Cost Accounting Foundations And Evolutions 9th Edition by Michael R. Kinney – Test Bank A+

Description

1. Process costing is most appropriate when manufacturing large batches of homogenous products.
   True False

1. Conversion costs include all manufacturing costs other than direct materials.
   True False

1. Equivalent units are computed to assign costs to partially completed units.
   True False

1. The weighted average method combines beginning inventory and current production to compute cost per unit of production.
   True False

1. The FIFO method combines beginning inventory and current production to compute cost per unit of production.
   True False

1. The weighted average method separates beginning inventory and current production to compute cost per unit of production.
   True False

1. The FIFO method separates beginning inventory and current production to compute cost per unit of production.
   True False

1. The numerator in the formula for equivalent units includes all beginning inventory costs when using the weighted average costing assumption.
   True False

1. The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption.
   True False

1. The weighted average costing method assumes that units in beginning inventory are the first units transferred.
   True False

1. The FIFO costing method assumes that units in beginning inventory are the first units transferred.
   True False

1. Standard costing is compatible with both FIFO and weighted average methods of costing.
   True False

1. When a standard costing system is used with process costing, Work in Process inventory is recorded using standard costs.
   True False

1. When a standard costing system is used with process costing, Work in Process inventory is recorded using actual costs.
   True False

1. Calculations for standard process costing are identical to those for FIFO process costing.
   True False

1. Calculations for standard process costing are identical to those for weighted average process costing.
   True False

1. A hybrid costing system would be appropriate for a company that manufactures cake flour.
   True False

1. A hybrid costing system would be appropriate for a company that manufactures several varieties of jam.
   True False

1. A hybrid costing system would be appropriate for a company that manufactures automobiles.
   True False

1. In a complex production environment, it is more difficult to compute a single EUP rate for conversion costs.
   True False

1. Using FIFO costing, equivalent units of production (EUP) can be determined by subtracting EUP’s in Beginning work in process from weighted average EUP.
   True False

1. Weighted average equivalent units of production (EUP) can be determined by adding EUP’s in ending work in process to units transferred out.
   True False

1. Continuous production losses are assumed to occur uniformly throughout the process.
   True False

1. Discrete production losses are assumed to occur throughout the process.
   True False

1. Discrete production losses are assumed to occur at the end of a process.
   True False

1. Continuous production losses are assumed to occur at the end of a process.
   True False

1. Abnormal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.
   True False

1. Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.
   True False

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of neglect.
   True False

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of accretion.
   True False

1. A continuous loss is assumed to occur at a specific point in the production process.
   True False

1. A discrete loss is assumed to occur at a specific point in the production process.
   True False

1. Abnormal spoilage is always accounted for on an equivalent unit basis.
   True False

1. All manufacturing costs other than direct materials are referred to as _________________________.
   ________________________________________

1. The process costing system that computes equivalent units on beginning work in process inventory as well as work done in the current period is known as a _________________________________________________________________.
   ________________________________________

1. The process costing system that computes equivalent units only on work done in the current period is known as a __________________________________________________.
   ________________________________________

1. The number of completed units that could have been produced from the inputs applied is referred to as ______________________________.
   ________________________________________

1. Two methods of accounting for cost flows in process costing are ______________________________ and ____________________.
   ________________________________________

1. The costing method that excludes beginning work in process inventory from the computation of equivalent units is the ________ method.
   ________________________________________

1. The costing method that includes beginning work-in-process inventory in the computation of equivalent units is the ________ method.
   ________________________________________

1. The ______________________________ report details all manufacturing quantities and costs, shows computation of EUP, and indicates cost assignments to goods manufactured.
   ________________________________________

1. A ____________________ costing system is appropriate where products manufactured have different direct materials but similar processing techniques.
   ________________________________________

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of ____________________.
   ________________________________________

1. A loss that occurs uniformly throughout a production process is referred to as a __________________ loss.
   ________________________________________

1. A loss that occurs at a specific point in a production process is referred to as a ____________ loss.
   ________________________________________

1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?
   A. standard
   B. actual
   C. process
   D. job order

1. Process costing is used in companies that
   A. engage in road and bridge construction.
   B. produce sailboats made to customer specifications.
   C. produce bricks for sale to the public.
   D. construct houses according to customer plans.

1. A producer of ____ would not use a process costing system.
   A. gasoline
   B. potato chips
   C. blank videotapes
   D. stained glass windows

1. A process costing system is used by a company that
   A. produces heterogeneous products.
   B. produces items by special request of customers.
   C. produces homogeneous products.
   D. accumulates costs by job.

1. Which is the best cost accumulation procedure to use for continuous mass production of like units?
   A. actual
   B. standard
   C. job order
   D. process

1. Equivalent units of production are equal to the
   A. units completed by a production department in the period.
   B. number of units worked on during the period by a production department.
   C. number of whole units that could have been completed if all work of the period had been used to produce whole units.
   D. identifiable units existing at the end of the period in a production department.

1. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP?
   A. only current period cost
   B. current period cost plus the cost of beginning inventory
   C. current period cost less the cost of beginning inventory
   D. current period cost plus the cost of ending inventory

1. The weighted average method is thought by some accountants to be inferior to the FIFO method because it
   A. is more difficult to apply.
   B. only considers the last units worked on.
   C. ignores work performed in subsequent periods.
   D. commingles costs of two periods.

1. The first step in determining the cost per EUP per cost component under the weighted average method is to
   A. add the beginning Work in Process Inventory cost to the current period’s production cost.
   B. divide the current period’s production cost by the equivalent units.
   C. subtract the beginning Work in Process Inventory cost from the current period’s production cost.
   D. divide the current period’s production cost into the EUP.

1. The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units
   A. started and completed during the period.
   B. residing in beginning Work in Process Inventory.
   C. residing in ending Work in Process Inventory.
   D. uncompleted in Work in Process Inventory.

1. EUP calculations for standard process costing are the same as
   A. the EUP calculations for weighted average process costing.
   B. the EUP calculations for FIFO process costing.
   C. LIFO inventory costing for merchandise.
   D. the EUP calculations for LIFO process costing.

1. In a FIFO process costing system, which of the following are assumed to be completed first in the current period?
   A. units started this period
   B. units started last period
   C. units transferred out
   D. units still in process

1. To compute equivalent units of production using the FIFO method of process costing, work for the current period must be stated in units
   A. completed during the period and units in ending inventory.
   B. completed from beginning inventory, units started and completed during the period, and units partially completed in ending inventory.
   C. started during the period and units transferred out during the period.
   D. processed during the period and units completed during the period.

1. The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when
   A. the goods produced are homogeneous.
   B. there is no beginning Work in Process Inventory.
   C. there is no ending Work in Process Inventory.
   D. beginning and ending Work in Process Inventories are each 50 percent complete.

1. The primary difference between the FIFO and weighted average methods of process costing is
   A. in the treatment of beginning Work in Process Inventory.
   B. in the treatment of current period production costs.
   C. in the treatment of spoiled units.
   D. none of the above.

1. Material is added at the beginning of a process in a process costing system. The beginning Work in Process Inventory for the process was 30 percent complete as to conversion costs. Using the FIFO method of costing, the number of equivalent units of material for the process during this period is equal to the
   A. beginning inventory this period for the process.
   B. units started and completed this period in the process.
   C. units started this period in the process plus the beginning Work in Process Inventory.
   D. units started and completed this period plus the units in ending Work in Process Inventory.

1. In a cost of production report using process costing, transferred-in costs are similar to the
   A. cost of material added at the beginning of production.
   B. conversion cost added during the period.
   C. cost transferred out to the next department.
   D. cost included in beginning inventory.

1. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a
   A. debit Work in Process Inventory #2, credit Finished Goods Inventory.
   B. debit Finished Goods Inventory, credit Work in Process Inventory #1.
   C. debit Finished Goods Inventory, credit Work in Process Inventory #2.
   D. debit Cost of Goods Sold, credit Work in Process Inventory #2.

1. Transferred-in cost represents the cost from
   A. the last department only.
   B. the last production cycle.
   C. all prior departments.
   D. the current period only.

