Chapter 6—Process CostingMULTIPLE CHOICE 1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments? a. standard b. actual c. process d. job order ANS: C PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 2. Process costing is used in companies that a. engage in road and bridge construction. b. produce sailboats made to customer specifications. c. produce bricks for sale to the public. d. construct houses according to customer plans. ANS: C PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 3. A producer of ____ would not use a process costing system. a. gasoline b. potato chips c. blank videotapes d. stained glass windows ANS: D PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting Chapter 6 2 4. A process costing system is used by a company that a. produces heterogeneous products. b. produces items by special request of customers. c. produces homogeneous products. d. accumulates costs by job. ANS: C PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 5. Which is the best cost accumulation procedure to use for continuous mass production of like units? a. actual b. standard c. job order d. process ANS: D PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 6. Equivalent units of production are equal to the a. units completed by a production department in the period. b. number of units worked on during the period by a production department. c. number of whole units that could have been completed if all work of the period had been used to produce whole units. d. identifiable units existing at the end of the period in a production department. ANS: C PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 7. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP? a. only current period cost b. current period cost plus the cost of beginning inventory c. current period cost less the cost of beginning inventory d. current period cost plus the cost of ending inventory ANS: B PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 8. The weighted average method is thought by some accountants to be inferior to the FIFO method because it a. is more difficult to apply. b. only considers the last units worked on. c. ignores work performed in subsequent periods. d. commingles costs of two periods. ANS: D PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting Chapter 6 3 9. The first step in determining the cost per EUP per cost component under the weighted average method is to a. add the beginning Work in Process Inventory cost to the current period's production cost. b. divide the current period's production cost by the equivalent units. c. subtract the beginning Work in Process Inventory cost from the current period's production cost. d. divide the current period's production cost into the EUP. ANS: A PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 10. The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units a. started and completed during the period. b. residing in beginning Work in Process Inventory. c. residing in ending Work in Process Inventory. d. uncompleted in Work in Process Inventory. ANS: B PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 11. EUP calculations for standard process costing are the same as a. the EUP calculations for weighted average process costing. b. the EUP calculations for FIFO process costing. c. LIFO inventory costing for merchandise. d. the EUP calculations for LIFO process costing. ANS: B PTS: 1 DIF: Moderate OBJ: 6-5 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 12. In a FIFO process costing system, which of the following are assumed to be completed first in the current period? a. units started this period b. units started last period c. units transferred out d. units still in process ANS: B PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 13. To compute equivalent units of production using the FIFO method of process costing, work for the current period must be stated in units a. completed during the period and units in ending inventory. b. completed from beginning inventory, units started and completed during the period, and units partially completed in ending inventory. c. started during the period and units transferred out during the period. d. processed during the period and units completed during the period. ANS: B PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting Chapter 6 4 14. The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when a. the goods produced are homogeneous. b. there is no beginning Work in Process Inventory. c. there is no ending Work in Process Inventory. d. beginning and ending Work in Process Inventories are each 50 percent complete. ANS: B PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 15. The primary difference between the FIFO and weighted average methods of process costing is a. in the treatment of beginning Work in Process Inventory. b. in the treatment of current period production costs. c. in the treatment of spoiled units. d. none of the above. ANS: A PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 16. Material is added at the beginning of a process in a process costing system. The beginning Work in Process Inventory for the process was 30 percent complete as to conversion costs. Using the FIFO method of costing, the number of equivalent units of material for the process during this period is equal to the a. beginning inventory this period for the process. b. units started and completed this period in the process. c. units started this period in the process plus the beginning Work in Process Inventory. d. units started and completed this period plus the units in ending Work in Process Inventory. ANS: D PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 17. In a cost of production report using process costing, transferred-in costs are similar to the a. cost of material added at the beginning of production. b. conversion cost added during the period. c. cost transferred out to the next department. d. cost included in beginning inventory. ANS: A PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting 18. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a a. debit Work in Process Inventory #2, credit Finished Goods Inventory. b. debit Finished Goods Inventory, credit Work in Process Inventory #1. c. debit Finished Goods Inventory, credit Work in Process Inventory #2. d. debit Cost of Goods Sold, credit Work in Process Inventory #2. ANS: C PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting the current period only. if a product is composed of mass-produced homogeneous units. d. all prior departments. normal costing.Chapter 6 5 19. the last department only. when production is only partially completed during the accounting period. Which of the following is(are) the same between the weighted average and FIFO methods of calculating EUPs? Units to account for a. b. the last production cycle. Reporting 20. ANS: C PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. strict FIFO. weighted average costing. b. if a product is manufactured on the basis of each order received. Averaging the total cost of completed beginning work-in-process inventory and units started and completed over all units transferred out is known as a. b. Process costing techniques should be used in assigning costs to products a. Reporting 21. d. c. d. no yes yes yes EUP calculations yes yes no no Total cost to account for no yes no yes ANS: D PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. modified FIFO. d. Transferred-in cost represents the cost from a. ANS: C PTS: 1 DIF: Easy OBJ: 6-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Reporting . c. b. whenever standard-costing techniques should not be used. c. ANS: B PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. c. Reporting 22. A process costing system Calculates average cost per whole unit a. Reporting 24. A process costing system a.Chapter 6 6 23. c. restates