Cornerstones of Cost Management 4e Don R Hansen Maryanne M Mowen - Test Bank

Cornerstones of Cost Management 4e Don R Hansen Maryanne M Mowen – Test Bank

Instant Download – Complete Test Bank With Answers

Sample Questions Are Posted Below

Chapter 6
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1. A process is a series of activities or operations, which are linked to perform a specific objective.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-GA4D-OP5G-GC3D-GQDB-
GYSU-1A5N-CESS-RC33-GOSS-RQBT-COSU-CP5G-8Y4S-GAJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
2. The cost flows for a process-costing system are totally different from those of a job order costing system.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-CCHD-GCUG-CC4D-NATI-8YSU-
NCJW-CRSS-KQJO-GOSU-G3UR-GRSS-CPBT-CTOU-QQBZ-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
3. Process systems are characterized by a larger number of homogeneous products passing through a series of processes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CE4D-CAMR-GH5U-1QBO-
COSU-QA5G-8YSU-1ATA-GOSU-NCDG-GYSU-OQJ1-C31G-EC3Z-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
4. The production report is the document that summarizes the manufacturing activity that takes place in a work-in-process
department.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
Chapter 6
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GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GOHD-N3JA-GY4G-CQJ1-CRSU-
GPMR-8RSS-NC5D-GOSU-13BA-CWSS-GPBO-G71G-K3BI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
5. Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-
process inventories.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-G31D-KC5N-GE5U-CP5N-GOSS-
GAJU-8RSS-NQJS-GOSU-OC3W-GCSU-O3BI-GWAS-EPTO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
6. Services that are basically homogeneous and repetitive cannot take advantage of a process-costing approach.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
Chapter 6
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QUESTION ID: JFND-GO33-GINW-GCBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-CC3U-ECT1-CRAS-N3BU-8RSU-
OQMF-CRSU-KATZ-GOSS-GPTI-8YSU-KPT1-GYAS-CC5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
7. In JIT manufacturing, work cells are created that produce a product from start to finish.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GRHU-Q3T3-CI1D-RQDB-GOSU-
NP3Z-CRSU-YCJU-GOSU-QAMB-8YSU-OCMR-CC5G-GQJ1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
8. In firms with ending work-in-process inventories, output is measured using equivalent units.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
Chapter 6
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DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GI1D-OC3T-GEAG-KAJ3-COSU-
RQMB-8RSS-RAMG-GOSU-CPJT-CRSU-KPMF-CC3G-NPJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
9. Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CCAG-K3DG-GW4U-RAUG-
COSU-EA3T-8RSU-EPMB-GOSS-CCT3-CWSS-GCTU-GI1U-GC3I-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
10. In a process-costing system, work-in-process inventory, materials are added uniformly so that multiple calculations of
equivalent units are needed for each type of input.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
Chapter 6
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DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-8F1S-CC5G-CI1D-CCMD-GRSU-
RQJT-8YSU-GAUF-GOSU-KAUF-CESU-1PBZ-GE3U-KCBA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
11. The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to
that period.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GWAG-EPMG-CWHU-Y3T3-
GCSU-YCTI-CESS-CCTS-GOSU-RQJT-CWSU-RPB1-8RAS-N3MR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
12. FIFO follows the job-order costing principle.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
Chapter 6
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NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-CWAS-R3MB-CPUD-13MR-8YSU-
K3TS-CESU-EPUR-GOSS-N3UF-GHSU-OA31-GY4D-GAUF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
13. The FIFO method unit costs are used to value output that is related to future periods.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GA5D-N3BW-GRHG-CCJA-COSU-
EQMG-CESS-NPBT-GOSU-CCB1-GWSU-GAJZ-GO3D-YQDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
14. The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if
they belong to the current period when calculating unit cost.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 6
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KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GE4G-NC5R-CW4U-RA3U-COSU-
YCTW-8YSS-EAUB-GOSU-RAUF-GYSU-YQJT-8BTU-QQJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
15. In a process-costing system, the costing of goods transferred out in BWIP inventory is difficult because there are
multiple categories of completed units.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-GC4S-K3MR-CR5D-YQDF-GYSU-
KAT1-CRSU-GC5G-GOSU-KPJZ-COSS-C3DD-CJ1U-EQJZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
16. The major benefit of the weighted average method is simplicity. The major disadvantage is that accuracy and
performance measurements are impaired.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 6
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STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-CC4S-C3TI-CW5S-EAJI-GHSS-
CA3O-8RSU-GQJA-GOSU-NPTU-CASU-1A5B-CA4D-KQBO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
17. Transferred-in goods, must be converted to the units of measure used by the current department.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CW4U-1CBO-GW4D-OPBW-
CESU-Q3T1-8YSU-OA5G-GOSU-NQJ3-CCSU-1C5D-GEAD-NQDD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
18. For the receiving department of a process-costing manufacturer, transferred-in goods are materials that are added at
the end of the process.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
Chapter 6
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NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GPTU-EQMN-GO4D-RQMN-
GOSU-EPTI-8YSS-KQBZ-GOSU-NA3W-GESS-EPUF-GJTG-NQBZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
19. In calculating equivalent units of production using the weighted average method, the transferred-in goods are treated
as materials added at the beginning of the process.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CRHG-NPBW-GO3D-YP3Z-GHSU-
NCJT-CESU-CCB3-GOSS-EAUD-8YSU-KA5G-8B1S-G3DR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
20. When manufacturing companies exhibit characteristics of both job and process environments, they use batch
production processes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
Chapter 6
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HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-8FOU-ECTZ-CW3S-GAJZ-GWSU-
KPJ3-CRSS-KCMB-GOSU-E3MB-GYSU-NA3T-8YHD-NPTT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
21. Operation costing uses a blend of job-order and process-costing procedures whenever batches of dissimilar products
are produced.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-GO5U-KPMN-GFTU-RAJS-
CWSU-QPTO-8RSU-YPBZ-GOSU-QPMD-CASU-KQMF-GJOU-G3MB-E7JI-YT4D-
JFNN-4OTI-GO4W-NQNBEE
22. In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to
assign conversion costs.
a. True
b. False
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ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-CC4U-1QBS-GCAU-1CMR-GOSS-
GCDN-CRSU-GAJO-GOSS-C3B3-8YSU-R3BU-GR3U-QA5G-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
23. When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good
units.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GE5G-GA3U-GC4S-RPMD-
8YSU-OA3I-8RSU-YATT-GOSS-RATU-GESU-GPMD-CJTU-EPDB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
24. Spoilage in a process costing process means that more units enter the process than leave it.
a. True
Chapter 6
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b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CO5D-GPJO-CE5U-RCTS-GASU-
E3JI-8YSU-13JU-GOSU-1PMN-GESS-R3UR-GH5U-YATU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
25. Abnormal spoilage costs are treated the same as normal spoilage for process costing.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-CA5D-YCTI-CA3D-KCDN-8RSU-
YAJO-CRSU-GCB1-GOSS-N3UG-GOSU-YP3I-CA5U-ECTI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
26. The accounting system which accumulates production costs by process and uses a work-in-process account for each
process is called __________ .
Chapter 6
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ANSWER: process costing
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CIUD-QA3I-CA4U-OC3S-GOSU-
E3BI-CRSS-CQBZ-GOSS-EAUB-GWSU-QCTA-GPTD-N3TT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
27. The basic characteristics of process costing include: cost flows, journal entries, and
the __________ report.
ANSWER: cost of production
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-CR3G-CP3O-CW5U-R3TI-GRSU-
O3JZ-CRSU-RPUF-GOSU-QCDB-8RSS-GATT-G31U-EC5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
28. A key input to the cost of production report is __________ costs.
ANSWER: unit
POINTS: 1
DIFFICULTY: Easy
Chapter 6
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QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GJUG-EAJO-CWHD-YPMF-
COSU-1CJ3-CESU-E3JS-GOSS-G3UR-GASU-1CTT-8F1G-NCMF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
29. Companies using JIT manufacturing do not use __________ inventories for their process costing.
ANSWER: work-in-process
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-GWAG-RPBI-8Y3D-OCDF-CESS-
RPBT-8RSS-CA3I-GOSS-CQB3-CASS-CPUB-GC3G-KPJI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
30. In a __________ costing system, production costs are accumulated by process.
ANSWER: process
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
Chapter 6
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NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-CO3U-N3DD-GA4U-KPMB-
CWSU-EPBA-8RSU-NCMR-GOSU-K3BA-GCSU-1PUR-8B1D-1CUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
31. In process costing, __________ costing can be used to assign shared overhead to processes.
ANSWER: activity-based
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GE5D-YCMN-G71U-RAJT-
CWSU-ECTI-8RSU-NAUR-GOSS-KPMR-GESS-RCMF-GPTD-GCUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
32. The units that could have been produced in a period given the amount of manufacturing inputs used are called
__________ .
ANSWER: equivalent units of output
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
Chapter 6
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United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GT1D-Y3DB-8Y4S-RA3I-GOSS-
CCMF-8RSS-GATS-GOSU-N3J1-GOSS-C3MF-C3UD-K3BU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
33. The process that determines the equality of the costs in beginning work in process and the costs incurred during the
period is called __________ .
ANSWER: cost reconciliation
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-CF1U-1CBZ-CIOU-R3BS-GWSU-
YATZ-CESS-NP33-GOSU-YPT3-GYSU-1C5F-CE3S-RCJO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
34. When materials are not added uniformly using a work-in-process system, __________ of equivalent units are needed,
one for each type of input.
ANSWER: multiple calculations
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
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NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CAHD-CPUG-GOHG-NCDD-
GHSS-RPJS-CRSU-NCDR-GOSU-OC3O-CRSS-NPUR-CE3D-YPUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
35. The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is
called the __________ costing method.
ANSWER: FIFO
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GJUD-CCJS-CW5D-QC3W-GOSU-
YQJU-8YSU-RQJT-GOSU-QCUR-COSU-13MF-CA3D-13J3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
36. FIFO follows the __________ principle.
ANSWER: process-costing
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
Chapter 6
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QUESTION ID: JFND-GO33-GINW-GPTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GT1U-CPJI-GIUG-NCUB-CASU-
OAUG-8RSU-CATZ-GOSS-KCMR-CCSU-1P3W-GFUD-GP3S-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
37. For beginning work-in-process category using FIFO, the manufacturing cost is the sum of the current-period
__________ and the current __________ to complete the BWIP.
ANSWER: costs; cost
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GA5U-YQBA-CAAS-RCJ3-
CWSU-OCDR-8RSU-YAUB-GOSU-1PDN-GESS-GATS-GFTU-GQJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
38. The __________ method is a unit-costing method that merges prior-period work and costs with current period work
and costs.
ANSWER: weighted average
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
Chapter 6
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GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-CFOU-KP3I-GCHU-GCTZ-CASU-
EQJA-CESU-OCUB-GOSU-N3BU-8YSU-CPBS-CT1S-NCJI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
39. The weighted average costing method picks up __________ inventory costs and outputs and treats them as if they
belong in the current period.
ANSWER: beginning
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-8R5D-KCUR-CPTD-KA33-CWSU-
OQMN-CRSU-EPBS-GOSS-NQJU-CRSS-GC33-GP1D-YCDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
40. Using the weighted average costing method, the costing of goods transferred out is __________ since there is only one
category of completed units.
ANSWER: simplified
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-GB1U-GC3A-8BTD-K3JU-GOSU-
CCDN-CESS-RC3S-GOSU-GCUB-GRSU-CPTU-GE5G-EPMG-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
41. The cost assigned to goods from a prior process is called the __________ cost.
ANSWER: transferred-in
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CC4U-1PJU-GTOU-KC3O-CCSS-
GATI-8RSU-GA3I-GOSU-RC3U-GWSU-RC3Z-CWAD-E3DB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
42. For the receiving department, transferred in goods are added at the __________ of the process.
ANSWER: beginning
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-COAU-NCMG-CO5D-YQDR-
CASS-C3UR-CESU-O3TI-GOSS-GQB1-8YSS-RQDN-GH3D-CCUN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
43. The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when
calculating __________ .
Chapter 6
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ANSWER: equivalent units
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-CE4D-1P3T-GW5D-OPJO-GWSU-
CCJW-8YSS-KC3Z-GOSS-EQJO-GASS-K3BZ-8B1U-QATS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
44. The costing system that uses job-order procedures to assign direct material costs to batches and process procedures to
assign conversion costs is called __________ costing.
ANSWER: operation
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-GA3U-1AJ3-GO3S-KAJU-CASS-
KQJ3-CESS-GAMF-GOSU-Y3DR-GYSU-N3JT-GB1D-NCTZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
45. In operation costing, the process which produces batches of different products which are identical in many ways but
differ in others is called __________ process
ANSWER: batch production
Chapter 6
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POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-GA5S-R3MB-CRAG-CAJW-GCSU-
GQJT-CRSS-RPBA-GOSU-GC3U-CWSU-GQJT-8R5G-GC5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
46. The documents used to collect production costs for each batch in operation costing are called __________ .
ANSWER: work orders
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-GC5G-NQBU-CPTU-OA3U-GWSS-
NQMN-CRSS-CC33-GOSU-EPJ1-GOSU-KQJT-8YAG-RQJO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
47. Manufacturing firms that have characteristics of both job and process environments often use __________ processes.
ANSWER: batch production
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 24
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CR5G-N3J3-CAAD-KPTT-GCSU-
K3BT-8RSS-CPTI-GOSS-GCTA-CWSU-YPMN-GAAU-N3DR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
48. __________ is a costing system that blends job-order and process-costing procedures applied to batches of
homogeneous products.
ANSWER: Operation costing
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-8F1U-C3J3-GW3D-OCJW-GCSU-
NP5F-CRSU-RCTS-GOSU-QAJS-GWSU-CCTO-GO5S-GQBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
49. When spoilage is assumed to be __________ it is embedded in the total cost of good units.
ANSWER: normal
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
Chapter 6
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LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-8FUG-GC5D-8FTS-K3TO-8RSU-
N3TT-CESS-NPMN-GOSS-GP5G-8RSS-CAUB-GB1S-KPUR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
50. When spoilage is due to the exacting nature of a particular job it is called __________ spoilage.
ANSWER: abnormal
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-CRHS-EP5B-GTTU-R3TO-8RSU-
RCUG-CRSU-NCJZ-GOSU-1CB1-GASU-OCMB-GRHU-YPDD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
51. What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?
a. contract costing
b. variable costing
c. process costing
d. job-order costing
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
Chapter 6
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HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CRHG-C3TZ-CWHD-KCUB-
COSU-RCMN-8RSU-1CT3-GOSU-NPJA-GOSU-GPUB-GEAS-GPJA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
52. In process costing, costs are accounted for by
a. job.
b. batch.
c. process.
d. year.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CO4U-E3UD-GOHD-KCJZ-8RSU-
QATZ-CRSU-YPJT-GOSS-NPDD-CESS-CATO-GAAD-OQMN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
53. The appropriate cost accounting system to use when inventory items are produced on an assembly line is
a. weighted average.
b. job-order costing.
c. process costing.
