage of completion with respect to materials ... 7>?

tage of completion with respect to conversion .. 5>?

=nits started into production during the month .... *%>>>

$ork in process% ending# =nits in process ................................ '>> tage of completion with respect to materials ... ;>? tage of completion with respect to conversion .. 5>?

De6uired#

=sing the weighted2average method% determine the e6uivalent units ofproduction for materials and conversion costs by compiling the0uantity chedule and E6uivalent =nits portion of the productionreport.

,nswer#0uantity schedule and e6uivalent units 0uantity chedule=nits to be accounted for# $ork in process% beginning ..... :>> tarted into production ........ '*%>>> Total units .................. '*%:>>

E6uivalent units )aterials onversiond.=nits accounted for as follows# Transferred to ne-t department . '*%7>> '*%7>> '*%7>>

$ork in process% ending ........ '>> 19> ;> Total units .................. '*%:>> '*%99> '*%7;>




1>:.+ard

8,ppendi- The mith ompany manufactures a product that goes throughtwo departments prior to completion. The following information isavailable on work in one of these departments% the Forming epartment%during )arch#

Percentage ompleted =nits )aterials onversion

$ork in process% )arch 1 ........ :>%>>> 7/: */:tarted into production ......... 59>%>>>ompleted and transferred out ... 57>%>>>$ork in process% )arch *1 ....... ;>%>>> :/; 7/;

ost in the beginning work in process inventory and cost added duringthe month were as follows#

)aterials onversion$ork in process% )arch 1 ......... P 5'%1<> P *;%>>>ost added during )arch .......... P55>%;1> P *<5%>>>

The Forming epartment is the first department in the productionprocessI after forming has been completed% the units are transferredto the Finishing epartment.

De6uired#

1. alculate the e6uivalent units and unit cost for materials andconversion costs assuming the company uses the weighted2 averagemethod 8round to the nearest tenth of a cent.

'. alculate the e6uivalent units and unit cost for materials andconversion costs assuming the company uses the F3F4 method 8round tothe nearest tenth of a cent.

,nswer#E6uivalent units#

$eighted2average#

)aterials onversion=nits completed and transferred out...... 57>%>>> 57>%>>>$ork in process% )arch *1#)aterials# ;>%>>> - :/; Q .............. :>%>>>onversion# ;>%>>> - 7/; Q ............. 7>%>>>E6uivalent units......................... 7'>%>>> 7>>%>>>

=nit costs#)aterials# 8P5'%1<> P55>%;1>/7'>%>>> Q P>.<'<onversion# 8P*;%>>> P*<5%>>>/7>>%>>> Q P>.;95




E6uivalent units#

F3F4# )aterials onversion$ork in process% )arch 1#)aterials# :>%>>> - '/: Q .............. '>%>>>onversion#:>%>>> - 5/: Q ............... 5>%>>>

tarted and completed during )arch ...... *;>%>>> *;>%>>>$ork in process% )arch *1#)aterials# ;>%>>> - :/; Q .............. :>%>>>onversion# ;>%>>> - 7/; Q ............. 7>%>>>E6uivalent units ........................ 5:>%>>> 5:>%>>>

=nit costs#)aterials# P55>%;1>/5:>%>>> Q P>.<*;onversion# P*<5%>>>/5:>%>>> Q P>.;*;

1>;.)edium

ita ompany uses a process costing system. The following informationrelates to one monthAs activity in the companyAs uring epartment. onversion Percentage

=nits omplete @eginning work in process inventory .. 1>%>>> '>? =nits started ........................ '1%>>> =nits completed and transferred out .. '9%>>> Ending work in process inventory ..... 7%>>> ;>?

The conversion cost of the beginning inventory was P9%7>>. uring themonth% P11'%>>> in additional conversion cost was incurred.

De6uired#a. 8,ppendi- ,ssume that the company uses the F3F4 method.

ompute#1. The e6uivalent units of production for conversion for the

month.'. The cost per e6uivalent unit for conversion for the month.

