Contreras Process Costing QUIZ BSA191A-converted PDF

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Summary

Green Company started 9,000 units in February. The company transferred out 7,000 finished units and ended the period with 3,500 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were a. 500. b. 600. c. 1,500. d. 2,000. Answer: C* ...

Description

1.

Green Company started 9,000 units in February. The company transferred out 7,000 finished units and ended the period with 3,500 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were a. 500. b. 600. c. 1,500. d. 2,000. Answer: C*

2.

Bush Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs. X started and completed 42,000 units this period and had ending Work in Process Inventory of 12,000 units. How many units were started this period? a. 42,000 b. 47,000 c. 54,000 d. 59,000 Answer: C*

3.

Dixie Company uses a weighted average process costing system. Material is added at the start of production. Dixie Company started 13,000 units into production and had 4,500 units in process at the start of the period that were 60 percent complete as to conversion costs. If Dixie transferred out 11,750 units, how many units were in ending Work in Process Inventory? a. 1,250 b. 3,000 c. 3,500 d. 5,750 Answer: D*

4.

Taylor Company uses a weighted average process costing system and started 30,000 units this month. Taylor had 12,000 units that were 20 percent complete as to conversion costs in beginning Work in Process Inventory and 3,000 units that were 40 percent complete as to conversion costs in ending Work in Process Inventory. What are equivalent units for conversion costs? a. 37,800 b. 40,200 c. 40,800 d. 42,000 Answer: B*

5.

Kerry Company makes small metal containers. The company began December with 250 containers in process that were 30 percent complete as to material and 40 percent complete as to conversion costs. During the month, 5,000 containers were started. At month end, 1,700 containers were still in process (45 percent complete as to material and 80 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs? a. 3,450 b. 4,560 c. 4,610 d. 4,910

Answer: D* 6. Mehta Company Co. uses a FIFO process costing system. The company had 5,000 units that were 60 percent complete as to conversion costs at the beginning of the month. The company started 22,000 units this period and had 7,000 units in ending Work in Process Inventory that were 35 percent complete as to conversion costs. What are equivalent units for material, if material is added at the beginning of the process? a. 18,000 b. 22,000 c. 25,000 d. 27,000 Answer: B* 7.

Julia Company makes fabric-covered hatboxes. The company began September with 500 boxes in process that were 100 percent complete as to cardboard, 80 percent complete as to cloth, and 60 percent complete as to conversion costs. During the month, 3,300 boxes were started. On September 30, 350 boxes were in process (100 percent complete as to cardboard, 70 percent complete as to cloth, and 55 percent complete as to conversion costs). Using the FIFO method, what are equivalent units for cloth? a. 3,295 b. 3,395 c. 3,450 d. 3,595 Answer: A* Reed Company Reed Company. has the following information for November: Beginning Work in Process Inventory (70% complete as to conversion) Started Ending Work in Process Inventory (10% complete as to conversion)

6,000 units 24,000 units 8,500 units

Beginning WIP Inventory Costs: Material Conversion

$23,400 50,607

Current Period Costs: Material Conversion

$31,500 76,956

All material is added at the start of the process and all finished products are transferred out.

8.

Refer to Reed Company. How many units were transferred out in November? a. 15,500 b. 18,000 c. 21,500 d. 24,000 Answer: C*

9.

Refer to Reed Company. Assume that weighted average process costing is used. What is the cost per equivalent unit for material? a. $0.55 b. $1.05 c. $1.31 d. $1.83 Answer: D*

10. Refer to Reed Company. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion? a. $3.44 b. $4.24 c. $5.71 d. $7.03 Answer: B* Solutions to Quiz – PROCESS COSTING *For number 1: Units in process, beginning (SQUEEZE)* Units received

1,500* 9,500 10.500

Units completed Received and completed

7,500

In process, ending

3,500

TOTAL UNITS OF PRODUCTION *For number 2: Units in process, beginning Units received (SQUEEZE)*

10.500

5,000 54,000* 59.000

Units completed Received and completed

47,000

In process, ending

12,000

59,000

TOTAL UNITS OF PRODUCTION

*For number 3: Units in process, beginning

4,500

Units received

13,000 17.500

Units completed Received and completed

11,750

In process, ending (SQUEEZE)*

5,750*

TOTAL UNITS OF PRODUCTION

17,500

*For number 4: AVERAGE METHOD

Qty. Schedule Units in process, beginning Units received Units completed Units in process, ending

Actual 12,000

MATERIALS WD EP

LABOR AND OVERHEAD WD EP

30,000 42,000 39,000

100%

39,000

100%

39,000

3,000

100%

3,000

40%

1,200

42,000

42,000

40,800

*For number 5: AVERAGE METHOD Qty. Schedule Units in process, beginning Units received Units completed Units in process, ending

Actual 250

MATERIALS WD EP

LABOR AND OVERHEAD WD EP

5,000 5,250 3,550

100%

3,550

100%

3,550

1,700

100%

1,700

80%

1,360

5,250

5,250

4,910

*For number 6: FIFO COSTING Qty. Schedule Units in process, beginning Units received Units in process, beginning Received and completed Units in process, ending

Actual 5,000

22,000 27,000 5,000

MATERIALS WD EP

-

-

LABOR AND OVERHEAD WD EP

40%

2,000

15,000

100%

15,000

100%

15,000

7,000

100%

7,000

80%

2,450

27,000

22,000*

19,450

*For number 7, let’s separate the table for cardboard and cloth. First table: CARDBOARD PORTION (under FIFO costing) MATERIALS Qty. Schedule Actual WD EP Units in 500 process, beginning Units received 3,300 3,800 Units in 500 process, beginning Received and 2,950 100% 2,950 completed Units in 350 100% 350 process, ending 3,800 3,300 Second table: CLOTH PORTION (under FIFO costing) MATERIALS Qty. Schedule Actual WD EP Units in 500 process, beginning Units received 3,300 3,800 Units in 500 process, beginning

LABOR AND OVERHEAD WD EP

-

-

100%

2,950

70%

245

3,195

LABOR AND OVERHEAD WD EP

20%

100

Received and completed Units in process, ending

2,950

100%

2,950

350

100%

350

3,800

100% 70%

3,300

*For number 8: Units in process, beginning

2,950 245

3,295

6,000

Units received

24,000 30.000

Units completed Received and completed (SQUEEZE)* In process, ending

21,500* 8,500 30.000

TOTAL UNITS OF PRODUCTION *For number 9: AVERAGE METHOD

Qty. Schedule Units in process, beginning Units received

MATERIALS WD EP

Actual 6,000

Units completed Units in process, ending

LABOR AND OVERHEAD WD EP

24,000 30,000 21,500

100%

21,500

100%

8,500

100%

8,500

80%

30,000

30,000

21,500 850

22,350

Cost per unit is computed as follows: Materials =

23,400+31,500 30,000

Conversion cost =

= 1.83

50,607+76,956 22,350

= 5.71

*For number 10: FIFO COSTING Qty. Schedule Units in process, beginning Units received

Actual 6,000

24,000

MATERIALS WD EP

LABOR AND OVERHEAD WD EP

Units in process, beginning Received and completed Units in process, ending

30,000 6,000

-

-

15,500

100%

15,500

8,500

100%

8,500

30,000 Cost per unit is computed as follows: 31,500

Materials = 24,000 = 2.29 76,956

Conversion cost = 18,150 = 4.24

Answered by: CONTRERAS, LANCE SIEGFRED BSA191A

24,000

30%

1,800

100%

15,500

10%

850

18,150...