Chapter 6
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d. perpetual method.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GP3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GY3G-R3DD-GW5S-ECJ3-GWSU-
O3JW-8YSS-GPDN-GOSU-13MN-CWSS-NCTU-GC3U-NPDD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
54. Which of the following is true of a production report prepared under a process-costing system?
a. It provides information about the physical units processed in a department.
b. It has a unit information section, a cost information section, and a revenue information section.
c. It summarizes the manufacturing activity of a company only at the end of a reporting period.
d. It is prepared at the final stage of a manufacturing activity.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/27/2017 12:13 AM
QUESTION ID: JFND-GO33-GINW-GP3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CR4S-R3JZ-CE5D-YAMN-GHSS-
EQMF-CRSU-13MF-GOSS-GATS-GHSU-NC33-CWAD-RCBU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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55. The Allen Company has the following information for the Assembly Department for the month of October:
Materials purchased $ 45,000
Materials used 49,000
Direct labor 30,000
Actual manufacturing overhead 56,000
Cost of goods completed and transferred to the Finishing Dept. 125,000
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
The journal entry to record materials purchased would include a
a. debit to Materials Inventory for $45,000.
b. debit to Materials Inventory for $49,000.
c. credit to Accounts Payable for $49,000.
d. both b and c.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/22/2017 10:01 PM
QUESTION ID: JFND-GO33-GINW-GPNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CO5D-CPTU-GAAG-CPUR-CASS-
N3UN-CESS-R3MB-GOSS-CPTO-COSU-YAUF-CR3S-GC3I-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
56. The Allen Company has the following information for the Assembly Department for the month of October:
Materials purchased $ 45,000
Materials used 49,000
Direct labor 30,000
Actual manufacturing overhead 56,000
Cost of goods completed and transferred to the Finishing Dept. 125,000
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
What is the total amount of debits to Work in Process-Assembly Department for October?
a. $125,000
b. $131,000
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c. $139,000
d. $109,000
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: $49,000 + $30,000 + ($30,000 × 2) = $139,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/27/2017 2:46 AM
QUESTION ID: JFND-GO33-GINW-GPNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-GBUG-E3DD-GITD-1C3O-GRSU-
Q3TA-CRSU-NP31-GOSS-ECUD-GWSU-KP5D-CITG-KCUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
57. The Allen Company has the following information for the Assembly Department for the month of October:
Materials purchased $ 45,000
Materials used 49,000
Direct labor 30,000
Actual manufacturing overhead 56,000
Cost of goods completed and transferred to the Finishing Dept. 125,000
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
The journal entry to record goods completed and transferred out of the Assembly Department would include a
a. debit to Finished Goods Inventory for $125,000.
b. credit to Materials Inventory for $125,000.
c. debit to Work in Process-Assembly Department for $125,000.
d. debit to Work in Process-Finishing Department for $125,000.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
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STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/22/2017 10:00 PM
QUESTION ID: JFND-GO33-GINW-GPB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-CTOU-QPTI-CE4G-KPTI-COSS-
EATW-8YSU-QQDR-GOSU-NCBO-GASS-ECJZ-CR5U-EP5N-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
58. When products and their costs are moved from one process to the next process, these costs are referred to as
a. unit costs.
b. transferred-in costs.
c. WIP inventory costs.
d. equivalent unit costs.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GO5U-13J3-8FOS-NPTU-GWSU-
RCTI-8RSU-O3TO-GOSS-GAJ1-GCSU-RCBO-CE4U-C3DB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
59. Which of the following is a difference between a job-order costing system and a process-costing system?
a. A job-order costing system accumulates costs by department, while a process costing-system accumulates
costs by job.
b. A job-order costing system is used only by manufacturing firms, while a process-costing system is used by
both manufacturing firms and service firms.
c. A job-order costing system uses a single work-in-process account, while a process-costing system has a work-
in-process account for every process.
d. A job-order costing system uses cost-sheets for assigning labor costs, while a process-costing system uses time
Chapter 6
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tickets for assigning labor costs to processes.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/27/2017 12:16 AM
QUESTION ID: JFND-GO33-GINW-GPNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GA4U-KPJI-GC5U-KAMR-
GWSS-ECB3-CRSU-CC5D-GOSU-RCBT-CCSU-EA3O-GAAU-YAJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
60. Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing.
The following costs are given for April:
Cutting Assembly Finishing
direct materials $7,000 $10,000 $3,000
direct labor 3,000 14,000 2,000
applied overhead 4,000 5,000 6,000
There were no work in process inventories and 1,000 podiums were produced.
What is the cost transferred out of the assembly department.
a. $43,000
b. $54,000
c. $29,000
d. $14,000
e. none of the above
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Cutting Assembly Finishing
DM $7,000 $10,000 $ 3,000
DL 3,000 14,000 2,000
MOH 4,000 5,000 6,000
Total $14,000 $29,000 $11,000
Transferred-in 0 $14,000 43,000
Transferred-out $14,000 $43,000 $54,000
Chapter 6
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POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/9/2017 1:43 AM
QUESTION ID: JFND-GO33-GINW-GPNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-8R3D-GAT3-GW5D-R3TI-GRSS-
KPUB-CESU-YPUB-GOSU-YC3U-GASU-OAJW-GCHU-YATA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
61. Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing.
The following costs are given for April:
Cutting Assembly Finishing
direct materials $7,000 $10,000 $3,000
direct labor 3,000 14,000 2,000
applied overhead 4,000 5,000 6,000
There were no work in process inventories and 1,000 podiums were produced.
The journal entry to assign costs to the Assembly process would be
a. Raw Materials 10,000
Payroll 14,000
Overhead Control 5,000
Work in Process – Assembly 29,000
b. Raw Materials 20,000
Payroll 19,000
Overhead Control 15,000
Work in Process – Assembly 54,000
c. Work in Process – Assembly 29,000
Raw Materials 10,000
Payroll 14,000
Overhead Control 5,000
d. Work in Process – Assembly 54,000
Raw Materials 20,000
Payroll 19,000
Chapter 6
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Overhead Control 15,000
e. none of the above
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Cutting Assembly Finishing
DM $ 7,000 $10,000 $ 3,000
DL 3,000 14,000 2,000
MOH 4,000 5,000 6,000
Total $14,000 $29,000 $11,000
Transferred-in 0 $14,000 43,000
Transferred-out $14,000 $43,000 $54,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/9/2017 1:44 AM
QUESTION ID: JFND-GO33-GINW-GPNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-8F1D-RC33-GEHU-YAJZ-CWSS-
CC3I-CRSS-GC5D-GOSU-RP33-CASS-EA3S-CW3G-CA5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
62. Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing.
The following costs are given for April:
Cutting Assembly Finishing
direct materials $7,000 $10,000 $3,000
direct labor 3,000 14,000 2,000
applied overhead 4,000 5,000 6,000
There were no work in process inventories and 1,000 podiums were produced.
Record the journal entries to record the transfer of goods from process to process.
a. Work in Process – Assembly 14,000
Work in Process – Cutting 14,000
Work in Process – Finishing 43,000
Work in Process – Assembly 43,000
Finished Goods 54,000
Work in Process – Finishing 54,000
Chapter 6
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b. Work in Process – Assembly 29,000
Work in Process – Cutting 29,000
Work in Process – Finishing 11,000
Work in Process – Assembly 11,000
Finished Goods 54,000
Work in Process – Finishing 54,000
c. Work in Process – Cutting 14,000
Raw Materials 14,000
Work in Process – Assembly 29,000
Raw materials 29,000
Work in Process – Finishing 11,000
Raw Materials 11,000
d. none of the above
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Cutting Assembly Finishing
DM $ 7,000 $10,000 $ 3,000
DL 3,000 14,000 2,000
MOH 4,000 5,000 6,000
Total $14,000 $29,000 $11,000
Transferred-in 0 $14,000 43,000
Transferred-out $14,000 $43,000 $54,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/9/2017 1:45 AM
QUESTION ID: JFND-GO33-GINW-GPND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GP1G-RCUF-CITD-G3BS-GASU-
YQB3-CRSU-KPBS-GOSS-KPJA-GCSS-E3BA-GCAS-NQJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
63. Moccasin Company produces 15,000 bars of chocolates and has the following cost data for the month of January:
Blending
Process
Molding
Process
Direct materials $12,000 $3,000
Chapter 6
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Direct labor 9,000 6,000
Applied overhead 3,500 2,500
Calculate the costs transferred out of the Molding Department for the month of January. Assume no work-in-process
inventories.
a. $24,500
b. $36,000
c. $11,500
d. $30,000
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: The cost transferred out of Molding Department is
calculated below:
Blending
Process
Molding
Process
Direct materials $12,000 $ 3,000
Direct labor 9,000 6,000
Applied overhead 3,500 2,500
Costs added $24,500 $11,500
Costs transferred in – 24,500
Costs transferred out $24,500 $36,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/27/2017 12:19 AM
QUESTION ID: JFND-GO33-GINW-GPBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GF1D-NCTZ-G71D-OQDN-GHSU-
KCTU-CRSU-N3DN-GOSS-GQBZ-8YSU-1PJ1-GRAD-1AJZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
64. In a process costing system, which of the following would be TRUE?
a. There is no need to use time tickets to assign costs to processes.
b. There is no need to track materials to processes.
c. A process costing system is more expensive to maintain because it has more work-in-process accounts.
d. all of the above are true.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-CEHU-GATI-GR4D-CC3O-GYSU-
KAJS-8RSU-RCJT-GOSS-K3JA-GASS-CPBA-GP1U-CCJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
65. As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in
a. cost of goods sold.
b. work in process.
c. materials.
d. finished goods.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-GR3G-KPBT-GFUD-NAMG-CESS-
KC33-8YSS-NPJU-GOSU-RP3W-GYSS-GCJW-G7TD-R3MD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
66. Which is TRUE about services?
a. Some services may require that a sequence of uniform processes be performed.
b. Services can never be homogeneous and repetitively produced.
Chapter 6
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c. Services cannot have work-in-process inventories.
d. All services require job-order costing.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GPBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-CJ1U-OQBZ-G3OU-QPDB-GHSS-
ECMB-CESU-QP5R-GOSU-ECB1-CWSS-RCJ3-8Y5S-G3UD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
67. Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of
September are as follows:
Direct materials $ 200
CPA staff salaries 4,000
Overhead 1,800
Total $6,000
Number of tax returns 300
What is the unit cost per tax return?
a. $0.67
b. $15.00
c. $20.00
d. $3.33
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $ 200
CPA staff salaries 4,000
Overhead 1,800
Total $6,000
Number of tax returns 300 $6,000/300 = $20
POINTS: 1
DIFFICULTY: Easy
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/22/2017 10:04 PM
QUESTION ID: JFND-GO33-GINW-GPBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-G3OS-G3DB-CRAD-CATT-
GWSU-NPBO-CRSU-GQBO-GOSS-KC3I-CESU-EQDG-GY4D-CCBT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
68. Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of
September are as follows:
Direct materials $ 200
CPA staff salaries 4,000
Overhead 1,800
Total $6,000
Number of tax returns 300
What is the cost of services sold?
a. $1,800
b. $4,000
c. $200
d. $6,000
ANSWER: d
RATIONALE: Direct materials $ 200
CPA staff salaries 4,000
Overhead 1,800
Total $6,000
or 300 × $20 = $6,000
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
Chapter 6
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United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/22/2017 10:06 PM
QUESTION ID: JFND-GO33-GINW-GPBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-C31S-KP3I-CRHD-YPDB-GCSU-
GPBO-CESU-KP5R-GOSU-CATW-CWSU-YAMB-8Y3G-R3TO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
69. In order to determine product costs, JIT firms are usually structured so they can use:
a. job-order costing
b. process costing
c. joint costing
d. variable costing
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GBTU-1QMG-CR3D-1PMR-
GWSU-YPUR-8YSS-KCMB-GOSS-G3BI-GASU-KPMN-CO5S-N3BT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
70. JIT manufacturing emphasizes
a. continuous improvement.
b. elimination of waste.
c. reduction of work-in-process inventories.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
Chapter 6
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HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CR3S-RPMG-CW3D-KPBZ-GYSU-
CQBS-CRSU-OP3I-GOSU-RQJZ-GRSU-E3T3-GFTG-NCUG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
71. The role of activity-based costing for both cellular and independent process manufacturing is to:
a. determine the profitability of a department.
b. compute the unit fixed costs incurred by a firm.
c. assign overhead shared by processes to individual processes.
d. separate fixed and variable costs incurred by multiple processes.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 12:20 AM
QUESTION ID: JFND-GO33-GINW-GPKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-CA5U-KCB1-GE5U-E3UR-8RSU-
QCDN-CRSS-GQBW-GOSS-GCDG-CWSS-R3TT-GC3D-RC3T-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
72. The complete units that could have been produced given the total amount of productive effort expended for the period
under consideration are the:
a. units in ending work in process.
b. units in beginning work in process.
c. total units of output.
Chapter 6
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d. equivalent units of output.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 8:08 AM
QUESTION ID: JFND-GO33-GINW-GPKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-GFTU-KPDF-GO3U-EAJZ-
CWSU-NPBU-CESU-1CMD-GOSS-RCUN-CASU-13B3-GF1S-C3TZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
73. That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are
equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:
a. Equivalent unit of output
b. Cost reconciliation
c. Batch production process
d. Transferred-in costs
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-GIUD-KQDD-CR3D-YAMN-8YSS-
R3JS-CESU-YCBU-GOSU-EPBS-8YSU-RAJT-CE5U-OAJT-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
74. Equivalent units expresses all activity of the period in terms of
a. direct labor hours.
b. partially completed units.
c. fully completed units.
d. units of input.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CT1U-NQJO-GC3G-RAT3-8RSS-
KCDR-8YSS-RPJW-GOSU-Q3TO-GOSU-CC3Z-C3OU-CAUG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
75. The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a
given number of partially completed units is:
a. Units completed
b. Equivalent units
c. Units started and completed
d. Total units in production
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
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DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GEAU-EQJT-GIOU-YP5N-CASU-
YQJS-8RSS-C3BZ-GOSU-1CUF-GWSS-NAJZ-GCAU-K3TS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
76. The following information is available from the records of Diamond Cut, Inc.:
Direct Materials-Assembly Department $10,000
Direct Materials-Finishing Department 15,000
Direct Labor-Assembly Department 11,000
Direct Labor-Finishing Department 20,000
Applied Overhead-Assembly Department 11,000
Applied Overhead-Finishing Department 20,000
Actual Overhead-Assembly Department 12,500
Actual Overhead-Finishing Department 17,500
What are the “total costs to account for” in the Assembly Department?
a. $32,000
b. $44,500
c. $21,000
d. $10,000
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $10,000
Direct labor 11,000
Applied overhead 11,000
Total $32,000
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:29 AM
QUESTION ID: JFND-GO33-GINW-GPKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-GAHD-C3BU-GJOU-EPJW-GASS-
GPUG-CRSS-N3DN-GOSS-RCJT-COSU-QCUN-CE5D-GQBW-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
77. The following information is available from the records of Diamond Cut, Inc.:
Direct Materials-Assembly Department $10,000
Direct Materials-Finishing Department 15,000
Direct Labor-Assembly Department 11,000
Direct Labor-Finishing Department 20,000
Applied Overhead-Assembly Department 11,000
Applied Overhead-Finishing Department 20,000
Actual Overhead-Assembly Department 12,500
Actual Overhead-Finishing Department 17,500
What are the conversion costs in the Finishing Department?
a. $35,000
b. $37,500
c. $40,000
d. $57,500
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: $20,000 + $20,000 = $40,000
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:27 AM
QUESTION ID: JFND-GO33-GINW-GPKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-8BTD-1A3O-CFOS-C3BW-COSU-
GCMF-8RSU-Q3TS-GOSS-GCBZ-GCSU-R3BS-CI1D-CAT1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
78. When conversion costs are uniform,
a. materials, labor, and overhead are applied at different rates throughout the process.
b. materials, labor, and overhead are added throughout the process at the same rate.