Work in Process Inventory in terms of completed units. cannot use standard costs. c. Reporting . job order and standard costing systems. Reporting 25. job order and normal costing systems. c. assigns direct labor and manufacturing overhead costs separately to units of production. d. yes no yes no Determines total units to account for yes no no yes ANS: D PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. A process costing system does which of the following? Calculates EUPs a. d. d. b. b. b. job order and process costing systems. c. Reporting 26. accumulates costs by job rather than by department. d. b. ANS: B PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. no no yes yes Assigns costs to inventories no yes yes no ANS: C PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. ANS: B PTS: 1 DIF: Easy OBJ: 6-6 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. A hybrid costing system combines characteristics of a. process and standard costing systems. and those same units must be included in an equivalent unit schedule. abnormal and continuous. c. b. Reporting 31. b. ANS: C PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. b. the weighted average method of calculating EUPs makes computing transferred-out costs easier. d. ending WIP EUP not completed d. ANS: D PTS: 1 DIF: Moderate OBJ: 6-5 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. absorbed by all units past the inspection point. When standard costs are used in process costing. Reporting . Reporting 29. d. When the cost of lost units must be assigned. Abnormal spoilage can be continuous a. c. considered a product cost. yes no yes no discrete no no yes yes ANS: C PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Reporting 28. total costs rather than current production and current costs are used. these units are considered a. ending WIP EUP completed ANS: B PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. ANS: D PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. d. The cost of abnormal continuous losses is a.Chapter 6 7 27. absorbed by all units in ending inventory and transferred out on an equivalent unit basis. a. abnormal and discrete. normal and continuous. b. process costing calculations are made simpler. c. c. d. Reporting 30. normal and discrete. beginning WIP EUP completed in current period b. Which of the following is subtracted from weighted average EUP to derive FIFO EUP? a. beginning WIP EUP produced in prior period c. written off as a loss on an equivalent unit basis. variances can be measured during the production period. considered a period cost. always occurs at the same place in a production process. absorbed by all units in ending inventory. Reporting 35. absorbed by all units past the inspection point. adding the wrong components when assembling a stereo d. ANS: C PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. continuous and abnormal. The method of neglect handles spoilage that is a. b. putting the appropriate pieces for a bike in the box ANS: C PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. b. considered a product cost. continuous and normal. putting the appropriate components together for a stereo c. discrete and abnormal. b. c. Reporting 33. d. The cost of abnormal continuous losses is a. ANS: A PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. A continuous loss a. c. written off as a loss on an equivalent unit basis. absorbed by all units in ending inventory and transferred out on an equivalent unit basis. absorbed by all units past the inspection point on an equivalent unit basis. discrete and normal. occurs evenly throughout the production process. never occurs during the production process. occurs unevenly throughout a process. The cost of normal discrete losses is a. adding the correct ingredients to make a bottle of ketchup b. d. Reporting . ANS: D PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Reporting 36. d.Chapter 6 8 32. written off as a loss on an equivalent unit basis. d. c. Which of the following would be considered a discrete loss in a production process? a. Reporting 34. c. b. ANS: D PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Reporting 39. result in a higher unit cost for the good units produced. b. and those same units must be included in an equivalent unit schedule. Which of the following accounts is credited when abnormal spoilage is written off in an actual cost system? a. Loss from Spoilage c. b.Chapter 6 9 37. cause estimated overhead to increase. d. Reporting . c. Finished Goods d. are extended to the EUP schedule. The cost of abnormal discrete units must be assigned to good units a. abnormal and discrete. Reporting 38. d. Reporting 40. b. Normal spoilage units resulting from a continuous process a. ANS: D PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. d. When the cost of lost units must be assigned. normal and discrete. Miscellaneous Revenue b. result in a loss being incurred. these units are considered a. ANS: B PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. c. normal and continuous. abnormal and continuous. c. Work in Process ANS: D PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. yes no yes no lost units yes no no yes ANS: D PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. abnormal. the cost of that spoilage should be a. and Cost of Goods Sold. labor and overhead costs of the good production. normal and if standard costs are used. no yes no yes Ending Inventory yes yes no no Units Started & Completed yes yes yes no ANS: B PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Normal spoilage costs would be assigned to which of the following groups of units. c. Reporting 42. What happens to the spoiled units? b. Why does spoilage happen? ANS: A PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Dallas Co. b. How can spoilage be controlled? d. d. included with the cost of the units completed in that department during the period. abnormal. normal and if actual costs are used. c. should be considered when developing the overhead application rate. Reporting . allocated to ending work in process units and units transferred out based on their relative values. Reporting 44. has a production process in which the inspection point is at 65 percent of conversion. Which of the following statements is false? The cost of rework on defective units. Which of the following is not a question that needs to be answered with regard to quality control? a. ANS: D PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. d. included with the cost of the units sold during the period. should be assigned to a loss account. If normal spoilage is detected at an inspection point within the process (rather than at the end). should be prorated among Work In Process. should be assigned to material. b. using FIFO costing? Beginning Inventory a. What is the actual cost of spoilage? c. if a. ANS: D PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Finished Goods.Chapter 6 10 41. The beginning inventory for July was 35 percent complete and ending inventory was 80 percent complete. allocated to the good units that have passed the inspection point. c. Reporting 43. b. d. the company had 400 units on hand (35 percent complete as to both material and conversion costs). Reporting 47.750 ANS: A Units Transferred Out Less: Units in Beginning Inventory Units Started and Completed 6. On October 31. c. result in a higher unit cost for the good units produced.380. On August 1. d. 6. the company had 300 units on hand (40 percent complete as to both material and conversion costs). c. 5.300.500. are extended to the EUP schedule. ANS: B PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. The number of units started and completed during October was: a. Reporting 48.860 c. the company had 750 units (20 percent complete as to material and 30 percent complete as to conversion costs). accretion. 