*. The total cost transferred out during the month.5. The cost assigned to the ending work in process inventory.

b. ,ssume that the company uses the weighted2average cost method.ompute#

1. The e6uivalent units of production for conversion for themonth.

'. The cost per e6uivalent unit for conversion for the month.*. The total cost transferred out during the month.5. The cost assigned to the ending work in process inventory.




,nswer#a. 1. =nits transferred out .............. '9%>>> educt# e6uivalent units in the beginning inventory ........ '%>>> '5%>>> ,dd# e6uivalent units in

the ending inventory ........... 5%>>> E6uivalent units .................. ';%>>>

'. P11'%>>> N ';%>>> E=s Q P5 per E=.

*. @eginning inventory# ost in the beginning inventory .. P 9%7>> ompletion of the units in the beginning inventory# P5 - 1%>>> - ;>? ....... *'%>>> =nits started and completed during the period# P5 - 19%>>> units .. 95%>>> Total cost transferred out ....... P1>'%7>>

5. P5 per E= - 7%>>> - ;>? Q P19%>>>

b. 1. =nits transferred out .............. '9%>>> ,dd# e6uivalent units in the ending inventory ................ 5%>>> E6uivalent units .................. *>%>>>

'. ost in the opening inventory ...... P 9%7>> ost incurred during the period ... 11'%>>> Total cost ...................... P11;%7>>

P11;%7>> N *>%>>> Eus Q P*.<7 per E=

*. '9%>>> units - P*.<7 per E= Q P1>'%:>>

5. P*.<7 per E= - 7%>>> - ;>? Q P17%;>>




1><.+ard

Production and cost data for the month of February for Process , ofthe Packer manufacturing ompany follow#

Production record#=nits in process% February 1 81>>? complete with respect to materialsI '7? complete with respect to conversion cost ........ '%>>>

Gew units started in process ............................ ;%>>>=nits completed ......................................... :%>>>=nits in process% February '; 81>>? complete with respect to materialsI

1/* complete with respect to conversion cost ........ *%>>>

ost record#$ork in process inventory% February 1# )aterials ............................... P9>> onversion ............................... 1>> P :>>osts for February# )aterials issued ......................... '%79> onversion ............................... 1%7>>Total cost to be accounted for ............. P5%:9>

The company uses the weighted2average cost method in its processcosting system.

De6uired#

1. alculate the e6uivalent units and unit costs for February formaterials and for conversion costs.

'. etermine the cost transferred to finished goods.

*. etermine the amount of cost that should be assigned to theending work in process and finished goods inventories.

,nswer#

1. E6uivalent units# )aterials# ompleted ......................................... :%>>> $ork in process% Feb. '; .......................... *%>>> E6uivalent units .................................. 1>%>>> onversion# ompleted ......................................... :%>>> $ork in process% Feb. '; 8*%>>> - 1/* ............ 1%>>> E6uivalent units .................................. ;%>>>

)aterial onversion =nit costs# ost from work in process% Feb. 1 ..... P 9>> P 1>> ost recorded in February ............. '%79> 1%7>> Total cost ............................ P *%19> P1%9>>

E6uivalent units ...................... 1>%>>> ;%>>> =nit cost ............................. P >.*19 P >.'>




'. and *.

=nits completed and transferredR:%>>> - P.719 ........ P*%91'$ork in process inventory% February ';#)aterial cost# *%>>> units - 1>>? - P>.*19 Q .......... <5;onversion cost# *%>>> units - 1/* - P>.'> Q .......... '>>Total cost accounted for .............................. P5%:9>

11>.+ard

)iller ompany manufactures a product for which materials are added atthe beginning of the manufacturing process. , review of the companyJsinventory and cost records for the most recently completed year revealedthe following information#

osts S =nits )aterials onversion$ork in process% an. 1 ;>? complete with respect to conversion costs ............... 1>>%>>> P1>>%>>> P17:%7>>=nits started into production .... 7>>%>>>osts added during the year# )aterials ...................... P97>%>>> onversion ..................... P<<:%7>>

=nits completed during the year .. 57>%>>>

The company uses the weighted2average cost method in its process costingsystem. The ending inventory is 7>? complete with respect to conversioncosts.