1. Which of the following is(are) the same between the weighted average and FIFO methods of calculating EUPs?

Units to	EUP	Total cost to
account for	calculations	account for

1. no yes no
   B. yes yes yes
   C. yes no no
   D. yes no yes

1. Process costing techniques should be used in assigning costs to products
   A. if a product is manufactured on the basis of each order received.
   B. when production is only partially completed during the accounting period.
   C. if a product is composed of mass-produced homogeneous units.
   D. whenever standard-costing techniques should not be used.

1. Averaging the total cost of completed beginning work-in-process inventory and units started and completed over all units transferred out is known as
   A. strict FIFO.
   B. modified FIFO.
   C. weighted average costing.
   D. normal costing.

1. A process costing system
   A. cannot use standard costs.
   B. restates Work in Process Inventory in terms of completed units.
   C. accumulates costs by job rather than by department.
   D. assigns direct labor and manufacturing overhead costs separately to units of production.

1. A process costing system does which of the following?

Calculates EUPs	Assigns costs to inventories

1. no no
   B. no yes
   C. yes yes
   D. yes no

1. A process costing system

Calculates average cost	Determines total units to
per whole unit	account for

1. yes yes
   B. no no
   C. yes no
   D. no yes

1. A hybrid costing system combines characteristics of
   A. job order and standard costing systems.
   B. job order and process costing systems.
   C. process and standard costing systems.
   D. job order and normal costing systems.

1. When standard costs are used in process costing,
   A. variances can be measured during the production period.
   B. total costs rather than current production and current costs are used.
   C. process costing calculations are made simpler.
   D. the weighted average method of calculating EUPs makes computing transferred-out costs easier.

1. Which of the following is subtracted from weighted average EUP to derive FIFO EUP?
   A. beginning WIP EUP completed in current period
   B. beginning WIP EUP produced in prior period
   C. ending WIP EUP not completed
   D. ending WIP EUP completed

1. The cost of abnormal continuous losses is
   A. considered a product cost.
   B. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
   C. written off as a loss on an equivalent unit basis.
   D. absorbed by all units past the inspection point.

1. Abnormal spoilage can be

continuous	discrete

1. yes no
   B. no no
   C. yes yes
   D. no yes

1. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered
   A. normal and discrete.
   B. normal and continuous.
   C. abnormal and discrete.
   D. abnormal and continuous.

1. A continuous loss
   A. occurs unevenly throughout a process.
   B. never occurs during the production process.
   C. always occurs at the same place in a production process.
   D. occurs evenly throughout the production process.

1. Which of the following would be considered a discrete loss in a production process?
   A. adding the correct ingredients to make a bottle of ketchup
   B. putting the appropriate components together for a stereo
   C. adding the wrong components when assembling a stereo
   D. putting the appropriate pieces for a bike in the box

1. The method of neglect handles spoilage that is
   A. discrete and abnormal.
   B. discrete and normal.
   C. continuous and abnormal.
   D. continuous and normal.

1. The cost of normal discrete losses is
   A. absorbed by all units past the inspection point on an equivalent unit basis.
   B. absorbed by all units in ending inventory.
   C. considered a period cost.
   D. written off as a loss on an equivalent unit basis.

1. The cost of abnormal continuous losses is
   A. considered a product cost.
   B. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
   C. written off as a loss on an equivalent unit basis.
   D. absorbed by all units past the inspection point.

1. Normal spoilage units resulting from a continuous process
   A. are extended to the EUP schedule.
   B. result in a higher unit cost for the good units produced.
   C. result in a loss being incurred.
   D. cause estimated overhead to increase.

1. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered
   A. normal and discrete.
   B. normal and continuous.
   C. abnormal and discrete.
   D. abnormal and continuous.

1. Which of the following accounts is credited when abnormal spoilage is written off in an actual cost system?
   A. Miscellaneous Revenue
   B. Loss from Spoilage
   C. Finished Goods
   D. Work in Process

1. The cost of abnormal discrete units must be assigned to

good units	lost units

1. yes yes
   B. no no
   C. yes no
   D. no yes

1. Which of the following statements is false? The cost of rework on defective units, if
   A. abnormal, should be assigned to a loss account.
   B. normal and if actual costs are used, should be assigned to material, labor and overhead costs of the good production.
   C. normal and if standard costs are used, should be considered when developing the overhead application rate.
   D. abnormal, should be prorated among Work In Process, Finished Goods, and Cost of Goods Sold.

1. If normal spoilage is detected at an inspection point within the process (rather than at the end), the cost of that spoilage should be
   A. included with the cost of the units sold during the period.
   B. included with the cost of the units completed in that department during the period.
   C. allocated to ending work in process units and units transferred out based on their relative values.
   D. allocated to the good units that have passed the inspection point.

1. Dallas Co. has a production process in which the inspection point is at 65 percent of conversion. The beginning inventory for July was 35 percent complete and ending inventory was 80 percent complete. Normal spoilage costs would be assigned to which of the following groups of units, using FIFO costing?

Beginning	Ending	Units Started
Inventory	Inventory	& Completed

1. no yes yes
   B. yes yes yes
   C. no no yes
   D. yes no no

1. Which of the following is not a question that needs to be answered with regard to quality control?
   A. What happens to the spoiled units?
   B. What is the actual cost of spoilage?
   C. How can spoilage be controlled?
   D. Why does spoilage happen?

1. Normal spoilage units resulting from a continuous process
   A. are extended to the EUP schedule.
   B. result in a higher unit cost for the good units produced.
   C. result in a loss being incurred.
   D. cause estimated overhead to increase.

1. The addition of material in a successor department that causes an increase in volume is called
   A. accretion.
   B. reworked units.
   C. complex procedure.
   D. undetected spoilage.

1. Bartling Company transferred 5,500 units to Finished Goods Inventory during October. On October 1, the company had 300 units on hand (40 percent complete as to both material and conversion costs). On October 31, the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs). The number of units started and completed during October was:
   A. 5,200.
   B. 5,380.
   C. 5,500.
   D. 6,300.

1. Jackson Company transferred 6,000 units to Finished Goods Inventory during August. On August 1, the company had 400 units on hand (35 percent complete as to both material and conversion costs). On August 31, the company had 750 units (20 percent complete as to material and 30 percent complete as to conversion costs). The number of units started and completed during August was:
   A. 5,600
   B. 5,860
   C. 6,000
   D. 6,750

1. Daniels Company started 9,000 units in March. 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.

1. Riedel Company started 8,600 units in April. The company transferred out 6,400 finished units and ended the period with 3,200 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were
   A. 400.
   B. 1,000.
   C. 1,280.
   D. 2,200.

1. Garfield Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs. Garfield Company 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

1. Mayer Company had beginning Work in Process Inventory of 6,000 units that were 45 percent complete as to conversion costs. Mayer Company started and completed 46,000 units this period and had ending Work in Process Inventory of 11,000 units. How many units were started this period?
   A. 46,000
   B. 52,000
   C. 57,000
   D. 63,000

1. Lewis Company uses a weighted average process costing system. Material is added at the start of production. Lewis 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 Lewis Company 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

1. Mansfield Company uses a weighted average process costing system. Material is added at the start of production. Mansfield Company started 14,000 units into production and had 5,000 units in process at the start of the period that were 75 percent complete as to conversion costs. If Mansfield Company transferred out 12,250 units, how many units were in ending Work in Process Inventory?
   A. 1,750
   B. 3,000
   C. 5,500
   D. 6,750

1. Hogan Company uses a weighted average process costing system and started 30,000 units this month. Hogan 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

1. Winters Company uses a weighted average process costing system and started 36,000 units this month. Winters had 15,000 units that were 25 percent complete as to conversion costs in beginning Work in Process Inventory and 6,000 units that were 35 percent complete as to conversion costs in ending Work in Process Inventory. What are equivalent units for conversion costs?
   A. 43,350
   B. 47,100
   C. 48,900
   D. 51,000

1. Rubenstein Company makes small metal containers. The company began April 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

1. Fischer Company makes small metal containers. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. During the month, 6,000 containers were started. At month end, 1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs?
   A. 4,265
   B. 5,590
   C. 5,825
   D. 6,300

1. Riggs Company 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

1. Hickman Company uses a FIFO process costing system. The company had 6,000 units that were 75 percent complete as to conversion costs at the beginning of the month. The company started 25,000 units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs. What are equivalent units for material, if material is added at the beginning of the process?
   A. 18,500
   B. 25,000
   C. 26,500
   D. 31,000

1. Duffy Company makes fabric-covered hatboxes. The company began July 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 April 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