6. d. b. Reporting . 5. Reporting 46.600 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs).200.200 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. ANS: A PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement. Normal spoilage units resulting from a continuous process a. b.000 (400) 5.000 units to Finished Goods Inventory during August. d. complex procedure.500 (300) 5.Chapter 6 11 45.000 d. result in a loss being incurred. 5. Cole Company transferred 6. cause estimated overhead to increase. Wood Company transferred 5. On October 1. undetected spoilage. reworked units. 6. The addition of material in a successor department that causes an increase in volume is called a.600 b. b.500 units to Finished Goods Inventory during October. ANS: A Units Transferred Out Less: Units in Beginning Inventory Units Started and Completed 5. c. 5. 5. The number of units started and completed during August was: a. On August 31. 400 finished units and ended the period with 3. Reporting .280. 2. 42.500 units that were 40 percent complete as to both material and conversion costs.000 d. 1. How many units were started this period? a.000 units this period and had ending Work in Process Inventory of 12. Reporting 51. Lincoln Company had beginning Work in Process Inventory of 5.500 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000.000 8.600 units in April.000 finished units and ended the period with 3. 54.000 b.200 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 54.200. 47. The company transferred out 6.200 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were a. 1. 2. Beginning Work in Process Inventory units were a. b. c.600 (6.Chapter 6 12 49. 1.000) 3. Boggs Company started 9. Williams Company started 8.000 c.000) 12. The company transferred out 7. 600.000 PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 500. b.000. Reporting 50.000 ( 47. ANS: B Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 1. d. Lincoln Company started and completed 42.400) 3.000 (7. 59.000 units.500 9. c.000 units that were 40 percent complete as to conversion costs. 400.000 ANS: C Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 5. d. ANS: C Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 1.500.000 units in March. 52.000 d.000 units into production and had 4.000 57. 5.500 13.750 b. Material is added at the start of production. Douglas Company had beginning Work in Process Inventory of 6. Reporting .000 PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Material is added at the start of production. 57. 1. how many units were in ending Work in Process Inventory? a.000 units this period and had ending Work in Process Inventory of 11.000 14.750 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 ( 11.250 b.750) 5.000 units into production and had 5. 6.750 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. If Streete Company transferred out 11.000 ( 52. Roache Company uses a weighted average process costing system. 63.500 d. 3. 1.000 units in process at the start of the period that were 75 percent complete as to conversion costs. Roache Company started 14.000 c. how many units were in ending Work in Process Inventory? a.000 ANS: C Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 6.000 c. Douglas Company started and completed 46.000 c.750 ANS: D Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 5.250) 6. If Roache Company transferred out 12. 46.750 ANS: D Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 4.250 units. 5.500 units in process at the start of the period that were 60 percent complete as to conversion costs.000) 11. Streete Company started 13.000 units that were 45 percent complete as to conversion costs.000 units.Chapter 6 13 52. Reporting 54. How many units were started this period? a. 3.500 d. Streete Company uses a weighted average process costing system.000 ( 12.750 units. 3. Reporting 53.000 b. 200 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Summers Company uses a weighted average process costing system and started 36.200 40.000 containers were started.450 b. 51.000 units this month. 37. 40.200 c. Jones Company uses a weighted average process costing system and started 30.560 c.610 d. 4. 4. At month end.000 15.800 d. 3.600 27. 47.000 6. what are the equivalent units for conversion costs? a. During the month.900 d.910 . Reporting 56.000 units that were 20 percent complete as to conversion costs in beginning Work in Process Inventory and 3. 48.100 c.750 11.000 units that were 40 percent complete as to conversion costs in ending Work in Process Inventory.000 ANS: B Beginning Work in Process + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 15. 42.000 units that were 35 percent complete as to conversion costs in ending Work in Process Inventory.000 12. Using the weighted average method. 4. What are equivalent units for conversion costs? a.000 20% 80% 100% 40% 2.000 25% 75% 100% 35% 3. Jones had 15.000 1.100 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Weston Company makes small metal containers.000 2. What are equivalent units for conversion costs? a.000 30.000 units this month. 43.000 3.250 30.350 b.100 47.400 9. 1. 5.000 units that were 25 percent complete as to conversion costs in beginning Work in Process Inventory and 6.Chapter 6 14 55.800 b.000 27.000 ANS: B Beginning Work in Process + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 12. 40. Reporting 57. The company began April with 250 containers in process that were 30 percent complete as to material and 40 percent complete as to conversion costs.700 containers were still in process (45 percent complete as to material and 80 percent complete as to conversion costs). Jones had 12. What are equivalent units for material. The company started 25.000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs. The company had 5.000 units this period and had 8. Using the weighted average method. if material is added at the beginning of the process? a.825 d.900 45% 55% 100% 75% 135 165 4. 4. therefore there are 22.000 units that were 60 percent complete as to conversion costs at the beginning of the month.825 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 1.300 ANS: C Beginning Work in Process + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 300 300 4.100 1. 27. During the month.Chapter 6 15 250 250 3.700 40% 60% 100% 80% 100 150 3.000 containers were started. Ormandy Company uses a FIFO process costing system. what are the equivalent units for conversion costs? a. 22. Meade Company makes small metal containers.300 1.000 c. PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 b. 6. Reporting 58.900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). 6.910 ANS: D Beginning Work in Process + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 5.000 units this period and had 7. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. At month end. 18. The company started 22.590 c.360 4. 5.100 1. Reporting 59. Bernstein Company uses a FIFO process costing system.000 ANS: B The material is added at the beginning of the process.425 5. Reporting 60. 25.000 units in ending Work in Process Inventory that were 35 percent complete as to conversion costs.300 1. What are equivalent units for material.000 d. The company had 6.000 units that were 75 percent complete as to conversion costs at the beginning of the month. if material is added at the beginning of the process? .000 equivalent units of material.265 b. therefore there are 25.570 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.450 d. On April 30. d.000 ANS: B The material is added at the beginning of the process. 3.150 450 0% 25% 100% 60% 150 3. 3.300 boxes were started. Montgomery Company makes fabric-covered hatboxes. 18. b. During the month. 4. 3. The company began July with 500 boxes in process that were 100 percent complete as to cardboard. Reporting 62.570 b. During the month. 