c. labor and overhead are added at the same rate but different materials are added at a different point.
d. materials and labor are added at the same rate but overhead is applied uniformly.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-GPKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-CCHD-GPJT-C3TD-1CTU-GESU-
KPTW-8RSU-OQB3-GOSS-KA31-GYSS-GQDG-GWHS-NQJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
79. Maynard Inc. manufactures desks. The following data was given for production in February:
units, beginning work in process 0
units started 200
units completed ?
units, ending work in process (40% complete) 50
What were the total number of units to account for?
a. 50
b. 150
c. 200
d. 400
e. none of the above
ANSWER: c
RATIONALE:
BI 0
started 200
total units to account for 200
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
Chapter 6
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DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:48 AM
QUESTION ID: JFND-GO33-GINW-GPJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-8BTU-NPBT-8RHU-OCJI-GESS-
G3DR-8RSS-RQBT-GOSU-YQDR-8YSU-CATA-GWHU-NP3O-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
80. Maynard Inc. manufactures desks. The following data was given for production in February:
units, beginning work in process 0
units started 200
units completed ?
units, ending work in process (40% complete) 50
How many units were completed?
a. 400
b. 200
c. 150
d. 50
e. none of the above
ANSWER: c
RATIONALE:
BI 0 Completed 150
started 200 EI 0
units accounted for 200 Total units accounted for 150
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:48 AM
QUESTION ID: JFND-GO33-GINW-GPJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-CC3U-ECMR-8Y3U-1ATZ-CCSS-
RCTW-8YSU-NC5B-GOSU-NAUF-GRSU-Y3BO-GE4D-R3TS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 6
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81. Maynard Inc. manufactures desks. The following data was given for production in February:
units, beginning work in process 0
units started 200
units completed ?
units, ending work in process (40% complete) 50
What are the equivalent units?
a. 200
b. 170
c. 180
d. 150
e. none of the above
ANSWER: b
RATIONALE:
EQU
BI 0 Completed 150 150
started 200 EI 50 × .4 = 20
170
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:54 AM
QUESTION ID: JFND-GO33-GINW-GPJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-CE5U-CCB3-G3UD-N3JU-CESU-
Y3DB-CESU-NPTU-GOSU-1C3O-GCSU-NQBU-8R4D-1PUF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
82. Maynard Inc. manufactures desks. The following data was given for production in February:
units, beginning work in process 0
units started 200
units completed ?
units, ending work in process (40% complete) 50
If a total of $11,050 in production costs were incurred, what is the unit cost in February?
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a. $65
b. $55.25
c. $73.67
d. $221
e. none of the above
ANSWER: a
RATIONALE:
Units EQU
Completed 150 150
EI 50 × .4 = 20
170
$11,050/ 170 = $65 per unit
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:55 AM
QUESTION ID: JFND-GO33-GINW-GPJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-8R5S-KPUF-CW3S-G3BT-CASS-
RPMF-8RSS-KC3A-GOSU-KQDF-CCSS-C3B3-8BTS-CCUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
83. Maynard Inc. manufactures desks. The following data was given for production in February:
units, beginning work in process 0
units started 200
units completed ?
units, ending work in process (40% complete) 50
If a total of $11,050 in production costs were incurred, how much cost is assigned to the units completed?
a. $11,050
b. $3.250
c. $8,287.50
d. $9,750
e. none of the above
ANSWER: d
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RATIONALE: Units EQU
Completed 150 150
EI 50 × 0.4 20
170
$11,050 / 170 = $65 per unit
150 × $65 = $9,750
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 4:56 AM
QUESTION ID: JFND-GO33-GINW-GPJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CJTU-EA3A-G7TU-GQB3-GHSU-
OQDN-CESU-G3BO-GOSS-EPTZ-8YSU-K3TT-GTTS-EPJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
84. “Total costs to account for” does NOT include which of the following costs?
a. direct materials requisitioned for the department
b. prior department costs transferred in
c. ending work-in-process balance
d. beginning work-in-process balance
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
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QUESTION ID: JFND-GO33-GINW-GPJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GE5U-13JI-GEAU-E3BS-GOSU-
Q3UN-8RSS-N3T3-GOSS-RP3I-GWSS-GQBA-CO3U-RPB3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
85. Mannassass Company manufactures chairs. The following information was given for the company:
units, beginning work in process 0
units started 20,000
units completed ?
units, ending work in process 5,000
cost of direct materials $440,000
cost of conversion $ 64,000
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent
complete.
What are the units started and completed?
a. 20,000
b. 10,000
c. 15,000
d. 40,000
e. none of the above
ANSWER: c
RATIONALE: completed 15,000
− BI 0
started and completed 15,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/22/2017 10:07 PM
QUESTION ID: JFND-GO33-GINW-GPJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-CA5U-OQMD-GTTD-NPJT-8RSU-
KA5N-CRSS-NAMF-GOSU-YA3A-GHSS-KCB1-CIUD-E3BO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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86. Mannassass Company manufactures chairs. The following information was given for the company:
units, beginning work in process 0
units started 20,000
units completed ?
units, ending work in process 5,000
cost of direct materials $440,000
cost of conversion $ 64,000
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent
complete.
What are the equivalent units for materials and conversion respectively?
a. 20,000; 20,000
b. 20,000; 16,000
c. 15,000; 15,000
d. 15,000; 14,000
e. none of the above
ANSWER: b
RATIONALE: EQU M EQU C
units, beginning work in process 0
units started 20,000
total units to account for 20,000
units completed 15,000 15,000 15,000
from BI 0
started and completed 15,000
units, ending work in process 5,000 (100%) 5,000 (20%) 1,000
total 20,000 16,000
total units accounted for 20,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/22/2017 10:07 PM
QUESTION ID: JFND-GO33-GINW-GPJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GHHS-CCBI-GRHD-KP33-GOSU-
C3MG-CESU-1QDG-GOSU-E3TO-GASU-1PUD-GY4S-RA3T-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 6
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87. Mannassass Company manufactures chairs. The following information was given for the company:
units, beginning work in process 0
units started 20,000
units completed ?
units, ending work in process 5,000
cost of direct materials $440,000
cost of conversion $ 64,000
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent
complete.
What are the costs per unit for materials and conversion respectively?
a. $22; $4
b. $29.33; $4.27
c. $11; $1.60
d. $88; $64
e. none of the above
ANSWER: a
RATIONALE:
EQU M EQU C
units, beginning work in process 0
units started 20,000
total units to account for 20,000
units completed 15,000 15,000 15,000
from BI 0
started and completed 15,000
units, ending work in process 5,000 (100%) 5,000 (20%) 1,000
total 20,000 16,000
total units accounted for 20,000
materials $440,000/20,000=$22
conversion $64,000/16,000 = $ 4
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/22/2017 10:08 PM
Chapter 6
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QUESTION ID: JFND-GO33-GINW-EOKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-GA3S-GCBW-GRHG-NPUR-CASU-
OCJZ-8YSS-C3DN-GOSU-NAMN-GOSU-1QBT-8R4G-NCDG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
88. Mannassass Company manufactures chairs. The following information was given for the company:
units, beginning work in process 0
units started 20,000
units completed ?
units, ending work in process 5,000
cost of direct materials $440,000
cost of conversion $ 64,000
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent
complete.
What cost is assigned to ending work in process?
a. $110,000
b. $126,000
c. $130,000
d. $114,000
e. none of the above
ANSWER: d
RATIONALE:
EQU M EQU C
units, beginning work in
process 0
units started 20,000
total units to account for 20,000
units completed 15,000 15,000 15,000
from BI 0
started and completed 15,000
units, ending work in
process 5,000 (100%) 5,000 (20%) 1,000
total 20,000 16,000
total units accounted for 20,000
materials $440,000/20,000 = $22
conversion $64,000/16,000 = $ 4
EWIP (m) 5,000 × $22 = $110,000
(c) 1,000 × $4 = $ 4,000
total cost $114,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
Chapter 6
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NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/22/2017 10:11 PM
QUESTION ID: JFND-GO33-GINW-EOKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-GCAU-R3T3-GITG-KCB1-8RSU-
1A3S-CESU-RCMB-GOSU-GPBT-GOSU-YP31-GA3S-E3MD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
89. Cadmium Corporation manufactures leather bags. The following information pertains to the month of August:
Units
Work in process, August 1 (40% complete) 900
Started in August 4,000
Materials are added at the beginning of the process.
If 3,700 units were completed during the month, ending work in process on August 31 is:
a. 1,200 units.
b. 2,000 units.
c. 2,700 units.
d. 1,000 units.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Work in process, August 1 900
Units started 4,000
4,900
Less units completed 3,700
Ending work in process 1,200
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
Chapter 6
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DATE MODIFIED: 1/27/2017 12:21 AM
QUESTION ID: JFND-GO33-GINW-EOJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GE5D-1CB3-8RAD-Q3J3-GRSU-
RPJO-8RSU-CPTW-GOSU-N3BA-CESU-GCTA-GA5G-RQJ1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
90. Which of the following is true of the first-in, first-out costing method?
a. It calculates the equivalent units of output at the beginning of a reporting period.
b. It includes only prior-period work in determining the completed units of output.
c. It uses only current output to calculate the current-period unit cost.
d. It treats the work in beginning work-in-process as belonging to the current period.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 12:22 AM
QUESTION ID: JFND-GO33-GINW-EOJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CJTG-GAJZ-CO4U-NQDR-GASU-
OCBU-8YSS-E3JI-GOSU-KC33-CCSU-K3UR-GI1D-GQDG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
91. Edelstein Company had the following data for 2018:
Units in process at the beginning of the month 4,000
Units in process at the end of the month 10,000
Units started during the month 40,000
Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion.
Ending work in process was 70 percent complete as to conversion.
What is the number of units completed and transferred out during the period?
a. 34,000 units
b. 54,000 units
c. 44,000 units
d. 40,000 units
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS: 4,000 + 40,000 − 10,000 = 34,000
Chapter 6
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POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 5:24 AM
QUESTION ID: JFND-GO33-GINW-EOKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GA3D-RATI-GO4G-G3UB-8RSS-
GQBA-CESU-13MG-GOSU-KA5G-CRSU-KAJT-GO3U-KCUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
92. Edelstein Company had the following data for 2018:
Units in process at the beginning of the month 4,000
Units in process at the end of the month 10,000
Units started during the month 40,000
Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion.
Ending work in process was 70 percent complete as to conversion.
How many equivalent units for materials would there be using the FIFO method?
a. 44,000 units
b. 30,000 units
c. 40,000 units
d. 39,400 units
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (4,000 × 0%) 0
Started and completed (30,000 × 100%) 30,000
Ending WIP (10,000 × 100%) 10,000
40,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
Chapter 6
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United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 5:22 AM
QUESTION ID: JFND-GO33-GINW-EOKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-CE3G-NQBS-GW5U-ECT1-
CRSU-QP3O-CESS-C3UD-GOSU-1QBI-GCSS-KAUG-CE5U-Q3MF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
93. The unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs is
called:
a. Transferred-in cost method
b. FIFO costing method
c. Weighted average method
d. Equivalent units method
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GC5D-K3J3-8YAU-1CBA-GWSU-
CA5F-CESS-KAMF-GOSS-E3MF-GHSU-13B3-GOAD-NPBO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
94. Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of
materials issued to the department during the year divided by
a. units in process.
b. units started and completed.
c. total units manufactured.
d. equivalent units of output.
ANSWER: d
POINTS: 1
Chapter 6
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DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GY5S-GPB3-CJTG-NCDN-8YSU-
ECTI-CESU-YATT-GOSS-KCJS-GESU-YQJT-GOHG-ECMB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
95. Thunder Roads Enterprises makes the following information available:
Units in process at the beginning of the month 2,000
Units in process at the end of the month 4,000
Units started during the month 30,000
Materials are added at the beginning of the process.
Beginning and ending units were 60 percent complete as to conversion costs. What is the number of units started and
completed?
a. 36,000 units
b. 30,000 units
c. 28,000 units
d. 26,000 units
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 30,000 − 4,000 = 26,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 5:38 AM
Chapter 6
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QUESTION ID: JFND-GO33-GINW-EOJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-8RAS-K3BU-COAG-KPJT-GASU-
YQMN-8YSU-KPDB-GOSU-EPB1-GOSU-1PMD-CP1D-YPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
96. Thunder Roads Enterprises makes the following information available:
Units in process at the beginning of the month 2,000
Units in process at the end of the month 4,000
Units started during the month 30,000
Materials are added at the beginning of the process.
Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the
FIFO method?
a. 36,000 units
b. 34,000 units
c. 30,000 units
d. 29,200 units
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (2,000 × 0%) 0
Started and completed (26,000 × 100%) 26,000
Ending WIP (4,000 × 100%) 4,000
30,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 5:38 AM
QUESTION ID: JFND-GO33-GINW-EOJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-GI1U-GCDN-GJTD-OPTU-GYSU-
KQJA-CRSS-E3J1-GOSU-OQBW-GASU-RQBZ-GE4S-GCJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
97. Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department.
Materials data for this department for May 2018 are as follows:
Chapter 6
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Costs
Units Materials Conversion
Work in process, May 1 25,000 $ 68,750 $167,650
Started during May 100,000 300,000 903,350
Work in process, May 31 10,000
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
How many equivalent units for materials would there be for Anzalone Corporation in May using the FIFO method?
a. 110,000 units
b. 100,000 units
c. 125,000 units
d. 119,000 units
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (25,000 × 0%) 0
Started and completed (90,000 × 100%) 90,000
Ending WIP (10,000 × 100%) 10,000
100,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 1:21 AM
QUESTION ID: JFND-GO33-GINW-EOJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-CFTS-KQJT-GO3G-KPUF-GASU-
13JZ-CESS-G3BS-GOSS-N3J3-CESU-NCTS-CO3D-NAMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
98. Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department.
Materials data for this department for May 2018 are as follows:
Costs
Units Materials Conversion
Work in process, May 1 25,000 $ 68,750 $167,650
Started during May 100,000 300,000 903,350
Work in process, May 31 10,000
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO
Chapter 6
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method?
a. 100,000 units
b. 111,500 units
c. 125,000 units
d. 101,500 units
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (25,000 × 30%) 7,500
Started and completed (90,000 × 100%) 90,000
Ending WIP (10,000 × 40%) 4,000
101,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 1:19 AM
QUESTION ID: JFND-GO33-GINW-EOJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GY5S-GPBO-CRHD-1AT3-GOSU-
RCJZ-8RSU-E3JA-GOSS-GPJO-CCSU-KPDG-CO4D-CCUN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
99. If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the
equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are
a. 3,000 units.
b. 1,200 units.
c. 1,800 units.
d. 500 units.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: 3,000 × 0.40 = 1,200
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
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STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-GOHS-GQJO-GBTD-K3J3-CCSS-
RA5F-8YSU-RPDN-GOSS-KCJO-GYSU-C3B1-G7TG-GAJS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
100. Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for
materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and
3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the
production process.
What is the unit cost for materials for Layla using the FIFO method?
a. $2.00
b. $2.03
c. $4.53
d. none of the above
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS: $42,000/21,000 = $2
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 5:49 AM
QUESTION ID: JFND-GO33-GINW-EOJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-G31U-GPJ1-8B1D-OQMD-8RSU-
NAUN-8RSS-KATZ-GOSS-GPJI-8YSS-KC5R-GTOS-RAJU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
101. Julius Corporation’s mixing department began January 2018 with 10,000 gallons of product (40 percent completed)
in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending
inventory (70 percent completed).