1. Becker Company makes fabric-covered storage totes. The company began July with 600 totes in process that were 100 percent complete as to cardboard, 75 percent complete as to cloth, and 65 percent complete as to conversion costs. During the month, 3,600 totes were started. On April 30, 450 totes were in process (100 percent complete as to cardboard, 60 percent complete as to cloth, and 50 percent complete as to conversion costs). Using the FIFO method, what are equivalent units for cloth?
   A. 3,570
   B. 3,750
   C. 3,870
   D. 4,020

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. How many units were transferred out in August?
A. 15,500
B. 18,000
C. 21,500
D. 24,000

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. 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

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. 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

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. How many units were transferred out in May?
A. 17,600
B. 19,500
C. 25,100
D. 27,000

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. Assume that weighted average process costing is used. What is the cost per equivalent unit for material?
A. $0.99
B. $1.18
C. $1.64
D. $1.73

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion?
A. $3.05
B. $3.87
C. $4.25
D. $6.40

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. How many units were transferred to Decorating during the month?
A. 600
B. 4,900
C. 5,950
D. 7,000

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. What was the cost transferred out of Forming during the month?
A. $5,341
B. $6,419
C. $8,245
D. $8,330

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units as to costs in Decorating for the transferred-in cost component.
A. 7,400
B. 7,700
C. 8,000
D. 8,600

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units in Decorating for material.
A. 7,970
B. 8,000
C. 8,330
D. 8,450

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units in Decorating for conversion.
A. 7,925
B. 7,985
C. 8,360
D. 8,465

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume that 8,000 units were transferred to Decorating at a total cost of $16,000. What is the material cost per equivalent unit in Decorating?
A. $8.50
B. $8.65
C. $8.80
D. $9.04

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume that 8,000 units were transferred to Decorating at a total cost of $16,000. What is the conversion cost per equivalent unit in Decorating?
A. $11.32
B. $11.46
C. $12.00
D. $12.78

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume the material cost per EUP is $8.00 and the conversion cost per EUP is $15 in Decorating. What is the cost of completing the units in beginning inventory?
A. $ 960
B. $ 1,380
C. $ 1,860
D. $11,940

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Compute the number of units started and completed in August.
A. 29,500
B. 34,500
C. 36,500
D. 39,000

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Calculate equivalent units of production for material using FIFO.
A. 32,000
B. 36,800
C. 37,125
D. 39,000

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Calculate equivalent units of production for conversion using FIFO.
A. 30,125
B. 34,325
C. 37,125
D. 39,000

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Calculate equivalent units of production for material using weighted average.
A. 32,000
B. 34,325
C. 37,125
D. 39,000

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Calculate equivalent units of production for conversion using weighted average.
A. 34,325
B. 37,125
C. 38,375
D. 39,925

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. How many units must be accounted for?
A. 118,200
B. 128,200
C. 130,000
D. 138,200

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the total cost to account for?
A. $ 93,405
B. $205,653
C. $274,558
D. $299,058

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. How many units were started and completed in the period?
A. 111,800
B. 120,000
C. 121,800
D. 130,000

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What are the equivalent units for material using the weighted average method?
A. 120,000
B. 123,860
C. 128,360
D. 130,000

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What are the equivalent units for material using the FIFO method?
A. 111,800
B. 120,000
C. 125,500
D. 130,000

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What are the equivalent units for conversion using the weighted average method?
A. 120,000
B. 123,440
C. 128,360
D. 130,000

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What are the equivalent units for conversion using the FIFO method?
A. 118,360
B. 122,860
C. 123,860
D. 128,360

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the material cost per equivalent unit using the weighted average method?
A. $.58
B. $.62
C. $.77
D. $.82

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the conversion cost per equivalent unit using the weighted average method?
A. $1.01
B. $1.05
C. $1.55
D. $1.61

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the cost of units completed using the weighted average method?
A. $237,510
B. $266,742
C. $278,400
D. $282,576

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the conversion cost per equivalent unit using the FIFO method?
A. $1.05
B. $.95
C. $1.61
D. $1.55

1. Wright CompanyWright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period	120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company. What is the cost of all units transferred out using the FIFO method?
A. $204,624
B. $191,289
C. $287,004
D. $298,029

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation. Assuming a weighted average method of process costing, compute EUP units for Materials A and B.
A. 2,700 and 2,280, respectively
B. 2,700 and 2,450, respectively
C. 2,000 and 2,240, respectively
D. 2,240 and 2,700, respectively

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a FIFO method of process costing, compute EUP units for Materials A and B.
A. 2,700 and 2,280, respectively
B. 2,700 and 2,450, respectively
C. 2,000 and 2,240, respectively
D. 2,450 and 2,880, respectively

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a weighted average method of process costing, compute EUP for conversion.
A. 2,600
B. 2,180
C. 2,000
D. 2,700

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a FIFO method of process costing, compute EUP for conversion.
A. 2,240
B. 2,180
C. 2,280
D. 2,700

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a weighted average method of process costing, compute the average cost per unit for Material A.
A. $20.10
B. $20.00
C. $31.25
D. $31.00

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a FIFO method of process costing, compute the average cost per EUP for Material A.
A. $31.25
B. $20.10
C. $20.00
D. $31.00

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a FIFO method of process costing, compute the average cost per EUP for Material B.
A. $20.10
B. $31.25
C. $20.00
D. $31.00

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a weighted average method of process costing, compute the average cost per EUP for Material B.
A. $20.00
B. $31.25
C. $20.10
D. $31.00

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a FIFO method of process costing, compute the average cost per EUP for conversion.
A. $45.50
B. $45.00
C. $43.03
D. $47.59

1. Saturn Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion)	700	units
Started this cycle	2,000	units
Ending inventory (50% complete as to Material B and 80% complete for conversion)	500	units
Beginning inventory costs:
Material A	$14,270
Material B	5,950
Conversion	5,640
Current Period costs:
Material A	$40,000
Material B	70,000
Conversion	98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Refer to Saturn Corporation Assuming a weighted average method of process costing, compute the average cost per EUP for conversion.
A. $39.90
B. $45.00
C. $43.03
D. $47.59

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using weighted average, what are equivalent units for material?
A. 82,000
B. 89,500
C. 84,500
D. 70,000

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using weighted average, what are equivalent units for conversion costs?
A. 80,600
B. 78,100
C. 83,100
D. 75,600

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. What is the cost per equivalent unit for material using weighted average?
A. $1.72
B. $1.62
C. $1.77
D. $2.07

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. What is the cost per equivalent unit for conversion costs using weighted average?
A. $4.62
B. $4.21
C. $4.48
D. $4.34

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. What is the cost assigned to normal spoilage using weighted average?
A. $31,000
B. $15,500
C. $30,850
D. None of the responses are correct

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Assume that the cost per EUP for material and conversion are $1.75 and $4.55, respectively. What is the cost assigned to ending Work in Process?
A. $100,800
B. $87,430
C. $103,180
D. $71,680

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using FIFO, what are equivalent units for material?
A. 75,000
B. 72,500
C. 84,500
D. 70,000

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using FIFO, what are equivalent units for conversion costs?
A. 72,225
B. 67,225
C. 69,725
D. 78,100

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using FIFO, what is the cost per equivalent unit for material?
A. $1.42
B. $1.66
C. $1.71
D. $1.60

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Using FIFO, what is the cost per equivalent unit for conversion costs?
A. $4.46
B. $4.15
C. $4.30
D. $3.84

1. Stillwater CorporationThe following information is available for Stillwater Corporation for the current year:

Beginning Work in Process	Costs of Beginning Work in Process:
(75% complete)	14,500 units	Material	$25,100
Started	75,000 units	Conversion	50,000
Ending Work in Process	Current Costs:
(60% complete)	16,000 units	Material	$120,000
Abnormal spoilage	2,500 units	Conversion	300,000
Normal spoilage (continuous)	5,000 units
Transferred out	66,000 units

All materials are added at the start of production.

