Test Bank - Chapter 4 Process Costing

Chapter 4
Systems Design: Process Costing
True/False
1. The following journal entry would be made in a processing costing

T system when units that have been completed with respect to the work
Easy done in Processing Department Z are transferred from Processing
Department Z to Processing Department Y:
Work in Process, Department Y ......... XXX

Work in Process, Department Z ..... XXX
2. The following journal entry would be made in a processing costing

F system when units that have been completed with respect to the work
Easy done in the final processing department are transferred to the
finished goods warehouse:
Finished Goods ........................ XXX

Materials ......................... XXX
3. Appendix) The "Quantity schedule" and the "Costs to be accounted for"

T sections of the production report are the same for the weighted-
Hard average method and the FIFO method of process costing.
4. In process costing, the same equivalent units figure is used for both
F materials and conversion costs.
Easy
5. (Appendix) The cost per equivalent unit for conversion costs will
F always be the same under both the FIFO and the weighted-average
Hard methods if there is no ending work in process inventory.
6. (Appendix) The cost per equivalent unit for conversion costs will
T always be the same under both the FIFO and the weighted-average
Medium methods if there is no beginning work in process inventory.
7. When assigning costs to partially completed units in the ending work

F in process inventory, it is not necessary to consider the percentage
Medium completion of the units under the weighted-average method.
ManagerialAccounting,9/e 89
8. When computing the cost per equivalent unit, it is not necessary to
T consider the percentage completion of the units in beginning inventory
Medium under the weighted-average method.
9. (Appendix) Under the FIFO process costing method, the equivalent units
T of production in the production report relate only to work done during
Easy the current period.
10. (Appendix) The cost per equivalent unit under the FIFO method of
F process costing is equal to the cost of beginning work in process
Medium inventory plus the costs added during the period, all divided by the
equivalent units of production for the period.
11. The weighted-average method of process costing can only be used if

F materials are added at the beginning of the production process.
Medium
12. A manufacturer of blank CDs would ordinarily use process costing

T rather than job-order costing.
Medium
13. In order to use process costing, the output of a processing department

T must be homogeneous.
Easy
14. In process costing, costs are accumulated in processing departments,

T rather than by job.
Easy
15. If all units go through all processing departments then the processing
F departments are arranged in a parallel, rather than sequential,
Easy fashion.
Multiple Choice
16. (Appendix) All of the following are correct in referring to a

C production report except:
Hard a. The quantity schedule deals with whole units.
b. The total "Costs to be accounted for" must equal the total cost
of the units completed and transferred out plus the cost of the
ending work in process inventory.
c. The equivalent units in the ending work in process inventory will
be different if the weighted-average method is used than it is if the
FIFO method is used.
d. The total of the "Units to be accounted for" will equal the
total of the "Units accounted for".
17. Assuming that there was no beginning work in process inventory, and
D the ending work in process inventory is 50% complete with respect to
Hard conversion costs, the number of equivalent units of production with
CPA respect to conversion costs under the weighted-average method would
adapted be:
a. the same as the units completed.
b. the same as the units started during the period.
c. less than the units completed.
d. less than the units started during the period.
18. (Appendix) All production costs have been steadily rising in the
B Donner Company for several periods. The company maintains large work
Hard in process inventories. Donner Company's cost per equivalent unit
computed using the FIFO method would be:
a. the same as that computed under the weighted-average method.
b. higher than that computed under the weighted-average method.
c. lower than that computed under the weighted-average method.
d. could be the lower than, the same as, or higher than that
computed under the weighted-average method.
19. (Appendix) If a company uses two different unit cost figures to cost
C transfers from one department to another under a process costing
Medium system, then it is reasonable to assume that:
a. there was no beginning work in process inventory.
b. processing centers are arranged in a sequential pattern.
c. the FIFO cost method is being used.
d. the weighted-average cost method is being used.
20. Process costing would be appropriate for each of the following except:
A a. custom furniture.
Easy b. oil refining.
c. grain milling.
d. newsprint production.
21. An operation costing system is:

B a. identical to a process costing system except that actual
Hard manufacturing overhead costs are traced to units of product.
b. the same as a process costing system except that direct materials
costs are accounted for in the same way as in job order costing.
c. the same as a job order system except that direct materials
costs are accounted for in the same way as in process
costing.
d. identical to a job order costing system except that actual
manufacturing overhead costs are traced to units of product.
22. Lucas Company uses the weighted-average method in its process costing
D system. The company adds materials at the beginning of the process in
Medium the Forming Department, which is the first of two stages in its
CMA production process. Information concerning operations in the Forming
adapted Department in October follows:
Materials
Units Cost
Work in process on October 1 ............ 6,000 P 3,000
Units started during October ............ 50,000 P25,560
Units completed and transferred to
the next Department during October ... 44,000
What was the materials cost of work in process at October 31?

a. P3,060
b. P5,520
c. P6,000
d. P6,120
23. David Company uses the weighted-average method in its process costing
A system. The first processing department, the Welding Department,
Medium started the month with 20,000 units that were 80% complete with
respect to conversion costs. The conversion cost in this beginning
work in process inventory was P123,200. An additional 65,000 units
were started into production during the month. There were 19,000 units
in the ending work in process inventory of the Welding Department that
were 10% complete with respect to conversion costs. A total of
P389,250 in conversion costs were incurred in the department during
the month.
What would be the cost per equivalent unit for conversion costs for
the month? (Round off to three decimal places.)
a. P7.547
b. P7.700
c. P4.634
d. P5.988
24. Larner Company uses the weighted-average method in its process costing
A system. Operating data for the first processing department for the
Medium month of June appear below:
Percentage
Units complete
Beginning work in process inventory ... 24,000 40%
Started into production during June ... 86,000
Ending work in process inventory ...... 19,000 20%
According to the company's records, the conversion cost in beginning

work in process inventory was P68,064 at the beginning of June.
Additional conversion costs of P585,324 were incurred in the
department during the month.
What was the cost per equivalent unit for conversion costs for the
month? (Round off to three decimal places.)
a. P6.892
b. P6.806
c. P5.575
d. P7.090
25. Glo Co., a manufacturer of combs, uses the weighted-average method in

C its process costing system. The company sold 125,000 units during the
Hard month of April. There is only one processing department. The following
CPA additional information is provided:
adapted
Inventory at April 1:
Work in process ................ None
Finished goods ................. 37,500 units
Inventory at April 30:
Work in process (75% complete
as to conversion costs)....... 8,000 units
Finished goods ................. 30,000 units
What were the equivalent units of production for conversion costs for
April?
a. 126,500
b. 125,500
c. 123,500
d. 117,500
26. The Morgan Company uses the weighted-average method in its process
D costing system. For a particular department, the company had 54,000
Hard equivalent units of production with respect to conversion costs in
March. There were 7,500 units in the department's beginning work in
process inventory, two thirds complete with respect to conversion
costs. During March, 52,500 units were started and 50,000 were
completed and transferred out of the department. The ending work in
process inventory in the department:
a. consisted of 5,000 units.
b. consisted of 2,500 units.
c. was 65% complete with respect to conversion costs.
d. was 40% complete with respect to conversion costs.
27. The following data were taken from the accounting records of the Hazel
B Corporation which uses the weighted-average method in its process
Medium costing system:
Beginning work in process inventory