De6uired#

1. ompute the e6uivalent units of production and the cost pere6uivalent units for materials and for conversion costs.


*. etermine the amount of cost that should be assigned to theending work in process inventory.




,nswer#E6uivalent units# )aterials onversion=nits completed and transferred out ... 57>%>>> 57>%>>>$ork in process% ecember *1#)aterials# 17>%>>> - 1.>> Q .......... 17>%>>>onversion# 17>%>>> - >.7> Q ......... SSSSSSS :7%>>>

E6uivalent units ...................... 9>>%>>> 7'7%>>>

=nit costs# )aterials onversionosts in beginning work in process .... P1>>%>>> P 17:%7>>osts added during the year ........... 97>%>>> <<:%7>>Total ................................. P:7>%>>> P1%177%>>>E6uivalent units ...................... 9>>%>>> 7'7%>>>=nit cost ............................. P 1.'7 P '.'>

osts to be accounted for#$ork in process% beginning ............ P '7:%7>>ost added by department .............. 1%9<:%7>>Total cost to be accounted for ........ P1%<>7%>>>

ost accounted for as follows#

Transferred to finished goods#57>%>>> - 8P1.'7 P'.'> Q ........... P1%77'%7>>$ork in process% ending#)aterialsR17>%>>> - P1.'7 Q .......... 1;:%7>>onversionR:7%>>> - P'.'> Q .......... 197%>>>Total costs accounted for ............. P1%<>7%>>>

Ending work in process#

)aterials# ............................ P1;:%7>>onversion ............................ 197%>>>Total ................................. P*7'%7>>




111.)edium

The +ardy ompany manufactures a product that goes through twodepartments prior to completion. The following information isavailable on work in one of these departments% the )olding epartment%during the month of uly#

Percentage ompleted =nits )aterials onversion

$ork in process% uly 1 ..... 7>%>>> */7 '/7tarted into production ..... 55>%>>>ompleted ................... 5*>%>>>$ork in process% uly *1 .... 9>%>>> 7/9 '/*

The )olding epartment is the first department in the productionprocessI after molding has been completed% the units are transferredto the Finishing epartment.

De6uired#

alculate the e6uivalent units for materials and conversion costsassuming the company uses the weighted2average method. Dound to thenearest tenth of a cent.

,nswer#E6uivalent units#

$eighted2average# )aterials onversion=nits completed and transferred out 5*>%>>> 5*>%>>>$ork in process% uly *1#)aterials# 9>%>>> - 7/9 Q ........ 7>%>>>onversion# 9>%>>> - '/* Q ....... 5>%>>>E6uivalent units .................. 5;>%>>> 5:>%>>>




11'.)edium

harp ompany has a process costing system. The following data relateto the companyAs )i-ing epartment for a recent month#

onversion Percentage =nits of ompletion@eginning work in process inventory 7%>>> 9>?

=nits started into production ..... 5>%>>>=nits completed and transferred out *:%>>>Ending work in process inventory .. ;%>>> '7?

,ll materials are added at the beginning of the )i-ing process.

De6uired#

a. 8,ppendi- ompute the e6uivalent units of production formaterials using the F3F4 method.

b. 8,ppendi- ompute the e6uivalent units of production forconversion using the F3F4 method.

c. ompute the e6uivalent units of production for materialsusing the weighted2average method.

d. ompute the e6uivalent units of production for conversion

using the weighted2average method.

,nswer#a. M b. )aterials onversion=nits transferred out .................. *:%>>> *:%>>>educt# e6uivalent units in beginning inventory ........................... 7%>>> *%>>> *'%>>> *5%>>>,dd# e6uivalent units in ending inventory ........................... ;%>>> '%>>>E6uivalent units of production ......... 5>%>>> *9%>>>

c. M d.=nits transferred out .................. *:%>>> *:%>>>,dd# e6uivalent units in the ending

inventory ........................... ;%>>> '%>>>E6uivalent units of production ......... 57%>>> *<%>>>




11*.+ard

8,ppendi- arver 3nc. uses the F3F4 method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process .................................. 1>> tage of completion with respect to materials ..... ;>?

tage of completion with respect to conversion .... 9>? osts in the beginning inventory# )aterial cost ................................... P*:9 onversion cost.................................. P'%*:9

=nits started into production during the month....... '1%>>>=nits completed and transferred out.................. '>%5>>

osts added to production during the month# )aterial cost ..................................... P<*%957 onversion cost.................................... P;'7%7*1

$ork in process% ending# =nits in process .................................. :>> tage of completion with respect to materials ..... :>?

tage of completion with respect to conversion .... 7>?