Refer to Stillwater Corporation. Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75, respectively. Using FIFO what is the total cost assigned to the units transferred out?
A. $414,194
B. $339,094
C. $445,444
D. $396,975

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. What are equivalent units of production for material, assuming FIFO?
A. 100,000
B. 96,500
C. 95,000
D. 120,000

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. What are equivalent units of production for conversion costs, assuming FIFO?
A. 108,900
B. 103,900
C. 108,650
D. 106,525

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. Assume that the costs per EUP for material and conversion are $1.00 and $1.50, respectively. What is the amount of the period cost for July using FIFO?
A. $0
B. $9,375
C. $10,625
D. $12,500

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. Assume that the costs per EUP for material and conversion are $1.00 and $1.50, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded to the nearest dollar)?
A. $245,750
B. $244,438
C. $237,000
D. $224,938

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. What are equivalent units of production for material assuming weighted average is used?
A. 107,000
B. 116,500
C. 120,000
D. 115,000

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. What are equivalent units of production for conversion costs assuming weighted average is used?
A. 113,525
B. 114,400
C. 114,775
D. 115,650

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. Assume that the costs per EUP for material and conversion are $1.00 and $1.50, respectively. What is the cost assigned to normal spoilage, using weighted average, and where is it assigned?

Value	Assigned To

1. $7,438 Units transferred out and Ending Inventory
   B. $7,438 Units transferred out
   C. $8,750 Units transferred out and Ending Inventory
   D. $8,750 Units transferred out

1. Painter CorporationPainter Corporation has the following information for the current month:

Units started	100,000	units
Beginning Work in Process: (35% complete)	20,000	units
Normal spoilage (discrete)	3,500	units
Abnormal spoilage	5,000	units
Ending Work in Process: (70% complete)	14,500	units
Transferred out	97,000	units
Beginning Work in Process Costs:
	Material	$15,000
	Conversion	10,000

All materials are added at the start of the production process. Painter Corporation inspects goods at 75 percent completion as to conversion.

Refer to Painter Corporation. Assume that the costs per EUP for material and conversion are $1.00 and $1.50, respectively. Assuming that weighted average is used, what is the cost assigned to ending inventory?
A. $29,725
B. $37,163
C. $38,475
D. $36,250

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. What are equivalent units of production for material, assuming FIFO?
A. 91,000
B. 92,000
C. 95,000
D. 110,000

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. What are equivalent units of production for conversion costs, assuming FIFO?
A. 97,750
B. 100,000
C. 101,750
D. 104,500

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. Assume that the costs per EUP for material and conversion are $2.00 and $2.25, respectively. What is the amount of the period cost for July using FIFO?
A. $0
B. $12,750
C. $14,750
D. $17,000

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. Assume that the costs per EUP for material and conversion are $2.00 and $2.25, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded to the nearest dollar)?
A. $344,938
B. $365,875
C. $376,938
D. $378,625

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. What are equivalent units of production for material assuming weighted average is used?
A. 105,500
B. 106,000
C. 107,000
D. 110,000

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. What are equivalent units of production for conversion costs assuming weighted average is used?
A. 103,750
B. 104,500
C. 104,750
D. 105,500

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. Assume that the costs per EUP for material and conversion are $2.00 and $2.25, respectively. What is the cost assigned to normal spoilage, using weighted average, and where is it assigned?

Value	Assigned To

1. $11,063 Units transferred out and Ending Inventory
   B. $11,063 Units transferred out
   C. $12,750 Units transferred out and Ending Inventory
   D. $12,750 Units transferred out

1. Andersen CorporationAndersen Corporation has the following information for the current month:

Units started	95,000	units
Beginning Work in Process: (30% complete)	15,000	units
Normal spoilage (discrete)	3,000	units
Abnormal spoilage	4,000	units
Ending Work in Process: (75% complete)	15,000	units
Transferred out	88,000	units
Beginning Work in Process Costs:
	Material	$18,000
	Conversion	14,000

All materials are added at the start of the production process. Andersen Corporation inspects goods at 75 percent completion as to conversion.

Refer to Andersen Corporation. Assume that the costs per EUP for material and conversion are $2.00 and $2.25, respectively. Assuming that weighted average is used, what is the cost assigned to ending inventory?
A. $55,312
B. $63,750
C. $66,375
D. $72,312

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What are equivalent units of production for material using FIFO?
A. 80,000
B. 79,100
C. 78,900
D. 87,500

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What are equivalent units of production for conversion costs using FIFO?
A. 79,700
B. 79,500
C. 81,100
D. 80,600

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What are equivalent units of production for material using weighted average?
A. 86,600
B. 87,500
C. 86,400
D. 85,500

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What are equivalent units of production for conversion costs using weighted average?
A. 83,600
B. 82,700
C. 82,500
D. 81,600

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is cost per equivalent unit for material using FIFO?
A. $1.63
B. $1.37
C. $1.50
D. $1.56

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is cost per equivalent unit for conversion costs using FIFO?
A. $4.00
B. $4.19
C. $4.34
D. $4.38

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is cost per equivalent unit for material using weighted average?
A. $1.49
B. $1.63
C. $1.56
D. $1.44

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is cost per equivalent unit for conversion costs using weighted average?
A. $4.19
B. $4.41
C. $4.55
D. $4.35

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is the cost assigned to ending inventory using FIFO?
A. $75,920
B. $58,994
C. $56,420
D. $53,144

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is the cost assigned to abnormal spoilage using FIFO?
A. $1,350
B. $3,906
C. $5,256
D. $6,424

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is the cost assigned to normal spoilage and how is it classified using weighted average?
A. $6,193 allocated between WIP and Transferred Out
B. $6,424 allocated between WIP and Transferred Out
C. $6,193 assigned to loss account
D. $6,424 assigned to units Transferred Out

1. Grant CorporationThe following information is available for Grant Corporation for the current month:

Started this month	80,000	units
Beginning WIP
	(40% complete)	7,500	units
Normal spoilage (discrete)	1,100	units
Abnormal spoilage	900	units
Ending WIP
	(70% complete)	13,000	units
Transferred out	72,500	units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process.

Refer to Grant Corporation. What is the total cost assigned to goods transferred out using weighted average?
A. $435,080
B. $429,824
C. $428,656
D. $423,400

1. Discuss the assignment of costs to transferred-out inventories in both process costing methods.

1. Discuss process costing in a multi-department atmosphere.

1. List and explain the six steps of cost assignment when using process costing. How does cost assignment differ between the weighted average and FIFO methods?

1. Discuss standard costing as used in conjunction with process costing.

1. What are two alternative calculations that can be used to either verify the number of equivalent units or to obtain the number initially?

1. When is a hybrid costing system appropriate in a manufacturing setting?

1. Discuss how spoilage is treated in EUP computations.

1. Discuss why units are lost during production.

1. Distinguish between discrete and continuous production losses and the method of accounting for these losses.

1. Nelson CorporationNelson Corporation has the following information available for May of the current year:

Beginning Work in Process Inventory
	(25% complete as to conversion)	10,000	units
Started	120,000	units
Ending Work in Process Inventory
	(30% complete as to conversion)	30,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,100
	Conversion	2,030
Current Period Costs:
	Material	$ 33,000
	Conversion	109,695

All material is added at the start of production and all products completed are transferred out.

Refer to Nelson Corporation. Prepare an equivalent units schedule using the (a) FIFO and (b) weighted average method.

1. Nelson CorporationNelson Corporation has the following information available for May of the current year:

Beginning Work in Process Inventory
	(25% complete as to conversion)	10,000	units
Started	120,000	units
Ending Work in Process Inventory
	(30% complete as to conversion)	30,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,100
	Conversion	2,030
Current Period Costs:
	Material	$ 33,000
	Conversion	109,695

All material is added at the start of production and all products completed are transferred out.

Refer to Nelson Corporation. Prepare a schedule showing the computation for cost per equivalent unit assuming the (a) FIFO and (b) weighted average method.

1. Nelson CorporationNelson Corporation has the following information available for May of the current year:

Beginning Work in Process Inventory
	(25% complete as to conversion)	10,000	units
Started	120,000	units
Ending Work in Process Inventory
	(30% complete as to conversion)	30,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,100
	Conversion	2,030
Current Period Costs:
	Material	$ 33,000
	Conversion	109,695

All material is added at the start of production and all products completed are transferred out.

Refer to Nelson Corporation. Prepare a schedule showing the assignment of costs assuming the (a) FIFO and (b) weighted average method.

1. Stocks CorporationStocks Corporation has the following information available for June of the current year:

Beginning Work in Process Inventory
	(20% complete as to conversion)	12,000	units
Started	150,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	35,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,500
	Conversion	2,650
Current Period Costs:
	Material	$ 36,000
	Conversion	112,750

All material is added at the start of production and all products completed are transferred out.