Chapter 6
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If materials were added at the beginning of the process, how many equivalent units of production for conversion costs
would there be for Julius using the FIFO costing method?
a. 101,500 units
b. 110,000 units
c. 105,500 units
d. 116,500 units
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (10,000 × 60%) 6,000
Started and completed (85,000 × 100%) 85,000
Ending WIP (15,000 × 70%) 10,500
101,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 6:09 AM
QUESTION ID: JFND-GO33-GINW-EOJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-8Y5D-CCJU-GC5S-C3BT-GWSS-
NQJI-8RSS-RPUB-GOSU-GC3I-GHSU-N3UB-CPTU-CA3T-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
102. Julius Corporation’s mixing department began January 2018 with 10,000 gallons of product (40 percent completed)
in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending
inventory (70 percent completed).
If materials were added when the units are 50 percent complete, how many equivalent units of production for materials
would there be for Julius Corporation using the FIFO costing method?
a. 101,500 units
b. 105,500 units
c. 110,000 units
d. 85,000 units
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (10,000 × 100%) 10,000
Started and completed (85,000 × 100%) 85,000
Ending WIP (15,000 × 100%) 15,000
110,000
POINTS: 1
Chapter 6
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DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 6:09 AM
QUESTION ID: JFND-GO33-GINW-EOJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-CFUG-KCUG-CW3D-EPB3-CASU-
QAJ3-8YSU-QCUN-GOSU-KPUF-GOSU-EP3W-CEHU-1A33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
103. Aquamarine Company produces car batteries. The following information is provided for the month of April with
respect to conversion costs:
Units
Work-in-process (WIP) inventory, April 1 (30% complete) 6,000
Units transferred in 30,000
Work-in-process inventory, April 30 (60% complete) 4,000
Materials are added at the start of the process.
Compute the equivalent units with respect to conversion costs using the first-in, first-out method?
a. 27,000 units
b. 30,200 units
c. 26,000 units
d. 32,600 units
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS:
Beginning WIP (6,000 × 70%) 4,200
Started and completed (26,000 × 100%) 26,000
Ending WIP (4,000 × 60%) 2,400
32,600
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
Chapter 6
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United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 5:18 AM
QUESTION ID: JFND-GO33-GINW-EO1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GA3G-CATS-CWAU-NQJU-
GHSU-1PMB-8RSU-1CMB-GOSU-GQDD-CRSU-CC3W-8YHU-C3BS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
104. Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing
costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows:
Work in process, January 1:
Units (35% complete) 7,500
Direct materials $36,000
Direct labor $45,000
Overhead $15,000
During January, 26,750 units were completed and transferred to the Molding Department. The following costs were
incurred by the Mixing Department during January:
Direct materials $133,050
Direct labor 180,000
Overhead (applied) 45,000
There were 2,500 units that were 80 percent complete remaining in Mixing at January 31. The amount of total costs to
account for is
a. $454,050.
b. $396,000.
c. $360,000.
d. none of the above.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Costs to account for:
Materials Conversion Total
Beginning work in process $36,000 $60,000 $96,000
Incurred during period 133,050 225,000 358,050
Total costs to account for $169,050 $285,000 $454,050
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
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STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 6:15 AM
QUESTION ID: JFND-GO33-GINW-EO1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-GC3U-QAUB-GHAD-O3TS-GCSU-
NQBZ-8YSU-O3MB-GOSU-EPDR-GHSS-KPTT-8RAS-EAT3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
105. Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing
costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows:
Work in process, January 1:
Units (35% complete) 7,500
Direct materials $36,000
Direct labor $45,000
Overhead $15,000
During January, 26,750 units were completed and transferred to the Molding Department. The following costs were
incurred by the Mixing Department during January:
Direct materials $133,050
Direct labor 180,000
Overhead (applied) 45,000
There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. Total cost per equivalent unit of
production using the FIFO method is
a. $12.16.
b. $13.20.
c. $9.76.
d. none of the above.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Equivalent units = (7,500 × 0.65) + (26,750 − 7,500) + (3,750 × 0.80)
= 27,125 units
Costs to account for:
Materials Conversion Total
Current costs to account for $133,050 $225,000 $358,050
Cost per equivalent unit
($358,050/27,125) $ 13.20
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 67
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 6:15 AM
QUESTION ID: JFND-GO33-GINW-EOT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-G71U-KC3Z-GH5D-RQBI-CRSU-
NPMR-8YSS-NQJZ-GOSU-CAMB-CWSS-GC3I-8Y4U-RCTO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
106. Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing
costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows:
Work in process, January 1:
Units (35% complete) 7,500
Direct materials $36,000
Direct labor $45,000
Overhead $15,000
During January, 26,750 units were completed and transferred to the Molding Department. The following costs were
incurred by the Mixing Department during January:
Direct materials $133,050
Direct labor 180,000
Overhead (applied) 45,000
The cost of January’s ending work in process for the Mixing Department using the FIFO method is
a. $26,250.
b. $50,400.
c. $63,000.
d. none of the above.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 3,750 × 0.80 × $13.20* = $39,600
* cost per equivalent units of 13.20 are calculated by dividing total costs by equivalent units
as follows:
Equivalent units = (7,500 × 0.65) + (26,750 − 7,500) + (3,750 × 0.80)
= 27,125 units
Costs to account for:
Materials Conversion Total
Current costs to account for $133,050 $225,000 $358,050
Cost per equivalent unit ($358,050/27,125) $13.20
POINTS: 1
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 68
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 6:17 AM
QUESTION ID: JFND-GO33-GINW-EOTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GR3G-CCT1-G31G-EPJI-CASS-
EP3U-CESU-OP3O-GOSU-O3DN-GESU-OQMN-GYHS-EQMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
107. Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing
costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows:
Work in process, January 1:
Units (35% complete) 7,500
Direct materials $36,000
Direct labor $45,000
Overhead $15,000
During January, 26,750 units were completed and transferred to the Molding Department. The following costs were
incurred by the Mixing Department during January:
Direct materials $133,050
Direct labor 180,000
Overhead (applied) 45,000
There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. The cost of goods transferred to
the Molding Department during January using the FIFO method is
a. $414,450.
b. $391,575.
c. $323,400.
d. none of the above.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Beginning work in process:
Beginning balance ($36,000 + $45,000 + $15,000) = $ 96,000
Add: (7,500 × 0.65 × $13.20*) = 64,350
Started and completed (19,250 × $13.20*) = 254,100
Total = $414,450
* cost per equivalent units of 13.20 are calculated by dividing total costs by equivalent units
as follows:
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 69
Equivalent units = (7,500 × 0.65) + (26,750 − 7,500) + (3,750 × 0.80)
= 27,125 units
Costs to account for:
Materials Conversion Total
Current costs to account for $133,050 $225,000 $358,050
Cost per equivalent unit ($358,050/27,125) $ 13.20
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 6:26 AM
QUESTION ID: JFND-GO33-GINW-EO1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-GO5D-CAT3-CRAS-KCJO-GASU-
RC33-CESU-KPJW-GOSU-QPDR-CWSU-N3UF-GPOU-EPUR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
108. Beginning inventory consisted of 1,000 units with costs of $31,000. All materials and 60 percent of labor and
overhead were added in the prior period. In addition, another 8,000 units were started and completed. Unit costs are
materials, $8.00; labor, $20.00; overhead, $9.00. What is the total cost of goods transferred out using FIFO?
a. $296,000
b. $338,600
c. $332,400
d. $338,000
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Beginning work in process:
Beginning balance $ 31,000
Labor (400 × $20) 8,000
Overhead (400 × $9) 3,600
$ 42,600
Started and completed (8,000 × $37) 296,000
Total $338,600
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 70
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EO1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GHAU-GC3I-GRHD-1C3Z-CRSU-
C3B1-CESU-OQB1-GOSU-Q3MB-CESU-YC5N-CR4S-NCMN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
109. Phantom Enterprises adds materials to production at the beginning of the process in the Production Department. It
uses a single-step process. Data on material for this department for July 2018 are as follows:
Production data (units):
In process, beginning of July 10,000
Started during July 60,000
Completed and transferred out during July 55,000
Manufacturing cost:
Work in process, beginning $ 39,000
Materials used in July $186,000
The company uses the FIFO inventory method.
The materials cost in Work in Process on July 31 is
a. $37,500.
b. $31,000.
c. $39,000.
d. $46,500.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: $186,000/60,000 = $3.10 15,000 × $3.10 = $46,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 71
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 1:33 AM
QUESTION ID: JFND-GO33-GINW-EO1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CE4D-CPJA-GFOS-CAUF-GRSU-
RCJ3-8RSS-C3BT-GOSS-C3DR-GYSU-N3JO-8BTG-KP5R-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
110. Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The
following information is given for the printing department for September.
Units:
Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)
Started 300,000
Completed ?
Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)
Costs: Materials Conversion Total
beginning work in process $ 6,080 $ 2,160 $ 8,240
current costs $220,875 $30,600 $251,475
total costs $226,955 $32,760 $259,715
The company uses FIFO inventory assumption.
What are the FIFO equivalent units for materials?
a. 304,500
b. 294,500
c. 302,500
d. 262,500
e. none of the above
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
40,000 × 0.80 = 32
250,000 × 1.00 = 250,000
50,000 × 0.25 = 12,500
$294,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
Chapter 6
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DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 12:09 AM
QUESTION ID: JFND-GO33-GINW-EO1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GA5U-GPTZ-CCAD-QQMB-
COSU-YCUN-8RSS-NA5F-GOSU-QA3U-CESU-QAUG-CI1D-K3UF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
111. Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The
following information is given for the printing department for September.
Units:
Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)
Started 300,000
Completed ?
Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)
Costs: Materials Conversion Total
beginning work in process $ 6,080 $ 2,160 $ 8,240
current costs $220,875 $30,600 $251,475
total costs $226,955 $32,760 $259,715
The company uses FIFO inventory assumption.
What are the FIFO equivalent units for conversion?
a. 306,000
b. 340,000
c. 316,000
d. 300,000
e. none of the above
ANSWER: a
RATIONALE: 40,000 × .40 = 16,000 250,000 × 1.00 = 250,000 50,000 × .80 = 40,000 306,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 12:10 AM
QUESTION ID: JFND-GO33-GINW-EOTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-GYAU-KQBA-CR3G-NQBT-
GWSU-CQBW-CRSU-1AJZ-GOSU-GQMG-GOSU-QQDG-GW5D-N3BT-E7JI-YT4D-
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JFNN-4OTI-GO4W-NQNBEE
112. Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The
following information is given for the printing department for September.
Units:
Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)
Started 300,000
Completed ?
Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)
Costs: Materials Conversion Total
beginning work in process $ 6,080 $ 2,160 $ 8,240
current costs $220,875 $30,600 $251,475
total costs $226,955 $32,760 $259,715
The company uses FIFO inventory assumption.
What are the FIFO cost per unit for conversion?
a. $0.90
b. $0.11
c. $0.66
d. $0.10
e. none of the above
ANSWER: d
RATIONALE: $30,600/306,000 = $.10
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 12:10 AM
QUESTION ID: JFND-GO33-GINW-EOT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GRAU-EQMD-GHHD-GP5N-
GCSS-KCUN-8YSS-RC3T-GOSS-CATI-GCSU-CPJI-GBTU-GAUF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
113. Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The
following information is given for the printing department for September.
Units:
Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)
Chapter 6
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Started 300,000
Completed ?
Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)
Costs: Materials Conversion Total
beginning work in process $ 6,080 $ 2,160 $ 8,240
current costs $220,875 $30,600 $251,475
total costs $226,955 $32,760 $259,715
The company uses FIFO inventory assumption.
What are the FIFO cost per unit for materials?
a. $1.00
b. $0.77
c. $0.75
d. $0.65
e. none of the above
ANSWER: c
RATIONALE: $220,875/294,500 = $.75
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 12:14 AM
QUESTION ID: JFND-GO33-GINW-EOTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-8YAD-KC5D-CPUD-RP5D-COSU-
CAT1-8YSU-N3UR-GOSU-1PUN-GYSS-K3TA-8YHD-KATO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
114. Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The
following information is given for the printing department for September.
Units:
Units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion)
Started 300,000
Completed ?
Units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion)
Costs: Materials Conversion Total
beginning work in process $ 6,080 $ 2,160 $ 8,240
current costs $220,875 $30,600 $251,475
Chapter 6
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total costs $226,955 $32,760 $259,715
The company uses FIFO inventory assumption.
What is the journal entry for the cost of goods sent to binding?
a. work in process – binding $246,500
work in process – printing $246,500
b. work in process – printing $246,340
work in process – binding $246,340
c. work in process – binding $246,340
work in process – printing $246,340
d. work in process – printing $246,500
work in process – binding $246,500
e. none of the above
ANSWER: c
RATIONALE: materials $220,875/294,500 = $0.75
conversion $30,600/306,000 = $0.10
assign costs to completed and transferred out units
BI $ 8,240
finish beginning
inventory (m)
32,000 × .75 24,000
finish beginning
inventory (c) 16,000 × .10 1,600
started and completed 250,000 × .85 212,500
total cost transferred out $246,340
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 12:14 AM
QUESTION ID: JFND-GO33-GINW-EOTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-G71U-QPDF-GR3S-GPUN-GASS-
CA3T-8YSU-1CB3-GOSU-RQB1-GOSS-ECMR-CW3U-KC3I-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
115. The unit-costing method that merges prior-period work and costs with current-period work and costs is called:
a. Operating costing
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b. Transferred-in cost
c. FIFO costing method
d. Weighted average method
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-8YHD-1A31-GY5G-GCJ3-GRSU-
GAJU-8RSS-GCJO-GOSU-QPJT-GOSS-CQDN-GOAS-CPMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
116. When computing equivalent units of production, the method that combines partially completed units in beginning
inventory with current period production is
a. the FIFO method.
b. the LIFO method.
c. the specific identification method.
d. the weighted average method.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
Chapter 6
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GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GAHS-RPUD-8Y4U-QA5G-GYSU-
YAMB-8RSU-QQMG-GOSU-OPMR-GHSU-QC33-CW5U-NC33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
117. Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units
(40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for
conversion costs were produced using the weighted average method?
a. 50,000 units
b. 56,000 units
c. 70,000 units
d. 58,000 units
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS:
Transferred out (50,000 × 100%) 50,000
Ending WIP (20,000 × 40%) 8,000
58,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-CFUD-E3MF-CF1D-CCBU-8RSU-
1P5G-CESS-NP3S-GOSS-NQB1-CCSU-O3TI-GWHU-1CBU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
118. The following information is available:
Units in process, November 1 (60% converted) 2,000 units
Units in process, November 30 (60% converted) 4,000 units
Units started during the month 30,000 units
Materials are added at the beginning of the process.
How many equivalent units for conversion would there be in November using the weighted average method?
a. 30,400 units
b. 36,000 units
c. 32,000 units
d. 33,200 units
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ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Transferred out (28,000 × 100%) 28,000
Ending WIP (4,000 × 60%) 2,400
30,400
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EOTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GCAD-G3JS-8YAS-N3BU-GHSU-
Q3TT-8YSU-ECDD-GOSU-YATT-GRSU-OCBT-GBOS-KPDD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
119. Wonder Paints Corporation’s Mixing Department began August 2018 with 10,000 gallons of product (40 percent
completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons
remained in ending inventory (70 percent completed).
