Reference no: EM132322241

Question

1. The number of equivalent units for direct materials and conversion costs must always be equal.

True

False

2. Carbamate Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-?Mixing, Refining, and Packaging. On January? 1, the Refining Department had 2,000 gallons of partially processed product in production.

During? January, 30,000 gallons were transferred in from the Mixing? Department, and 31,000 gallons were completed and transferred out. At the end of the? month, 1,000 gallons of partially processed product remained in the Refining Department. The weighted-average method is used. See additional details below.

Refining? Department, ending balance at January 31

Percent completed for materials? cost: 94?%

Percent completed for conversion? cost: 70?%

What was the total number of equivalent units of production for conversion costs for the month of January for the Refining? Department?

A.940 units

B.31,700 units

C.31,000 units

D.700 units

3. On September? 30, the Drying Department of? Jamoca, Inc. had ending? Work-in-Process Inventory that was? 28% complete for materials and? 23% complete for conversion costs. The company uses the FIFO method. This means that for the ending? Work-in-Process inventory,? ________% of materials and? ________% of the conversion costs were added during September.

A.23; 28

B.77; 72

C.28; 23

D.72; 77

4. Insetto Biological Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-?Mixing, Refining, and Packaging. On January? 1, the first department-Mixing-had no beginning inventory. During? January, 40,000 fl. oz. of chemicals were started in production.

Of? these, 31,000 fl. oz. were completed and? 9,000 fl. oz. remained in process. In the Mixing? Department, all direct materials are added at the beginning of the production? process, and conversion costs are applied evenly throughout the process. The?weighted-average method is used.

At the end of the? month, Insetto calculated equivalent units. The ending inventory in the Mixing Department was? 60% complete with respect to conversion costs. With respect to conversion? costs, how many equivalent units were calculated for the product that was completed and for ending? inventory?

A.Product? completed: 40,000 equivalent? units; Products in ending? inventory: 9,000 equivalent units

B.Product? completed: 31,000 equivalent? units; Products in ending? inventory: 5,400 equivalent units

C.Product? completed: 40,000 equivalent? units; Products in ending? inventory: 5,400 equivalent units

D.Product? completed: 31,000 equivalent? units; Products in ending? inventory: 9,000 equivalent units

5. ChemKill Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-?Mixing, Refining, and Packaging. On January? 1, the first department-Mixing-had a zero beginning balance. During? January, 43,000 gallons of chemicals were started into production.

During the? month, 35,000 gallons were? completed, and 8,000 remained in? process, partially completed. In the Mixing? Department, all direct materials are added at the beginning of the production? process, and conversion costs are applied evenly throughout the process.

During? January, the Mixing Department incurred $49,000 in direct materials costs and $210,000

in conversion costs. At the end of the? month, the ending inventory in the Mixing Department was

60?% complete with respect to conversion costs. The weighted-average method is used.

6. The total cost of the chemical pesticide in ending inventory was? ________. (Round any intermediate calculations two decimal? places, and your final answer to the nearest? dollar.)

A.$34,464

B.$259,000

C.$49,000

D.$ 210,000

7. Production cost reports prepared using the? first-in, first-out? (FIFO) method assume that the first units started in the production process are the first units completed and transferred out.

True

False

8. Which of the following is not a way in which managers use the production cost reports to make decisions for their?companies?

A.identifying the most profitable products

B.preparing the financial statements

C.controlling period costs

D.evaluating performance

9. Collins Company uses the? weighted-average method in its process costing system. The Packaging Department started the month with 300 units in? process, started 1,470 units, and had 110 units in process at the end of the period.

All materials are added at the beginning of the? process, and conversion costs are incurred uniformly. The units in process at the end of the month are 30?% complete with respect to conversion costs. During the month 1,660 units were completed and transferred out. The department incurred the following? costs:

Beginning WIP Added this month Total

Directed Materials $1,000 $2,500 $3,500

Conversion Cost $300 $5930 $6,230

Total $1,300 $8,430 $9,730

For conversion? costs, the equivalent units of production are

A.1,693 units

B.1,660 units

C.1,470 units

D.1,770 units

10. Martinez Manufacturing incurred $9,000 for indirect labor in Department III. The journal entry to record indirect labor?utilized, but not paid is? ________. Process costing is used.

A.debit Wages? Payable, $9,000?; credit Manufacturing? Overhead, $9,000

B.debit Manufacturing? Overhead, $9,000?; credit Wages? Payable, $9,000

C.debit Manufacturing? Overhead, $9,000?; credit Accounts? Payable, $9,000

D.debit Accounts? Payable,$9,000?; credit Manufacturing? Overhead, $9,000

11. The Assembly Department of? Interface, Inc., manufacturer of? computers, had? 4,500 units of beginning inventory in?September, and? 8,000 units were transferred to it from the Production Department. The Assembly Department completed? 4,000 units during the month and transferred them to the Packaging Department. The? weighted-average method is used. Calculate the total number of units to account for by the Assembly Department.

A.3,500 units

B.12,500 units

C.4,500 units

D.8,000 units

12. The Mixing Department incurred the following costs during the? month:

Direct Materials Direct Labor Manufacturing Overhead Allocated

Beginning WIP $100 $60 $110

Added this Month $275 $170 $490

Total $375 $230 $600

What is the journal entry to record the costs incurred during the? month?

Date Accounts and Explanation Debit Credit

A. Work-in-Process Inventory - Mixing 1,205

Raw Materials Inventory 375

Wages Payable 230

Manufacturing Overhead 600

B. Work-in-Process Inventory - Mixing 3,005

Transfer Costs1,800

Raw Materials Inventory375

Wages Payable 230

Manufacturing Overhead 600

C. Work-in-Process Inventory - Mixing 935

Raw Materials Inventory 275

Wages Payable 170

Manufacturing Overhead 490

D. Work-in-Process Inventory - Mixing 935

Raw Materials Inventory 275

Conversion Costs 660

13. Under a process costing? system, direct labor costs are assigned to the? Work-in-Process Inventory account of the department for which they are incurred.

True

False

14. Jabari? Manufacturing, a widgets manufacturing? company, divides its production operations into three processes-Department 1, Department? 2, and Department 3. The company uses a process costing system. Jabari incurred the following costs during the year to produce? 4,800 units:

Department 1 $17,000

Department 2 $7,000

Department 3 $10,000

If Jabari could sell only? 3,100 units during the? year, what will be the cost per unit of widget? produced? (Round your answer to the nearest? cent.)

A.$7.08

B.$5.00

C.$3.54

D.$10.97

15. A process costing system is generally used by companies that produce homogeneous products.

True

False