Refer to Stocks Corporation. Prepare an equivalent units schedule using the (a) FIFO and (b) weighted average method.

1. Stocks CorporationStocks Corporation has the following information available for June of the current year:

Beginning Work in Process Inventory
	(20% complete as to conversion)	12,000	units
Started	150,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	35,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,500
	Conversion	2,650
Current Period Costs:
	Material	$ 36,000
	Conversion	112,750

All material is added at the start of production and all products completed are transferred out.

Refer to Stocks Corporation. Prepare a schedule showing the computation for cost per equivalent unit assuming the (a) FIFO and (b) weighted average method.

1. Stocks CorporationStocks Corporation has the following information available for June of the current year:

Beginning Work in Process Inventory
	(20% complete as to conversion)	12,000	units
Started	150,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	35,000	units
Beginning Work in Process Inventory Costs:
	Material	$ 2,500
	Conversion	2,650
Current Period Costs:
	Material	$ 36,000
	Conversion	112,750

All material is added at the start of production and all products completed are transferred out.

Refer to Stocks Corporation. Prepare a schedule showing the assignment of costs assuming the (a) FIFO and (b) weighted average method.

1. Delightful Candy Corporation has two processing departments, Cooking and Packaging. Ingredients are placed into production at the beginning of the process in Cooking, where they are formed into various shapes. When finished, they are transferred into Packaging, where the candy is placed into heart and tuxedo boxes and covered with foil. All material added in Packaging is considered as one material for convenience. Since the boxes contain a variety of candies, they are considered partially complete until filled with the appropriate assortment. The following information relates to the two departments for the month of February:

Cooking Department:
Beginning WIP (30% complete as to conversion)	4,500	units
Units started this period	15,000	units
Ending WIP (60% complete as to conversion)	2,400	units
Packaging Department:
Beginning WIP (90% complete as to material, 80% complete as to conversion)	1,000	units
Units started during period	?
Ending WIP (80% complete as to material and 80% complete as to conversion)	500	units

1. Determine equivalent units of production for both departments using the weighted average method.
   b. Determine equivalent units of production for both departments using the FIFO method.

1. The following costs were accumulated by Department 2 of Joplin Company during November:

	Cost Transferred from Dept. 1	Material	Conversion Costs	Total
Beginning Inventory	$ 17,050	0	$ 5,450	$ 22,500
Current Period Cost	184,000	$ 34,000	104,000	322,000
	$ 201,050	$ 34,000	$ 109,450	$344,500

Production for November in Department 2 (in units):

WIP-November 1	2,000 60% complete
Complete period transferred	20,000
WIP-November 30	5,000 40% complete

Materials are not added in Department 2 until the very end of processing Department 2.

Required: Compute the cost of units completed and the value of ending WIP for:

a.	Weighted average inventory assumption

b.	FIFO inventory assumption

1. The formula for a chemical compound requires one pound of Chemical X and one pound of Chemical Y. One pound of Chemical X is processed in Department A and transferred to Department B for further processing where one pound of Chemical Y is added when the process is 50 percent complete. When the processing is complete in Department B, the finished compound is transferred to finished goods. The process is continuous, operating 24 hours a day.Normal spoilage occurs in Department A. Five percent of material is lost in the first few seconds of processing. No spoilage occurs in Department B.

   The following data are available for the month of October:

	Dept. A	Dept. B
Units in process, October 1	8,000	10,000
Stage of completion of beginning inventory	3/4	3/10
Units started or transferred in	50,000	?
Units transferred out	46,500	?
Units in process, October 31	?	?
Stage of completion of ending inventory	1/3	1/5
Units of Chemical Y added in Department B		44,500

Required:

a.	Prepare a schedule showing finished equivalents for Chemical X and conversion for Department A using the FIFO method.
b.	Determine for Department B the number of units of good product completed during October and the number of units in process on October 31.
c.	Prepare a schedule for Department B showing finished equivalents for preceding department cost, cost of Chemical Y, and conversion cost using the FIFO method.

1. Ewing Company manufactures a specialized product. Department 2 adds new material to the units received from Department 1 at the end of process. A normal loss occurs early in processing. Production and cost data for Department 2 for the month of April are as follows:

Production record (in units):
In process, April 1-75% complete for processing cost		4,000
Received from Department 1		20,000
Completed and transferred to finished goods		16,000
Lost in processing (normal)		2,000
In process, April 30-2/3 complete for process cost		6,000

Cost Record:
	Work in process inventory, April 1:
	Preceding department cost	$ 620
	Processing cost	2,000	$2,620
Cost from preceding department in April		1,800
Material cost for April		4,800
Processing cost for April		10,200

Required: Determine the following for Department 2 under (a) weighted average the method of costing and (b) the FIFO method of costing: (1) unit costs for each cost component, (2) cost of production transferred to finished goods, (3) cost of work in process inventory of April 30.

1. Vincent Manufacturing employs a weighted average process costing system for its products. One product passes through three departments (Molding, Assembly, and Finishing) during production. The following activity took place in the Finishing Department during April:.

Units in beginning inventory	4,200
Units transferred in from Assembly	42,000
Units spoiled	2,100
Good units transferred out	33,600

The costs per equivalent unit of production for each cost failure area as follows:

Cost of prior departments	$5.00
Raw material	1.00
Conversion	3.00
	Total cost per EUP	$9.00

Raw material is added at the beginning of the Finishing process without changing the number of units being processed. Work in process inventory was 40 percent complete as to conversion on April 30. All spoilage was discovered at final inspection. Of the total units spoiled, 1,680 were within normal limits. Spoilage is considered discrete.

Required:

a.	Calculate the equivalent units of production
b.	Determine the cost of units transferred out of Finishing
c.	Determine the cost of ending Work in Process Inventory
d.	The portion of the total transferred in cost associated with beginning Work in Process Inventory amounted to $18,900. What is the current period cost that was transferred in from Assembly to Finishing?
e.	Determine the cost associated with abnormal spoilage for the month.

1. Bridges Industries manufactures wood furniture. In the Lamination Department, varnish is added when the goods are 60 percent complete as to overhead. The units that are spoiled during processing are found upon inspection at the end of production. Spoilage is considered discrete.

Production Data for Current Month
Beginning inventory (80% complete as to labor, 70% complete as to overhead)	1,000	units
Transferred in during month	7,450	units
Ending inventory (40% complete as to labor, 20% complete as to overhead)	1,500	units
Normal spoilage (found during final quality inspection)	100	units
Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs	200	units

All other units were transferred to finished goods

Cost Data for Current Month
Beginning work in process inventory:
	Prior department costs	$7,510
	Varnish	950
	Direct labor	2,194
	Overhead	5,522	$ 16,176
Current period costs:
	Prior department costs	$68,540
	Varnish	7,015
	Direct labor	23,000
	Overhead	56,782	155,337
Total costs to account for		$171,513

Required: Determine the proper disposition of the current month costs for the Laminating Department using the weighted average method.

1. Consider the following data for a cooking department for the month of February:

	Physical
	Units
Work in process, beginning inventory*	11,000
Started during current period	74,000
To account for	85,000
Good units completed and transferred out during current period:
	From beginning work in process	11,000
	Started and completed	50,000
	Good units completed	61,000
Spoiled units	8,000
Work in process, ending inventory~	16,000
Accounted for	85,000

*Direct material, 100% complete; conversion costs, 25% complete
~Direct material, 100% complete; conversion costs, 75% complete

Inspection occurs when production is 100 percent completed. Normal spoilage is 11 percent of good units completed and transferred out during the current period.

The following cost data are available:

Work in process, beginning inventory:
	Direct material	$220,000
	Conversion costs	30,000	$ 250,000
Costs added during current period:
	Direct material		1,480,000
	Conversion costs		942,000
Costs to account for		$2,672,000

Required: Prepare a detailed cost of production report. Use the FIFO method. Distinguish between normal and abnormal spoilage.

1. Chandler Industries has two departments. Department 1 uses FIFO costing and Department 2 uses weighted average.Units are introduced into the process in Department 1 (this is the only material added in Department 1). Spoilage occurs continuously through the department and normal spoilage should not exceed 10 percent of the units started.