70 percent complete as to cloth. Hahn Company makes fabric-covered storage totes.500 31.295 b.000 equivalent units of material. The company began July with 600 totes in process that were 100 percent complete as to cardboard.295 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 26. 3. On April 30. what are equivalent units for cloth? a. c.950 350 0% 20% 100% 70% 100 2. 3.595 ANS: A Beginning Work in Process (Ignored for FIFO) + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 500 500 2. Using the FIFO method. 60 percent complete as to cloth. 450 totes were in process (100 percent complete as to cardboard. Reporting 61.600 totes were started.020 ANS: A Beginning Work in Process (Ignored for FIFO) + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 600 600 3.150 270 3. Reporting .950 245 3. 75 percent complete as to cloth.750 c.870 d. what are equivalent units for cloth? a.395 c. and 50 percent complete as to conversion costs). Using the FIFO method.Chapter 6 16 a. 350 boxes were in process (100 percent complete as to cardboard. and 65 percent complete as to conversion costs. and 55 percent complete as to conversion costs). 80 percent complete as to cloth. 3. 3. PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 3. and 60 percent complete as to conversion costs.500 25. 3. 500 b. Assume that weighted average process costing is used. $1.500 54. $0. Reporting . Reporting 64.607 6.000 units 8.900 ÷ 30.500) 8. How many units were transferred out in August? a. 21.000 c.956 All material is added at the start of the process and all finished products are transferred out.83 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $1.000 (21.500 d. 18.000 units = $ 1. 63. Refer to Brewer Corporation.Chapter 6 17 Brewer Corporation Brewer Corporation. has the following information for August: Beginning Work in Process Inventory (70% complete as to conversion) Started Ending Work in Process Inventory (10% complete as to conversion) Beginning WIP Inventory Costs: Material Conversion Current Period Costs: Material Conversion $23.000 ANS: C Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process 6.83 ANS: D Material Costs: Beginning Current Period $23. 24.000 units 24.55 b.400 50.000 24. What is the cost per equivalent unit for material? a.31 d. Refer to Brewer Corporation. 15.400 31.500 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.05 c.500 units $31.500 76. $1. 500 c. 19.956 1. $4.100 d.600 b. Assume that FIFO process costing is used.24 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.500 850 18.44 b. 17.500 * 10%) $ $ 76.725 7.500 units 27. $5.000 . Refer to Brewer Corporation.000 * 30%) Started and Completed (15.Chapter 6 18 65. $3. 66.845 All material is added at the start of the process and all finished products are transferred out.24 c. has the following information for May: Beginning Work in Process Inventory (75% complete as to conversion) Started Ending Work in Process Inventory (15% complete as to conversion) Beginning WIP Inventory Costs: Material Conversion Current Period Costs: Material Conversion $25.150 eq units Cost per equivalent unit $ 4.956 76.000 units 9.500) Ending Inventory (8. What is the cost per equivalent unit for conversion? a. How many units were transferred out in May? a. 27.400 units $34.03 ANS: B Conversion Costs: Beginning (Ignored for FIFO) Current Period Equivalent Units Beginning Inventory (6.800 15. 25.500 52.300 80. Refer to Collins Corporation. $7.71 d. Reporting Collins Corporation Collins Corporation. Refer to Collins Corporation.73 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $4.18 c.500 units = $ 1.73 ANS: D Material Costs: Beginning Current Period $25. What is the cost per equivalent unit for material? a.25 d.845/20885) $ 3.875 17.600 1. $6.05 b.800 ÷ 34. Assume that FIFO process costing is used.87 c.500 _34.500 27. Reporting 68.400 * 15%) $ $ 80.845 1. $0.99 b. Refer to Collins Corporation.400 ANS: C Beginning Work in Process Add: Units Started Deduct: Units Transferred Out Ending Work in Process PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.300 $59. $3.845 80.410 20. $3. $1.000 (25.500 * 25%) Started and Completed (17. Reporting .885 equivalent units Cost per equivalent unit ($80. $1.Chapter 6 19 7. Reporting 67.600) Ending Inventory (9.40 ANS: B Conversion Costs: Beginning (Ignored for FIFO) Current Period Equivalent Units Beginning Inventory (7. $1.87 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Assume that weighted average process costing is used.100) 9. What is the cost per equivalent unit for conversion? a.64 d. and costs associated with Decorating are: Beginning WIP Inventory: Transferred In Material Conversion Current Period: Transferred In Material Conversion $1. The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion. $8. What was the cost transferred out of Forming during the month? a. 4. At month end.419 c. $5.Chapter 6 20 Fantastic Decorations Corporation The Fantastic Decorations Corporation makes wreaths in two departments: Forming and Decorating. 7.200 5.341 b. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.950 d.745 95. $8.245 d. Costs in the Forming Department are as follows: Beginning Work in Process Costs: Material Conversion Current Costs: Material Conversion $1.170 4.045 The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion. How many units were transferred to Decorating during the month? a.900 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 1. 600 b. 5.500 $3. Forming had 2.210 ? $67.500 wreaths were started.000 ANS: B Wreaths completed from BWIP Wreaths started and completed 500 4.100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion.320 6. Assume Forming uses the weighted average method of process costing. During the month. Refer to Fantastic Decorations Corporation. $6.400 4.900 c.330 .820 69. Refer to Fantastic Decorations Corporation. Reporting 70. Decorating uses the FIFO method of process costing. 6. Refer to Fantastic Decorations Corporation. 7. Reporting 73.700 c. Compute the number of equivalent units in Decorating for conversion. Reporting 71. Units 120 7.970 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Refer to Fantastic Decorations Corporation. 8. 8. Compute the number of equivalent units as to costs in Decorating for the transferred-in cost component.700 300 % Complete 20% 100% 50% Eqiv. 7.400 b. Reporting 72.970 b.000 units were transferred to Decorating.000 units that were transferred in. PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.70 Total $8.600 ANS: C The transferred-in cost component is the 8.000 units were transferred to Decorating. 8. 8.925 b. 7. Refer to Fantastic Decorations Corporation. Assume 8.000 d.330 d.465 .000 c. Assume 8.000 units were transferred to Decorating. 8. Assume 8. a. 7.985 c.Chapter 6 21 Cost per Eq. Unit 1.450 ANS: A Materials: Decorating: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production Units 600 7. 7.360 d. a.700 150 7. a.330 ANS: D Units Transferred Out 4. Compute the number of equivalent units in Decorating for material. 8. 8.900 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 00 d.32 b. Current Costs $67.80 d.50 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.78 ANS: C When FIFO is used.970 Cost/ Equiv Unit $8. Reporting 75.000. $8. $9. $11. $8.700 225 7. $12.820 Equiv Units 7.46 c.985 Cost/ Equiv Unit $12. Assume that 8. consider only current costs.50 b.745 Equiv Units 7.00 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $11. $8. What is the conversion cost per equivalent unit in Decorating? a. Units 60 7. $12. Reporting 74.Chapter 6 22 Units % Complete Equiv.700 300 10% 100% 75% PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Current Costs $95.985 ANS: B Conversion: Decorating: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 600 7.000 units were transferred to Decorating at a total cost of $16. Refer to Fantastic Decorations Corporation.04 ANS: A When FIFO is used. Refer to Fantastic Decorations Corporation.000. Assume that 8.000 units were transferred to Decorating at a total cost of $16. consider only current costs. Reporting . What is the material cost per equivalent unit in Decorating? a.65 c. 500 b.125 d. a.000 2. 