De6uired#

Prepare a production report for the department using the F3F4 method.

,nswer#0uantity chedule and E6uivalent =nits

0uantity chedule=nits to be accounted for# $ork in process% beginning ..... 1>> tarted into production ........ '1%>>> Total units .................. '1%1>>

E6uivalent units )aterials onversiond.=nits accounted for as follows# Transferred out# From the beginning inventory... 1>> '> 5> tarted and completed ......... '>%*>> '>%*>> '>%*>> $ork in process% ending ........ :>> 5<> *7> Total units ................. '1%1>> '>%;1> '>%9<>




osts per e6uivalent unit

Total ost )aterials onversionost to be accounted for# $ork in process% beginning... P'%:7' ost added during the month.. P<1<%1:9 P<*%957 P;'7%7*1

Total cost 8a............. P<'1%<';

E6uivalent units 8above 8b... '>%;1> '>%9<>ost per E=% 8a N8b.......... P5.7>> P*<.<>>ombined cost per E=........... P55.5>>

ost Deconciliation Total E6uivalent =nits 8above ost )aterials onversionost accounted for as follows#Transferred out# From the beginning inventory# ost in the beginning inventory. P'%:7' ost to complete these units# )aterials .................... P<> '>

onversion ................... P1%7<9 5> Total cost ................. P5%5*;=nits started and completed....... P<>1%*'> '>%*>> '>%*>>Total cost transferred............ P<>7%:7;$ork in process% ending# )aterials ...................... P'%'>7 5<> onversion ..................... P1*%<97 *7> Total work in process% ending... P19%1:>Total cost...................... P<'1%<';




115.+ard

8,ppendi- Easy 3nc. uses the F3F4 method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process ................................ *>> tage of completion with respect to materials ... 9>?

tage of completion with respect to conversion .. ;>? osts in the beginning inventory# )aterials cost ................................ P7<5 onversion cost ............................... P;%'79

=nits started into production during the month .... '9%>>>=nits completed and transferred out ............... '7%7>>

osts added to production during the month# )aterials cost .................................. P:<%:*' onversion cost ................................. P;;:%9'9

$ork in process% ending# =nits in process ................................ ;>> tage of completion with respect to materials ... 7>?


De6uired#

=sing the F3F4 method#a. etermine the e6uivalent units of production for materials andconversion costs.b. etermine the cost per e6uivalent unit for materials and

conversion costs.c. etermine the cost of units transferred out of the department

during the month.d. etermine the cost of ending work in process inventory in thedepartment.

,nswer#

a. through d. can be answered by completing a production report asfollows#

0uantity chedule and E6uivalent =nits 0uantity chedule=nits to be accounted for# $ork in process% beginning ..... *>> tarted into production ........ '9%>>> Total units .................. '9%*>>




E6uivalent units )aterials onversiond.=nits accounted for as follows# Transferred out# From the beginning inventory *>> 1'> 9> tarted and completed ...... '7%'>> '7%'>> '7%'>>

$ork in process% ending ...... ;>> 5>> *'> Total units ............... '9%*>> '7%:'> '7%7;>

osts Per E6uivalent =nit Total ost )aterials onversionost to be accounted for# $ork in process% beginning ... P;%;7> ost added during the month .. P<9:%*7; P:<%:*' P;;:%9'9 Total cost 8a ............. P<:9%'>;

