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Chapter  4    

13. In a process costing system, manufacturing overhead applied is usually recorded as a
debit to: A. Finished goods. B. Work in process.
C. Manufacturing overhead. D. Cost of goods sold.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record
the flow of materials; labor; and overhead through a process costing system Level: Easy

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14. A company has two processing departments: A and B. Which of the following entries or
sets of journal entries would be used to record the transfer between processing departments
and from the final processing department to finished goods?
A. Option A B. Option B C. Option C D. Option D
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01
Record the flow of materials; labor; and overhead through a process costing system Level: Medium

15. A process costing system: A. uses a separate Work in Process account for each
processing department. B. uses a single Work in Process account for the entire company. C.
uses a separate Work in Process account for each type of product produced. D. does not use a
Work in Process account in any form.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-01
Record the flow of materials; labor; and overhead through a process costing system Level: Medium

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16. A company should use process costing, rather than job order costing, if: A. production is
only partially completed during the accounting period. B. the product is manufactured in
batches only as orders are received. C. the product is composed of mass-produced
homogeneous units.
D. the product goes through several steps of production.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record
the flow of materials; labor; and overhead through a process costing system Level: Easy

17. Which of the following characteristics applies to process costing, but does not apply to
job order costing? A. The need for averaging. B. The use of equivalent units of production.
C. Separate, identifiable jobs. D. The use of predetermined overhead rates.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-01 Record
the flow of materials; labor; and overhead through a process costing system Level: Easy

18. Equivalent units for a process costing system using the weighted-average method would
be equal to: A. units completed during the period and transferred out. B. units started and
completed during the period plus equivalent units in the ending work in process inventory.
C. units completed during the period less equivalent units in the beginning inventory, plus
equivalent units in the ending work in process inventory. D. units completed during the
period plus equivalent units in the ending work in process inventory.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04-02
Compute the equivalent units of production using the weighted-average method Level: Medium

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19. The cost of beginning inventory under the weighted-average method is: A. added in with
current period costs in determining costs per equivalent unit for a given period. B. ignored in
determining the costs per equivalent unit for a given period. C. considered separately from
costs incurred during the current period. D. subtracted from current period costs in
determining costs per equivalent unit for a given period.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Knowledge Learning Objective: 04-03 Compute
the cost per equivalent unit using the weighted-average method Level: Easy

20. The Nichols Company uses the weighted-average method in its process costing system.
The company recorded 29,500 equivalent units for conversion costs for November in a
particular department. There were 6,000 units in the ending work in process inventory on
November 30, 75% complete with respect to conversion costs. The November 1 work in

process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A
total of 25,000 units were completed and transferred out of the department during the month.
The number of units started during November in the department was:
A. 24,500 units B. 23,000 units C. 27,000 units D. 21,000 units
Beginning work in process inventory + Units started into production = Ending work in
process inventory + Units completed and transferred out Units started into production =
Ending work in process inventory + Units completed and transferred out - Beginning work in
process inventory
= 6,000 + 25,000 - 8,000 = 23,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of
materials; labor; and overhead through a process costing system Level: Medium

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21. The Assembly Department started the month with 14,000 units in its beginning work in
process inventory. An additional 296,000 units were transferred in from the prior department
during the month to begin processing in the Assembly Department. There were 14,000 units
in the ending work in process inventory of the Assembly Department.
How many units were transferred to the next processing department during the month? A.
293,000 B. 310,000 C. 324,000
D. 296,000
Beginning work in process inventory + Units started into production or transferred in =
Ending work in process inventory + Units completed and transferred out Units started into
production or transferred in = Ending work in process inventory + Units completed and
transferred out - Beginning work in process inventory
= 14,000 + 296,000 - 14,000 = 296,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-01 Record the flow of
materials; labor; and overhead through a process costing system Level: Easy

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22. Diston Company uses the weighted-average method in its process costing system. The
first processing department, the Welding Department, started the month with 18,000 units in
its beginning work in process inventory that were 30% complete with respect to conversion
costs. The conversion cost in this beginning work in process inventory was $44,820. An
additional 90,000 units were started into production during the month. There were 21,000
units in the ending work in process inventory of the Welding Department that were 10%
complete with respect to conversion costs. A total of $677,970 in conversion costs were
incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to
three decimal places.) A. $8.112 B. $8.300
C. $7.533 D. $6.108
Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 18,000 + 90,000 - 21,000 = 87,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