37. Reporting Four Seasons Company Four Seasons Company adds material at the start to its production process and has the following information available for August: Beginning Work in Process Inventory (40% complete as to conversion) Started this period Ending Work in Process Inventory (25% complete as to conversion) Transferred out 7. $ 960 b. What is the cost of completing the units in beginning inventory? a.000 .500 c. 29.000 2.500 d.000 32.500 ? units units units 77. 34. a. 32. Refer to Four Seasons Company.00 and the conversion cost per EUP is $15 in Decorating. $ 1.380 c.500 29. 39.940 ANS: C Costs to Complete Beg Inv Materials Conversion Total Costs to Complete Units 600 600 Percent to Complete Cost per Unit 20% $8 10% $15 Total $960 $900 $1. $11.000 ANS: A Units started this period Less: Ending Work in Process Units started and completed this period 32.860 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Calculate equivalent units of production for material using FIFO. Refer to Fantastic Decorations Corporation. 36. Compute the number of units started and completed in August. Reporting 78.Chapter 6 23 76. 39.800 c.500 PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Assume the material cost per EUP is $8. 36.860 d. $ 1. Refer to Four Seasons Company.000 b. 000 units) Started this Period (32.000 39. 39. a. units PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 b. therefore there are 32.000 ANS: D Equivalent Units--Materials Beginning Inventory (7.125 eq.000 ANS: B Equivalent Units for Conversion Beginning Inventory (7. 37.325 c.325 c.000 equivalent units for materials.000 32.500 * 25%) 4.125 b. 34. Reporting 81. 32. 38.500 625 34.125 d.375 d. 39. Calculate equivalent units of production for material using weighted average. Refer to Four Seasons Company. 39. Reporting 80.200 29.125 d.500) Ending Inventory (2. units PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 37.125 c. Refer to Four Seasons Company. 34.Chapter 6 24 ANS: A Materials are added at the beginning of the process. a. Calculate equivalent units of production for conversion using FIFO.500 625 37. 30.500 * 25%) 7.000 units were started in the current period. Refer to Four Seasons Company. Calculate equivalent units of production for conversion using weighted average.000 * 60%) Started and Completed (29.325 b.325 eq.000 29. units .925 ANS: B Equivalent Units--Conversion Beginning Inventory (7. 34.000) 7.000 * 100%) Started and Completed (29. a.000 eq. Reporting 79. 37.500) Ending Inventory (2. 32. 200 units units units $24. 128.200 ANS: C Beginning Work in Process Units Started Total Units 10.200 c.200 b. Reporting .058 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 130.053 82. Refer to Simpson Company. What is the total cost to account for? a. Reporting Simpson Company Simpson Company adds material at the start of production.000 8. 118.000 120. Reporting 83.Chapter 6 25 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.500 68. 138. How many units must be accounted for? a.000 130.558 d.653 c. The following production information is available for September: Beginning Work in Process Inventory (45% complete as to conversion) Started this period Ending Work in Process Inventory (80% complete as to conversion) Beginning Work in Process Inventory Costs: Material Conversion Current Period Costs: Material Conversion 10. $274. $299.000 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $ 93.905 $ 75.058 ANS: D BWIP: Materials BWIP: Conversion Current Period: Materials Current Period: Conversion Total Costs $ 24.600 130.600 130. Refer to Simpson Company.053 $299.000 d.905 75.000 120.405 b.500 68. $205. 111. What are the equivalent units for material using the FIFO method? a.Chapter 6 26 84. 120.800 8. 130.000 8.800 PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.440 c.000 b.360 d.860 c. How many units were started and completed in the period? a. 121.000 c. Reporting 85. 123. Refer to Simpson Company.000 ANS: A Units started this period Less: Ending Work in Process Units started and completed this period 120. What are the equivalent units for conversion using the weighted average method? a.200 * 25%) 10.200 * 25%) 0 111. 123.800) Ending Inventory (8.000 b.000 c.800) Ending Inventory (8.360 d. 125.000 eq.800 d. 120. 130. 120. units PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Reporting 87.200 120. 111.000 ANS: D Equivalent Units Beginning Inventory (10. Refer to Simpson Company.000 ANS: B Equivalent Units Beginning Inventory (Ignored for FIFO) Started and Completed (111.500 d. 128. units PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 130. Refer to Simpson Company.800 b.000 eq. What are the equivalent units for material using the weighted average method? a. 120.200 130. Refer to Simpson Company. 128.000 * 100%) Started and Completed (111.800 b.000 111.000 . Reporting 86.200 111.800 8. 130. $1.800 8.000 111.860 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.860 c.800 8.100 ÷ 130.58 b. 123. $1.55 d.360 ANS: C Beginning Work in Process (ignored) + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production 10.860 d.77 per unit PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $1. Refer to Simpson Company.61 . What are the equivalent units for conversion using the FIFO method? a.500 111.77 d.800 6.500 111.000 units= $ 0.500 5. $1. 128.000 10.560 128.Chapter 6 27 10.000 10.200 0% 55% 100% 80% 5.800 6. $.360 b. $. What is the conversion cost per equivalent unit using the weighted average method? a. Refer to Simpson Company.360 ANS: C Beginning Work in Process + Completion of Units in Process + Units Started and Completed + Ending Work in Process Equivalent Units of Production PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.01 b.82 ANS: C Material Costs: Beginning Current Period $ 24.000 111. Reporting 89. Reporting 88.05 c. $. $.560 123. 118.62 c.600 100.200 45% 55% 100% 80% 4.500 75. 122. Reporting 90. What is the material cost per equivalent unit using the weighted average method? a. Refer to Simpson Company. 053 $130. What is the conversion cost per equivalent unit using the FIFO method? a.624 b. Refer to Simpson Company.05) Units Started and Completed 111.510 b.05 b.029 ANS: C Beginning Inventory 10.958 ÷ 128.61 d.905 130.55 per unit PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Refer to Simpson Company.053 ÷ 123. $278. $1. $191. $204.775 $99.800 Costs per Equivalent Unit (1. Reporting 91.32 Total $282.500 68.55 * $1. $298.000 units: Raw Materials (prior period) Direct Labor (prior period FOH (10.55 ANS: A Conversion Costs: Beginning (Ignored) Current Period $130.860 units= $1. Reporting 92. What is the cost of all units transferred out using the FIFO method? a.360 units= $ 1. $282.55 + .824 $287. $287.905 5. $1. Refer to Simpson Company.05): Total $24.95 c. Reporting 93.289 c.000 * . What is the cost of units completed using the weighted average method? a.004 d.400 d.180 $187.Chapter 6 28 ANS: C Conversion Costs: Beginning Current Period $ 68. $237.004 .05 per unit PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.77) = $2. $266.742 c.576 ANS: D Units Completed 121.576 PTS: 1 DIF: Difficult OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.63+1.800 units * $ (. $.053 198. $1. 94. Reporting 95. 2.450.700 Material B 700 1. 2. Reporting Mercury Corporation Beginning inventory (30% complete as to Material B and 60% complete for conversion) Started this cycle Ending inventory (50% complete as to Material B and 80% complete for conversion) Beginning inventory costs: Material A Material B Conversion Current Period costs: Material A Material B Conversion 700 2. 2. respectively b.640 $40.280. respectively ANS: C FIFO Beginning Work in Process Units Started and Completed Ending Work in Process EUP Materials Material A 0 1. 2. respectively c. 2.500 250 2.700. respectively b.500 250 2. while Material B is added uniformly throughout the process. compute EUP units for Materials A and B.280. respectively d.450 and 2. Refer to Mercury Corporation Assuming a FIFO method of process costing.240 . 2.700 and 2.700 and 2.240.000 98.000 and 2. Assuming a weighted average method of process costing. 2.450 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. a.100 Material A is added at the start of production.700 and 2. 2. compute EUP units for Materials A and B.450. respectively d. Refer to Mercury Corporation.500 500 2.950 5.700 and 2. a.000 500 units units units $14.880.Chapter 6 29 PTS: 1 DIF: Difficult OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. respectively c.500 500 2.000 and 2.270 5.000 70.240.240 and 2.000 Material B 490 1. respectively ANS: B Weighted Average Beginning Work in Process Units Started and Completed Ending Work in Process EUP Materials Material A 700 1. compute EUP for conversion.700 ANS: A Weighted Average Beginning Work in Process Units Started and Completed Ending Work in Process 700 1. Refer to Mercury Corporation Assuming a FIFO method of process costing.700 units= $ 20.500 400 2. Reporting 96. Refer to Mercury Corporation Assuming a weighted average method of process costing. $20.270 ÷ 2.10 per unit PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.270 40.00 c. 2.000 54.280 d.700 ANS: B FIFO Beginning Work in Process (700 * 40%) Units Started and Completed Ending Work in Process (500 * 80%) 280 1.180 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.500 400 2.180 c.00 ANS: A Weighted Average: Material A Beginning Current Period $ 14. Reporting . a. Reporting 98. 2.25 d.240 b. 2. 2.600 b. a. $31. 2. Refer to Mercury Corporation Assuming a weighted average method of process costing. Reporting 97. $31. compute EUP for conversion.000 d. 2. 2. compute the average cost per unit for Material A. 2.Chapter 6 30 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.600 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.180 c. $20.10 b. a. 00 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.00 b.25 c. $31.950 Equivalent Units 2.25 b.000 Average Cost per EUP $20. $45. Refer to Mercury Corporation Assuming a FIFO method of process costing. a. compute the average cost per EUP for Material A. compute the average cost per EUP for Material B. a. Refer to Mercury Corporation Assuming a FIFO method of process costing.10 c.Chapter 6 31 99. $31.000 Equivalent Units 2.00 ANS: B Material B Costs (Current Period) $70. $47. $20. $31. compute the average cost per EUP for conversion.59 .25 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.10 d. a. $20.00 ANS: D Material B Costs (Beginning Inventory and Current Period) $75.000 Equivalent Units 2.240 Average Cost per EUP $31. $20.10 b. $20.00 ANS: C Material A Costs (Current Period) $40. $31. Reporting 102.00 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. compute the average cost per EUP for Material B. Refer to Mercury Corporation Assuming a weighted average method of process costing.00 d.450 Average Cost per EUP $31. $20.00 c. Reporting 100. Refer to Mercury Corporation Assuming a FIFO method of process costing.03 d.25 c. $20. a. $45. $43. $31.00 d.50 b. Reporting 101. $31. a. $39.000 units $120. Units 14.03 d.000 b.00 ANS: B Conversion Costs (Current Period) $98.500 units 300.000 ANS: C Materials: Weighted Average Beginning Work in Process + Units Started and Completed + Ending Work in Process + Abnormal Spoilage Equivalent Units of Production Units 14. 89.000 Conversion Current Costs: 16.000 Conversion 14. 70. Using weighted average.90 PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.90 b.180 Average Cost per EUP $45.500 units 75.100 + $5.500 51.500 16.00 c. 104. $45.500 d. Reporting 103.500 .500 16.000 Material 2.500 % Complete 100% 100% 100% 100% Eq.Chapter 6 32 Equivalent Units 2. 82.000 units All materials are added at the start of production.100 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.640)=$103.500 c. 84.000 units 66.500 51. Reporting Guthrie Corporation The following information is available for Guthrie Corporation for the current year: Beginning Work in Process (75% complete) Started Ending Work in Process (60% complete) Abnormal spoilage Normal spoilage (continuous) Transferred out Costs of Beginning Work in Process: $25.100 Material 50.59 ANS: A Conversion Costs (Beginning WIP and Current Period) $(98.600 Average Cost per EUP $39.500 84.000 2. compute the average cost per EUP for conversion. Refer to Guthrie Corporation. $43.640 Equivalent Units 2.000 units 5. what are equivalent units for material? a. Refer to Mercury Corporation Assuming a weighted average method of process costing. $47.000 2. what are equivalent units for conversion costs? a. Refer to Guthrie Corporation.48 d.500 16.500 51. Refer to Guthrie Corporation.600 b.62 c. Reporting 107. What is the cost per equivalent unit for material using weighted average? a. Refer to Guthrie Corporation.100 ÷ 84.21 c.100 d.72 per unit PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $1.600 2.500 % Complete 100% 100% 60% 100% Eq Units 14.62 b.77 d. What is the cost per equivalent unit for conversion costs using weighted average? a.07 ANS: A Weighted Average: Materials Beginning Current Period $ 25. $4. 75.600 ANS: B Conversion: Weighted Average Beginning Work in Process + Units Started and Completed + Ending Work in Process + Abnormal Spoilage Equivalent Units of Production Units 14. $2.Chapter 6 33 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Using weighted average.000 ÷ 78. $4. $1. 80.000 2.500 units= $1.000 350. 78.100 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $4. $1.000 145.500 9.72 b. Reporting 105.34 ANS: C Weighted Average: Conversion Beginning Current Period $ $ 50. Reporting 106.100 units = $ 4.48 per unit PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.100 120.000 300.500 51. 83. Reporting . $4.100 c.500 78. 78. 72. Refer to Guthrie Corporation. respectively.680 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 9. $15.000 b.680 ANS: D Equivalent Units 16. Higher costs are assigned to good units produced.500 c. 67. Reporting 109. What is the cost assigned to ending Work in Process? a.75 $4.000 2.55 Total $28. What is the cost assigned to normal spoilage using weighted average? a.850 d.800 b.000 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Using FIFO. Using FIFO. Assume that the cost per EUP for material and conversion are $1.75 and $4.500 70. $31.500 16.000 2. $100. None of the responses are correct ANS: D No costs are assigned to normal. Refer to Guthrie Corporation. Refer to Guthrie Corporation.000 ANS: D Materials: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process + Abnormal Spoilage Equivalent Units of Production 51. $87. Reporting 111.000 $43.225 b.100 . 72. continuous spoilage. $71.225 c. what are equivalent units for material? a. $103. 70. $30.600 Cost per Equivalent Unit $1.500 c. 84.680 $71.725 d. what are equivalent units for conversion costs? a.430 c.000 b. Refer to Guthrie Corporation. 69.180 d.500 16.500 0% 100% 100% 100% 51.55.Chapter 6 34 108. 75.500 d. Reporting 110. 