   Department 2 adds material (packaging) at the 75 percent completion point; this material does not cause an increase in the number of units being processed. A quality control inspection takes place when the goods are 80 percent complete. Spoilage should not exceed 5 percent of the units transferred in from Department 1.

   The following production cost data are applicable for operations for August of the current year:

Department 1 Production Data
Beginning inventory (65% complete)		1,000
Units started		25,000
Units completed		22,000
Units in ending inventory (40% complete)		2,800
Department 1 Cost Data
Beginning inventory:
	Material	$ 1,550
	Conversion	2,300		$ 3,850
Current period:
	Material	$38,080
	Conversion	78,645		116,725
	Total costs to account for			$120,575
Department 2 Production Data
Beginning inventory (90% complete)		8,000
Units transferred in		22,000
Units completed		24,000
Units in ending inventory (20% complete)		4,500
Department 2 Cost Data
Beginning inventory:
	Transferred in	$40,800
	Material	24,000
	Conversion	4,320		$ 69,120*
Current period:
	Transferred in	$113,700
	Material`	53,775
	Conversion	11,079		178,554
	Total costs to account for			$247,674

*This may not be the same amount determined for Department 1; ignore any difference and use this figure.

Required:

a.	Compute the equivalent units of production in each department.
b.	Determine the cost per equivalent unit in each department and compute the cost transferred out, the cost in ending inventory, and the cost of spoilage (if necessary).

1. Schmidt Company manufactures a single product. All material is added at the beginning of the process.

Costs	Material	Conversion	Total
Beginning inventory	$ 30,000	$ 3,600	$ 33,600
Current period	885,120	335,088	1,220,208
Total costs	$915,120	$338,688	$1,253,808

UNITS
Beginning inventory (30% complete-conversion)	6,000	units
Started	180,000	units
Completed	152,000	units
Ending inventory (70% complete-conversion)	20,000	units
Normal spoilage	4,800	units

Required: Find ending WIP inventory, abnormal loss, and COGM. Assume that, for conversion costs, abnormal shrinkage is 60 percent.

1. Tastee Ice Cream Company produces ice cream in two departments-Mixing and Finishing. In Mixing, all ingredients except fruit are added at the start of production. In Finishing, fruit is added and then the mixture is placed into containers. Adding the fruit to the basic ice cream mixture increases the volume transferred in by the number of gallons of fruit added. Any spoilage that occurs is in the Finishing Department. Spoilage is detected just before the ice cream is placed into containers or at the 98 percent completion point. All spoilage is abnormal.Finishing Department

BWIP (100% fruit, 0% container, 30% CC)	5,000	gallons
Gallons transferred in	5,500
Gallons of fruit added	1,200
EWIP (100% fruit, 0% container, 60% CC)	1,700	gallons
Gallons transferred out	9,000
Abnormal spoilage	1,000

BWIP Costs:

Transferred In	$ 9,700
Fruit	10,500
CC	15,000

Current Costs:

Transferred In	12,400
Fruit	54,000
Containers	11,000
CC	98,000
	Total Costs	$ 210,600

Prepare a cost of production report for October 20XY. The company uses weighted average.

1. Kennedy CompanyThe following information is available for Kennedy Company for March of the current year. All materials are added at the start of production.

Beginning Work in Process: (80% complete)	8,000	units
Started	35,000	units
Normal spoilage (continuous)	6,000	units
Abnormal spoilage	2,500	units
Ending Work in Process: (55% complete)	15,000	units
Transferred out	19,500	units
Beginning Work in Process Costs:
	Material	$ 14,000
	Conversion	45,000
Current Costs:
	Material	50,000
	Conversion	175,000
	Total Costs	$ 284,000

Refer to Kennedy Company. Prepare a cost of production report for March using FIFO.

1. Kennedy CompanyThe following information is available for Kennedy Company for March of the current year. All materials are added at the start of production.

Beginning Work in Process: (80% complete)	8,000	units
Started	35,000	units
Normal spoilage (continuous)	6,000	units
Abnormal spoilage	2,500	units
Ending Work in Process: (55% complete)	15,000	units
Transferred out	19,500	units
Beginning Work in Process Costs:
	Material	$ 14,000
	Conversion	45,000
Current Costs:
	Material	50,000
	Conversion	175,000
	Total Costs	$ 284,000

Refer to Kennedy Company. Prepare the cost of production report assuming the weighted average method.

Chapter 6–Process Costing Key

1. Process costing is most appropriate when manufacturing large batches of homogenous products.
   TRUE

1. Conversion costs include all manufacturing costs other than direct materials.
   TRUE

1. Equivalent units are computed to assign costs to partially completed units.
   TRUE

1. The weighted average method combines beginning inventory and current production to compute cost per unit of production.
   TRUE

1. The FIFO method combines beginning inventory and current production to compute cost per unit of production.
   FALSE

1. The weighted average method separates beginning inventory and current production to compute cost per unit of production.
   FALSE

1. The FIFO method separates beginning inventory and current production to compute cost per unit of production.
   TRUE

1. The numerator in the formula for equivalent units includes all beginning inventory costs when using the weighted average costing assumption.
   TRUE

1. The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption.
   FALSE

1. The weighted average costing method assumes that units in beginning inventory are the first units transferred.
   FALSE

1. The FIFO costing method assumes that units in beginning inventory are the first units transferred.
   TRUE

1. Standard costing is compatible with both FIFO and weighted average methods of costing.
   TRUE

1. When a standard costing system is used with process costing, Work in Process inventory is recorded using standard costs.
   TRUE

1. When a standard costing system is used with process costing, Work in Process inventory is recorded using actual costs.
   FALSE

1. Calculations for standard process costing are identical to those for FIFO process costing.
   TRUE

1. Calculations for standard process costing are identical to those for weighted average process costing.
   FALSE

1. A hybrid costing system would be appropriate for a company that manufactures cake flour.
   FALSE

1. A hybrid costing system would be appropriate for a company that manufactures several varieties of jam.
   TRUE

1. A hybrid costing system would be appropriate for a company that manufactures automobiles.
   TRUE

1. In a complex production environment, it is more difficult to compute a single EUP rate for conversion costs.
   TRUE

1. Using FIFO costing, equivalent units of production (EUP) can be determined by subtracting EUP’s in Beginning work in process from weighted average EUP.
   TRUE

1. Weighted average equivalent units of production (EUP) can be determined by adding EUP’s in ending work in process to units transferred out.
   TRUE

1. Continuous production losses are assumed to occur uniformly throughout the process.
   TRUE

1. Discrete production losses are assumed to occur throughout the process.
   FALSE

1. Discrete production losses are assumed to occur at the end of a process.
   TRUE

1. Continuous production losses are assumed to occur at the end of a process.
   FALSE

1. Abnormal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.
   FALSE

1. Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.
   TRUE

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of neglect.
   TRUE

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of accretion.
   FALSE

1. A continuous loss is assumed to occur at a specific point in the production process.
   FALSE

1. A discrete loss is assumed to occur at a specific point in the production process.
   TRUE

1. Abnormal spoilage is always accounted for on an equivalent unit basis.
   TRUE

1. All manufacturing costs other than direct materials are referred to as _________________________.
   conversion costs

1. The process costing system that computes equivalent units on beginning work in process inventory as well as work done in the current period is known as a _________________________________________________________________.
   weighted average process costing method

1. The process costing system that computes equivalent units only on work done in the current period is known as a __________________________________________________.
   FIFO process costing method

1. The number of completed units that could have been produced from the inputs applied is referred to as ______________________________.
   equivalent units

1. Two methods of accounting for cost flows in process costing are ______________________________ and ____________________.
   weighted average; FIFO

1. The costing method that excludes beginning work in process inventory from the computation of equivalent units is the ________ method.
   FIFO

1. The costing method that includes beginning work-in-process inventory in the computation of equivalent units is the ________ method.
   weighted average

1. The ______________________________ report details all manufacturing quantities and costs, shows computation of EUP, and indicates cost assignments to goods manufactured.
   cost of production

1. A ____________________ costing system is appropriate where products manufactured have different direct materials but similar processing techniques.
   hybrid

1. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of ____________________.
   neglect

1. A loss that occurs uniformly throughout a production process is referred to as a __________________ loss.
   continuous

1. A loss that occurs at a specific point in a production process is referred to as a ____________ loss.
   discrete

1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?
   A.standard
   B. actual
   C. process
   D. job order

1. Process costing is used in companies that
   A.engage in road and bridge construction.
   B. produce sailboats made to customer specifications.
   C. produce bricks for sale to the public.
   D. construct houses according to customer plans.