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23. Loll Company uses the weighted-average method in its process costing system. Operating
data for the first processing department for the month of June appear below:
According to the company's records, the conversion cost in beginning work in process
inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183
were incurred in the department during the month. What was the cost per equivalent unit for

conversion costs for the month? (Round off to three decimal places.)
A. $8.420 B. $6.934 C. $8.530 D. $8.322
Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

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24. The following information pertains to Yap Company's Grinding Department for the
month of April:
All materials are added at the beginning of the process. Using the weighted-average method,
the cost per equivalent unit for materials is closest to: A. $0.59 B. $0.55
C. $0.45 D. $0.43
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium Source: CMA, adapted

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25. Hardouin Company uses the weighted-average method in its process costing system. The
first processing department, the Welding Department, started the month with 22,000 units in
its beginning work in process inventory that were 20% complete with respect to conversion
costs. The conversion cost in this beginning work in process inventory was $23,320. An
additional 97,000 units were started into production during the month and 101,000 units were
completed in the Welding Department and transferred to the next processing department.
There were 18,000 units in the ending work in process inventory of the Welding Department
that were 40% complete with respect to conversion costs. A total of $529,380 in conversion
costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to
three decimal places.) A. $5.300 B. $5.458
C. $4.603 D. $5.108
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

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26. Parmentier Company uses the weighted-average method in its process costing system.
The Molding Department is the second department in its production process. The data below
summarize the department's operations in January.
The accounting records indicate that the conversion cost that had been assigned to beginning
work in process inventory was $5,096 and a total of $87,668 in conversion costs were
incurred in the department during January. What was the cost per equivalent unit for
conversion costs for January in the Molding Department? (Round off to three decimal
places.)
A. $1.654 B. $1.752 C. $1.490 D. $1.499
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

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27. Scheney Company uses the weighted-average method in its process costing system. The
company's work in process inventory on March 31 consisted of 20,000 units. The units in the
ending work in process inventory were 100% complete with respect to materials and 70%
complete with respect to labor and overhead. If the cost per equivalent unit for March was

$2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in
process inventory was:
A. $145,000 B. $116,500 C. $101,500 D. $78,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average
method Level: Medium

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Chapter 04 - Process Costing

28. The following data were taken from the accounting records of the Hazel Corporation
which uses the weighted-average method in its process costing system:
The equivalent units for conversion costs was: A. 102,000 units B. 112,000 units C. 111,000
units
D. 100,000 units Units transferred to the next department = Units in beginning work in
process + Units started
into production - Units in ending work in process = 30,000 + 90,000 - 20,000 = 100,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

29. Borwan Company uses the weighted-average method in its process costing system. The
Assembly Department started the month with 8,000 units in its beginning work in process
inventory that were 70% complete with respect to conversion costs. An additional 69,000
units were transferred in from the prior department during the month to begin processing in
the Assembly Department. There were 5,000 units in the ending work in process inventory of
the Assembly Department that were 20% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month? A. 67,400 B. 73,000
C. 72,000 D. 66,000
Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 8,000 + 69,000 - 5,000 = 72,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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30. Jastak Company uses the weighted-average method in its process costing system.
Operating data for the Painting Department for the month of April appear below:
What were the equivalent units for conversion costs in the Painting Department for April? A.
106,100 B. 91,500 C. 98,970
D. 106,270 Units transferred to the next department = Units in beginning work in process +
Units started
into production - Units in ending work in process = 1,000 + 98,800 - 8,300 = 91,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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31. Fayard Corporation uses the weighted-average method in its process costing system. The
Assembly Department started the month with 5,000 units in its beginning work in process
inventory that were 70% complete with respect to conversion costs. An additional 67,000
units were transferred in from the prior department during the month to begin processing in
the Assembly Department. During the month 63,000 units were completed in the Assembly
Department and transferred to the next processing department. There were 9,000 units in the
ending work in process inventory of the Assembly Department that were 50% complete with
respect to conversion costs.

What were the equivalent units for conversion costs in the Assembly Department for the
month? A. 71,000 B. 64,000
C. 63,000 D. 67,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

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32. Nguyen Corporation uses the weighted-average method in its process costing system.
Operating data for the Lubricating Department for the month of October appear below:
What were the equivalent units for conversion costs in the Lubricating Department for
October? A. 53,700 B. 52,280
C. 54,080 D. 50,100
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

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Chapter 04 - Process Costing

33. Sanchez Corporation uses the weighted-average method in its process costing system.
The Fitting Department is the second department in its production process. The data below
summarize the department's operations in March.
The Fitting Department's cost per equivalent unit for conversion cost for March was $8.66.
How much conversion cost was assigned to the units transferred out of the Fitting
Department during March? A. $480,630 B. $450,320 C. $444,258 D. $510,940
Units transferred to the next department = Units in beginning work in process + Units started
into production - Units in ending work in process = 7,000 + 52,000 - 3,500 = 55,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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34. The Gasson Company uses the weighted-average method in its process costing system.
The company's ending work in process inventory consists of 10,000 units, 100% complete
with respect to materials and 70% complete with respect to labor and overhead. If the costs
per equivalent unit are $4.50 for the materials and $2.00 for labor and overhead, the balance
of the ending work in process inventory account would be:
A. $44,500 B. $50,500 C. $59,000 D. $65,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Easy

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35. Ravalt Corporation uses the weighted-average method in its process costing system. The
Molding Department is the second department in its production process. The data below
summarize the department's operations in January.
The Molding Department's cost per equivalent unit for conversion cost for January was
$7.90. How much conversion cost was assigned to the ending work in process inventory in
the Molding Department for January? A. $27,729
B. $30,810 C. $3,081 D. $5,056
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Easy

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36. In February, one of the processing departments at Carpentier Corporation had beginning
work in process inventory of $14,000 and ending work in process inventory of $29,000.
During the month, $148,000 of costs were added to production and the cost of units
transferred out from the department was $133,000. In the department's cost reconciliation
report for February, the total cost to be accounted for would be:

A. $310,000 B. $162,000 C. $324,000 D. $43,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost
reconciliation report Level: Easy

37. In February, one of the processing departments at Whisenhunt Corporation had beginning
work in process inventory of $35,000 and ending work in process inventory of $11,000.
During the month, the cost of units transferred out from the department was $410,000. In the
department's cost reconciliation report for February, the total cost to be accounted for would
be:
A. $46,000 B. $807,000 C. $842,000 D. $421,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost
reconciliation report Level: Medium

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Chapter 04 - Process Costing

Jumper Company uses the weighted-average method in its process costing system. The
following data pertain to operations in the first processing department for a recent month:
38. How many units were in the ending work in process inventory? A. 600 units B. 1,000
units C. 800 units
D. 1,400 units Units in ending work in process = Units in beginning work in process + Units
started into
production - Units transferred to the next department = 400 + 15,000 - 14,400 = 1,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

39. What was the cost per equivalent unit for conversion cost? A. $5.00 B. $12.30 C. $8.50
D. $14.75
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

40. How much cost, in total, was transferred to the next department during the month? A.
$315,200 B. $306,000 C. $312,000
D. $317,100
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

Atwich Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 600 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 5,100 units were started and 4,400 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 75% complete with respect to materials and 10% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
41. What are the equivalent units for conversion costs for the month in the first processing
department? A. 4,400 B. 4,530
C. 130 D. 5,700
Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out 600 +
5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process
inventory = 600 + 5,100 - 4,400 = 1,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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42. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $21.28 B. $20.07
C. $19.29 D. $18.19
Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out 600 +
5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process
inventory = 600 + 5,100 - 4,400 = 1,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

43. The cost per equivalent unit for conversion costs for the first department for the month is
closest to: A. $34.18 B. $39.93
C. $43.00 D. $45.15
Units in beginning work in process inventory + Units started into production or transferred in
= Units in ending work in process inventory + Units completed and transferred out 600 +
5,100 = Units in ending work in process inventory + 4,400 Units in ending work in process
inventory = 600 + 5,100 - 4,400 = 1,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

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44. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $366,430 B. $284,600
C. $309,200 D. $282,858
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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45. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $26,342 B. $62,679
C. $8,357 D. $83,572
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

Byklea Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 200 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 7,000 units were started and 6,700 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 90% complete with respect to materials and 45% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
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46. How many units are in ending work in process inventory in the first processing
department at the end of the month? A. 500 B. 900
C. 300 D. 6,800
Units in ending work in process = Units in beginning work in process + Units started into
production - Units transferred to the next department = 200 + 7,000 - 6,700 = 500

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

47. What are the equivalent units for conversion costs for the month in the first processing
department? A. 6,925 B. 7,200
C. 6,700 D. 225
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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48. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $18.88 B. $18.75
C. $18.33 D. $18.46
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

49. The cost per equivalent unit for conversion costs for the first department for the month is
closest to: A. $32.03 B. $30.81
C. $33.63 D. $31.64
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

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50. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $351,100 B. $366,552
C. $356,800 D. $341,097
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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51. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $22,910 B. $15,703
C. $25,455 D. $11,455
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

Chae Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 500 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 8,100 units were started and 7,500 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 80% complete with respect to materials and 75% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
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52. How many units are in ending work in process inventory in the first processing
department at the end of the month? A. 1,100 B. 900
C. 600 D. 7,600
Units in ending work in process = Units in beginning work in process + Units started into
production - Units transferred to the next department = 500 + 8,100 -7,500 = 1,100
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

53. What are the equivalent units for conversion costs for the month in the first processing
department? A. 8,600 B. 825
C. 7,500 D. 8,325

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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54. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $16.32 B. $17.17
C. $15.91 D. $16.73
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

55. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $486,614 B. $472,000
C. $459,200 D. $424,373
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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Epstein Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 400 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 7,000 units were started and 6,500 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 85% complete with respect to materials and 45% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
56. What are the equivalent units for conversion costs for the month in the first processing
department? A. 405 B. 6,905
C. 6,500 D. 7,400
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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57. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $12.84 B. $13.32
C. $13.08 D. $12.61
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

58. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $248,529 B. $218,303
C. $236,700 D. $228,800
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

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Froment Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 200 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 7,900 units were started and 7,400 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 65% complete with respect to materials and 25% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.

To reduce rounding error, carry out all computations to at least three decimal places.
59. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $328,155 B. $309,200
C. $311,600 D. $299,796
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

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60. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $28,359 B. $18,433
C. $7,090 D. $11,809
Weighted-average method:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Grosseiller Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 900 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 6,400 units were started and 5,200 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 65% complete with respect to materials and 15% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
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Chapter 04 - Process Costing

61. How many units are in ending work in process inventory in the first processing
department at the end of the month? A. 2,100 B. 1,200
C. 5,500 D. 900
Units in ending work in process = Units in beginning work in process + Units started into
production - Units transferred to the next department = 900 + 6,400 -5,200 = 2,100
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

62. What are the equivalent units for materials for the month in the first processing
department? A. 1,365 B. 6,565
C. 7,300 D. 5,200
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

63. What are the equivalent units for conversion costs for the month in the first processing
department? A. 7,300 B. 5,515
C. 5,200 D. 315
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

64. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $12.93 B. $14.38
C. $16.38 D. $14.73
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

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Chapter 04 - Process Costing

65. The cost per equivalent unit for conversion costs for the first department for the month is

closest to: A. $26.89 B. $22.34
C. $31.05 D. $29.57
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

4-83
Chapter 04 - Process Costing

66. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $270,600 B. $238,935
C. $335,428 D. $242,700
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

4-84
Chapter 04 - Process Costing

67. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $62,720 B. $31,668
C. $14,474 D. $96,493
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

Heller Corporation uses the weighted-average method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
4-85
Chapter 04 - Process Costing

68. What are the equivalent units for materials for the month in the first processing
department? A. 840 B. 9,140
C. 9,700 D. 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

69. What are the equivalent units for conversion costs for the month in the first processing
department? A. 8,650 B. 9,700
C. 8,300 D. 350
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

4-86
Chapter 04 - Process Costing

70. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $10.51 B. $10.12
C. $9.91 D. $9.54
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

71. The cost per equivalent unit for conversion costs for the first department for the month is
closest to: A. $18.29 B. $17.42
C. $15.54 D. $17.10
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

4-87
Chapter 04 - Process Costing

72. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $246,800 B. $270,979
C. $240,400 D. $231,869
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

4-88
Chapter 04 - Process Costing

73. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $14,930 B. $23,466
C. $9,778 D. $39,110
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

Kramer Corporation uses the weighted-average method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
4-89
Chapter 04 - Process Costing

74. The total cost transferred from the first processing department to the next processing
department during the month is closest to: A. $306,682 B. $353,149
C. $334,000 D. $341,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

4-90
Chapter 04 - Process Costing

75. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $32,527 B. $46,467
C. $34,317 D. $39,497
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Learning Objective: 04-04 Assign costs to units using the weighted-average method Level: Medium

Lothian Corporation uses the weighted-average method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
4-91
Chapter 04 - Process Costing

76. What are the equivalent units for materials for the month in the first processing
department? A. 5,200 B. 325
C. 5,525 D. 5,700
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

77. The cost per equivalent unit for conversion costs for the first department for the month is
closest to: A. $34.05 B. $32.17
C. $32.43 D. $30.30
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

4-92
Chapter 04 - Process Costing

78. The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to: A. $8,919 B. $15,405
C. $5,925 D. $23,700
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

Duhamel Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 600 units. The
costs and percentage completion of these units in beginning inventory were:
A total of 7,800 units were started and 7,000 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing

department during the month:
The ending inventory was 55% complete with respect to materials and 50% complete with
respect to conversion costs. Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal places.
4-93
Chapter 04 - Process Costing

79. How many units are in ending work in process inventory in the first processing
department at the end of the month? A. 1,400 B. 7,200
C. 900 D. 800
Units in ending work in process = Units in beginning work in process + Units started into
production - Units transferred to the next department = 600 + 7,800 -7,000 = 1,400
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

80. What are the equivalent units for conversion costs for the month in the first processing
department? A. 8,400 B. 7,700
C. 7,000 D. 700
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

4-94
Chapter 04 - Process Costing

81. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $25.74 B. $23.81
C. $24.87 D. $26.89
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

Ire Corporation uses the weighted-average method in its process costing system. Data
concerning the first processing department for the most recent month are listed below
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
4-95
Chapter 04 - Process Costing

82. What are the equivalent units for conversion costs for the month in the first processing
department? A. 8,800 B. 1,045
C. 10,700 D. 9,845
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Medium

83. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $10.50 B. $9.95
C. $10.89 D. $10.32
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-03 Compute the cost
per equivalent unit using the weighted-average method Level: Medium

4-96
Chapter 04 - Process Costing

Jaderston Corporation uses the weighted-average method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error,
carry out all computations to at least three decimal places.
84. The cost per equivalent unit for materials for the month in the first processing department
is closest to: A. $19.55 B. $19.20
C. $20.46 D. $20.09
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the

equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

4-97
Chapter 04 - Process Costing

85. The cost per equivalent unit for conversion costs for the first department for the month is
closest to: A. $38.29 B. $36.47
C. $34.68 D. $36.06
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Learning Objective: 04-03 Compute the cost per equivalent unit using the
weighted-average method Level: Medium

The information below was obtained from the records of the first processing department of
Moore Company for the month of May. The company uses the weighted-average method in
its process costing system.
All materials are added at the beginning of the process.
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Chapter 04 - Process Costing

86. The equivalent units for materials for the month of May were: A. 60,000 units B. 74,000
units C. 64,000 units
D. 69,800 units
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

87. The equivalent units for labor and overhead for the month of May were: A. 60,000 units
B. 69,800 units C. 65,800 units
D. 73,800 units
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-02 Compute the
equivalent units of production using the weighted-average method Level: Easy

4-99
Chapter 04 - Process Costing

Nando Company uses the weighted-average method in its process costing system.
Department J is the second of three sequential processes at the company. During October,
Department J collected the following data:
All materials are added at the beginning of the process.
88. The total cost assigned to units transferred out during October was: A. $264,600 B.
$316,000 C. $342,000
D. $358,400
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Hard

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Chapter 04 - Process Costing

89. The total cost assigned to ending work in process inventory was: A. $75,400 B. $101,400
C. $152,800
D. $59,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-04 Assign costs to
units using the weighted-average method Level: Medium

In January, one of the processing departments at Seidl Corporation had ending work in
process inventory of $35,000. During the month, $111,000 of costs were added to production
and the cost of units transferred out from the department was $86,000.
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Chapter 04 - Process Costing

90. In the department's cost reconciliation report for January, the cost of beginning work in
process inventory for the department would be: A. $51,000 B. $10,000
C. $76,000 D. $60,000
Cost of beginning work in process inventory = Cost of ending work in process inventory +
Cost of units transferred out - Costs added to production = $35,000 + $86,000 - $111,000 =
$10,000

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost
reconciliation report Level: Medium

91. In the department's cost reconciliation report for January, the total cost accounted for
would be: A. $242,000 B. $232,000
C. $121,000 D. $45,000
Total cost accounted for = Cost of ending work in process inventory + Cost of units
transferred out = $35,000 + $86,000 = $121,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost
reconciliation report Level: Easy

In August, one of the processing departments at Knepp Corporation had beginning work in
process inventory of $17,000 and ending work in process inventory of $13,000. During the
month, $178,000 of costs were added to production.
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Chapter 04 - Process Costing

92. In the department's cost reconciliation report for August, the cost of units transferred out
of the department would be: A. $182,000 B. $195,000
C. $169,000 D. $165,000
Cost of units transferred out = Cost of beginning work in process inventory + Cost added to
production - Cost of ending work in process inventory = $17,000 + $178,000 - $13,000 =
$182,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost
reconciliation report Level: Medium

93. In the department's cost reconciliation report for August, the total cost to be accounted for
would be: A. $30,000 B. $390,000
C. $195,000 D. $373,000
Total cost accounted for = Cost of ending work in process inventory + Cost of units
transferred out = $17,000 + $178,000 = $195,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04-05 Prepare a cost