If materials were added at the beginning of the process, how many equivalent units of production for conversion costs
would there be for Wonder Paints using the weighted average costing method?
a. 120,500 units
b. 110,000 units
c. 105,500 units
d. 99,500 units
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Transferred out (95,000 × 100%) 95,000
Ending WIP (15,000 × 70%) 10,500
105,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
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STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 11:10 PM
QUESTION ID: JFND-GO33-GINW-EQNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-8RHD-CQJZ-GE4D-KPJO-CRSU-
GQJA-8YSU-QC3S-GOSS-RQMF-GHSU-KPUR-GOHS-CP5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
120. Wonder Paints Corporation’s Mixing Department began August 2018 with 10,000 gallons of product (40 percent
completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons
remained in ending inventory (70 percent completed).
If materials were added when the units were 80 percent complete, how many equivalent units of production for materials
would there be for Wonder Paints using the weighted average costing method?
a. 95,000 units
b. 110,000 units
c. 107,000 units
d. 105,500 units
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Transferred out (95,000 × 100%) 95,000
Ending WIP (15,000 × 0%) 0
95,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/9/2017 11:09 PM
QUESTION ID: JFND-GO33-GINW-EQNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-CJ1D-13MB-8FUD-YP33-GHSU-
1AMB-CRSS-R3MN-GOSU-OQMB-8RSU-CPUG-GIUD-NPTI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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121. The following information pertains to Mcintosh Company:
Work-in-process inventory, February 1 (30% complete) 20,000 units
Units transferred in 50,000 units
Work-in-process inventory, February 29 (60% complete) 16,000 units
Materials are added at the start of the process.
How many equivalent units for materials would there be using the weighted average method?
a. 86,000 units
b. 70,000 units
c. 50,000 units
d. 57,600 units
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Transferred out (54,000 × 100%) 54,000
Ending WIP (16,000 × 100%) 16,000
70,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-CT1D-R3MD-GJUG-CQBO-
GESU-Q3JT-8YSU-1C3W-GOSS-GCTI-GCSS-CC5R-GJUG-CCBZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
122. Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials.
55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent
complete with respect to materials. The weighted average equivalent units of production for materials for the month
would be
a. 55,000 units.
b. 55,550 units.
c. 56,500 units.
d. 57,550 units.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Units complete 55,000
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Ending work in process (5,500 × 10%) 550
Equivalent units of production 55,550
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GR5G-GQMB-GWAU-EQBT-
8YSS-EQBU-8RSU-RQJU-GOSS-K3BA-CESS-K3DG-CA5G-NQDB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
123. The costs included in the cost per equivalent unit using the weighted average method are
a. current costs.
b. beginning work in process.
c. ending work in process.
d. both a and b.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-C3TS-NCUR-8R4S-KP3Z-GASU-
KATU-8RSU-RCTS-GOSU-YP5D-GASS-K3TZ-CO4G-RAJT-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
124. Data related to Alpha, Inc., for the month of June follows:
Units
Work in process (WIP), June 1 (40% complete) 16,000
Started in June 80,000
Work in process, June 30 24,000
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method were 79,200 units, ending work in
process on June 30 must have been:
a. 70.5 percent complete.
b. 30.0 percent complete.
c. 45.0 percent complete.
d. 25.5 percent complete.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Equivalent units of production 79,200
Units completed* (16,000 + 80,000 − 24,000) 72,000
Equivalent units of production from ending WIP 7,200
Ending WIP must be (7,200 / 24,000), or 30% complete.
*Units completed = Beginning WIP + Units started − Ending WIP
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 12:26 AM
QUESTION ID: JFND-GO33-GINW-EQNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GHAD-Y3UF-CC3G-CATW-
GHSU-YPTZ-8RSS-KPMB-GOSU-RATU-GESU-CCUF-GIOU-KPTW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
125. The material cost per equivalent unit using the weighted average method is calculated as
a. total material costs to account for/equivalent units for materials.
b. material costs added during the period/equivalent units for materials.
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c. total material costs to account for/number of partially completed units for materials.
d. material costs added during the period/number of partially completed units for materials.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GWAG-NPUF-G7TD-13UN-
GOSS-CATO-CESU-RQJ1-GOSU-QPBW-GRSU-OPTS-GW4S-RPDB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
126. Under the weighted average method, once weighted average equivalent units are calculated then the first-in, first-out
equivalent units can be obtained by subtracting out:
a. equivalent units in ending work in process.
b. units completed and transferred out.
c. units in ending work in process.
d. the prior-period output found in beginning work in process.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 3:55 AM
QUESTION ID: JFND-GO33-GINW-EQND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-G71U-1CJI-GO5U-13UB-GOSU-
Chapter 6
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O3T1-CESS-K3BU-GOSS-RPDB-8RSS-CP3T-CE3U-CPDR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
127. The following information is available for Department C for the month of June:
Units Cost
Work in process, June 1 (70% complete) 10,000
Direct materials $ 36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, June 1 $78,000
Started in production during June 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 60,600
Total costs added during June $216,600
Work in process, June 30 (80% complete) 4,000
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost per equivalent unit of production for materials using the weighted average method is
a. $2.70.
b. $2.88
c. $3.12.
d. $3.60.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Materials
Units completed (10,000 + 40,000 − 4,000) 46,000
Ending work in process 4,000
Equivalent units of production 50,000
Costs to account for: Materials
Beginning work in process $ 36,000
Incurred during period 108,000
Total costs to account for $144,000
Cost per equivalent unit ($144,000/50,000) $2.88
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
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KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 7:18 AM
QUESTION ID: JFND-GO33-GINW-EQBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-8R4U-RPB1-GA5D-NA3W-CESU-
YPBA-CRSS-KCDG-GOSS-NA3Z-8YSU-RCUG-GE3S-CP3U-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
128. The following information is available for Department C for the month of June:
Units Cost
Work in process, June 1 (70% complete) 10,000
Direct materials $ 36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, June 1 $78,000
Started in production during June 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 60,600
Total costs added during June $216,600
Work in process, June 30 (80% complete) 4,000
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost per equivalent unit of production for conversion using the weighted average method is
a. $3.54.
b. $3.06.
c. $2.55.
d. $2.19.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Conversion
Units completed (10,000 + 40,000 − 4,000) 46,000
Ending work in process (4,000 × 80%) 3,200
Equivalent units of production 49,200
Conversion
Beginning work in process (18,000 + 24,000) $ 42,000
Incurred during period (48,000 + 60,600) 108,600
Total costs to account for $150,600
Cost per equivalent unit ($150,600/49,200) $3.06
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 3:19 AM
QUESTION ID: JFND-GO33-GINW-EQB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMN-CPUD-GQBU-GP1U-OP31-
GRSU-1AUB-8RSU-KATS-GOSS-RPBT-CCSS-R3BS-8RHU-QQBI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
129. The following information is available for Department C for the month of June:
Units Cost
Work in process, June 1 (70% complete) 10,000
Direct materials $ 36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, June 1 $78,000
Started in production during June 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 60,600
Total costs added during June $216,600
Work in process, June 30 (80% complete) 4,000
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost of goods transferred out using the weighted average method is
a. $273,600.
b. $241,500.
c. $273,240.
d. none of the above.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Units transferred out = ($2.88* + $3.06**) × 46,000 = $273,240
*Materials cost per equivalent unit ($144,000/50,000) $2.88
**Conversion cost per equivalent unit ($150,600/49,200) $3.06
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 3:20 AM
QUESTION ID: JFND-GO33-GINW-EQBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-CFTD-YPUB-CE4U-GQMN-CCSS-
CPTW-CESS-RPUR-GOSU-OCB3-8YSU-NCB3-G7UD-YC5N-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
130. The following information is available for Department C for the month of June:
Units Cost
Work in process, June 1 (70% complete) 10,000
Direct materials $ 36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, June 1 $78,000
Started in production during June 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 60,600
Total costs added during June $216,600
Work in process, June 30 (80% complete) 4,000
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost of ending work in process using the weighted average method is
a. $23,760.
b. $21,312.
c. $16,992.
d. none of the above.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Ending work in process:
Materials ($2.88* × 4,000) $11,520
Conversion ($3.06** × 3,200) 9,792
$21,312
*Materials cost per equivalent unit ($144,000/50,000) $2.88
**Conversion cost per equivalent unit ($150,600/49,200) $3.06
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POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 3:21 AM
QUESTION ID: JFND-GO33-GINW-EQBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-GP1G-EQBI-GA3U-QATT-GCSS-
GPMF-CESU-QPTA-GOSS-EP3W-CRSU-YC31-CC4G-E3BT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
131. Boysenberry Company manufactures a product that passes through two processes: Grinding and Mixing.
Boysenberry adds all manufacturing costs uniformly in the Grinding Department. Information relating to the Grinding
Department for November follows:
Work in process, November 1:
Units (75% complete) 1,500
Direct materials $12,500
Direct labor $10,000
Overhead $ 8,000
During November, 4,500 units were completed and transferred to the Mixing Department.
The following costs were incurred by the Mixing Department during November:
Direct materials $42,000
Direct labor 60,000
Overhead 15,000
There were 250 units that were 60 percent complete remaining in Grinding Department on November 30.
Determine the equivalent units of production using the weighted average method.
a. 4,500 units
b. 4,650 units
c. 4,000 units
d. 4,350 units
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Units completed 4,500
Ending work in process (250 × 60%) 150
Equivalent units of production 4,650
POINTS: 1
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DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 1:01 AM
QUESTION ID: JFND-GO33-GINW-EQBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-8BTU-Y3UR-CJTS-N3TZ-GRSU-
QC3W-CRSU-EP5F-GOSU-GAJZ-CESS-GP5B-8R4D-RPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
132. The Davidson Company uses a weighted average process costing system. The following information was reported
for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Units: units % complete for
conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in process $ 16,500 $ 33,250
current costs $643,500 $332,500
What are the equivalent units for materials?
a. 133,000
b. 100,000
c. 165,000
d. 125,000
e. none of the above
ANSWER: c
RATIONALE: 125 × 100 = 125
40 × 100 = 40
165
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
Chapter 6
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NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 3:31 AM
QUESTION ID: JFND-GO33-GINW-EQBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-CCHD-YPTI-GO4G-RA3U-GOSU-
YCJS-8YSS-E3B3-GOSU-RA3Z-8YSU-OQB3-GBUD-G3MB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
133. The Davidson Company uses a weighted average process costing system. The following information was reported
for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Units: units % complete for
conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in
process $ 16,500 $ 33,250
current costs $643,500 $332,500
What are the equivalent units for conversion?
a. 133,000
b. 165,000
c. 125,000
d. 100,000
e. none of the above
ANSWER: a
RATIONALE: 125 × 100 = 125
40 × 0.20 = 8
133
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
Chapter 6
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United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 3:31 AM
QUESTION ID: JFND-GO33-GINW-EQBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GC3U-QAJZ-CE5G-GATZ-GASU-
ECBO-CESS-RQDB-GOSS-KAJZ-GCSU-EA3S-GE3D-RCTA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
134. The Davidson Company uses a weighted average process costing system. The following information was reported
for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Units: units % complete for
conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in process $ 16,500 $ 33,250
current costs $643,500 $332,500
What is the cost per unit for conversion?
a. $2.79
b. $2.75
c. $2.50
d. $2.22
e. none of the above
ANSWER: b
RATIONALE: $33,250 + $332,500 = $ 365,750
$365,750/133,000 = $2.75
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
Chapter 6
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DATE MODIFIED: 1/23/2017 4:25 AM
QUESTION ID: JFND-GO33-GINW-EQKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GI1S-E3JO-GJ1S-R3UD-8RSU-
YAMN-8RSU-KA5B-GOSU-NQJU-CRSS-EQDF-CRAS-KCMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
135. The Davidson Company uses a weighted average process costing system. The following information was reported
for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Units: units % complete for
conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in process $ 16,500 $ 33,250
current costs $643,500 $332,500
What is the cost per unit for materials?
a. $4.00
b. $3.90
c. $4.96
d. $2.75
e. none of the above
ANSWER: a
RATIONALE: $16,500 + $643,500 = $660,000
$660,000/165,000 = $4.00
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:24 AM
QUESTION ID: JFND-GO33-GINW-EQKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GW3D-GA31-GF1D-RPJW-8RSU-
13MN-CESS-EQDR-GOSS-GAMF-GWSU-KCJZ-GPTS-ECB3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 6
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136. The Davidson Company uses a weighted average process costing system. The following information was reported
for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Units: units % complete for
conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in process $ 16,500 $ 33,250
current costs $643,500 $332,500
What is the cost assigned to the units completed and transferred to finishing?
a. $843,750
b. $708,750
c. $777,500
d. $976,000
e. none of the above
ANSWER: a
RATIONALE: 125,000 × $4.00 = $500,000
125,000 × $2.75 = $343,750
$843,750
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:39 AM
QUESTION ID: JFND-GO33-GINW-EQJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-GR4S-EPTI-GOAU-NCDB-8YSU-
QAMD-8RSS-RCDR-GOSU-GQDF-CWSS-EA3A-GA3U-KP3I-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
137. Which of the following process costing methods is simpler to use?
a. weighted average
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b. LIFO
c. FIFO
d. specific identification
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-CC3D-QCDD-CJ1U-YCTS-CASU-
KCJS-CRSS-GP5F-GOSS-CCTI-COSU-OQDG-GE5S-CC3A-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
138. Transferred-in costs are accounted for in the same manner as
a. materials added at the beginning of the process.
b. materials added at the end of the process.
c. conversion costs.
d. labor costs.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-GY5S-CA5G-C3UD-1PBU-
Chapter 6
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CWSU-1CMD-CRSS-RPDB-GOSU-Q3MG-CESS-NC3T-CA4D-RC33-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
139. Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added
uniformly in the second process. The following information is provided about the second department’s operations during
April:
Units, beginning work in process 4,000
Units, ending work in process 5,500
The number of units started in the second department during April is
a. 15,000 units.
b. 13,500 units.
c. 19,000 units.
d. 23,000 units.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: Units started equal the number of units transferred
in 19,000.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:27 AM
QUESTION ID: JFND-GO33-GINW-EQKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CR4U-CCMN-CW3U-EA5D-
GCSU-Q3TI-CRSU-RCDB-GOSU-GPJA-CRSU-Q3B3-GC5S-RCTU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
140. Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added
uniformly in the second process. The following information is provided about the second department’s operations during
April:
Units, beginning work in process 4,000
Units, ending work in process 5,500
Chapter 6
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The number of units completed in the second department during April is
a. 17,500 units.
b. 9,500 units.
c. 23,000 units.
d. 28,500 units.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Beginning work in process 4,000
Transferred in 19,000
23,000
Less: Ending work in process 5,500
17,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:27 AM
QUESTION ID: JFND-GO33-GINW-EQKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-8RAS-ECMD-GO5G-GCMG-
GESU-QC3A-CRSS-RCTI-GOSU-KCUG-8RSU-GCTA-GY3U-OATI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
141. Ramses Corporation produces a product that passes through two processes. During April, the first department
transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added
uniformly in the second process. The following information is provided about the second department’s operations during
April:
Units, beginning work in process 4,000
Units, ending work in process 5,500
The number of units started and completed in the second department during April is
a. 13,500 units.
b. 17,500 units.
c. 8,500 units.
d. 26,500 units.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Chapter 6
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Units completed 17,500
Less: Beginning work in process 4,000
Units started and completed 13,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:28 AM
QUESTION ID: JFND-GO33-GINW-EQKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-CTOS-R3JT-GYHD-YQBS-GESU-
G3TI-CESS-KCUD-GOSU-K3B1-CESU-GATW-C3UG-KA5N-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
142. Materials are added to a second production department and will not increase the number of units produced in this
department. Adding materials to the second department will
a. decrease total ending work in process.
b. change the amount of factory overhead included in the ending work in process.
c. increase total unit cost.
d. not change the dollar amount transferred out of the department.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-EQKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GR3U-1PTS-8YAD-CA5G-GESS-
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 98
NPDB-8YSS-RQDN-GOSS-ECUF-CESS-NPJ3-CE5G-G3MD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
143. Loganbery Corporation produces a product that passes through two processes. During January, the first department
transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added
uniformly in the second process. The following information is provided about the first department’s operations during
January:
Units, beginning work in process (1/3 complete) 6,000
Units, ending work in process (1/2 complete) 4,000
The equivalent units for those transferred in from the prior department using weighted average is
a. 16,000 units.
b. 20,000 units.
c. 14,000 units.
d. 26,000 units.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 22,000 + 4,000 = 26,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:40 AM
QUESTION ID: JFND-GO33-GINW-EQJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GC5D-N3UN-GY3G-CCDB-GCSS-
EQBU-CESS-NA3A-GOSU-YCJZ-GYSU-CCMD-GO5S-EA3W-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
144. Loganbery Corporation produces a product that passes through two processes. During January, the first department
transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added
uniformly in the second process. The following information is provided about the first department’s operations during
January:
Units, beginning work in process (1/3 complete) 6,000
Units, ending work in process (1/2 complete) 4,000
The equivalent units for conversion using weighted average is
a. 10,000 units.