1. A producer of ____ would not use a process costing system.
   A.gasoline
   B. potato chips
   C. blank videotapes
   D. stained glass windows

1. A process costing system is used by a company that
   A.produces heterogeneous products.
   B. produces items by special request of customers.
   C. produces homogeneous products.
   D. accumulates costs by job.

1. Which is the best cost accumulation procedure to use for continuous mass production of like units?
   A.actual
   B. standard
   C. job order
   D. process

1. Equivalent units of production are equal to the
   A.units completed by a production department in the period.
   B. number of units worked on during the period by a production department.
   C. number of whole units that could have been completed if all work of the period had been used to produce whole units.
   D. identifiable units existing at the end of the period in a production department.

1. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP?
   A.only current period cost
   B. current period cost plus the cost of beginning inventory
   C. current period cost less the cost of beginning inventory
   D. current period cost plus the cost of ending inventory

1. The weighted average method is thought by some accountants to be inferior to the FIFO method because it
   A.is more difficult to apply.
   B. only considers the last units worked on.
   C. ignores work performed in subsequent periods.
   D. commingles costs of two periods.

1. The first step in determining the cost per EUP per cost component under the weighted average method is to
   A.add the beginning Work in Process Inventory cost to the current period’s production cost.
   B. divide the current period’s production cost by the equivalent units.
   C. subtract the beginning Work in Process Inventory cost from the current period’s production cost.
   D. divide the current period’s production cost into the EUP.

1. The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units
   A.started and completed during the period.
   B. residing in beginning Work in Process Inventory.
   C. residing in ending Work in Process Inventory.
   D. uncompleted in Work in Process Inventory.

1. EUP calculations for standard process costing are the same as
   A.the EUP calculations for weighted average process costing.
   B. the EUP calculations for FIFO process costing.
   C. LIFO inventory costing for merchandise.
   D. the EUP calculations for LIFO process costing.

1. In a FIFO process costing system, which of the following are assumed to be completed first in the current period?
   A.units started this period
   B. units started last period
   C. units transferred out
   D. units still in process

1. To compute equivalent units of production using the FIFO method of process costing, work for the current period must be stated in units
   A.completed during the period and units in ending inventory.
   B. completed from beginning inventory, units started and completed during the period, and units partially completed in ending inventory.
   C. started during the period and units transferred out during the period.
   D. processed during the period and units completed during the period.

1. The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when
   A.the goods produced are homogeneous.
   B. there is no beginning Work in Process Inventory.
   C. there is no ending Work in Process Inventory.
   D. beginning and ending Work in Process Inventories are each 50 percent complete.

1. The primary difference between the FIFO and weighted average methods of process costing is
   A.in the treatment of beginning Work in Process Inventory.
   B. in the treatment of current period production costs.
   C. in the treatment of spoiled units.
   D. none of the above.

1. Material is added at the beginning of a process in a process costing system. The beginning Work in Process Inventory for the process was 30 percent complete as to conversion costs. Using the FIFO method of costing, the number of equivalent units of material for the process during this period is equal to the
   A.beginning inventory this period for the process.
   B. units started and completed this period in the process.
   C. units started this period in the process plus the beginning Work in Process Inventory.
   D. units started and completed this period plus the units in ending Work in Process Inventory.

1. In a cost of production report using process costing, transferred-in costs are similar to the
   A.cost of material added at the beginning of production.
   B. conversion cost added during the period.
   C. cost transferred out to the next department.
   D. cost included in beginning inventory.

1. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a
   A.debit Work in Process Inventory #2, credit Finished Goods Inventory.
   B. debit Finished Goods Inventory, credit Work in Process Inventory #1.
   C. debit Finished Goods Inventory, credit Work in Process Inventory #2.
   D. debit Cost of Goods Sold, credit Work in Process Inventory #2.

1. Transferred-in cost represents the cost from
   A.the last department only.
   B. the last production cycle.
   C. all prior departments.
   D. the current period only.

1. Which of the following is(are) the same between the weighted average and FIFO methods of calculating EUPs?

Units to	EUP	Total cost to
account for	calculations	account for

1. no yes no
   B. yes yes yes
   C. yes no no
   D. yes no yes

1. Process costing techniques should be used in assigning costs to products
   A.if a product is manufactured on the basis of each order received.
   B. when production is only partially completed during the accounting period.
   C. if a product is composed of mass-produced homogeneous units.
   D. whenever standard-costing techniques should not be used.

1. Averaging the total cost of completed beginning work-in-process inventory and units started and completed over all units transferred out is known as
   A.strict FIFO.
   B. modified FIFO.
   C. weighted average costing.
   D. normal costing.

1. A process costing system
   A.cannot use standard costs.
   B. restates Work in Process Inventory in terms of completed units.
   C. accumulates costs by job rather than by department.
   D. assigns direct labor and manufacturing overhead costs separately to units of production.

1. A process costing system does which of the following?

Calculates EUPs	Assigns costs to inventories

1. no no
   B. no yes
   C. yes yes
   D. yes no

1. A process costing system

Calculates average cost	Determines total units to
per whole unit	account for

1. yes yes
   B. no no
   C. yes no
   D. no yes

1. A hybrid costing system combines characteristics of
   A.job order and standard costing systems.
   B. job order and process costing systems.
   C. process and standard costing systems.
   D. job order and normal costing systems.

1. When standard costs are used in process costing,
   A.variances can be measured during the production period.
   B. total costs rather than current production and current costs are used.
   C. process costing calculations are made simpler.
   D. the weighted average method of calculating EUPs makes computing transferred-out costs easier.

1. Which of the following is subtracted from weighted average EUP to derive FIFO EUP?
   A.beginning WIP EUP completed in current period
   B. beginning WIP EUP produced in prior period
   C. ending WIP EUP not completed
   D. ending WIP EUP completed

1. The cost of abnormal continuous losses is
   A.considered a product cost.
   B. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
   C. written off as a loss on an equivalent unit basis.
   D. absorbed by all units past the inspection point.

1. Abnormal spoilage can be

continuous	discrete

1. yes no
   B. no no
   C. yes yes
   D. no yes

1. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered
   A.normal and discrete.
   B. normal and continuous.
   C. abnormal and discrete.
   D. abnormal and continuous.

1. A continuous loss
   A.occurs unevenly throughout a process.
   B. never occurs during the production process.
   C. always occurs at the same place in a production process.
   D. occurs evenly throughout the production process.

1. Which of the following would be considered a discrete loss in a production process?
   A.adding the correct ingredients to make a bottle of ketchup
   B. putting the appropriate components together for a stereo
   C. adding the wrong components when assembling a stereo
   D. putting the appropriate pieces for a bike in the box

1. The method of neglect handles spoilage that is
   A.discrete and abnormal.
   B. discrete and normal.
   C. continuous and abnormal.
   D. continuous and normal.

1. The cost of normal discrete losses is
   A.absorbed by all units past the inspection point on an equivalent unit basis.
   B. absorbed by all units in ending inventory.
   C. considered a period cost.
   D. written off as a loss on an equivalent unit basis.

1. The cost of abnormal continuous losses is
   A.considered a product cost.
   B. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
   C. written off as a loss on an equivalent unit basis.
   D. absorbed by all units past the inspection point.

1. Normal spoilage units resulting from a continuous process
   A.are extended to the EUP schedule.
   B. result in a higher unit cost for the good units produced.
   C. result in a loss being incurred.
   D. cause estimated overhead to increase.

1. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered
   A.normal and discrete.
   B. normal and continuous.
   C. abnormal and discrete.
   D. abnormal and continuous.

1. Which of the following accounts is credited when abnormal spoilage is written off in an actual cost system?
   A.Miscellaneous Revenue
   B. Loss from Spoilage
   C. Finished Goods
   D. Work in Process

1. The cost of abnormal discrete units must be assigned to

good units	lost units

1. yes yes
   B. no no
   C. yes no
   D. no yes

1. Which of the following statements is false? The cost of rework on defective units, if
   A.abnormal, should be assigned to a loss account.
   B. normal and if actual costs are used, should be assigned to material, labor and overhead costs of the good production.
   C. normal and if standard costs are used, should be considered when developing the overhead application rate.
   D. abnormal, should be prorated among Work In Process, Finished Goods, and Cost of Goods Sold.