(100% complete as to materials;
70% complete as to conversion) ............. 30,000 units
Started in process during the period .......... 90,000 units
Ending work in process inventory
(100% complete as to materials;
60% complete as to conversion) ............. 20,000 units
The equivalent units of production for conversion costs was:

a. 102,000 units.
b. 112,000 units.
c. 111,000 units.
d. 100,000 units.
28. Baker Company uses the weighted-average method in its process costing
B system. The Assembly Department started the month with 8,000 units in
Medium its beginning work in process inventory that were 90% complete with
respect to conversion costs. An additional 95,000 units were
transferred in from the prior department during the month to begin
processing in the Assembly Department. There were 11,000 units in the
ending work in process inventory of the Assembly Department that were
90% complete with respect to conversion costs.
What were the equivalent units of production for conversion costs in
the Assembly Department for the month?
a. 94,700
b. 101,900
c. 98,000
d. 92,000
29. Jawson Company uses the weighted-average method in its process costing
C system. Operating data for the Painting Department for the month of
Medium April appear below:
Percentage
Units complete
Transferred in from the prior
department during April ............ 65,600

the Painting Department for April?
a. 67,300
b. 68,820
c. 70,520
d. 63,900
30. Sarver Company uses the weighted-average method in its process costing
C system. The Fitting Department is the second department in its
Medium production process. The data below summarize the department's
operations in March.
Percentage
Units complete
department during March ............ 61,000
The Fitting Department's production report indicates that the cost per
equivalent unit for conversion cost for March was P8.24.
How much conversion cost was assigned to the units transferred out
of the Fitting Department during March?
a. P482,287.20
b. P502,640.00
c. P523,240.00
d. P561,144.00
31. The Nichols Company uses the weighted-average method in its process
B costing system. The company recorded 29,500 equivalent units of
Medium production for conversion costs for November in a particular
department. There were 6,000 units in the ending work in process
inventory on November 30, 75% complete with respect to conversion
costs. The November 1 work in process inventory consisted of 8,000
units, 50% complete with respect to conversion costs. A total of
25,000 units were completed and transferred out of the department
during the month. The number of units started during November in the
department was:
a. 24,500 units.
b. 23,000 units.
c. 27,000 units.
d. 21,000 units.
32. The Assembly Department started the month with 35,000 units in its
B beginning work in process inventory. An additional units 472,000 were
Easy transferred in from the prior department during the month to begin
ending work in process inventory of the Assembly Department. How many
units were transferred to the next processing department during the
month?
a. 507,000
b. 473,000
c. 471,000
d. 541,000
33. Huffer Company uses the weighted-average method in its process costing
A system. The following information pertains to Processing Department D
Medium for the month of May:
CPA
adapted Number Cost of
of units materials
Beginning work in process .... 30,000 P11,000
Started in May ............... 80,000 P36,000
Units completed .............. 85,000
Ending work in process ....... 25,000
All materials are added at the beginning of the process. The cost per
equivalent unit for materials is closest to:
a. P0.43.
b. P0.45.
c. P0.55.
d. P0.59.
34. Harker Company uses the weighted-average method in its process costing
D system. The first processing department, the Welding Department,
Medium started the month with 16,000 units in its beginning work in process
inventory that were 40% complete with respect to conversion costs. The
conversion cost in this beginning work in process inventory was
P29,440. An additional 59,000 units were started into production
during the month and 61,000 units were completed in the Welding
Department and transferred to the next processing department. There
were 14,000 units in the ending work in process inventory of the
Welding Department that were 10% complete with respect to conversion
costs. A total of P246,400 in conversion costs were incurred in the
the month? (Round off to three decimal places.)
a. P4.176
b. P4.600
c. P3.375
d. P4.421
35. Paxton Company uses the weighted-average method in its process costing
A system. The Molding Department is the second department in its
Medium production process. The data below summarize the department's
operations in January.
Percentage
Units complete
department during January .......... 57,000
Completed and transferred to the next
The accounting records indicate that the conversion cost that had been
assigned to beginning work in process inventory was P10,973 and a
total of P268,107 in conversion costs were incurred in the department
during January.
What was the cost per equivalent unit for conversion costs for
January in the Molding Department? (Round off to three decimal
places.)
a. P5.348
b. P4.038
c. P5.080
d. P4.704
36. The Richmond Company uses the weighted-average method in its process
D costing system. The company has only a single processing department.
Easy The company's ending work in process inventory on August 31 consisted
of 18,000 units. The units in the ending work in process inventory
were 100% complete with respect to materials and 60% complete with
respect to labor and overhead. If the cost per equivalent unit for
August was P2.75 for materials and P4.25 for labor and overhead, the
total cost assigned to the ending work in process inventory was:
a. P126,000.
b. P 75,600.
c. P 80,100.
d. P 95,400.
37. (Appendix) On November 1, Yankee Company had 20,000 units of work in

D process in Department No. 1 that were 100% complete with respect to
Hard material costs and 20% complete with respect to conversion costs.
CPA During November, 160,000 units were started in Department No. 1 and
adapted 170,000 units were completed and transferred to Department No. 2. The
work in process on November 30, was 100% complete with respect to
material costs and 40% complete with respect to conversion costs. By
what amount would the equivalent units of production for conversion
costs for the month of November differ if the FIFO method were used
instead of the weighted-average method?
a. 20,000 decrease.
b. 16,000 decrease.
c. 8,000 decrease.
d. 4,000 decrease.
38. Fabian Company uses the weighted-average method in its process costing
D system. The Assembly Department started the month with 9,000 units in
Easy its beginning work in process inventory that were 70% complete with
processing in the Assembly Department. During the month 87,000 units
were completed in the Assembly Department and transferred to the next
processing department. There were 12,000 units in the ending work in
process inventory of the Assembly Department that were 20% complete
with respect to conversion costs.
a. 93,000
b. 83,100
c. 87,000
d. 89,400
39. Narver Company uses the weighted-average method in its process costing
C system. Operating data for the Lubricating Department for the month of
Easy October appear below:
Percentage
Units complete
department during October .......... 40,100
department during October .......... 37,100

the Lubricating Department for October?
a. 43,100
b. 37,100
c. 44,780
d. 47,780
40. Black Company uses the weighted-average method in its process costing
B system. The company's ending work in process inventory consists of
Hard 5,000 units, 80% complete with respect to materials and 50% complete
with respect to labor and overhead. If the total Peso value of the
inventory is P60,000 and the cost per equivalent unit for labor and
overhead is P8.00, the cost per equivalent unit for materials must be:
a. P5.00.
b. P10.00.
c. P8.00.
d. P4.00.
41. Department 2 is the second of three sequential processes. All
B materials are added at the beginning of processing in Department 2.
Hard During October, Department 2 reported the following data:
Number of Conversion Costs

Units Percentage Completed
Units started ............. 60,000 -
Completed and transferred 50,000 -
Work in process, October 1 26,000 60%
Work in process, October 31 36,000 20%
Costs for October: Transferred In Materials Conversion Costs

Work in process,
October 1 ...... P45,000 P 25,000 P 54,000
Added during
the month ...... P81,000 P115,000 P315,000
The company uses the weighted-average method in its process costing

system. The cost per equivalent unit on the production report for
conversion costs would have been to the nearest cent:
a. P5.51.
b. P6.45.
c. P6.30.
d. P7.38.
42. Overland, Inc., uses the weighted-average method in its process

B costing system. The companys work in process inventory on April 30
Medium consists of 25,000 units. The units in the ending inventory are 100%
complete with respect to materials and 75% complete with respect to
conversion costs. If the cost per equivalent unit is P3.00 for
materials and P5.50 for conversion costs, the total cost in the April
30 work in process inventory is:
a. P212,500.
b. P178,125.
c. P159,375.
d. P109,375.
43. Valley Manufacturing Companys beginning work in process inventory
D consisted of 10,000 units, 100% complete with respect to materials
Medium cost and 40% complete with respect to conversion costs. The total cost
in the beginning inventory was P30,000. During the month, 50,000 units
were transferred out. The equivalent unit cost was computed to be
P2.00 for materials and P3.70 for conversion costs under the weighted-
average method. Given this information, the total cost of the units
completed and transferred out was:
a. P255,000.
b. P270,000.
c. P240,000.
d. P285,000.
44. Ogden Company uses the weighted-average method in its process costing
A system. Information for the month of January concerning Department A,
Medium the first stage of the companys production process, follows:
CPA Materials Conversion Cost
adapted Work in process, beginning ...... P 8,000 P 6,000
Current added during January .... P40,000 P32,000
Equivalent units of production .. 100,000 95,000
Cost per equivalent unit ........ P 0.48 P 0.40
Units completed and transferred
to the next department ........ 90,000 units
Work in process, ending ......... 10,000 units
Materials are added at the beginning of the process. The ending work
in process is 50% complete with respect to conversion costs. What cost
would be recorded for the ending work in process inventory?
a. P6,800
b. P8,800
c. P3,400
d. P4,400
45. Trapp Company uses the weighted-average method in its process costing
B system. The beginning work in process inventory in its Painting
Easy Department consisted of 3,000 units that were 70% complete with
respect to materials and 60% complete with respect to conversion
costs. The cost of the beginning work in process inventory in the
department was recorded as P10,000. During the period, 9,000 units
were completed and transferred on to the next department. The costs
per equivalent unit for the period were P2.00 for material and P3.00
for conversion costs. The cost of units transferred out during the
month was:
a. P39,600.
b. P45,000.
c. P45,400.
d. P35,400.
46. Strap Company uses the weighted-average method in its process costing
B system. The company has only one processing department. The ending
Hard work in process inventory consists of 10,000 units, 60% complete with
respect to materials. The total Peso value of this inventory is
P38,000. The costs per equivalent unit are P5.00 for materials and
P4.00 for conversion costs for the period. With respect to conversion
costs, the ending work in process inventory is:
a. 10% complete.
b. 20% complete.
c. 38% complete.
d. 30% complete.
47. Rariton Company uses the weighted-average method in its process

A costing system. The Molding Department is the second department in its
Easy production process. The data below summarize the department's
operations in January.
Percentage
Units complete
The Molding Department's production report indicates that the cost per
equivalent unit for conversion cost for January was P5.37.
How much conversion cost was assigned to the ending work in process
inventory in the Molding Department for January?
a. P4,081.20
b. P10,203.00
c. P10,310.40
d. P6,121.80
48. (Appendix) Ebis Company uses the FIFO method in its process costing
D system. The first processing department, the Welding Department,
P12,610. An additional 89,000 units were started into production
during the month. There were 22,000 units in the ending work in
process inventory of the Welding Department that were 30% complete
with respect to conversion costs. A total of P806,085 in conversion
costs were incurred in the department during the month.
the month on the department's production report? (Round off to three
decimal places.)
a. P8.026
b. P9.700
c. P9.057
d. P9.450
49. (Appendix) Marten Company uses the FIFO method in its process costing
C system. Operating data for the Casting Department for the month of
Medium September appear below:
Percentage
Units complete
department during September ........ 74,000

work in process inventory was P83,600 at the beginning of September.
September on the Casting Department's production report? (Round off
to three decimal places.)
a. P5.498
b. P5.779
c. P5.620
d. P5.500
50. (Appendix) Herston Company uses the FIFO method in its process costing
C system. The beginning work in process inventory in a particular
Hard department consisted of 6,000 units, two-thirds complete with respect
to conversion costs. During the month, 42,000 units were started and
40,000 units were completed and transferred out of the department. The
company had 40,000 equivalent units of production for conversion
costs. The ending work in process inventory in the department
consisted of:
a. 8,000 units, 25% complete with respect to conversion costs.
b. 0 units.
c. 8,000 units, 50% complete with respect to conversion costs.
d. 4,000 units, 100% complete with respect to conversion costs.
51. (Appendix) Carson Company uses the FIFO method in its process costing
B system. The Assembly Department started the month with 6,000 units in
ending work in process inventory of the Assembly Department that were
60% complete with respect to conversion costs.
a. 72,000
b. 75,600
c. 76,000
d. 76,800
52. (Appendix) Karmen Company uses the FIFO method in its process costing
A system. Operating data for the Enameling Department for the month of
Medium May appear below:
Percentage
Units complete
department during May .............. 87,000

the Enameling Department for May?
a. 85,000
b. 85,960
c. 93,200
d. 80,800
53. (Appendix) Creer Company uses the FIFO method in its process costing
A system. Department A had 20,000 units in process at the beginning of
Medium January, that were 40% complete with respect to conversion costs. All
materials are added at the beginning of the process in Department A.
The January 1 work in process inventory in Department A contained
P10,000 in materials cost and P11,600 in conversion cost. During
January, materials costs were P0.50 per equivalent unit and conversion
costs were P1.50 per equivalent unit. All of the units in the
beginning work in process inventory were completed and transferred out
during the month. What was the total cost attached to these units when
they were transferred to the next department?
a. P39,600.
b. P33,600.
c. P45,600.
d. P37,600.
54. (Appendix) Mukluk Company uses the FIFO method in its process costing
C system. The conversion cost for the month of April is P5.00 per
Medium equivalent unit and the material cost is P2.90 per equivalent unit. At
the beginning of the month, 1,000 units were in process that were 100%
complete with respect to materials and 30% complete with respect to
conversion, with a total cost at that point of P2,400. If these units
are fully complete by the end of the month, their total cost will be:
a. P3,500.
b. P3,900.
c. P5,900.
d. P8,000.
55. (Appendix) Index Company uses the FIFO method in its process costing
A system. The first processing department, the Forming Department,
P9,010. An additional 76,000 units were started into production during
the month and 83,000 units were completed and transferred to the next
process inventory of the Forming Department that were 70% complete
with respect to conversion costs. A total of P445,915 in conversion
costs were incurred in the department during the month.
the month on the Forming Department's production report? (Round off
to three decimal places.)
a. P5.050
b. P5.300
c. P5.867
d. P5.150
56. (Appendix) Qart Company uses the FIFO method in its process costing
A system. Operating data for the Cutting Department for the month of
Medium March appear below:
Percentage
Units complete

work in process inventory was P1,656 at the beginning of March.
March on the Cutting Department's production report? (Round off to
three decimal places.)
a. P1.710
b. P1.677
c. P1.756
d. P1.840
57. (Appendix) Roger Company uses the FIFO method in its process costing
B system. The following data are taken from the accounting records of a
Medium particular department for June:
Beginning work in process inventory:

Cost ................................ P17,500
Units ............................... 20,000 units
Percentage completion:
Materials ........................ 100%
Conversion ....................... 60%
Units completed and transferred out .... 75,000 units
Cost per equivalent unit:

Material ............................ P1.75
Conversion .......................... P0.50
The cost of the 75,000 units transferred out of the department during
June is:
a. P151,250.
b. P145,250.
c. P131,500.
d. P168,750.
58. (Appendix) Winkle Company uses the FIFO method in its process costing
A system. At the beginning of March, the work in process inventory in
Medium the Blending Processing Center consisted of 5,000 units, 90% complete
with respect to conversion costs. At the end of the month, the work in
process inventory consisted of 2,000 units that were 60% complete with
respect to conversion costs. If 10,000 units were transferred to the
next processing center during the month, the equivalent units of
production for conversion costs were:
a. 6,700 units.
b. 11,700 units.
c. 10,300 units.
d. 13,000 units.
59. (Appendix) Winder Company uses the FIFO method in its process costing
B system. Department One is the first stage of the company's production
Easy process. The following information pertains to conversion costs for
CPA April for Department One:
adapted
Units
Work in process, beginning (40% complete) ............. 40,000
Started in April ...................................... 320,000
Completed in April and transferred to Department Two .. 340,000
Work in process, ending (60% complete) ................ 20,000
The equivalent units of production for conversion costs are:

a. 320,000.
b. 336,000.
c. 352,000.
d. 360,000.
60. (Appendix) Garson Company uses the FIFO method in its process costing
D system. The Grinding Department started the month with 18,000 units in
processing in the Grinding Department. During the month 115,000 units
were completed in the Grinding Department and transferred to the next
process inventory of the Grinding Department that were 20% complete
with respect to conversion costs.
the Grinding Department for the month?
a. 81,000
b. 115,200
c. 115,000
d. 113,400
61. (Appendix) Oxyrom Company uses the FIFO method in its process costing
D system. Operating data for the Brazing Department for the month of
Medium November appear below:
Percentage
Units complete
department during November ......... 46,700
department during November ......... 43,200

the Brazing Department for November?
a. 49,040
b. 50,200
c. 43,200
d. 48,280
62. (Appendix) Tarten Company uses the FIFO method in its process costing
C system. Operating data for the Curing Department for the month of
Medium March appear below:
Percentage
Units complete

work in process inventory was P7,470 at the beginning of March. The
cost per equivalent unit for conversion costs for March was P8.20.
How much conversion cost would be assigned to the units completed
and transferred out of the department during March?
a. P525,530
b. P592,040
c. P533,090
d. P533,000
Reference: 4-1
A sporting goods manufacturer buys wood as a direct material for baseball bats. The
Forming Department processes the baseball bats, and the bats are then transferred to
the Finishing Department where a sealant is applied. There was no beginning work in
process inventory in the Forming Department in May. The Forming Department began
manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming
Department for the month of May were as follows:
Direct materials ........ P33,000

Conversion costs ........ P17,000
A total of 8,000 bats were completed and transferred to the Finishing Department
during May. The ending work in process inventory was 100% complete with respect to
direct materials and 25% complete with respect to conversion costs. The company uses
the weighted-average method of process costing.
63. The cost of the units transferred to the Finishing Department during
D May was:
Medium a. P50,000.
CMA b. P40,000.
adapted c. P53,000.
Refer To: d. P42,400.
4-1
64. The cost of the work in process inventory in the Finishing Department
A at the end of May was:
Medium a. P7,600.
CMA b. P10,000.
adapted c. P2,500.
4-1
Reference: 4-2
Adam Company uses the weighted-average method in its process costing system. The
following information for the Assembly Department was obtained from the accounting
records for September (all materials are added at the beginning of the process):
Number Labor and Overhead

of Units Percent Completed
Work in process inventory, Sept. 1 ... 60,000 15%
Transferred in during the month ...... 105,000
Work in process inventory, Sept. 30 .. 40,000 20%
Transferred Labor &

In Materials Overhead
Beginning work in
process inventory ............ P 60,000 P30,000 P 16,000
Cost added during the month ..... P115,500 P63,000 P320,000
65. The "Total cost to be accounted for" section of the production report
A for the month will show an amount equal to:
Medium a. P604,500.
Refer To: b. P498,500.
4-2 c. P429,000.
d. P106,000.
66. The equivalent units of production for material for the month is:
D a. 105,000.
Medium b. 145,000.
Refer To: c. 122,000.
4-2 d. 165,000.
Reference: 4-3
Madsen Company uses the weighted-average method in its process costing system. During
October, the Mixing Department transferred out 40,000 units. The October 31 work in
process inventory in the Mixing Department consisted of 4,000 equivalent units of
material and 5,000 equivalent units of labor and overhead. The cost per equivalent
unit was P2.50 for materials and P6.25 for labor and overhead.
67. The total cost of the October 31 work in process inventory was:
A a. P41,250.
Medium b. P35,000.
Refer To: c. P43,750.
4-3 d. P78,750.
68. The "Total cost to account for" section of the production report for
B October will show an amount equal to:
Medium a. P110,000.
Refer To: b. P391,250.
4-3 c. P350,000.
d. P428,750.
Reference: 4-4
(Appendix) The activity in Nolan Company's Blending Department for the month of April
is given below:
Number Labor and Overhead

of Units Percent Complete
Work in process
inventory, April 1 ....... 8,000 50%
Started into process
during the month ......... 50,000
Work in process
inventory, April 30 ...... 10,000 70%
All materials are added at the beginning of processing in the Blending Department.
69. (Appendix) The equivalent units of production for material for the
A month, using the FIFO method, are:
Medium a. 50,000 units.
Refer To: b. 58,000 units.
4-4 c. 54,000 units.
d. 60,000 units.
70. (Appendix) The equivalent units of production for labor and overhead
B for the month, using the FIFO method, are:
4-4 c. 5,000 units.
d. 54,000 units.
71. The equivalent units of production for material for the month, using
C the weighted-average method, are:
4-4 c. 58,000 units.
d. 52,000 units.
72. The equivalent units of production for labor and overhead for the
D month, using the weighted-average method, are:
4-4 c. 47,000 units.
d. 55,000 units.
Reference: 4-5
Activities in the Challenger Companys Assembly Department for the month of March
follow:
Number Percent Complete
Units Materials Conversion
Work in process inventory, March 1 5,000 65% 30%
Started into production during March 65,000
Work in process inventory, March 3 3,000 35% 25%
73. The equivalent units of production for materials for March, using the
C weighted-average method, would be:
Medium a. 65,000.
Refer to: b. 67,000.
4-5 c. 68,050.
d. 70,000.
74. (Appendix) The equivalent units of production for conversion for March
A using the FIFO method, would be:
Hard a. 66,250.
4-5 c. 64,250.
d. 67,750.
Reference: 4-6
The following data relate to the Blending Department of Tru-Color Paint Company for a
recent month:
Number Percent Complete

of Units Conversion Costs
Beginning work in process inventory ..... 9,000 60%
Units started into production ........... 45,000 -
Units completed and transferred out ..... 46,000 -
Ending work in process inventory ........ 8,000 25%
All materials are added prior to the beginning of work in the Blending Department.
75. (Appendix) Assuming that Tru-Color Paint Company uses the FIFO method,
B the equivalent units of production for materials would be:
Hard a. 42,600.
4-6 c. 53,000.
d. 46,000.
76. (Appendix) Assuming Tru-Color Paint Company uses the FIFO method, the
A equivalent units of production for conversion costs would be:
Hard a. 42,600.
4-6 c. 46,000.
d. 54,000.
77. Assuming that Tru-Color Paint Company uses the weighted-average

C method, the equivalent units of production for materials would be:
Medium a. 48,000.
4-6 c. 54,000.
d. 45,000.
78. Assuming that Tru-Color Paint Company uses the weighted-average

D method, the equivalent units of production for conversion costs would
Medium be:
Refer to: a. 44,400.
4-6 b. 42,600.
c. 46,000.
d. 48,000.
Reference: 4-7
The information below was obtained from the records of the first processing
department of Christine Corporation for the month of July. The company uses the
weighted-average method in its process costing system.
Labor and Overhead

Units Percent Completed
Work in process inventory, July 1 ....... 20,000 40%
Started during the month ................ 70,000
Completed during the month .............. 80,000
Work in process inventory, July 31 ...... ? 25%
All materials are added at the beginning of the manufacturing process.
B a. 70,000.
Medium b. 90,000.
Refer To: c. 80,000.
4-7 d. 82,500.
D month is:
Medium a. 70,000.
Refer To: b. 90,000.
4-7 c. 80,000.
d. 82,500.
Reference: 4-8
The information below was obtained from the records of the first processing
department of Moore Company for the month of May. The company uses the weighted-
average method in its process costing system.
Labor and Overhead

Units Percentage Complete
Work in process, May 1 ............ 10,000 40%
Units started ..................... 64,000
Completed and transferred out ..... 60,000
Work in process, May 31 ........... 14,000 70%
All materials are added at the beginning of the process.
81. The equivalent units of production for materials for the month of May
B were:
4-8 c. 64,000 units.
d. 69,800 units.
B month of May were:
4-8 c. 65,800 units.
d. 73,800 units.
Reference: 4-9
Information about units processed and processing costs incurred during a recent month
in the Refining Department of a manufacturing company follow:
Number of Percent Completion

Units Conversion Costs
Beginning work in process inventory .... 11,000 35%
Units started into production .......... 120,000 -
Units completed and transferred out .... 114,000 -
Ending work in process inventory ....... 17,000 30%
The beginning work in process inventory included P11,000 of conversion cost. During
the month, the Department incurred an additional P290,000 in conversion costs.
83. Assuming that the company uses the weighted-average cost method, what
A are the equivalent units of production for conversion costs for the
Medium Blending Department for the month?
Refer to: a. 119,100
4-9 b. 120,000
c. 114,000
d. 131,000
84. Assuming that the company uses the weighted-average cost method, what
B is the cost per equivalent unit for conversion costs for the month in
Medium the Blending Department to the nearest cent?
Refer to: a. P2.55
4-9 b. P2.53
c. P2.50
d. P2.44
85. (Appendix) Assuming that the company uses the FIFO method, what are
C the equivalent units of production for conversion costs for the
Medium Blending Department for the month?
Refer to: a. 119,100
4-9 b. 111,950
c. 115,250
d. 114,000
86. (Appendix) Assuming that the company uses the FIFO method, what is the
A cost per equivalent unit for conversion costs for the month in the
Hard Blending Department to the nearest cent?
Refer to: a. P2.52
4-9 b. P2.54
c. P2.44
d. P2.59
Reference: 4-10
(Appendix) Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device
for the mining industry. The company uses a process costing system and has only a
single processing department. The following information pertains to operations for
the month of May:
Units
Beginning work in process inventory ..... 16,000
Started into production during May ...... 100,000
Completed during May .................... 92,000
Ending work in process inventory ........ 24,000
The beginning work in process inventory was 60% complete with respect to materials
and 20% complete with respect to conversion costs. The ending work in process
inventory was 90% complete with respect to materials and 40% complete with respect to
conversion costs. The costs were as follows:
Materials Conversion
Beginning work in process inventory .... P54,560 P35,560
Costs incurred during May .............. P468,000 P574,040
87. (Appendix) Using the FIFO method, the equivalent units of production
B for May for materials are:
Type: CMA b. 104,000 units.
adapted c. 107,200 units.
Refer To: d. 108,000 units.
4-10
88. (Appendix) Using the FIFO method, the equivalent units of production
D for May for conversion costs are:
CMA b. 88,800 units.
adapted c. 95,200 units.
Refer To: d. 98,400 units.
4-10
89. (Appendix) Using the FIFO method, the cost per equivalent unit of
B materials for May is closest to:
Medium a. P4.12.
CMA b. P4.50.
adapted c. P4.60.
Refer To: d. P4.80.
4-10
90. (Appendix) Using the FIFO method, the cost per equivalent unit of
B conversion cost for May is closest to:
Medium a. P5.65.
CMA b. P5.83.
adapted c. P6.00.
Refer To: d. P6.20.
4-10
91. (Appendix) Using the FIFO method, the total cost of units in the
A ending work in process inventory is closest to:
Medium a. P153,200.
CMA b. P154,800.
adapted c. P155,300.
4-10
92. Using the weighted-average method, the cost per equivalent unit of
C materials for May is closest to:
Medium a. P4.12.
CMA b. P4.50.
adapted c. P4.60.
Refer To: d. P5.03.
4-10
93. Using the weighted-average method, the cost per equivalent unit of
C conversion cost for May is closest to:
Medium a. P5.65.
CMA b. P5.83.
adapted c. P6.00.
Refer To: d. P6.41.
4-10
94. Using the weighted-average method, the total cost of the units in
A ending work in process inventory is closest to:
Medium a. P156,960.
CMA b. P86,400.
adapted c. P153,960.
4-10
Reference: 4-11
Reid Company uses a process costing system in which units go through several
departments. In the Cutting Department for June, units in the beginning work in
process inventory were 80% complete with respect to conversion costs. Units in the
ending work in process inventory were 25% complete with respect to conversion costs.
Other data for the department for June are as follows:
Units Conversion Cost

Work in process inventory on June 1 .......... 15,000 P 50,200
Units started into production ................ 145,000
Conversion costs incurred during June ........ P175,700
Units completed and transferred to the next
department during June .................. 130,000
95. (Appendix) Assuming that the company uses the FIFO cost method, what
B is the cost per equivalent unit for conversion costs for June to the
Hard nearest whole cent?
Refer to: a. P1.80
4-11 b. P1.40
c. P1.64
d. P1.35
96. Assuming that the company uses the weighted-average method, what is
A the cost per equivalent unit for conversion costs for June to the
Hard nearest whole cent?
Refer to: a. P1.64
4-11 b. P1.56
c. P1.74
d. P1.48
Reference: 4-12
Cherrington Company uses a process costing system. For May, the month just completed,
the beginning work in process inventory consisted of 50,000 units which were 60%
complete with respect to conversion costs. The ending inventory for the month was 20%
complete with respect to conversion costs. A summary of cost data for the month
follows:
Units Conversion Costs

Work in process inventory, May 1 ......... 50,000 P 30,000
Units started into production ............ 180,000
Conversion costs incurred during May ..... P 690,000
Units completed and transferred out
during the month ...................... 190,000
97. Assuming that Cherrington Company uses the weighted-average method,

C what is the cost per equivalent unit for conversion costs for May to
Hard the nearest whole cent?
Refer to: a. P4.19
4-12 b. P4.00
c. P3.64
d. P3.83
98. (Appendix) Assuming that Cherrington Company uses the FIFO method,
D what is the cost per equivalent unit for conversion costs for May to
Hard the nearest cent?
Refer to: a. P4.31
4-12 b. P3.49
c. P4.29
d. P4.11
Reference: 4-13
Nando Company uses the weighted-average method in its process costing system.
Department J is the second of three sequential processes at the company. During
October, Department J collected the following data:
Labor and Overhead

Units Percentage Complete
Work in process, October 1 ....... 8,000 60%
Units started .................... 25,000
Completed and transferred ........ 20,000
Work in process, October 31 ...... 13,000 20%
Labor and
Costs for October: Transferred In Materials Overhead
Work in process, October 1 .... P33,000 P16,500 P 31,200
Added during the month ........ P59,400 P82,500 P194,800
99. The total cost assigned to units transferred out during October was:
B a. P264,600.
Medium b. P316,000.
4-13 d. P358,400.
100. The total cost assigned to ending work in process inventory was:
B a. P75,400.
Medium b. P101,400.
4-13 d. P59,000.
Reference: 4-14
(Appendix) The following information was obtained from the records of the first
processing department of Keith Manufacturing Company for the month of February. The
company uses the FIFO method in its process costing system.
Labor and Overhead

Units Percent Complete
Work in process inventory, Feb. 1 ....... 15,000 30%
Started in assembly during the month .... 60,000
Work in process inventory, Feb. 28 ...... 20,000 20%
All materials are added at the beginning of the manufacturing process.
B a. 50,000.
Medium b. 60,000.
Refer To: c. 54,500.
4-14 d. 75,000.
A month is:
Medium a. 54,500.
Refer To: b. 59,000.
4-14 c. 95,000.
d. 60,000.
Essay
103. Able Inc. uses the weighted-average method in its process costing
Hard system. The following data concern the operations of the company's
first processing department for a recent month.
Work in process, beginning:

Units in process ................................ 300
Stage of completion with respect to materials ... 60%
Stage of completion with respect to conversion .. 30%
Costs in the beginning inventory:
Materials cost ................................ P342
Conversion cost ............................... P2,394
Units started into production during the month .... 21,000

Units completed and transferred out ............... 20,700
Costs added to production during the month:

Materials cost .................................. P44,136
Conversion cost ................................. P546,750
Work in process, ending:

Units in process ................................ 600
Required:
Prepare a production report for the department using the weighted-

average method.
Answer:
Weighted Average method:
Quantity schedule and equivalent units
Quantity
Schedule
Units to be accounted for:
Work in process, beginning ..... 300
Started into production ........ 21,000
Total units .................. 21,300
Equivalent units
Units accounted for as follows:
Transferred to next department 20,700 20,700 20,700
Work in process, ending ........ 600 480 180
Total units ................. 21,300 21,180 20,880
Costs per equivalent unit

Total
Cost Materials Conversion
Cost to be accounted for:
Work in process, beginning.... P2,736 P342 P2,394
Cost added during the month...P590,886 P44,136 P546,750
Total cost (a) .............P593,622 P44,478 P549,144
Equivalent units (above) (b) ... 21,180 20,880

Cost per EU, (a) (b) ......... P2.100 P26.300
Combined cost per EU ........... P28.400
Cost reconciliation
Total Equivalent Units (above)
Cost accounted for as follows:
Transferred out ........ P587,880 20,700 20,700
Materials ............ P1,008 480
Conversion ........... P4,734 180
Total work in process,
ending ................. P5,742
Total cost ............... P593,622
104. Barker Inc. uses the weighted-average method in its process costing

Units in process ................................ 800
Materials cost ................................ P2,440


Materials cost .................................. P96,470
Conversion cost ................................. 476,362

Units in process ................................ 200
Required:
Using the weighted-average method:

a. Determine the equivalent units of production for materials and
conversion costs.
b. Determine the cost per equivalent unit for materials and
conversion costs.
c. Determine the cost of units transferred out of the department
during the month.
d. Determine the cost of ending work in process inventory in the
department.
Answer:
a. through d. The answers to all of the questions can be found by
filling out a production report as follows.

Quantity
Schedule
Total units ...................... 15,800
Equivalent units
d.
Transferred to next department 15,600 15,600 15,600
Work in process, ending ....... 200 100 180
Total units ................. 15,800 15,700 15,780

Total
Work in process, beginning .. P7,368 P2,440 P4,928
Cost added during the month . P572,832 P96,470 P476,362
Total cost (a) ............ P580,200 P98,910 P481,290
Equivalent units (above) (b) .. 15,700 15,780

Cost per EU, (a) (b) ........ P6.300 P30.500
Combined cost per EU .......... P36.800
Cost reconciliation
Transferred out ............. P574,080 15,600 15,600
Materials ................. P630 100
Conversion ................ P5,490 180
Total work in process, ending . P6,120
Total cost .................... P580,200
105. Harmon Company uses the weighted-average method in its process costing
Medium system. The Curing Department of Harmon Company reported the following
information for the month of November.
Conversion
Percentage
Units Complete
Work in process, November 1 ..... 10,000 80%
Units started ................... 28,000
Completed and transferred out ... 30,000
Work in process, November 30 .... 8,000 30%
Costs for November: Materials Conversion

Work in process, November 1 ..... P 34,500 P 48,600
Added during the month .......... P146,000 P194,400
Required:
Compute the following items for the company's monthly production

report using the weighted-average method:
a. The equivalent units of production for materials.
b. The cost per equivalent unit for conversion.
c. The total cost assigned to units transferred out of the Curing
Department during November.
d. The cost assigned to work in process inventory as of November
30.
Answer:
a. Units transferred out ................ 30,000
Add: Equivalent units in ending
inventory (8,000 * 100%) ........ 8,000
Equivalent units for materials ....... 38,000
b. Units transferred out ................ 30,000

Add: Equivalent units in ending
inventory (8,000 * 30%) ......... 2,400
Equivalent units for conversion ...... 32,400
Total conversion costs ............... 243,000
(P48,600 + P194,400)/32,400 EUs = P7.50 per EU
c. Materials cost per equivalent unit:

(P34,500 + P146,000)/38,000 EUs = P4.75 per EU
Costs transferred out:

30,000 units * (P7.50 + P4.75) = P367,500
d. Materials cost 8,000 units * P4.75 per EU .......... P38,000

Conversion 8,000 units * 30% complete * P7.50 per EU 18,000
Cost assigned to ending inventory .................. P56,000
106. Carver Inc. uses the weighted-average method in its process costing
Medium system. The following data concern the operations of the company's

Units in process ................................ 700

Units in process ................................ 200
Required:
Using the weighted-average method, determine the equivalent units of

production for materials and conversion costs by compiling the
"Quantity Schedule and Equivalent Units" portion of the production
report.
Answer:
Quantity
Schedule
Total units .................. 23,700
Equivalent units
d.
Transferred to next department . 23,500 23,500 23,500
Total units .................. 23,700 23,660 23,580
107. (Appendix) The Smith Company manufactures a product that goes through
Hard two departments prior to completion. The following information is
available on work in one of these departments, the Forming Department,
during March:
Percentage Completed
Work in process, March 1 ........ 70,000 5/7 3/7
Started into production ......... 460,000
Completed and transferred out ... 450,000
Work in process, March 31 ....... 80,000 7/8 5/8
Cost in the beginning work in process inventory and cost added during
the month were as follows:
Work in process, March 1 ......... P 42,190 P 38,000
Cost added during March .......... P440,810 P 394,000
The Forming Department is the first department in the production

process; after forming has been completed, the units are transferred
to the Finishing Department.
Required:
1. Calculate the equivalent units and unit cost for materials and
conversion costs assuming the company uses the weighted- average
method (round to the nearest tenth of a cent).
2. Calculate the equivalent units and unit cost for materials and
conversion costs assuming the company uses the FIFO method (round to
the nearest tenth of a cent).
Answer:
Equivalent units:
Weighted-average:
Units completed and transferred out...... 450,000 450,000
Work in process, March 31:
Materials: 80,000 x 7/8 = .............. 70,000
Conversion: 80,000 x 5/8 = ............. 50,000
Equivalent units......................... 520,000 500,000
Unit costs:
Materials: (P42,190 + P440,810)/520,000 = P0.929
Conversion: (P38,000 + P394,000)/500,000 = P0.864
Equivalent units:
FIFO:
Materials: 70,000 x 2/7 = .............. 20,000
Conversion:70,000 x 4/7 = ............... 40,000
Started and completed during March ...... 380,000 380,000
Materials: 80,000 x 7/8 = .............. 70,000
Conversion: 80,000 x 5/8 = ............. 50,000
Equivalent units ........................ 470,000 470,000
Unit costs:
Materials: P440,810/470,000 = P0.938
Conversion: P394,000/470,000 = P0.838
108. Dita Company uses a process costing system. The following information
Medium relates to one month's activity in the company's Curing Department.
Conversion
Percentage
Units Complete
Beginning work in process inventory .. 10,000 20%
Units started ........................ 21,000
Units completed and transferred out .. 26,000
Ending work in process inventory ..... 5,000 80%
The conversion cost of the beginning inventory was P6,500. During the
month, P112,000 in additional conversion cost was incurred.
Required:
a. (Appendix) Assume that the company uses the FIFO method.
Compute:
1. The equivalent units of production for conversion for the
month.
2. The cost per equivalent unit for conversion for the month.
3. The total cost transferred out during the month.
4. The cost assigned to the ending work in process inventory.
b. Assume that the company uses the weighted-average cost method.

Compute:
1. The equivalent units of production for conversion for the
month.
2. The cost per equivalent unit for conversion for the month.
3. The total cost transferred out during the month.
4. The cost assigned to the ending work in process inventory.
Answer:
a.
1. Units transferred out .............. 26,000
Deduct: equivalent units in
the beginning inventory ........ 2,000
24,000
Add: equivalent units in
the ending inventory ........... 4,000
Equivalent units .................. 28,000
2. P112,000 28,000 EUs = P4 per EU.
3. Beginning inventory:
Cost in the beginning inventory .. P 6,500
Completion of the units in the
beginning inventory:
P4 x 1,000 x 80% ....... 32,000
Units started and completed during
the period: P4 x 16,000 units .. 64,000
Total cost transferred out ....... P102,500
4. P4 per EU x 5,000 x 80% = P16,000
b.
1. Units transferred out .............. 26,000
Add: equivalent units in the
ending inventory ................ 4,000
Equivalent units .................. 30,000
2. Cost in the opening inventory ...... P 6,500

Cost incurred during the period ... 112,000
Total cost ...................... P118,500
P118,500 30,000 Eus = P3.95 per EU
3. 26,000 units x P3.95 per EU = P102,700
4. P3.95 per EU x 5,000 x 80% = P15,800
109. Production and cost data for the month of February for Process A of
Hard the Packer manufacturing Company follow:
Production record:
Units in process, February 1
(100% complete with respect to materials;
25% complete with respect to conversion cost) ........ 2,000
New units started in process ............................ 8,000
Units completed ......................................... 7,000
1/3 complete with respect to conversion cost) ........ 3,000
Cost record:
Work in process inventory, February 1:
Materials ............................... P600
Conversion ............................... 100 P 700
Costs for February:
Materials issued ......................... 2,560
Conversion ............................... 1,500
Total cost to be accounted for ............. P4,760
The company uses the weighted-average cost method in its process

costing system.
Required:
1. Calculate the equivalent units and unit costs for February for
materials and for conversion costs.
2. Determine the cost transferred to finished goods.
3. Determine the amount of cost that should be assigned to the

ending work in process and finished goods inventories.
Answer:
1. Equivalent units:
Materials:
Completed ......................................... 7,000
Work in process, Feb. 28 .......................... 3,000
Equivalent units .................................. 10,000
Conversion:
Completed ......................................... 7,000
Work in process, Feb. 28 (3,000 x 1/3) ............ 1,000
Equivalent units .................................. 8,000
Material Conversion
Unit costs:
Cost from work in process, Feb. 1 ..... P 600 P 100
Cost recorded in February ............. 2,560 1,500
Total cost ............................ P 3,160 P1,600
Equivalent units ...................... 10,000 8,000
Unit cost ............................. P 0.316 P 0.20
2. and 3.
Units completed and transferred7,000 x P.516 ........ P3,612

Material cost: 3,000 units x 100% x P0.316 = .......... 948
Conversion cost: 3,000 units x 1/3 x P0.20 = .......... 200
Total cost accounted for .............................. P4,760
110. Miller Company manufactures a product for which materials are added at
Hard the beginning of the manufacturing process. A review of the companys
inventory and cost records for the most recently completed year revealed
the following information:
Costs _
Work in process, Jan. 1
80% complete with respect to
conversion costs ............... 100,000 P100,000 P157,500
Units started into production .... 500,000
Costs added during the year:
Materials ...................... P650,000
Conversion ..................... P997,500
Units completed during the year .. 450,000
The company uses the weighted-average cost method in its process costing
system. The ending inventory is 50% complete with respect to conversion
costs.
Required:
1. Compute the equivalent units of production and the cost per

equivalent units for materials and for conversion costs.

ending work in process inventory.
Answer:
Equivalent units:
Units completed and transferred out ... 450,000 450,000
Work in process, December 31:
Materials: 150,000 x 1.00 = .......... 150,000
Conversion: 150,000 x 0.50 = ......... _______ 75,000
Unit costs:
Costs in beginning work in process .... P100,000 P 157,500
Costs added during the year ........... 650,000 997,500
Total ................................. P750,000 P1,155,000
Unit cost ............................. P 1.25 P 2.20
Costs to be accounted for:

Work in process, beginning ............ P 257,500
Cost added by department .............. 1,697,500
Total cost to be accounted for ........ P1,905,000
Transferred to finished goods:

450,000 x (P1.25 + P2.20) = ........... P1,552,500
Materials150,000 x P1.25 = .......... 187,500
Conversion75,000 x P2.20 = .......... 165,000
Total costs accounted for ............. P1,905,000
Ending work in process:
Materials: ............................ P187,500

Conversion ............................ 165,000
Total ................................. P352,500
111. The Hardy Company manufactures a product that goes through two
Medium departments prior to completion. The following information is
available on work in one of these departments, the Molding Department,
during the month of July:
Percentage Completed
Work in process, July 1 ..... 50,000 3/5 2/5
Started into production ..... 440,000
Completed ................... 430,000
Work in process, July 31 .... 60,000 5/6 2/3
The Molding Department is the first department in the production

process; after molding has been completed, the units are transferred
to the Finishing Department.
Required:
Calculate the equivalent units for materials and conversion costs

assuming the company uses the weighted-average method. Round to the
nearest tenth of a cent.
Answer:
Equivalent units:
Weighted-average:
Units completed and transferred out 430,000 430,000
Work in process, July 31:
Materials: 60,000 x 5/6 = ........ 50,000
Conversion: 60,000 x 2/3 = ....... 40,000
Equivalent units .................. 480,000 470,000
112. Sharp Company has a process costing system. The following data relate
Medium to the company's Mixing Department for a recent month:
Conversion
Percentage
Units of Completion
Beginning work in process inventory 5,000 60%
Units started into production ..... 40,000
Units completed and transferred out 37,000
Ending work in process inventory .. 8,000 25%
All materials are added at the beginning of the Mixing process.
Required:
a. (Appendix) Compute the equivalent units of production for

materials using the FIFO method.
b. (Appendix) Compute the equivalent units of production for
conversion using the FIFO method.
c. Compute the equivalent units of production for materials
using the weighted-average method.
d. Compute the equivalent units of production for conversion
using the weighted-average method.
Answer:
a. & b. Materials Conversion
Units transferred out .................. 37,000 37,000
Deduct: equivalent units in beginning
inventory ........................... 5,000 3,000
32,000 34,000
Add: equivalent units in ending
inventory ........................... 8,000 2,000
Equivalent units of production ......... 40,000 36,000
c. & d.
Units transferred out .................. 37,000 37,000
Add: equivalent units in the ending
inventory ........................... 8,000 2,000
Equivalent units of production ......... 45,000 39,000
113. (Appendix) Darver Inc. uses the FIFO method in its process costing

Units in process .................................. 100
Stage of completion with respect to materials ..... 80%
Stage of completion with respect to conversion .... 60%
Material cost ................................... P376
Conversion cost.................................. P2,376
Units started into production during the month....... 21,000

Units completed and transferred out.................. 20,400

Material cost ..................................... P93,645
Conversion cost.................................... P825,531

Units in process .................................. 700
Stage of completion with respect to materials ..... 70%
Stage of completion with respect to conversion .... 50%
Required:
Prepare a production report for the department using the FIFO method.
Answer:
Quantity Schedule and Equivalent Units
Quantity
Schedule
Total units .................. 21,100
Equivalent units
d.
Transferred out:
From the beginning inventory... 100 20 40
Started and completed ......... 20,300 20,300 20,300
Total units ................. 21,100 20,810 20,690
Total
Work in process, beginning... P2,752
Cost added during the month.. P919,176 P93,645 P825,531
Total cost (a)............. P921,928
Equivalent units (above) (b)... 20,810 20,690

Cost per EU, (a) (b).......... P4.500 P39.900
Combined cost per EU........... P44.400
Cost Reconciliation
Transferred out:
From the beginning inventory:
Cost in the beginning inventory. P2,752
Cost to complete these units:
Materials .................... P90 20
Conversion ................... P1,596 40
Total cost ................. P4,438
Units started and completed....... P901,320 20,300 20,300
Total cost transferred............ P905,758
Materials ...................... P2,205 490
Conversion ..................... P13,965 350
Total work in process, ending... P16,170
Total cost...................... P921,928
114. (Appendix) Easy Inc. uses the FIFO method in its process costing

Units in process ................................ 300
Materials cost ................................ P594


Materials cost .................................. P79,732
Conversion cost ................................. P887,626

Units in process ................................ 800
Required:
Using the FIFO method:

a. Determine the equivalent units of production for materials and
conversion costs.
b. Determine the cost per equivalent unit for materials and
conversion costs.
c. Determine the cost of units transferred out of the department
during the month.
d. Determine the cost of ending work in process inventory in the
department.
Answer:
a. through d. can be answered by completing a production report as
follows:

Quantity
Schedule
Total units .................. 26,300
Equivalent units
d.
Transferred out:
From the beginning inventory 300 120 60
Started and completed ...... 25,200 25,200 25,200
Work in process, ending ...... 800 400 320
Total units ............... 26,300 25,720 25,580
Costs Per Equivalent Unit

Total
Work in process, beginning ... P8,850
Cost added during the month .. P967,358 P79,732 P887,626
Total cost (a) ............. P976,208
Equivalent units (above) (b) ... 25,720 25,580

Cost per EU, (a) (b) ......... P3.100 P34.700
Combined cost per EU ........... P37.800
Cost Reconciliation
Transferred out:
From the beginning inventory:
Cost in the beginning inventory P8,850
Cost to complete these units:
Materials ................... P372 120
Conversion .................. P2,082 60

Total cost ................ P11,304
Units started and completed .... P952,560 25,200 25,200
Total cost transferred ......... P963,864

Materials ..................... P1,240 400
Conversion .................... P11,104 320
Total work in process, ending. P12,344
Total cost ..................... P976,208
115. (Appendix) Farwest Inc. uses the FIFO method in its process costing
Medium system. The following data concern the operations of the company's

Units in process ................................ 800

Units in process ................................ 300
Required:
Using the FIFO method, determine the equivalent units of production

for materials and conversion costs by compiling the "Quantity Schedule
and Equivalent Units" portion of the production report.
Answer:
Quantity
Schedule
Total units .................. 22,800
Equivalent units
d.
Transferred out:
From the beginning inventory . 800 240 400
Started and completed ........ 21,700 21,700 21,700
Total units ................. 22,800 22,180 22,310
116. (Appendix) Production and cost data for the month of February for
Hard Process A of the Packer Manufacturing Company were as follows:
Production record:
25% complete with respect to conversion cost) ........ 2,000
New units started in process ............................ 8,000
Units completed ......................................... 7,000
1/3 complete with respect to conversion cost) ........ 3,000
Cost record:
Materials ............................ P600
Conversion ............................ 100 P 700
Costs for February:
Materials issued ...................... 2,560
Conversion ............................ 1,500
Total cost to be accounted for .......... P4,760
The company uses the FIFO cost method in its process costing system.
Required:
1. Calculate the equivalent units and unit costs for February for
materials and conversion costs.

ending work in process and finished goods inventories.
Answer:
1. Equivalent units:
Materials:
Completion of work in process at February 1 ............ -
Units started and completed during the period .......... 5,000
Units in process at February 28 ........................ 3,000
Equivalent units ....................................... 8,000
Conversion:
Completion of work in process at February 1
(2,000 x 0.75) ....................................... 1,500
Units started and completed during the period .......... 5,000
Units in process at February 28 (3,000 x 1/3) .......... 1,000
Equivalent units ....................................... 7,500
Unit costs:
Materials: P2,560/8,000 = .............................. P0.32
Conversion: P1,500/7,500 = ............................. 0.20
Total unit cost ........................................ P0.52
2. and 3.
From beginning work in process inventory (2,000 units):

Cost from preceding period ............................. P 700
Materials added ........................................ -0-
Conversion: 2,000 units x 0.75 x P0.20 ................. 300
Completed cost of opening inventory .................... P1,000
From new production started in current month
(5,000 units): 5,000 units x P0.52 .................. 2,600
Total cost of completed production ..................... P3,600
Material cost: 3,000 units x 100% x P0.32 ....... 960
Conversion cost: 3,000 units x 1/3 x P0.20 ...... 200 1,160
Total cost accounted for ............................... P4,760

Test Bank - Chapter 4 Process Costing

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Test Bank - Chapter 4 Process Costing

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Chapter 4

Systems Design: Process Costing

1. The following journal entry would be made in a processing costing

Work in Process, Department Y ......... XXX

2. The following journal entry would be made in a processing costing

Finished Goods ........................ XXX

3. Appendix) The "Quantity schedule" and the "Costs to be accounted for"

7. When assigning costs to partially completed units in the ending work

11. The weighted-average method of process costing can only be used if

12. A manufacturer of blank CDs would ordinarily use process costing

13. In order to use process costing, the output of a processing department

14. In process costing, costs are accumulated in processing departments,

16. (Appendix) All of the following are correct in referring to a

21. An operation costing system is:

What was the materials cost of work in process at October 31?

According to the company's records, the conversion cost in beginning

25. Glo Co., a manufacturer of combs, uses the weighted-average method in

Beginning work in process inventory

The equivalent units of production for conversion costs was:

What were the equivalent units of production for conversion costs in

37. (Appendix) On November 1, Yankee Company had 20,000 units of work in

What were the equivalent units of production for conversion costs in

Number of Conversion Costs

Costs for October: Transferred In Materials Conversion Costs

The company uses the weighted-average method in its process costing

42. Overland, Inc., uses the weighted-average method in its process

47. Rariton Company uses the weighted-average method in its process

According to the company's records, the conversion cost in beginning

What were the equivalent units of production for conversion costs in

According to the company's records, the conversion cost in beginning

Beginning work in process inventory:

Units completed and transferred out .... 75,000 units

Cost per equivalent unit:

The equivalent units of production for conversion costs are:

What were the equivalent units of production for conversion costs in

According to the company's records, the conversion cost in beginning

Direct materials ........ P33,000

Number Labor and Overhead

Transferred Labor &

Number Labor and Overhead

Number Percent Complete

77. Assuming that Tru-Color Paint Company uses the weighted-average

78. Assuming that Tru-Color Paint Company uses the weighted-average

Labor and Overhead

All materials are added at the beginning of the manufacturing process.

Labor and Overhead

All materials are added at the beginning of the process.

Number of Percent Completion

Units Conversion Cost

Units Conversion Costs

97. Assuming that Cherrington Company uses the weighted-average method,

Labor and Overhead

All materials are added at the beginning of the process.

Labor and Overhead

All materials are added at the beginning of the manufacturing process.

Work in process, beginning:

Units started into production during the month .... 21,000

Costs added to production during the month:

Work in process, ending:

Prepare a production report for the department using the weighted-

Costs per equivalent unit

Equivalent units (above) (b) ... 21,180 20,880

Work in process, beginning: