Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of productiondirect materials		110,000	EUP
Equivalent units of productionconversion		95,000	EUP
Costs in beginning Work in Processdirect materials	$	49,000
Costs in beginning Work in Processconversion	$	36,000
Costs incurred in Februarydirect materials	$	414,000
Costs incurred in Februaryconversion		520,000

The cost per equivalent unit of production for direct materials is:

Multiple Choice

• $9.26
• $4.21
• $4.97
• $5.05
• $5.85

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 30,000 units, 75% complete with respect to direct labor and overhead. The department completed and transferred out 127,500 units this period. The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

Multiple Choice

• $0.14.
• $0.16.
• $0.18.
• $0.30.
• $0.37.

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complet to materials and 20% complete to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete to materials and 10% complete to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the cost per equivalent unit of materials.

Multiple Choice

• $2.59
• $2.33
• $1.89
• $2.20
• $2.00

A company uses the weighted-average method for inventory costing. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 100% complete for materials and 75% complete for conversion. The equivalent costs per unit are materials, $2.65 and conversion $5.35. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Multiple Choice

• $146,575.
• $176,000.
• $87,725.
• $93,775.
• $132,000.

Using conversion cost per equivalent unit is appropriate for many businesses that use process costing because:

Multiple Choice

• Direct materials and direct labor are usually entered into the production process at the same rate.
• All manufacturing costs are entered into the production process in the same period.
• Equivalent cost per unit is not sufficient measurement of production activity.
• The weighted average method of calculating equivalent units requires it.
• Direct labor and factory overhead enter the production process at the same rate.

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete to materials and 55% complete to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% completeto materials and 30% complete to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150. Calculate the equivalent units of conversion.

Multiple Choice

• 165,000
• 130,250
• 140,000
• 144,000
• 110,000

At the beginning of the month, the Forming Department of Martin Manufacturing had 10,000 units in inventory, 30% complete to materials, and 10% complete to conversion. During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department. At the end of the month, the department had 8,000 units in inventory, 80% complete to materials and 60% complete to conversion. If Martin Manufacturing uses the FIFO method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

Multiple Choice

• 68,400 materials; 66,800 conversion.
• 58,400 materials; 56,800 conversion.
• 59,000 materials; 61,000 conversion.
• 65,400 materials; 66,800 conversion.
• 65,400 materials; 65,800 conversion.

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $578,900 and its beginning inventory included labor cost of $54,700. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

• $4.69.
• $3.84.
• $4.86.
• $4.28.
• $4.40.

At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete to materials, and 20% complete to conversion. The cost of the beginning inventory, $28,650, consisted of $22,400 of material costs and $6,250 of conversion costs. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. Costs added in the current month consisted of $229,600 of materials costs and $540,500 of conversion costs. At the end of the month, the department had 15,000 units in inventory, 40% complete to materials and 10% complete to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

Multiple Choice

• $2.00; $4.50.
• $1.82; $4.45.
• $2.05; $4.60.
• $2.05; $4.45.
• $2.25; $4.65.

Wilturner Company incurs $97,000 of labor related directly to the product in the Assembly Department, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:

Multiple Choice

• $74,000 and $33,000.
• $97,000 and $10,000.
• $84,000 and $23,000.
• $107,000 and $0.
• $74,000 and $10,000.

During January, the production department of a process operations system completed and transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units were in process in the production department and were 65% complete with respect to labor. The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

• $6.34.
• $3.77.
• $3.51.
• $4.25.
• $3.95.

A company uses the FIFO method for inventory costing. At the start of the period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825. Compute the equivalent cost per unit for labor.

Multiple Choice

• $4.40.
• $4.76.
• $4.19.
• $4.55.
• $4.61.

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete to materials and 55% complete to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% complete to materials and 30% complete to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150. Calculate the equivalent units of conversion.

Multiple Choice

• 165,000
• 130,250
• 140,000
• 144,000
• 110,000

A company uses a process costing system. Its Weaving Department completed and transferred out 120,000 units during the current period. The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs). Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.

Multiple Choice

• 120,000 materials; 120,000 conversion.
• 120,000 materials; 160,000 conversion.
• 128,000 materials; 120,000 conversion.
• 128,000 materials; 144,000 conversion.
• 128,000 materials; 184,000 conversion.

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% completeto materials and 20% complete to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete to materials and 10% completeto conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the cost per equivalent unit of conversion.

Multiple Choice

• $2.76
• $3.15
• $2.90
• $3.68
• $3.00

At the beginning of the month, the Forming Department of Martin Manufacturing had 10,000 units in inventory, 30% completeto materials, and 10% complete to conversion. During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department. At the end of the month, the department had 8,000 units in inventory, 80% complete to materials and 60% complete to conversion. How many units did the Forming Department start and complete in the current month?

Multiple Choice

• 62,000
• 60,000
• 58,000
• 68,000
• 52,000

A company uses the weighted average method for inventory costing. At the start of a period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. The production department had conversion costs in the beginning goods is process inventory of $99,000 and total conversion costs added during the period are $726,825. Compute the conversion cost per equivalent unit.

Multiple Choice

• $4.40.
• $4.76.
• $4.19.
• $4.55.
• $4.61.

A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

Multiple Choice

• 130,000 materials; 130,000 conversion.
• 130,000 materials; 112,000 conversion.
• 107,500 materials; 118,000 conversion.
• 122,500 materials; 112,000 conversion.
• 112,500 materials; 130,000 conversion.

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:

Direct materials used	$	87,000
Direct labor used		160,000
Predetermined overhead rate (based on direct labor)		155	%
Goods transferred to finished goods		432,000
Cost of goods sold		444,000
Credit sales		810,000

Multiple Choice

• Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
• Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
• Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.
• Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
• Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75. A total of 250,000 units of product were completed and transferred out as finished goods during the month, and 36,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is:

Multiple Choice

• $650,000.
• $135,000.
• $1,816,100.
• $1,587,500.
• $228,600.

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is:

Beginning Work in Process (40% complete, $1,100)	200		units
Ending inventory of Work in Process (80% complete)	400		units
Total units started during the year	3,200		units

• 3,200 units.
• 3,000 units.
• 3,400 units.
• 3,160 units.
• 3,500 units.

A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 10,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. There were 1,000 units in beginning Work in Process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

• 10,000 units.
• 10,300 units.
• 15,000 units.
• 15,300 units.
• 10,700 units.

Wilturner Company incurs $82,000 of labor related directly to the product in the Assembly Department, $31,000 of labor related to the Assembly Department as a whole, and $18,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor for the Assembly Department would include:

• Debit Work in Process Inventory $82,000; debit Factory Overhead $49,000.
• Debit Work in Process Inventory $82,000; debit Wages Expense $49,000.
• Debit Work in Process Inventory $113,000; debit Wages Expense $18,000.
• Debit Work in Process Inventory $131,000.
• Debit Work in Process Inventory $113,000; debit Factory Overhead $18,000.

A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

• 181,500.
• 165,000.
• 173,500.
• 145,000.
• 187,000.

A company that applies process costing is most frequently characterized by:

• Low standardization and high production volume.
• Custom orders and mass production.
• Repetitive production and unique products.
• Repetitive production and low production volume.
• Similar products and high production volume.