1. If normal spoilage is detected at an inspection point within the process (rather than at the end), the cost of that spoilage should be
   A.included with the cost of the units sold during the period.
   B. included with the cost of the units completed in that department during the period.
   C. allocated to ending work in process units and units transferred out based on their relative values.
   D. allocated to the good units that have passed the inspection point.

1. Dallas Co. has a production process in which the inspection point is at 65 percent of conversion. The beginning inventory for July was 35 percent complete and ending inventory was 80 percent complete. Normal spoilage costs would be assigned to which of the following groups of units, using FIFO costing?

Beginning	Ending	Units Started
Inventory	Inventory	& Completed

1. no yes yes
   B. yes yes yes
   C. no no yes
   D. yes no no

1. Which of the following is not a question that needs to be answered with regard to quality control?
   A.What happens to the spoiled units?
   B. What is the actual cost of spoilage?
   C. How can spoilage be controlled?
   D. Why does spoilage happen?

1. Normal spoilage units resulting from a continuous process
   A.are extended to the EUP schedule.
   B. result in a higher unit cost for the good units produced.
   C. result in a loss being incurred.
   D. cause estimated overhead to increase.

1. The addition of material in a successor department that causes an increase in volume is called
   A.accretion.
   B. reworked units.
   C. complex procedure.
   D. undetected spoilage.

1. Bartling Company transferred 5,500 units to Finished Goods Inventory during October. On October 1, the company had 300 units on hand (40 percent complete as to both material and conversion costs). On October 31, the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs). The number of units started and completed during October was:
   A.5,200.
   B. 5,380.
   C. 5,500.
   D. 6,300.

1. Jackson Company transferred 6,000 units to Finished Goods Inventory during August. On August 1, the company had 400 units on hand (35 percent complete as to both material and conversion costs). On August 31, the company had 750 units (20 percent complete as to material and 30 percent complete as to conversion costs). The number of units started and completed during August was:
   A.5,600
   B. 5,860
   C. 6,000
   D. 6,750

1. Daniels Company started 9,000 units in March. 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.

1. Riedel Company started 8,600 units in April. The company transferred out 6,400 finished units and ended the period with 3,200 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were
   A. 400.
   B. 1,000.
   C. 1,280.
   D. 2,200.

1. Garfield Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as to conversion costs. Garfield Company 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

1. Mayer Company had beginning Work in Process Inventory of 6,000 units that were 45 percent complete as to conversion costs. Mayer Company started and completed 46,000 units this period and had ending Work in Process Inventory of 11,000 units. How many units were started this period?
   A.46,000
   B. 52,000
   C. 57,000
   D. 63,000

1. Lewis Company uses a weighted average process costing system. Material is added at the start of production. Lewis 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 Lewis Company 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

1. Mansfield Company uses a weighted average process costing system. Material is added at the start of production. Mansfield Company started 14,000 units into production and had 5,000 units in process at the start of the period that were 75 percent complete as to conversion costs. If Mansfield Company transferred out 12,250 units, how many units were in ending Work in Process Inventory?
   A.1,750
   B. 3,000
   C. 5,500
   D. 6,750

1. Hogan Company uses a weighted average process costing system and started 30,000 units this month. Hogan 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

1. Winters Company uses a weighted average process costing system and started 36,000 units this month. Winters had 15,000 units that were 25 percent complete as to conversion costs in beginning Work in Process Inventory and 6,000 units that were 35 percent complete as to conversion costs in ending Work in Process Inventory. What are equivalent units for conversion costs?
   A.43,350
   B. 47,100
   C. 48,900
   D. 51,000

1. Rubenstein Company makes small metal containers. The company began April 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

1. Fischer Company makes small metal containers. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. During the month, 6,000 containers were started. At month end, 1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs?
   A.4,265
   B. 5,590
   C. 5,825
   D. 6,300

1. Riggs Company 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

1. Hickman Company uses a FIFO process costing system. The company had 6,000 units that were 75 percent complete as to conversion costs at the beginning of the month. The company started 25,000 units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs. What are equivalent units for material, if material is added at the beginning of the process?
   A.18,500
   B. 25,000
   C. 26,500
   D. 31,000

1. Duffy Company makes fabric-covered hatboxes. The company began July 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 April 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

1. Becker Company makes fabric-covered storage totes. The company began July with 600 totes in process that were 100 percent complete as to cardboard, 75 percent complete as to cloth, and 65 percent complete as to conversion costs. During the month, 3,600 totes were started. On April 30, 450 totes were in process (100 percent complete as to cardboard, 60 percent complete as to cloth, and 50 percent complete as to conversion costs). Using the FIFO method, what are equivalent units for cloth?
   A.3,570
   B. 3,750
   C. 3,870
   D. 4,020

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. How many units were transferred out in August?
A. 15,500
B. 18,000
C. 21,500
D. 24,000

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. 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

1. Fox CorporationFox Corporation. has the following information for August:

Beginning Work in Process Inventory
(70% complete as to conversion)	6,000 units
Started	24,000 units
Ending Work in Process Inventory
(10% complete as to conversion)	8,500 units
Beginning WIP Inventory Costs:
Material	$23,400
Conversion	50,607
Current Period Costs:
Material	$31,500
Conversion	76,956

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

Refer to Fox Corporation. 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

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. How many units were transferred out in May?
A. 17,600
B. 19,500
C. 25,100
D. 27,000

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. Assume that weighted average process costing is used. What is the cost per equivalent unit for material?
A. $0.99
B. $1.18
C. $1.64
D. $1.73

1. Wyman CorporationWyman Corporation. has the following information for May:

Beginning Work in Process Inventory
(75% complete as to conversion)	7,500 units
Started	27,000 units
Ending Work in Process Inventory
(15% complete as to conversion)	9,400 units
Beginning WIP Inventory Costs:
Material	$25,500
Conversion	52,725
Current Period Costs:
Material	$34,300
Conversion	80,845

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

Refer to Wyman Corporation. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion?
A. $3.05
B. $3.87
C. $4.25
D. $6.40

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. How many units were transferred to Decorating during the month?
A. 600
B. 4,900
C. 5,950
D. 7,000

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. What was the cost transferred out of Forming during the month?
A. $5,341
B. $6,419
C. $8,245
D. $8,330

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units as to costs in Decorating for the transferred-in cost component.
A. 7,400
B. 7,700
C. 8,000
D. 8,600

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units in Decorating for material.
A. 7,970
B. 8,000
C. 8,330
D. 8,450

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units in Decorating for conversion.
A. 7,925
B. 7,985
C. 8,360
D. 8,465

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume that 8,000 units were transferred to Decorating at a total cost of $16,000. What is the material cost per equivalent unit in Decorating?
A. $8.50
B. $8.65
C. $8.80
D. $9.04

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume that 8,000 units were transferred to Decorating at a total cost of $16,000. What is the conversion cost per equivalent unit in Decorating?
A. $11.32
B. $11.46
C. $12.00
D. $12.78

1. Colorful Creations CorporationThe Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department are as follows:

Beginning Work in Process Costs:
	Material	$1,000
	Conversion	1,500
Current Costs:
	Material	$3,200
	Conversion	5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method of process costing, and costs associated with Decorating are:

Beginning WIP Inventory:
Transferred In	$1,170
Material	4,320
Conversion	6,210
Current Period:
Transferred In	?
Material	$67,745
Conversion	95,820

Refer to Colorful Creations Corporation. Assume the material cost per EUP is $8.00 and the conversion cost per EUP is $15 in Decorating. What is the cost of completing the units in beginning inventory?
A. $ 960
B. $ 1,380
C. $ 1,860
D. $11,940

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Compute the number of units started and completed in August.
A. 29,500
B. 34,500
C. 36,500
D. 39,000

1. TriCities CorporationTriCities Corporation adds material at the start to its production process and has the following information available for August:

Beginning Work in Process Inventory
	(40% complete as to conversion)	7,000	units
Started this period	32,000	units
Ending Work in Process Inventory
	(25% complete as to conversion)	2,500	units
Transferred out	?

Refer to TriCities Corporation. Calculate equivalent units of production for material using FIFO.
A. 32,000
B. 36,800
C. 37,125
D. 39,000