Chapter 6
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b. 16,000 units.
c. 26,000 units.
d. 24,000 units.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 22,000 + 2,000 = 24,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:40 AM
QUESTION ID: JFND-GO33-GINW-EQJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-GO3U-C3JT-GJUG-RCBI-CESU-
K3JW-CESS-KCUD-GOSU-1QJ1-GCSS-RQMN-G3TD-QP3O-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
145. Loganbery Corporation produces a product that passes through two processes. During January, the first department
transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added
uniformly in the second process. The following information is provided about the first department’s operations during
January:
Units, beginning work in process (1/3 complete) 6,000
Units, ending work in process (1/2 complete) 4,000
The equivalent units for those transferred in from the prior department using FIFO would be
a. 10,000 units.
b. 20,000 units.
c. 26,000 units.
d. 22,000 units.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: 0 + 16,000 + 4,000 = 20,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 100
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:43 AM
QUESTION ID: JFND-GO33-GINW-EQJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-C31S-ECJ1-GYAS-RA3U-GCSU-
KPDD-CESU-OP5N-GOSU-YPTZ-CASS-CAJU-GOAS-KC5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
146. Loganbery Corporation produces a product that passes through two processes. During January, the first department
transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added
uniformly in the second process. The following information is provided about the first department’s operations during
January:
Units, beginning work in process (1/3 complete) 6,000
Units, ending work in process (1/2 complete) 4,000
The equivalent units for conversion using FIFO would be
a. 10,000 units.
b. 12,000 units.
c. 26,000 units.
d. 22,000 units.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 16,000 + 4,000 + 2,000 = 22,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:42 AM
QUESTION ID: JFND-GO33-GINW-EQJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 101
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-CRHD-QA3A-GYAD-KP5B-
GWSS-NCUN-8RSS-NAJI-GOSU-CCB3-GOSS-RQB3-CE5G-GAT3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
147. A cost transferred from a prior process to a subsequent process is referred to as a:
a. transferred-out cost.
b. transferred-in cost.
c. variable overhead.
d. direct labor cost.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 11:54 AM
QUESTION ID: JFND-GO33-GINW-EQJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GA3S-NQMB-GY5U-RP5N-
COSU-RCDB-CESU-KP3W-GOSS-NCJU-COSU-O3BT-GH4D-1QBS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
148. The Round Table Company makes carpenter’s squares and uses a process costing system. There is no spoilage.
Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are
given below:
Forming Finishing Packing
Beginning inventory units
(80% complete) 1,000 2,000 3,000
Units started 8,000 ? ?
Ending inventory units
(20% complete) 3,000 4,000 1,000
The Finishing Department adds materials at the point where processing is 50 percent complete.
The equivalent units for materials in the Finishing Department is
Weighted Average FIFO
a. 4,000 2,000
b. 4,800 3,200
c. 6,000 3,000
d. 8,000 8,000
Chapter 6
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e. none of the above
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS:
Started in finishing: 1,000 + 8,000 − 3,000 = 6,000
Transferred out: 2,000 + 6,000 − 4,000 = 4,000
Weighted average: 4,000 + 0 = 4,000
Started and completed: 4,000 − 2,000 = 2,000
No materials needed to finish beginning inventory and no materials in ending inventory.
FIFO: 0 + 2,000 + 0 = 2,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 12:53 AM
QUESTION ID: JFND-GO33-GINW-EQJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-C3TD-O3TS-GI1D-G3JZ-COSS-
RCBT-CESS-NQJT-GOSS-NAT1-CCSU-YPDG-CE5U-RPDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
149. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Mountainside’s equivalent units for conversion using FIFO would be
a. 114.
b. 105.
c. 93.
d. 9.
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ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: 105 + 9 = 114 − 21 = 93 OR 9 + 75 + 9 = 93
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:44 AM
QUESTION ID: JFND-GO33-GINW-EQJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-CWHD-NQB3-G7OU-CP5F-
GWSU-G3JW-CRSS-NC5N-GOSU-QC5G-CRSU-YP3U-GFUG-EP3S-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
150. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Mountainside’s equivalent units for materials using weighted average would be
a. 15.
b. 90.
c. 105.
d. 120.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: 105 + 0 = 105
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:45 AM
QUESTION ID: JFND-GO33-GINW-EQJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-GI1S-CCBI-G31S-ECUB-8RSU-
GP5B-CESU-OQJU-GOSU-QQMG-8YSS-CCDF-8R4G-KPJO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
151. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Mountainside’s equivalent units for transferred-in units using FIFO would be
a. 15.
b. 90.
c. 105.
d. 120.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: 105 + 15 = 120 − 30 = 90 OR 0 + 75 + 15 = 90
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 6
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KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:47 AM
QUESTION ID: JFND-GO33-GINW-ETKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-CCHS-G3UG-GBUG-KP5N-CESU-
KCUF-CRSU-1CDD-GOSU-KCBS-GASU-EQDB-GJTU-QPBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
152. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Mountainside’s equivalent units for transferred-in units using weighted average would be
a. 15.
b. 90.
c. 105.
d. 120.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 105 + 15 = 120
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:51 AM
QUESTION ID: JFND-GO33-GINW-ETKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-C3TD-YAJI-CR3U-1CBW-GYSU-
Chapter 6
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OAJW-8RSU-1P5G-GOSS-EPMD-8YSU-Q3BZ-CC4U-1CB3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
153. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Rounded to two decimal places, Mountainside’s conversion cost per unit using FIFO would be
a. $15.50.
b. $19.00.
c. $20.00.
d. $24.52.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $1,767/93 = $19
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:51 AM
QUESTION ID: JFND-GO33-GINW-ETJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CWHD-EAMN-GHAS-NCJI-
GCSU-RATO-8YSU-GPT3-GOSU-1C5F-GHSU-KPBZ-CP1U-GA5R-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
154. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Chapter 6
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Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Rounded to two decimal places, Mountainside’s cost per equivalent unit for conversion using weighted average would be
a. $15.50.
b. $19.00.
c. $20.00.
d. $24.52.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: $2,280/114 = $20 ($513 + $1,767 = $2,280))
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:52 AM
QUESTION ID: JFND-GO33-GINW-ETJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GPOS-EP3W-CC5G-CQB3-GOSU-
1AT3-CESU-O3MG-GOSU-Q3UN-GWSU-YCJ1-CFUD-Q3BZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
155. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Rounded to two decimal places, Mountainside’s cost per equivalent units for transferred-in costs using weighted average
would be
Chapter 6
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a. $49.00.
b. $50.00.
c. $57.14.
d. $66.67.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $6,000/120 = $50 ($1,590 + $4,410 = $6,000)
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:53 AM
QUESTION ID: JFND-GO33-GINW-ETKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-G71G-R3BA-COHU-ECDR-COSU-
G3DR-CESU-C3TA-GOSU-OA3Z-COSU-NQDR-GBOU-CAJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
156. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the
Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July $4,410 $1,050 $1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent
completed.
Rounded to two decimal places, Mountainside’s costs transferred out using weighted average would be
a. $6,000.
b. $8,190.
c. $8,400.
d. $9,330.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: ($6,000/120) + ($1,050/105) + ($2,280/114) = $80
$80 × 105 = $8,400
Chapter 6
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POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:54 AM
QUESTION ID: JFND-GO33-GINW-ETKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-8RHD-YP33-GI1U-R3MF-GOSS-
CC3I-CRSU-ECTT-GOSU-NQBA-8YSU-NQJI-GE4D-RPDF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
157. The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs
is called:
a. Batch production process
b. Cost reconciliation
c. Operation costing
d. Equivalent unit of output
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-ETKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ3-8F1D-KPB3-CJTG-EATS-CASU-
1PTU-8YSS-GPTO-GOSU-KQJU-GESS-CCB3-GOHU-ECUF-E7JI-YT4D-JFNN-4OTI-
Chapter 6
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GO4W-NQNBEE
158. Which of the following is true of work orders?
a. They initiate the marketing and sale of the products of each batch.
b. They collect selling costs for each batch of products.
c. They are used to collect production costs for each batch.
d. They are used to identify direct materials.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 1:03 AM
QUESTION ID: JFND-GO33-GINW-ETKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-COAD-1C5B-G3TD-QP3T-GESU-
KAMD-CRSU-O3MG-GOSS-NQMG-COSS-EQDB-8BTS-RPBI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
159. Outrageous Cups Corp. manufactures cups. The company’s manufacturing operations and costs applied to products
for April were:
Molding Heat-treat Finishing
Direct labor $25,000 $12,500 $ 7,500
Factory overhead 30,000 17,500 12,600
Total $55,000 $30,000 $20,100
Three types of cups were produced in April. The quantities and direct materials costs were:
Type Quantity Direct Materials
Casts 5,000 $15,000
Cups 7,000 22,470
Mugs 8,000 32,500
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass
through all three departments. An operations costing system is used.
What is Outrageous Cups’ conversion cost per unit for the heat-treat operation, rounded to two decimal places?
a. $1.50
b. $2.00
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c. $2.50
d. $3.75
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: $30,000/8,000 = $3.75
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 4:55 AM
QUESTION ID: JFND-GO33-GINW-ETJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-8RHU-NPTT-8Y3S-RPBW-CWSS-
R3DR-CRSU-R3J1-GOSU-EPJI-GWSS-NQDD-CRAG-CPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
160. Licorice Corp. manufactures cricket bats. The company’s manufacturing operations and costs applied to products for
the month of December were:
Grading Machining Shaping
Direct labor $ 4,000 $ 5,000 $ 6,000
Factory overhead 11,000 12,000 10,000
Total $15,000 $17,000 $16,000
Two types of bats were produced in December. The quantities and direct materials costs were:
Type Quantity Direct materials
Ordinary 20,000 $15,000
Premium 12,000 $30,000
Both types of bats pass through all the three departments. An operation costing system is used.
Compute the total cost of premium bats produced in the month of December.
a. $30,000
b. $40,000
c. $48,000
d. $32,000
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Production cost per unit of bat
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= (Grading cost + Machining cost + Shaping cost) / (Number of ordinary bats produced +
Number of premium bats produced)
= ($15,000 + $17,000 + $16,000) / (20,000 ordinary bats + 12,000 premium bats) = $1.5 per
bat
Total cost of premium bats
= Direct materials cost of premium bats + (Number of premium bats produced × Production
cost per unit of bat)
= $30,000 + (12,000 × $1.5) = $48,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 1:05 AM
QUESTION ID: JFND-GO33-GINW-ETJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-8B1D-G3UG-CW3U-NCBU-
GYSS-E3BT-CRSU-KCT3-GOSU-EAUB-CWSU-Y3DF-GPTG-N3TU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
161. Outrageous Cups Corp. manufactures cups. The company’s manufacturing operations and costs applied to products
for April were:
Molding Heat-treat Finishing
Direct labor $25,000 $12,500 $ 7,500
Factory overhead 30,000 17,500 12,600
Total $55,000 $30,000 $20,100
Three types of cups were produced in April. The quantities and direct materials costs were:
Type Quantity Direct Materials
Casts 5,000 $15,000
Cups 7,000 22,470
Mugs 8,000 32,500
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass
through all three departments. An operations costing system is used.
What is Outrageous Cups’ total cost per unit for Cups in April?
a. $4.09
b. $7.30
c. $7.84
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d. $11.05
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $55,000/(5,000 + 7,000 + 8,000) = $2.75 $20,100/(7,000
+ 8,000) = $1.34 $22,470 + (7,000 × $2.75) + (7,000 × $1.34) = $51,100/7,000 = $7.30
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/10/2017 3:28 AM
QUESTION ID: JFND-GO33-GINW-ETJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-CF1G-ECTA-CPUD-OATI-GRSU-
QATZ-8RSS-CPTO-GOSU-OQB3-GWSU-Q3TO-GA5D-YATZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
162. The process that produces batches of different products which are identical in many ways but differ in others is
called:
a. Operating costing
b. Batch production process
c. Cost reconciliation
d. Equivalent unit of output
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-ETJO
Chapter 6
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QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-GH3D-OQBA-G31D-EC3W-
GOSU-GC33-8RSU-OCBU-GOSU-YQJA-GASU-Y3DN-CAHG-R3BW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
163. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What are Golden Ring Company’s conversion costs applied to Large (Work Order 10) from the Mixing Department for
each batch?
a. $35,000
b. $35
c. $175,000
d. $17,500
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: Conversion cost rate (Mixing) = ($125,000 +
$50,000)/2,500 = $70 per DLH Applied conversion costs = $70 × 5,000 × 3/60 = $17,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:02 AM
QUESTION ID: JFND-GO33-GINW-ETJZ
Chapter 6
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QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CAHS-R3JU-G7TD-QQJT-8RSU-
NAUG-CESU-NC5N-GOSU-GCMN-GHSU-GAJO-GB1U-YCDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
164. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s amount transferred from the Mixing Department to the Cooking Department for Work
Order 10?
a. $45,000
b. $62,500
c. $39,500
d. $84,500
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $45,000
Conversion costs 17,500
$62,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:03 AM
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 116
QUESTION ID: JFND-GO33-GINW-ETJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-CPTU-C3JO-GE5U-QQJ3-GRSU-
R3DN-8RSU-QCBU-GOSS-GC5N-CASU-CCMG-G31D-RPTS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
165. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s amount transferred from the Bottling Department to Finished Goods for Work Order 10?
a. $45,000
b. $39,500
c. $84,500
d. $67,000
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $45,000
Applied conversion costs:
Mixing 17,500
Cooking 12,000
Bottling 10,000
Total $84,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 117
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:03 AM
QUESTION ID: JFND-GO33-GINW-ETJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-GE3S-EAMF-GJOU-QPT1-8RSS-
K3TS-CRSU-G3BW-GOSU-RC3Z-GASS-K3UD-GH3G-NQJ3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
166. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s unit cost of Large?
a. $3.50
b. $16.90
c. $23.90
d. $70.00
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $45,000
Applied conversion costs:
Mixing 17,500
Cooking 12,000
Bottling 10,000
Total $84,500
$84,500/5,000 = $16.90
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 118
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:04 AM
QUESTION ID: JFND-GO33-GINW-ETJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJT-CR3U-RPBW-CO4U-OAUN-
GASU-KCDB-8RSS-RCMD-GOSU-NQDR-CASU-ECUF-CO3D-G3MF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
167. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s unit cost of Larger?
a. $3.50
b. $16.90
c. $23.90
d. $20.40
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
Direct materials $ 75,000
Applied conversion costs:
Mixing 17,500
Cooking 12,000
Bottling 15,000
Total $119,500
$119,500/5,000 = $23.90
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 119
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:04 AM
QUESTION ID: JFND-GO33-GINW-ET1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-CF1S-GQDG-CA3D-NA5D-CASS-
R3BO-8RSU-KPDR-GOSU-C3BZ-8RSS-RP5D-CC5G-NAMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
168. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s journal entry to record materials used in the Mixing Department for Work Order 10?
a. Materials 45,000
Work in Process-Mixing 45,000
b. Work in Process-Mixing 17,500
Conversion Costs Control 17,500
c. Conversion Costs Control 17,500
Work in Process-Mixing 17,500
d. Work in Process-Mixing 45,000
Materials 45,000
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 120
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:05 AM
QUESTION ID: JFND-GO33-GINW-ET1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-8BTD-EP3U-GR5S-G3JI-GHSU-
RATI-CRSU-YQMR-GOSU-CQB3-8RSU-NCMF-GWAU-NCMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
169. Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Large Larger
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000
Applied conversion costs:
Mixing ? ?
Cooking $12,000 $12,000
Bottling $10,000 $15,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It
takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking
and Bottling departments.
What is Golden Ring Company’s journal entry to apply conversion costs in the Mixing Department for Work Order 10?
a. Materials 45,000
Work in Process-Mixing 45,000
b. Work in Process-Mixing 17,500
Conversion Costs Control 17,500
c. Conversion Costs Control 17,500
Work in Process-Mixing 17,500
d. Work in Process-Mixing 45,000
Materials 45,000
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 121
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:06 AM
QUESTION ID: JFND-GO33-GINW-ETT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMR-CO4G-KP5B-CI1D-OCMG-GASS-
EP3T-CRSU-GATO-GOSU-GA3S-8YSU-OQMN-CIUD-R3DB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
170. If a spoilage is normal (expected), the cost of spoiled units is:
a. recorded as a liability in the balance sheet.
b. added to the cost of good units produced.
c. assigned to the spoilage loss account.
d. credited to the profit and loss account.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 1:06 AM
QUESTION ID: JFND-GO33-GINW-ETTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-GO5S-CAJZ-8R5S-R3T1-8RSS-
RQDD-CESS-CPJZ-GOSS-EQJA-CESS-RCBU-GFOU-O3MD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
171. The following information is available for Department C for the month of August:
Units Cost
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 122
Work in process, August 1 (70% complete) 10,000
Direct materials $ 36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, August 1 $78,000
Started in production during August 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 61,040
Total costs added during August $217,040
Work in process, August 31 (80% complete) 4,000
Units completed and transferred out 42,000
Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion
process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost
flow assumption.
Department C’s equivalent units of production for materials using the weighted average method is
a. 44,800.
b. 47,200.
c. 50,000.
d. 54,000.
ANSWER: c
RATIONALE: Supporting Calculations
Conversion
Units Completed 42,000
Ending Work in Process 4,000
Spoilage 4,000
Equivalent Units of Production 50,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 3:06 AM
QUESTION ID: JFND-GO33-GINW-ET1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJS-CO4D-CCJA-CCAS-C3DR-8RSU-
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 123
NC3I-CRSS-C3TU-GOSS-RPJS-GCSU-1PBO-CTTD-GCT3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
172. The following information is available for Department C for the month of August:
Units Cost
Work in process, August 1 (70% complete) 10,000
Direct materials $36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, August 1 $78,000
Started in production during August 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 61,040
Total costs added during August $217,040
Work in process, August 31 (80% complete) 4,000
Units completed and transferred out 42,000
Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion
process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost
flow assumption.
Department C’s cost per unit for materials using the weighted average method is
a. $2.16.
b. $2.88.
c. $3.43.
d. $3.60.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Conversion
Units completed 42,000
Ending work in process 4,000
Spoilage 4,000
Equivalent units of production 50,000
Conversion
Costs to account for:
Beginning work in process $ 36,000
Incurred during period 108,000
Total costs to account for $144,000
Cost per equivalent unit
($144,000/50,000) $2.88
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 124
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:24 AM
QUESTION ID: JFND-GO33-GINW-ET1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-CEHS-K3JU-GO4D-1CJI-8RSU-
O3JU-CESS-EAJ1-GOSS-RPJ1-GESU-RPT3-CP1G-N3TU-E7JI-YT4D-JFNN-4OTI-GO4W-
NQNBEE
173. The following information is available for Department C for the month of August:
Units Cost
Work in process, August 1 (70% complete) 10,000
Direct materials $36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, August 1 $78,000
Started in production during August 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 61,040
Total costs added during August $217,040
Work in process, August 31 (80% complete) 4,000
Units completed and transferred out 42,000
Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion
process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost
flow assumption.
Department C’s conversion cost per unit using the weighted average method is
a. $2.18.
b. $2.22.
c. $2.31.
d. $3.20.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS:
Conversion
Units completed 42,000
Ending work in process 3,200
Spoilage (4,000 × 0.50) 2,000
Equivalent units of production 47,200
Conversion
Costs to account for:
Beginning work in process $ 42,000
Incurred during period 109,040
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 125
Total costs to account for $151,040
Cost per equivalent unit ($151,040/47,200) $3.20
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 5:33 AM
QUESTION ID: JFND-GO33-GINW-ET1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-GB1D-RCMG-GYHG-RAJO-
GHSU-GQBI-8YSS-N3DN-GOSS-GC3Z-GOSU-KPTT-GA5G-RPT3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
174. The following information is available for Department C for the month of August:
Units Cost
Work in process, August 1 (70% complete) 10,000
Direct materials $36,000
Direct labor 18,000
Manufacturing overhead 24,000
Total work in process, August 1 $78,000
Started in production during August 40,000
Costs added:
Direct materials $108,000
Direct labor 48,000
Manufacturing overhead 61,040
Total costs added during August $217,040
Work in process, August 31 (80% complete) 4,000
Units completed and transferred out 42,000
Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion
process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost
flow assumption.
Department C’s equivalent units of production for conversion using the weighted average method is
a. 44,800.
b. 47,200.
c. 50,000.
d. 54,000.
ANSWER: b
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 126
RATIONALE: SUPPORTING CALCULATIONS: 42,000 + (4,000 × 0.80) + (4,000 × 0.50) = 47,200
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 7:16 AM
QUESTION ID: JFND-GO33-GINW-ETTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-CR4S-GC5F-GY4G-K3TO-GCSS-
CC3T-CESS-CAJZ-GOSS-KA5G-COSS-CA31-C31D-OC31-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
175. Abnormal spoilage is treated differently from normal spoilage in what way?
a. Equivalent units are calculated for abnormal spoilage but not for normal spoilage.
b. Equivalent units are calculated for normal spoilage but not for abnormal spoilage.
c. Normal spoilage is absorbed as part of the product cost but abnormal spoilage costs are treated separately.
d. Abnormal spoilage is not assigned costs but normal spoilage is.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-ETT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJU-CP1U-CPMN-CPTU-NPJ3-GYSS-
CPJA-8YSU-YCTA-GOSU-13JZ-CWSU-GPBW-GPTS-GCMR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 6
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176. Spoilage in a process costing process means
a. fewer units leave the process than enter it.
b. fewer units enter a process than leave it.
c. a process is no longer viable.
d. products are receiving too much attention.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 10/7/2016 9:32 AM
QUESTION ID: JFND-GO33-GINW-ETTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJZ-GE5G-EA3A-GOAD-NPUB-GESU-
OCMF-CESU-KCJA-GOSU-EPJS-CWSU-CPTS-CE4G-CPJO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
177. Banzai Corporation produces calculators on an assembly line in a single-step process. Factrory overhead is applied
based on direct labor cost. The following data pertains to September 2018:
Current manufacturing costs:
Materials purchased $150,000
Materials issued to production 120,000
Direct labor 40,000
Factory overhead 30,000
Finished goods for period 180,000
Beginning work in process 0
Ending work in process:
Materials 3,000
Direct labor ?
Factory overhead ?
Required:
a. Prepare traditional journal entries for the following events in September:
1. Purchase of materials on account
2. Requisition of materials into production
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3. Usage of direct labor
4. Application of overhead
5. Completion of finished goods
b. What is the amount of direct labor in ending work in process?
ANSWER: a. 1. Materials 150,000
Accounts Payable 150,000
2. Work in Process 120,000
Materials Inventory 120,000
3. Work-in-Process Inventory 40,000
Wages Payable 40,000
4. Work in Process 30,000
Factory Overhead 30,000
5. Finished Goods 180,000
Work in Process 180,000
b. Ending WIP = $0 + $120,000 + $40,000 + $30,000 − $180,000
= $10,000
OH rate = ($30,000/$40,000) = 75% of DLC
Let X = Direct labor cost
$3,000 + X + 0.75X =
$10,000
1.75X =
$ 7,000
X =
$ 4,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-1 – LO: 06.01
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 7:46 AM
Chapter 6
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QUESTION ID: JFND-GO33-GINW-ETTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-CA4D-E3BZ-GH5D-R3DB-GHSS-
NAJI-CESS-KAMD-GOSU-O3DB-8RSU-EAJW-CR5U-CCJ1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
178. The local USPS office sorts letters by zip code. During the month of March, 200,000 letters were sorted. The cost of
sorting includes the following:
Direct labor $12,000
Overhead 8,000
Total $20,000
Required:
a. Explain why process costing is appropriate for this operation.
b. Calculate the cost per letter for this operation.
c. There are no direct materials used for the sorting operation. Is the absence of direct materials
typical of services? If not, provide examples of services that use direct materials.
ANSWER:
a. A process costing approach can be used for the sorting operation because it is a
repetitive, homogeneous service.
b. Cost per letter is $0.10. ($20,000/200,000)
c. Although many services may not use direct materials, it would be difficult to argue that it
is typical. For example, dentists, doctors, and funeral directors all use direct materials in
providing services. In some cases, the cost of materials can be significant.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-2 – LO: 06.02
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/23/2017 5:27 AM
QUESTION ID: JFND-GO33-GINW-ETTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMB-CAHU-13UR-8BTD-C3JU-CCSU-
EQBA-CRSU-NPJU-GOSS-EC3U-CESU-Y3JW-CO3U-CPBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
179. The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its
factories. One of the cells makes welders. The cost of production for the month of December is as follows:
Cell labor $10,000
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Direct materials 25,000
Overhead 20,000
Total $55,000
During December, Tolstoy Corporation produced and sold 500 welders.
Required:
a. Why can process costing be used to compute the cost of the welders?
b. Calculate the unit cost of a welder..
ANSWER: a. The welders are a homogeneous, mass-produced product. Each product produced
receives the same dose of manufacturing costs.
b. Unit cost = $110 ($55,000/500)
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-3 – LO: 06.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 7:11 AM
QUESTION ID: JFND-GO33-GINW-ETTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-8R4U-KPJO-CWAG-N3DB-GOSS-
KAUG-8YSS-KQDR-GOSS-RCJ1-CASS-NA5F-C3UD-QPTU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
180. Mandarin Company manufactures a product through a continuous single-step process. All materials are added at the
beginning of processing. Production and cost data of Mandarin Company for the month of September follows:
Production data:
In process, September 1 (37.50% converted) 8,000 units
Started during September 20,000 units
Completed and transferred to finished goods 25,500 units
In process, September 30 (80% converted) 2,500 units
Manufacturing costs:
Work in process (WIP), Beginning $24,500
Materials $80,000
Direct labor cost $96,500
Factory overhead cost $75,000
Required:
Prepare a cost of production report for the month of September. Use the first-in, first-out process costing approach.
Chapter 6
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ANSWER:
Summary of units in process:
Beginning 8,000
Units started 20,000
In process 28,000
Completed (25,500)
Ending 2,500
Equivalent units in process: Materials Conversion
Units completed 25,500 25,500
Add: Equivalent units in ending inventory 2,500 2,000
Equivalent units in process 28,000 27,500
Less: Equivalent units in beginning
inventory 8,000 3,000
Equivalent units manufactured 20,000 24,500
Total costs to be accounted for: Materials Conversion Total
Beginning WIP $ 24,500
Current costs $80,000 $171,500 251,500
Total costs in process $276,000
Costs per equivalent unit $4.00 $7.00 $11.00
Accounting for total costs:
Transferred out:
Beginning WIP:
Beginning balance $ 24,500
Add: Conversion (5,000 units × $7.00) 35,000
$ 59,500
Started and finished (17,500 units ×
$11.00) 192,500
Total transferred out $252,000
Ending WIP:
Materials (2,500 units × $4.00) $10,000
Conversion (2,000 units × $7.00) 14,000
Ending WIP 24,000
Total cost accounted for $276,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:32 AM
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 132
DATE MODIFIED: 1/27/2017 1:07 AM
QUESTION ID: JFND-GO33-GINW-ETTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJW-CC5S-RA3T-8BUD-K3B1-GESU-
R3TO-CESS-RCT3-GOSU-RC3S-GCSU-KPB3-C31U-1C5G-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
181. Xavier Corporation manufactures a plastic toy product in a two-stage production process. Plastic material is brought
into the Forming Department where it is shaped. Shaped products are then moved to the Finishing Department where
metal is added. The following data is given for the Forming Department for November:
Units for November:
Work in process, beginning inventory November 1 300 units
Direct materials (100% complete)
Conversion (40% complete)
Units started in November: 2,200 units
Work in process, ending inventory November 30 500 units
Direct materials (100% complete)
Conversion (25%)
Costs for November:
Work in process, beginning inventory
Direct materials $7,100
Conversion $4,525
Costs added during November:
Direct materials $70,400
Conversion $40,100
Round to two decimal places.
Required:
a. How many units were transferred to Finishing?
b. How many units were started and completed during November?
c. How many equivalent units of conversion does it take to complete the beginning inventory in
the current period?
d. What is the FIFO cost assigned to the ending inventory?
e. What is the FIFO cost assigned to the units transferred out?
f. Show the T-account for the forming process.
Forming
(Weighted Average)
ANSWER: a. 2,500 − 500 = 2,000
b. Units started and completed = Units transferred out − Beginning inventory
Transferred out = 300 + 2,200 − 500 = 2,000
Started and completed = 2,000 − 300 = 1,700
c. 300 − 120 = 180 (60%)
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d. (500 × $32*) + (125 × $20*) = $18,500
* calculation of cost per unit
Equivalent units in process: Materials Conversion
Units completed 2,000 2,000
Add: Eq. units in end. inv. 500 125
Equivalent units in process 2,500 2,125
Less: Eq. units in beg. inv. 300 120
Equivalent units manufactured 2,200 2,005
Total costs to be accounted for: Materials Conversion Total
Beginning WIP $ 11,625
Current costs $70,400 $40,100 110,500
Total costs in process $122,125
Costs per equivalent unit $32.00 $20.00 $52.00
e. $11,625 + (180 × $20) + (1,700 × $52) = $103,625
f. Forming
Beginning inventory 11,625Transferred out 103,625
Direct materials 70,400Ending inventory 18,500
Conversion cost 40,100
122,125 122,125
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 7:53 AM
QUESTION ID: JFND-GO33-GINW-ETTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GC4D-RCJT-GJ1U-OCTZ-GWSU-
RPUN-CESS-E3JS-GOSU-Y3UN-GCSU-RATW-GC4U-GP5F-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
182. Triton Manufacturing Company began June 2018 with 10,000 units of inventory in process, 20 percent completed.
During the period, 50,000 units were completed and transferred to the finished goods warehouse. Ending inventory
consisted of 5,000 units, 70 percent completed. Materials were added at the beginning of the process.