000 2.100 17. $1.194 b.46 per unit PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.975 ANS: A Transferred Out Units: FIFO Beginning Work in Process + Completion of Beginning Inventory +Units Started and Completed Equivalent Units of Production Equiv Units (14.Chapter 6 35 ANS: B Conversion: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process + Abnormal Spoilage Equivalent Units of Production 14.500 67. $339.225 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.219 321. $1.66 c.75 6. $3. $414. $4.50 and $4. what is the cost per equivalent unit for material? a. $4.094 c.875 414. what is the cost per equivalent unit for conversion costs? a. Using FIFO.15 c.30 d.000 ÷ 67.625 51.500 16.71 per unit PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.71 d.000 units = $1. $1.500 51.000 ÷ 70. $445.60 ANS: C FIFO: Materials Current Period $ 120.75.000 300. $4.600 2. respectively.194 .625 51. Using FIFO what is the total cost assigned to the units transferred out? a.25 Total 75. Refer to Guthrie Corporation.500 Cost per Equiv Unit 4. $396. Reporting 112.46 b.84 ANS: A FIFO: Conversion Current Period $ 300. Assume that the FIFO EUP cost for material and conversion are $1. Reporting 114.444 d.500 25% 100% 60% 100% 3.42 b. Refer to Guthrie Corporation. Reporting 113. Refer to Guthrie Corporation.500 9. Using FIFO. $1.500 * 25%) 3.225 units = $ 4.000 120. 95.750 10. assuming FIFO? a. Refer to Crafton Corporation.000 14. 108.150 106. Reporting Crafton Corporation Crafton Corporation has the following information for the current month: Units started Beginning Work in Process: (35% complete) Normal spoilage (discrete) Abnormal spoilage Ending Work in Process: (70% complete) Transferred out Beginning Work in Process Costs: Material Conversion 100.625 3.500 0% 100% 100% 100% 100% 77.000 3.000 77. assuming FIFO? a.000 ANS: A Materials: FIFO Beginning Work in Process + Units Started and Completed + Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 77.900 b.525 ANS: D Conversion: FIFO Beginning Work in Process + Units Started and Completed +Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 20.000 20. 120.000 77.500 c.000 10.000 d.500 5. 108.000 2.000 3.500 97.000 $15. What are equivalent units of production for material. Reporting 116.900 c.000 b.500 5. 103.000 14.000 3.000 14. 100. What are equivalent units of production for conversion costs.500 5. 106.500 65% 100% 75% 75% 70% 13. 96.000 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 14.500 5.000 3.Chapter 6 36 PTS: 1 DIF: Difficult OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Crafton Corporation inspects goods at 75 percent completion as to conversion.500 100.000 units units units units units units All materials are added at the start of the production process. 115.650 d. Refer to Crafton Corporation.525 . Reporting 117.500 192.50/unit $5.625 $10.625 1.750 * $1. respectively. 115.625 d. What is the amount of the period cost for July using FIFO? a.438 (20.00 1.00/unit 3.938 ANS: B Transferred Out Units: FIFO Beginning Work in Process + Completion of Beginning Inventory + Units Started and Completed +Normal Spoilage--Discrete-Materials +Normal Spoilage--Discrete-Conversion Equivalent Units of Production $ 25. $12. 107.000 d.000 * 65%) 13.000 5. Refer to Crafton Corporation. $9.500 c.50. Assume that the costs per EUP for material and conversion are $1. Reporting 118.00 and $1. $237.500 2.000 19.625 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 3. $0 b.000 . respectively. $10. $244.750 b. Reporting 119.500 ANS: C Abnormal spoilage is a period cost.000 77.375 c.000 b. $245.000 d.50 PTS: 1 DIF: Difficult OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Refer to Crafton Corporation.Chapter 6 37 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.50. What are equivalent units of production for material assuming weighted average is used? a. Materials Conversion Costs Total Abnormal Spoilage 5.50 2. Refer to Crafton Corporation.00 and $1.50 1. Assume that the costs per EUP for material and conversion are $1. Using FIFO. what is the total cost assigned to the transferred-out units (rounded to the nearest dollar)? a.000 * $1. 120.500 3.438 c.938 $244. $224.500 3. 116. c.000 14. What is the cost assigned to normal spoilage.500 100% 100% 100% 100% 100% 20. Reporting 120. Assume that the costs per EUP for material and conversion are $1.400 c. d.50. 113.500 5.500 120. 114.438 This amount is transferred out.525 b. 115. b.500 3.500 5.750 Assigned To Units transferred out and Ending Inventory Units transferred out Units transferred out and Ending Inventory Units transferred out ANS: B Cost per Equivalent Unit $1. and where is it assigned? Value a.750 $8.000 3.000 77. Reporting 121.625 3.438 $8.00 $1.000 14.500 100% 100% 75% 75% 70% 20. Reporting .625 Total $3.438 $7.938 $7. PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. What are equivalent units of production for conversion costs assuming weighted average is used? a.750 10.000 14.000 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 77.00 and $1. respectively.000 77.000 3.000 3. 114. using weighted average. Refer to Crafton Corporation. Refer to Crafton Corporation.Chapter 6 38 ANS: C Materials: Weighted Average Beginning Work in Process + Units Started and Completed + Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 20.000 2.500 2.150 113.650 ANS: A Conversion: Weighted Average Beginning Work in Process + Units Started and Completed +Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 20. $7.525 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.775 d.000 77.500 5.50 Equivalent Units 3. 00 d. Assume that the costs per EUP for material and conversion are $1.000 b.00 1. what is the cost assigned to ending inventory? a.000 d. 110.000 15.000 14.00 b.250.000 15. $29. $36. Refer to Knight Corporation.000 15.000 ANS: C Materials: FIFO Beginning Work in Process + Units Started and Completed + Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 73.Chapter 6 39 122.000 95.150 Total $1.00 $ 29.725.000 c.725.000 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.162.50 $ 14.000 3.500 * 70%) 10.000 4.000 88.00 15. $37.000 4.500. 95.475. 91.500 Conversion (14.000 4.000 units units units units units units All materials are added at the start of the production process.50. Reporting Knight Corporation Knight Corporation has the following information for the current month: Units started Beginning Work in Process: (30% complete) Normal spoilage (discrete) Abnormal spoilage Ending Work in Process: (75% complete) Transferred out Beginning Work in Process Costs: Material Conversion 95. 92.000 3.000 $18.50 c. Reporting .00 and $1. assuming FIFO? a. What are equivalent units of production for material. Knight Corporation inspects goods at 75 percent completion as to conversion.00 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.00 ANS: A Ending Inventory: Weighted Average Materials 14.000 15. Refer to Crafton Corporation.225. Assuming that weighted average is used. respectively. 123. $38.000 3.000 0% 100% 100% 100% 100% 73. 063 $376.000 15.250 100.500 73.000 * $2. Reporting 126.00/unit 3.Chapter 6 40 124. What is the amount of the period cost for July using FIFO? a. Reporting .000 6. Assume that the costs per EUP for material and conversion are $2.000 5. $12.000 2. respectively.25. $14.938 d.750 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $344. 104. respectively. assuming FIFO? a. $0 b. $378. Materials Conversion Costs Total Abnormal Spoilage 4.000 11.000 c.000 3.938 b. $376.750 c.500 73.000 ANS: C Abnormal spoilage is a period cost. Refer to Knight Corporation.750 d.000 3.750 d.000 2.250 $2.000 23. 101.000 * 75%) 10.250 6. What are equivalent units of production for conversion costs.25 4.000 70% 100% 75% 75% 75% 10.250 3.25 PTS: 1 DIF: Difficult OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.875 c.000 4.000 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.625 310.750 $14. 