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Multiple Choice Quiz
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1
The Anthony Company uses the weighted-average method in its process costing system. The following information was available for one of its processing departments: <ul>
  • The beginning work in process inventory consisted of 16,000 units, which were 75% complete with respect to conversion costs.


  • The department converted the equivalent of 59,000 units of production during the current month.


    • <li>A total of 50,000 units were completed and transferred out of that department during the current month.
    A)29,000 units.
    B)42,000 units.
    C)46,000 units.
    D)54,000 units.
    2
    Sergent Company uses the weighted-average method in its process costing system. The following data for the Baking Department were taken from the company's accounting records:

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    The equivalent units of production for conversion costs were:
    A)200,000 units.
    B)204,000 units.
    C)222,000 units.
    D)224,000 units.
    3
    Charlie Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. There is only one processing department. The following data were taken from the company's accounting records:

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    What were the equivalent units of production for conversion costs for the current month?
    A)153,000
    B)235,000
    C)247,000
    D)251,000
    4
    Lansing Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month:

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    All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
    A)$0.25.
    B)$0.34.
    C)$0.44.
    D)$1.48.
    5
    The Lakepoint Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory consisted of 36,000 units. The units in the ending work in process inventory were 50% complete with respect to materials and 30% complete with respect to labor and overhead. If the costs per equivalent unit for the current period were $5.50 for materials and $8.50 for labor and overhead, the total cost assigned to the ending work in process inventory was:
    A)$151,200.
    B)$160,200.
    C)$252,000.
    D)$190,800.
    6
    Volare Company uses the weighted-average method in its process costing system. The Packing Department is the third department in its production process. The data below summarize the department's operations during the current month:

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    The Packing Department's production report indicates that the cost per equivalent unit for conversion cost for the current month was $8.24. How much conversion cost was assigned to the units transferred out of the Packing Department during the current month?
    A)$964,574.40
    B)$1,005,280
    C)$1,046,480
    D)$1,122,288
    7
    Lemont Company's beginning work in process inventory consisted of 10,000 units, 50% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost of the beginning inventory was $60,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out during the month was:
    A)$480,000.
    B)$510,000.
    C)$540,000.
    D)$570,000.
    8
    The Nevada Company uses the weighted-average method in its process costing system. The following information was available about one of the company's processing departments:
    • There were 108,000 equivalent units of production with respect to conversion costs during the current month.


    • There were 15,000 units in the department's beginning work in process inventory, which were two-thirds complete with respect to conversion costs.


    • During the current month, 105,000 units were started and 100,000 were completed and transferred out of the department.
    The ending work in process inventory in the department:
    A)was 40% complete with respect to conversion costs.
    B)was 65% complete with respect to conversion costs.
    C)consisted of 5,000 units.
    D)consisted of 10,000 units.
    9
    In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
    A)Work in Process – Department A and a credit to Work in Process – Department B.
    B)Work in Process – Department B and a credit to Work in Process – Department A.
    C)Work in Process – Department B and a credit to Materials.
    D)Finished Goods and a credit to Work in Process – Department B.
    10
    Which of the following statements is (are) true?
    A)A manufacturer of paper would ordinarily use process costing rather than job-order costing.
    B)If a company uses a process costing system it accumulates costs by processing department rather than by job.
    C)The output of a processing department must be homogeneous in order to use process costing.
    D)All of the above are true statements.





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