6. A company that custom makes products to customer specifications would use process costing, rather than job-order costing.

a. true

b. false

The following information applies to questions 7 through 10:

At Rolph Laulen, polo shirts are made in two sequential processes, Cutting and Sewing. During November, The following data was collected for the Cutting department:

Number Materials Labor and Overhead

of Units Percent Completed Percent Completed

Work in process inventory, November 1 40,000 75% 50%

Started into production during November 180,000

Completed and transferred out 190,000

Work in process inventory, November 30 30,000 70% 30%

Costs for November: Materials Labor and Overhead

Work in process, November 1 $117,600 $ 30,800

Added during the month $692,640 $287,600

7. Assuming that the weighted average method is used, what is the materials cost per unit (round your answer, if necessary, to the nearest cent)?

a. $3.60

b. $3.84

c. $3.85

d. $3.25

8. Assuming that the weighted average method is used, what is the conversion cost per unit (round your

answer, if necessary, to the nearest cent)?

a. $1.44

b. $1.60

c. $1.33

d. $1.59

9. Ignore your answers to #7 and #8. Assume that the materials cost per unit is $3.70 and the conversion cost per unit is $1.55, using the weighted average method. Which of the following is the correct journal entry to transfer the cost of completed units to the Sewing department from the Cutting department using the

weighted average method?

a. debit WIP-Cutting $997,500; credit WIP-Sewing $997,500

b. debit WIP-Cutting $945,000; credit WIP-Sewing $945,000

c. debit WIP-Sewing $997,500; credit WIP-Cutting $997,500

d. debit WIP-Sewing $945,000; credit WIP-Cutting $945,000

10. Assume again that the materials cost per unit is $3.70 and the conversion cost per unit is $1.55 using the

weighted average method. What are the materials costs and the conversion costs, respectively, in ending

WIP using these weighted average per unit costs?

a. $111,000 and $46,500

b. $83,250 and $23,250

c. $111,000 and $31,000

d. $77,700 and $13,950