E6uivalent units 8above 8b ... '7%:'> '7%7;>ost per E=% 8a N 8b ......... P*.1>> P*5.:>>ombined cost per E= ........... P*:.;>>

ost Deconciliation Total E6uivalent =nits 8above ost )aterials onversionost accounted for as follows#Transferred out# From the beginning inventory# ost in the beginning inventory P;%;7> ost to complete these units# )aterials ................... P*:' 1'>

onversion .................. P'%>;' 9> Total cost ................ P11%*>5=nits started and completed .... P<7'%79> '7%'>> '7%'>>Total cost transferred ......... P<9*%;95

$ork in process% ending# )aterials ..................... P1%'5> 5>> onversion .................... P11%1>5 *'> Total work in process% ending. P1'%*55Total cost ..................... P<:9%'>;




117.)edium

8,ppendi- Farwest 3nc. uses the F3F4 method in its process costingsystem. The following data concern the operations of the companyAsfirst processing department for a recent month.

$ork in process% beginning# =nits in process ................................ ;>> tage of completion with respect to materials ... :>?


=nits started into production during the month .... ''%>>>

$ork in process% ending# =nits in process ................................ *>> tage of completion with respect to materials ... ;>? tage of completion with respect to conversion .. :>?

De6uired#

=sing the F3F4 method% determine the e6uivalent units of productionfor materials and conversion costs by compiling the 0uantity cheduleand E6uivalent =nits portion of the production report.

,nswer#0uantity chedule and E6uivalent =nits 0uantity chedule=nits to be accounted for# $ork in process% beginning ..... ;>> tarted into production ........ ''%>>> Total units .................. ''%;>>

E6uivalent units )aterials onversiond.=nits accounted for as follows# Transferred out# From the beginning inventory . ;>> '5> 5>>

tarted and completed ........ '1%:>> '1%:>> '1%:>> $ork in process% ending ........ *>> '5> '1> Total units ................. ''%;>> ''%1;> ''%*1>




119.+ard

8,ppendi- Production and cost data for the month of February forProcess , of the Packer )anufacturing ompany were as follows#

Production record#=nits in process% February 1 81>>? complete with respect to materialsI '7? complete with respect to conversion cost ........ '%>>>

Gew units started in process ............................ ;%>>>=nits completed ......................................... :%>>>=nits in process% February '; 81>>? complete with respect to materialsI

1/* complete with respect to conversion cost ........ *%>>>

ost record#$ork in process inventory% February 1# )aterials ............................ P9>> onversion ............................ 1>> P :>>osts for February# )aterials issued ...................... '%79> onversion ............................ 1%7>>Total cost to be accounted for .......... P5%:9>

The company uses the F3F4 cost method in its process costing system.

De6uired#

1. alculate the e6uivalent units and unit costs for February formaterials and conversion costs.


*. etermine the amount of cost that should be assigned to theending work in process and finished goods inventories.




,nswer#1. E6uivalent units#

)aterials#ompletion of work in process at February 1 ............ 2=nits started and completed during the period .......... 7%>>>=nits in process at February '; ........................ *%>>>

E6uivalent units ....................................... ;%>>>

onversion#ompletion of work in process at February 18'%>>> - >.:7 ....................................... 1%7>>

=nits started and completed during the period .......... 7%>>>=nits in process at February '; 8*%>>> - 1/* .......... 1%>>>E6uivalent units ....................................... :%7>>

=nit costs#)aterials# P'%79>/;%>>> Q .............................. P>.*'onversion# P1%7>>/:%7>> Q ............................. >.'>Total unit cost ........................................ P>.7'

'. and *.

From beginning work in process inventory 8'%>>> units#ost from preceding period ............................. P :>>)aterials added ........................................ 2>2onversion# '%>>> units - >.:7 - P>.'> ................. *>>ompleted cost of opening inventory .................... P1%>>>From new production started in current month 87%>>> units# 7%>>> units - P>.7' .................. '%9>>Total cost of completed production ..................... P*%9>>$ork in process inventory% February ';#)aterial cost# *%>>> units - 1>>? - P>.*' ....... <9>onversion cost# *%>>> units - 1/* - P>.'> ...... '>> 1%19>Total cost accounted for ............................... P5%:9>

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Test Bank - Chapter 4 Process Costing