QUESTION 1 When is process costing used? When a company makes many identical products When a company makes many different products When a job cost sheet is used When production needs to be sped up QUESTION 2 The first step to attach cost to the flow of units using process costing is: calculate the equivalent units of production assign unit cost to units apply unit cost to ending inventory compute unit cost QUESTION 3 In October, Soda Company had $10,000 of completed formula transferred from the mixing department to the canning department The journal entry to record this transaction is debit work in process-mixing: credit raw materials debit cost of goods sold; credit raw materials debit finished goods: credit work in process-mixing debit work in process canning credit work in process-mixing QUESTION 4 conversion costs are: direct material, direct labor, and Overhead costs direct labor and overhead costs direct material and direct labor costs direct material and overhead costs QUESTION 5 Equivalent units are: used for conversion costs only beginning work in process units totally completed units units partially completed QUESTION 6 Department A has 500 units in its beginning work in process. During the month 3,500 units were added in. The ending Inventory has 1.000 units that are 50% complete of materials and 75% complete of conversion. The equivalent units of ending inventory for materials IS 1.000 units 750 units 500 units 1.250 units QUESTION 7 materials conversion total cost of beginning work in process $5.620 $2.280 $7.900 costs and during the period $12.180 $9,620 $21. BDO total costs $17,800 $11.900 $29,700 The equivalent units of production for materials is 4,000 units and for conversion is 5,000 units. The cost per equivalent unit for Conversion is: $3.30 52.38 $6.83 54,45 QUESTIONS The mixing department had a unit cost of $1.20 per unit for materials and $3.50 per unit for conversion 6,000 units were completed and transferred to finished goods and 1,000 units remain in the ending inventory Ending inventory is 60% complete for materials and 40% complete for conversion. The ending work in process is: $4,600 $2.120 $1.350 5730 QUESTION 9 The mixing department had a unit cost of $1.20 per unit for materials and $3.50 per unit for conversion 6,000 units were completed and transferred to finished goods and 1,000 units remain in the ending inventory Ending inventory is 60% complete for materials and 40% complete for conversion. The cost of units transferred out is: $28.200 $7.100 $20.000 533,000 QUESTION 10 We ehted average method of process costing: does not use the costs from the beginning inventory adds beginnine inventory costs to casts added during the period uses the casts from this period only ades the cost of the ending inventory to the costs added during the period