100. Refer to Knight Corporation. Reporting 125.000 * 70%) (3.00 and $2.25. what is the total cost assigned to the transferred-out units (rounded to the nearest dollar)? a. $365. Refer to Knight Corporation.00 2.750 b.00 and $2.25 2. Using FIFO. 97.938 (15.25/unit $ 8.500 ANS: B Conversion: FIFO Beginning Work in Process + Units Started and Completed +Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 15.000 * $2. Assume that the costs per EUP for material and conversion are $2. $17.625 ANS: C Transferred Out Units: FIFO Beginning Work in Process + Completion of Beginning Inventory + Units Started and Completed +Normal Spoilage--Discrete-Materials +Normal Spoilage--Discrete-Conversion Total Costs Assigned to Transferred Units $ 32.000 73. 000 4. What are equivalent units of production for material assuming weighted average is used? a. Refer to Knight Corporation.000 15.000 4.000 c.000 3.000 15.750 Assigned To Units transferred out and Ending Inventory Units transferred out Units transferred out and Ending Inventory Units transferred out . d.250 3. 104. 105.750 b.000 11.000 100% 100% 75% 75% 75% 15.750 $12.500 c. respectively. Refer to Knight Corporation.000 73. Assume that the costs per EUP for material and conversion are $2.25. 103. 104. and where is it assigned? Value a.Chapter 6 41 127. b.750 d. What is the cost assigned to normal spoilage. Refer to Knight Corporation.000 73.000 73.000 3. 110.000 110.063 $12. What are equivalent units of production for conversion costs assuming weighted average is used? a.000 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 d.000 15.500 ANS: B Conversion: Weighted Average Beginning Work in Process + Units Started and Completed +Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 15. using weighted average.00 and $2.000 4. 106. Reporting 129.063 $11.000 73.500 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. c. $11.250 104.000 3.500 b.000 100% 100% 100% 100% 100% 15. 105. Reporting 128.000 ANS: D Materials: Weighted Average Beginning Work in Process + Units Started and Completed + Normal Spoilage--Discrete + Abnormal Spoilage + Ending Work in Process Equivalent Units of Production 15.000 2. 107. 000 5.00 25.800 $120. what is the cost assigned to ending inventory? a. $63. Assuming that weighted average is used.750. PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.00 2. $72.50 PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.063 $11.312.400 13. Assume that the costs per EUP for material and conversion are $2.250 Total $2.500 units units units units units units $10. $66. .312.000 2.50 b.000 7.25 $ 30.312.250 Total $6.00 $2.00 and $2.500 1. respectively.000 Conversion (15.00 c.00 d.000 72.000 All materials are added at the start of production and the inspection point is at the end of the process.50 ANS: A Ending Inventory: Weighted Average Materials 15.312.50 $ 55.000 350.063 This amount is transferred out.000.Chapter 6 42 Cost per Equivalent Unit $2. Reporting Chapman Corporation The following information is available for Chapman Corporation for the current month: Started this month Beginning WIP (40% complete) Normal spoilage (discrete) Abnormal spoilage Ending WIP (70% complete) Transferred out Beginning Work in Process Costs: Material Conversion Current Costs: Material Conversion 80.000 * 75%) 11. Reporting 130.25 ANS: B Equivalent Units 3.375.25. Refer to Knight Corporation.100 900 13. $55. 100 900 0% 100% 100% 100% 100% 65. 85.500 65.100 c. 79.000 1.000 13.100 d. 86. Refer to Chapman Corporation.000 13. 79.600 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.400 d.100 900 80. Reporting 133.100 900 60% 100% 70% 100% 100% 4.900 d.Chapter 6 43 131. 81.000 13.000 13.500 ANS: B Materials: Weighted Average Beginning Work in Process + Units Started and Completed + Ending Work in Process + Normal Spoilage (discrete) + Abnormal Spoilage Equivalent Units of Production Units % Complete EUP 7. Refer to Chapman Corporation.500 c.100 1.600 b.000 1.700 b.500 65. 80. 87.000 13.100 900 100% 100% 100% 100% 100% 7.500 .500 c.000 1.500 65.000 PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. 80. 78. 87.100 900 80.500 ANS: A Materials: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process + Normal Spoilage (discrete) + Abnormal Spoilage Equivalent Units of Production 65.100 900 87. 86.000 9.000 1. 79. What are equivalent units of production for conversion costs using FIFO? a. Refer to Chapman Corporation. What are equivalent units of production for material using weighted average? a. What are equivalent units of production for material using FIFO? a.600 ANS: D Conversion: FIFO Units % Complete EUP Beginning Work in Process + Units Started and Completed + Ending Work in Process + Normal Spoilage (discrete) + Abnormal Spoilage Equivalent Units of Production 7.000 b.000 1.500 65. Reporting 132. Refer to Chapman Corporation.000 $ 350.500 d.000 13.600 b.34 d. 81.Chapter 6 44 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Reporting . $1.000 9. $1.100 1.600 ANS: A Conversion: FIFO Beginning Work in Process + Units Started and Completed + Ending Work in Process + Normal Spoilage (discrete) + Abnormal Spoilage Equivalent Units of Production Units % Complete EUP 7. What are equivalent units of production for conversion costs using weighted average? a.000 ÷ 80.100 900 100% 100% 70% 100% 100% 7.600 units = $ 4.56 ANS: C FIFO: Materials Current Period $ 120.700 c.34 per unit PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 1.19 c.38 ANS: C FIFO: Conversion Current Period $ 350.63 b. Refer to Chapman Corporation. Reporting 134. $4. $1.50 per unit PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 units= $ 1.000 $ 120. What is cost per equivalent unit for material using FIFO? a.100 900 83.50 d. $4. $4. Reporting 135.600 PTS: 1 DIF: Easy OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.500 65. 83. $4.37 c. Refer to Chapman Corporation.000 ÷ 80. 82. Reporting 136. 82.500 65. $1. What is cost per equivalent unit for conversion costs using FIFO? a.00 b. 144 ANS: B Ending Inventory: FIFO Materials Conversion (13. $3.400 120. Reporting 138. Refer to Chapman Corporation. $5.994 PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.256 d. Reporting 139. Reporting 140.56 d.49 /unit PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. What is cost per equivalent unit for conversion costs using weighted average? a.50 4. $1.494 $ 58. $4.000 9. What is cost per equivalent unit for material using weighted average? a.63 c.35 per unit PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.000 130. $56.41 c.906 c. $4.35 ANS: D Weighted Average: Conversion Beginning Current Period $ 13. $1.19 b.424 .000 * 70%) Total 13. $4.000 363. $6.600 units = $4. Refer to Chapman Corporation.800 350.920 b.800 ÷ 83. $1.100 $ 1.994 c.44 ANS: A Weighted Average: Materials Beginning Current Period $ 10.400 ÷ 87. $1. $53.34 $ 19. $58. What is the cost assigned to abnormal spoilage using FIFO? a.49 b.500 39. Refer to Chapman Corporation. Refer to Chapman Corporation.55 d. $1.Chapter 6 45 137. $4. What is the cost assigned to ending inventory using FIFO? a.350 b. $75.420 d.500 units = $ 1. 080 b.656 d.400 ANS: B Goods Transferred Out/ Price per Eq Unit 73. $6. Reporting 142.100 Price per Equivalent Unit Total $5. $6. $435.84 Total $429.600 $5.424 allocated between WIP and Transferred Out c.824 c. Reporting . What is the total cost assigned to goods transferred out using weighted average? a. $429. $6. Refer to Chapman Corporation.824 PTS: 1 DIF: Difficult OBJ: 6-3 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. $6.84 $5. $428.256 Total PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement. Refer to Chapman Corporation.193 assigned to loss account d.84 $6.Chapter 6 46 ANS: C Abnormal Spoiled Units 900 Price per Equivalent Unit $5. $423.424 Transferred Out PTS: 1 DIF: Moderate OBJ: 6-8 NAT: AACSB: Analytical Skills LOC: AICPA Functional Competencies: Measurement.193 allocated between WIP and Transferred Out b.424 assigned to units Transferred Out ANS: D Normal Spoiled Units 1. Reporting 141. What is the cost assigned to normal spoilage and how is it classified using weighted average? a.