Required:
Calculate the equivalent units for:
Chapter 6
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a. Materials costs under the weighted average process cost method.
b. Conversion costs under the weighted average process cost method.
c. Materials costs under the FIFO process cost method.
d. Conversion costs under the FIFO process cost method.
ANSWER: a. and b.
Materials Conversion
Units completed 50,000 50,000
Add: Equiv. units in end. inv. 5,000 3,500
Equivalent units (a) 55,000 (b) 53,500
c. and d.
Equivalent units in process 55,000 53,500
Less: Equiv. units in beg. inv. 10,000 2,000
Equivalent units (c) 45,000 (d) 51,500
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-4 – LO: 06.04
COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 25 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 5:51 AM
QUESTION ID: JFND-GO33-GINW-EO4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJ1-8Y4D-C3JA-CP1U-N3UD-CCSU-
KPJW-8YSS-CPJO-GOSU-Y3DR-CASU-Y3MR-CW4D-13DN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
183. Victory, Inc., manufactures a product that passes through two processes: Mixing and Packaging. All manufacturing
costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:
Work in process, October 1:
Units (30% complete) 7,500
Direct materials $2,000
Direct labor $1,500
Overhead $1,188
During October, 150,000 units were completed and transferred to Packaging. The following costs were incurred by the
Mixing Department during October:
Direct materials $25,000
Direct labor 15,000
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Overhead 6,000
There were 12,000 units that were 70 percent complete remaining in the Mixing Department at October 31. Use the
weighted average method and round unit costs to two decimal places.
Required:
a. Determine the equivalent units of production for October.
b. Determine the total costs to account for in October.
c. Determine the total cost per equivalent unit of production.
d. Calculate the cost of goods transferred to the Packaging Department.
e. Calculate the cost of October’s ending work in process for the Mixing Department.
ANSWER: a. 158,400
Units accounted for: Physical Flow Equiv. Units
Units completed 150,000 150,000
Units in EWIP (70% complete) 12,000 8,400
Total units accounted for 162,000 158,400
b. $50,688
Costs to account for: Manufacturing Costs
Beginning work in process $ 4,688
Costs added 46,000
Total costs to account for $50,688
c. $0.32 ($50,688/158,400)
d. $48,000 (150,000 × $0.32)
e. $2,688 (8,400 × $0.32)
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 7:09 AM
QUESTION ID: JFND-GO33-GINW-EO4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMD-GP1S-EP5R-CWHU-EAJS-GESU-
13TT-CESU-CA3T-GOSU-G3MG-COSS-KATZ-CO5S-GCTA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
184. Nyanza Corporation manufactures a product that is processed in two departments.
The following equivalent unit schedule was prepared for the first department for the month of January:
Materials Conversion
Units completed 50,000 50,000
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Units, ending work in process (EWIP) × percentage
complete:
5,000 × 100% 5,000
5,000 × 60% 3,000
Equivalent units of output 55,000 53,000
Costs assigned to beginning work in process:
Materials $12,500
Conversion $ 8,400
Manufacturing costs incurred during the month:
Materials $42,500
Conversion $18,100
Required:
a. Compute the unit cost for the month of January using the weighted average method. (Round answer to two decimal
places.)
b. Determine the cost of goods transferred out.
c. Determine the cost of ending work in process.
ANSWER:
a. Cost per equivalent unit:
Materials = Total materials cost / Equivalent units of output with respect to materials
= ($12,500 + $42,500) / 55,000 = $1.00
Conversion = Total conversion cost / Equivalent units of output with respect to conversion
= ($8,400 + $18,100) / 53,000 = $0.50
Total unit cost = $1.50 per equivalent unit
b. Cost of goods transferred out = Total unit cost × Units completed = $1.50 × 50,000 units = $75,000
c. Cost of ending work in process = (EWIP, Materials × Cost per equivalent unit, Materials) +
(EWIP, Conversion × Cost per equivalent unit, Conversion)
= (5,000 × $1.00) + (3,000 × $0.50)
= $5,000 + $1,500 = $6,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTI
VES:
COCM.HANS.18.6-5 – LO: 06.05
NATIONAL STANDA
RDS:
United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/27/2017 1:18 AM
QUESTION ID: JFND-GO33-GINW-EO33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 137
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJI-GC5D-EPUF-8RHD-E3TO-GHSU-
RQBO-8RSU-1QMR-GOSS-NAUR-CASS-EPJ3-GC3S-NQJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
185. Sigma Corporation manufactures a product that is processed in two departments. Information regarding the first
department for the month of April follows:
• All materials are added at the beginning of the process.
• Beginning work in process consisted of 4,000 units that were 50 percent complete with respect
to conversion costs.
• Ending work in process consisted of 6,000 units that were 80 percent complete with respect to
conversion costs.
• There were 50,000 units started in process during the month.
Required:
a. Prepare a physical flow schedule for the month of April.
b. Compute equivalent units using the weighted average method.
ANSWER:
a. Physical flow schedule:
Units to account for:
Units, beginning work in process 4,000
Units started 50,000
Total units to account for 54,000
Units accounted for:
Units completed and transferred
out:
Started and completed 44,000
From beginning work in process 4,000
48,000
Units, ending work in process 6,000
Total units accounted for 54,000
b. Equivalent units: Materials Conversion
Units completed 48,000 48,000
Units, ending work in process
(EWIP) × fraction complete:
Materials (6,000 units × 100%) 6,000
Conversion (6,000 units × 80%) 4,800
Equivalent units of output 54,000 52,800
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
Chapter 6
Copyright Cengage Learning. Powered by Cognero. Page 138
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/24/2017 1:07 AM
QUESTION ID: JFND-GO33-GINW-EO3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMF-G3OS-GAMF-G3TD-GQJT-
CWSS-KP33-CRSS-GPBZ-GOSU-K3BT-CWSU-EPDD-GO4U-1P3A-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
186. Xanadu Company manufactures a product that passes through two departments, Assembly and Finishing. In the
Finishing Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout
the process. During the month of January, the Finishing Department received 60,000 units from the Assembly
Department. The transferred-in cost of the 60,000 units was $69,900.
Costs added by Finishing during January included the following:
Direct materials $35,200
Direct labor 56,000
Overhead 25,600
On January 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to
conversion costs. On January 31, 12,000 units were in inventory, one-third complete with respect to conversion costs. The
costs associated with the 10,000 units in beginning inventory were as follows:
Transferred in $11,650
Direct labor 8,750
Overhead 4,000
Required:
Prepare a cost of production report using the weighted average method.
ANSWER: Xanadu Company
Finishing Department
For the Month of January
Unit Information
Units to account for:
Units, BWIP 10,000
Units started 60,000
Units to account for 70,000
Units accounted for: Equivalent Units
Phys. flow Trans. in Materials Conversion
Units completed 58,000 58,000 58,000 58,000
Units, EWIP 12,000 12,000 – 4,000
Units accounted for 70,000 70,000 58,000 62,000
Cost Information
Costs to account for:
Trans.-in Materials Conversion Total
BWIP $11,650 $ – $12,750 $ 24,400
Costs added in dept. 69,900 35,200 81,600 186,700
Costs to acct for $81,550 $35,200 $94,350 $211,100
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Cost per equiv. unit $1.165 $0.607 $1.522 $3.294
Costs accounted for:
Trans. out EWIP Total
Goods transferred out:
(58,000 × $3.294) $191,052 – $191,052
Ending work in process:
Trans. in (12,000 × $1.165) – $13,980 13,980
Conversion (4,000 ×
$1.522) 6,088 6,088
Total costs accounted for $191,052 $20,068 $211,120*
*Difference due to rounding.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-6 – LO: 06.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 25 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 6:58 AM
QUESTION ID: JFND-GO33-GINW-EO4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJO-CEHU-NCMD-CT1D-Y3DB-
GWSU-CQJS-8YSS-NPMR-GOSU-K3DN-GWSU-EPTZ-GBTG-NPJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
187. Lakeside Corporation produces two types of product: Normal and Extra. Two work orders for two batches of the
products are shown below, along with some additional cost information:
Normal Extra
Work Order 5 Work Order 6
Direct materials (actual costs) $180,000 $300,000
Applied conversion costs:
Mixing ? ?
Cooking $48,000 $48,000
Bottling $40,000 $30,000
Batch size (bottles) 5,000 5,000
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for
the department for the year were $200,000 for labor and $600,000 for overhead. Budgeted direct labor hours were 5,000.
It takes 6 minutes to mix the ingredients needed for each bottle.
Normal and Extra flow through the Mixing Department, followed by the Cooking and Bottling departments.
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Required:
a. What are the conversion costs applied to Normal and Extra from the Mixing Department for
each batch?
b. Calculate the cost per bottle for Normal and Extra.
c. Prepare the journal entries that record the costs of a batch of 5,000 bottles of Normal.
ANSWER:
a. ($200,000 + $600,000)/5,000 = $160 per DLH
Normal = $160 × 5,000 × 6/60 = $80,000
Extra = $160 × 5,000 × 6/60 = $80,000
b. Normal Extra
Direct materials $180,000 $300,000
Mixing 80,000 80,000
Cooking 48,000 48,000
Bottling 40,000 30,000
$348,000 $458,000
Cost per bottle $69.60 $91.60
c. Work in Process-Mixing 180,000
Materials 180,000
Work in Process-Mixing 80,000
Conversion Costs-Control 80,000
Work in Process-Cooking 260,000
Work in Process-Mixing 260,000
(180,000 + 80,000 = 260,000 costs transferred to cooking)
Work in Process-Cooking 48,000
Conversion Costs-Control 48,000
Work in Process-Bottling 308,000
Work in Process-Cooking 308,000
(180,000 + 80,000 + 48,000 = 308,000 costs transferred to bottling)
Work in Process-Bottling 40,000
Conversion Costs-Control 40,000
Finished Goods 348,000
Work in Process-Bottling 348,000
180,000 + 80,000 + 48,000 + 40,000 = 348,000 costs transferred to
finished goods)
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.6-7 – LO: 06.07
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
Chapter 6
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DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/20/2017 6:56 AM
QUESTION ID: JFND-GO33-GINW-EO4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMJA-GWAD-NCMD-GTTS-GQMN-
GRSU-KCDB-CESU-CPTA-GOSU-RC3T-8YSU-OQBA-GJOU-1PDG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
188. The following information relates to the Blending Department of Gamma Inc. for the month of March:
Units
Percentage Completed
(With respect to
conversion)
Units started 55,000
Completed and transferred 50,000
Beginning work in process 15,000 70%
Ending work in process 16,000 40%
Labor and
OverheadMaterials Transferred-
In
Costs for March:
Beginning work in process $ 48,000 $ 37,100 $ 76,000
Added during the month $232,000 $171,500 $274,000
All materials are added at the beginning of the process. Inspection occurs 80 percent of the way through the process.
Normal spoilage is 5 percent of the good units completed.
Required:
a. Determine the weighted average equivalent units for materials, transferred-in, and conversion.
b. Determine the first-in, first-out (FIFO) equivalent units for materials, transferred-in, and
conversion.
c. Compute the weighted average cost per unit for conversion.
d. Compute the weighted average cost per unit for materials.
e. Calculate the cost assigned to ending work in process using weighted average.
f. Calculate the cost assigned to goods transferred out using weighted average.
g. Show the entries to the following T-account:
Work in Process-Blending
(Weighted Average)
ANSWER: a. Spoilage = Beginning work-in-process units + Units started − Units completed and transferred
− Ending work-in-process units =15,000 units + 55,000 units − 50,000 units − 16,000 units = 4,000 units
Normal spoilage = Units completed and transferred × Normal spoilage percentage
= 50,000 units × 0.05 = 2,500 units
Abnormal spoilage = Total spoiled units − Normal spoilage
= 4,000 units − 2,500 units = 1,500 units
Transferred-in Materials Conversion
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Transferred out units 50,000 50,000 50,000
Ending inventory 16,000 16,000 6,400 (16,000 units × 0.40)
Normal spoilage in units 2,500 2,500 2,000 (2,500 units × 0.80)
Abnormal spoilage in units 1,500 1,500 1,200 (1,500 units × 0.80)
Total units 70,000 70,000 59,600
b. First-in-first-out (FIFO) equivalent units for materials, transferred in, and conversion:
Transferred-in Materials Conversion
Transferred out units 50,000 50,000 50,000
Ending inventory 16,000 16,000 6,400 (16,000 units × 0.40)
Normal spoilage in units 2,500 2,500 2,000 (2,500 units × 0.80)
Abnormal spoilage in units 1,500 1,500 1,200 (1,500 units × 0.80)
Total units 70,000 70,000 59,600
Beginning inventory 15,000 15,000 10,500 (15,000 units × 0.70)
Current units 55,000 55,000 49,100
c. Conversion cost per unit = Total labor and overhead costs / Units completed with respect to conversion
= ($37,100 + $171,500) / 59,600 units = $208,600 / 59,600 units = $3.50 per unit
d. Materials cost per unit = Total materials cost / Units completed with respect to materials
= ($48,000 + $232,000) / 70,000 units = $280,000 / 70,000 units = $4.00 per unit
e. Cost assigned to ending inventory:
Transferred-in cost (16,000 units × $5.00*) $ 80,000
Materials cost (16,000 units × $4.00) 64,000
Conversion cost (6,400 units × $3.50) 22,400
Total cost $166,400
*Transferred-in cost per unit = Total transferred-in costs / Units completed with respect to materials
= ($76,000 + $274,000) / 70,000 units = $350,000 / 70,000 units = $5.00 per unit
f. Cost assigned to goods transferred out
Transferred out (50,000 units × $12.50*) $625,000
Normal spoilage (Transferred in) (2,500 units × $5.00) 12,500
Normal spoilage (Materials cost) (2,500 units × $4.00) 10,000
Normal spoilage (Conversion cost) (2,000 units × $3.50) 7,000
Total $654,500
* Total cost per unit = $3.50 + $4.00 + $5.00 = $12.50
g. Work in Process-Blending
Beginning inventory 161,100 Goods transferred out 654,500
Transferred in 274,000 Abnormal spoilage 17,700*
Materials 232,000 Ending inventory 166,400
Labor and overhead 171,500
838,600 838,600
*(Weighted average)
Abnormal spoilage = Recorded separately
Abnormal spoilage (Transferred in) (1,500 units × 5.00) $ 7,500
Abnormal spoilage (Materials cost) (1,500 units × 4.00) 6,000
Abnormal spoilage (Conversion cost) (1,200 units × 3.50) 4,200
Total $17,700
Chapter 6
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POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
COCM.HANS.18.6-8 – LO: 06.08
NATIONAL STANDAR
DS:
United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 25 min.
DATE CREATED: 10/7/2016 9:32 AM
DATE MODIFIED: 1/30/2017 3:02 AM
QUESTION ID: JFND-GO33-GINW-EO4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-G7OU-1AJT-CTTU-GCBT-8FTN-4PTO-CEHN-4CJO-8Y4N-4PDD-
GPT1-4QDD-GE4U-RPJZ-C3DI-GWN8-EPRW-EMMG-GE4G-NQJZ-GE4G-EPBT-COSS-
EPB3-8YSS-N3TO-GOSU-ECMB-CESS-GA3O-CP1U-OC3U-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE