1. What does the accountant need to know to calculate unit cost?

	a.	materials cost plus overhead
	b.	the output for a period and the manufacturing costs for the department for that period
	c.	prime costs
	d.	total units produced by all departments

2. How is unit cost calculated?

	a.	total units divided by total costs
	b.	sum of all cost drivers
	c.	total cost divided by equivalent units produced
	d.	total of all costs incurred

3. A cost transferred from a prior process to a subsequent process is referred to as

	a.	work in process transfer
	b.	beginning work in process
	c.	transferred in cost
	d.	costs added in

4. Units transferred from a prior process to a subsequent process are referred to as

	a.	transferred in units
	b.	finished goods
	c.	cost of goods sold
	d.	beginning goods

5. Equivalent production expresses all activity of the period in terms of

	a.	work in process
	b.	materials, labor and overhead
	c.	fully completed units
	d.	partially completed units

6. Two methods used to determine equivalent units of production in process costing are

	a.	weighted average and FIFO
	b.	FIFO and LIFO
	c.	weighted average and LIFO
	d.	weighted average and exact costing

7. Beginning inventory for the month contained 2,000 units that were 70% complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 3,000 units, 20% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

	a.	62,400
	b.	63,000
	c.	60,600
	d.	60,000

8. Estimating the degree of completion of ending work in process requires:

	a.	judgement and ethical behavior
	b.	The degree of completion of beginning work in process
	c.	adjusting the degree of completion of completed units
	d.	use of the weighted average method

9. Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

	a.	50,000
	b.	51,500
	c.	50,300
	d.	49,500

10. The following information is provided:

	Units
Work in process, June 1 (20% complete)	4,000
Started in June	32,000
Work in process, June 30 (30% complete)	12,000

Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be

	a.	35,600
	b.	34,800
	c.	36,000
	d.	27,600

11. The following information concerns Schroeder's equivalent units in May:

	Units
Beginning work-in-process (50% complete)	2,000
Units started during May	8,000
Units completed and transferred	7,500
Ending work-in-process (80% complete)	2,500

Using the weighted average method, what are Schroeder's equivalent units for May?

	a.	7,000
	b.	9,500
	c.	10,000
	d.	19,500

Figure 6-5. For the current period, Haley Co. started 20,000 units and completed 8,000 units, leaving 12,000 units in process 40% complete.

12. Refer to Figure 6-5. How many equivalent units of production did Haley Co. have for the period?

	a.	13,500
	b.	12,000
	c.	12,800
	d.	8,000

13. Refer to Figure 6-5. If Haley Co. incurred $31,800 in production costs what was Haley's cost per equivalent unit for the period?

	a.	$2.48
	b.	$3.00
	c.	$2.75
	d.	$3.25

14. The following information is provided:

	Units
Work in process, May 1 (10% complete)	4,000
Started in May	17,000
Work in process, May 31 (20% complete)	3,000

Materials and conversion are incurred uniformly throughout the process. Equivalent units of production for conversion using the weighted average method would be

	a.	17,400
	b.	18,600
	c.	21,000
	d.	22,000

Figure 6-6. The Martin Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 120,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).

15. Refer to Figure 6-6. What are the equivalent units of production for conversion costs?

	a.	120,000
	b.	132,000
	c.	122,000
	d.	135,000

Figure 6-1. The following information is available for Department Z for the month of July:

	Units	Cost
Work in process, July 1 (70% complete)	2,000
Direct materials		$ 6,000
Direct labor		3,000
Manufacturing overhead		4,000
Total work in process, July 1		$13,000
Started in production during July	20,000
Costs added:
Direct materials		$18,000
Direct labor		8,000
Manufacturing overhead		10,000
Total costs added during July		$36,000
Work in process, July 31, (80% complete)	2,000

Materials are added at the beginning of the process. (Round unit costs to two decimal places.)

16. Refer to Figure 6-1. Department Z's cost per equivalent unit of production for materials using the FIFO method would be

	a.	$1.20.
	b.	$1.04.
	c.	$0.96.
	d.	$0.90.

17. Refer to Figure 6-1. Department Z's cost per equivalent unit of production for conversion costs using the FIFO method would be

	a.	$1.18.
	b.	$1.02.
	c.	$0.85.
	d.	$0.73.

18. Refer to Figure 6-1. Department Z's cost of goods transferred out using the FIFO method would be

	a.	$40,250.
	b.	$45,540.
	c.	$44,500.
	d.	$45,775.

19. Refer to Figure 6-1. Department Z's cost of ending work in process using the FIFO method would be

	a.	$3,960.
	b.	$3,552.
	c.	$3,500.
	d.	$3,160.

20. Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

	a.	beginning work-in-process units and units started.
	b.	units started and completed and ending work-in-process units.
	c.	beginning work-in-process units and units started and completed during the current period.
	d.	other categories.