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Abc and Sda
Abc and Sda
Smithson Company produces two products (A and B). Direct material and labor costs for Product A total
$35 (which reflects 4 direct labor hours); direct material and labor costs for Product B total $22 (which
reflects 1.5 direct labor hours). Three overhead functions are needed for each product. Product A uses 2
hours of Function 1 at $10 per hour, 1 hour of Function 2 at $7 per hour, and 6 hours of Function 3 at $18
per hour. Product B uses 1, 8, and 1 hours of Functions 1, 2, and 3, respectively. Smithson produces 800
units of A and 8,000 units of B each period.
70. Refer to Smithson Company If total overhead is assigned to A and B on the basis of units produced,
Product A will have an overhead cost per unit of
a. $ 88.64.
b. $123.64.
c. $135.00.
d. None of the responses are correct.
ANS: A
Total Overhead
Product A Function Hourly Hours Total
Rate
1 $ 10 2 $ 20
2 $ 7 1 $ 7
3 $ 18 6 $ 108
Totals 9 $ 135
72. Refer to Smithson Company If total overhead is assigned to A and B on the basis of direct labor hours,
Product A will have an overhead cost per unit of
a. $51.32.
b. $205.28.
c. $461.88.
d. None of the responses are correct.
ANS: B
74. Refer to Smithson Company If total overhead is assigned to A and B on the basis of overhead activity
hours used, the total product cost per unit assigned to Product A will be
a. $86.32.
b. $95.00.
c. $115.50.
d. None of the responses are correct.
ANS: C
75. Refer to Smithson Company If total overhead is assigned to A and B on the basis of overhead activity
hours used, the total product cost per unit assigned to Product B will be
a. $115.50.
b. $73.32.
c. $34.60.
d. None of the responses are correct.
ANS: D
Phelps Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that
period, four set-ups were required for color changes. All units of Product Q are black, which is the color
in the process at the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-
up was made for 4,500 red units of Product Z; a set-up was made for 500 green units of Product Z. A set-
up was then made to return the process to its standard black coloration and the units of Product Q were
run. Each set-up costs $500.
76. Refer to Phelps Company. If set-up cost is assigned on a volume basis for the department, what is the
approximate per-unit set-up cost for Product Z?
a. $.010.
b. $.036.
c. $.040.
d. None of the responses are correct.
ANS: B
Total setup cost: $500 x 4 = $2,000
$2,000/56,000 = $0.0357
77. Refer to Phelps Company. If set-up cost is assigned on a volume basis for the department, what is the
approximate per-unit set-up cost for the red units of Product Z?
a. $.036.
b. $.111.
c. $.250.
d. None of the responses are correct.
ANS: A
Total setup cost: $500 x 4 = $2,000
$2,000/56,000 = $0.0357
78. Refer to Phelps Company. Assume that Phelps Company has decided to allocate overhead costs using
levels of cost drivers. What would be the approximate per-unit set-up cost for the blue units of Product Z?
a. $.04.
b. $.25.
c. $.50.
d. None of the responses are correct.
ANS: C
Setup cost for blue units = $500.00
$500/1,000 = $.50
DIF: Moderate OBJ: 5-3
79. Refer to Phelps Company. Assume that Phelps Company has decided to allocate overhead costs using
levels of cost drivers. What would be the approximate per-unit set-up cost for the green units of Product
Z?
a. $1.00.
b. $0.25.
c. $0.04.
d. None of the responses are correct.
ANS: A
$500.00/500 = $1.00/unit
Lafayette Savings and Loan had the following activities, traceable costs, and
physical flow of driver units:
The above activities are used by the Jennings branch and the Crowley branch:
Jennings Crowley
80. Refer to Lafayette Savings and Loan. What is the cost per driver unit for new account activity?
a. $0.09 c. $30.00
b. $0.075 d. $50.00
ANS: D
$50,000 / 1,000 = $50.00 per account
a. $0.09 c. $30.00
b. $0.075 d. $50.00
ANS: A
$36,000/400,000 = $0.09
82. Refer to Lafayette Savings and Loan. What is the cost per driver unit for the withdrawal activity?
a. $0.09 c. $30.00
b. $0.075 d. $50.00
ANS: B
$15,000/200,000 = $0.075
83. Refer to Lafayette Savings and Loan. What is the cost per driver unit for the loan application activity?
a. $0.09 c. $30.00
b. $0.075 d. $50.00
ANS: C
$27,000/900 = $30.00
84. Refer to Lafayette Savings and Loan. How much of the loan application cost will be assigned to the
Jennings branch?
a. $3,000 c. $ 7,800
b. $4,800 d. $27,000
ANS: A
$30.00 x 100 = $3,000
85. Refer to Lafayette Savings and Loan. How much of the deposit cost will be assigned to the Crowley
branch?
a. $1,800 c. $ 5,400
b. $3,600 d. $36,000
ANS: A
$0.09 * 20,000 = $1,800
Hazel Company uses activity-based costing. The company produces two products: coats and hats. The
annual production and sales volume of coats is 8,000 units and of hats is 6,000 units. There are three
activity cost pools with the following expected activities and estimated total costs:
87. Refer to Hazel Company. Using ABC, the cost per unit of coats is approximately:
a. $2.40 c. $ 6.60
b. $3.90 d. $10.59
ANS: C
Activity Cost Allocation Cost per Unit
1 $20,000 * 100/500 = $ 4,000 / 8,000 $0.50
2 $37,000 * 800/1,000 = $29,600 / 8,000 3.70
3 $91,200 * 800/3,800 = $19,200 / 8,000 2.40
Total Cost per Unit 6.60
88. Refer to Hazel Company. Using ABC, the cost per unit of hats is approximately:
a. $2.40 c. $12.00
b. $3.90 d. $15.90
ANS: D
Activity Cost Allocation Cost per Unit
1 $20,000 * 400/500 = $ 16,000 / 6,000 $2.67
2 $37,000 * 200/1,000 = $ 7,400/ 6,000 1.23
3 $91,200 * 3,000/3,800 = $72,000 / 6,000 12.00
Total Cost per Unit 15.90
49. Bush Company had beginning Work in Process Inventory of 5,000 units that were 40 percent complete as
to conversion costs. X started and completed 42,000 units this period and had ending Work in Process
Inventory of 12,000 units. How many units were started this period?
a. 42,000
b. 47,000
c. 54,000
d. 59,000
ANS: C
50. Dixie Company uses a weighted average process costing system. Material is added at the start of
production. Dixie Company started 13,000 units into production and had 4,500 units in process at the start
of the period that were 60 percent complete as to conversion costs. If Dixie transferred out 11,750 units,
how many units were in ending Work in Process Inventory?
a. 1,250
b. 3,000
c. 3,500
d. 5,750
ANS: D
52. Kerry Company makes small metal containers. The company began December with 250 containers in
process that were 30 percent complete as to material and 40 percent complete as to conversion costs.
During the month, 5,000 containers were started. At month end, 1,700 containers were still in process (45
percent complete as to material and 80 percent complete as to conversion costs). Using the weighted
average method, what are the equivalent units for conversion costs?
a. 3,450
b. 4,560
c. 4,610
d. 4,910
ANS: D
53. Mehta Company Co. uses a FIFO process costing system. The company had 5,000 units that were 60
percent complete as to conversion costs at the beginning of the month. The company started 22,000 units
this period and had 7,000 units in ending Work in Process Inventory that were 35 percent complete as to
conversion costs. What are equivalent units for material, if material is added at the beginning of the
process?
a. 18,000
b. 22,000
c. 25,000
d. 27,000
ANS: B
The material is added at the beginning of the process; therefore there are 22,000 equivalent units of
material.
54. Julia Company makes fabric-covered hatboxes. The company began September with 500 boxes in process
that were 100 percent complete as to cardboard, 80 percent complete as to cloth, and 60 percent complete
as to conversion costs. During the month, 3,300 boxes were started. On September 30, 350 boxes were in
process (100 percent complete as to cardboard, 70 percent complete as to cloth, and 55 percent complete
as to conversion costs). Using the FIFO method, what are equivalent units for cloth?
a. 3,295
b. 3,395
c. 3,450
d. 3,595
ANS: A
Reed Company
All material is added at the start of the process and all finished products are transferred out.
55. Refer to Reed Company. How many units were transferred out in November?
a. 15,500
b. 18,000
c. 21,500
d. 24,000
ANS: C
56. Refer to Reed Company. Assume that weighted average process costing is used. What is the cost per
equivalent unit for material?
a. $0.55
b. $1.05
c. $1.31
d. $1.83
ANS: D
Material Costs:
Beginning $ 23,400
Current Period 31,500
54,900 ÷ 30,000 = $ 1.83
units
Conversion Costs:
Beginning (Ignored for FIFO) $ -
Current Period 76,956
$ 76,956
Equivalent Units
Beginning Inventory (6,000 * 1,800
30%)
Started and Completed (15,500) 15,500
Ending Inventory (8,500 * 10%) 850
18,150 equivalent units
Holiday Company
The Holiday Company makes wreaths in two departments: Forming and Decorating. Forming began the
month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete
as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100
wreaths that were still in process that were 100 percent complete as to material and 50 percent complete
as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the
Forming Department are as follows:
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. 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. Decorating uses the FIFO method of process costing, and costs associated with Decorating
are:
Beginning WIP Inventory:
Transferred In $1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material $67,745
Conversion 95,820
58. Refer to Holiday Company. How many units were transferred to Decorating during the month?
a. 600
b. 4,900
c. 5,950
d. 7,000
ANS: B
59. Refer to Holiday Company. What was the cost transferred out of Forming during the month?
a. $5,341
b. $6,419
c. $8,245
d. $8,330
ANS: D
Units
Transferred Cost per
Out Eq. Unit Total
4,900 1.70 $8,330
60. Refer to Holiday Company. Assume 8,000 units were transferred to Decorating. Compute the number of
equivalent units as to costs in Decorating for the transferred-in cost component.
a. 7,400
b. 7,700
c. 8,000
d. 8,600
ANS: C
The transferred-in cost component is the 8,000 units that were transferred in.
62. Refer to Holiday Company. Assume 8,000 units were transferred to Decorating. Compute the number of
equivalent units in Decorating for conversion.
a. 7,925
b. 7,985
c. 8,360
d. 8,465
ANS: B
64. Refer to Holiday Company. Assume that 8,000 units were transferred to Decorating at a total cost of
$16,000. What is the conversion cost per equivalent unit in Decorating?
a. $11.32
b. $11.46
c. $12.00
d. $12.78
ANS: C
65. Refer to Holiday Company. Assume the material cost per EUP is $8.00 and the conversion cost per EUP
is $15 in Decorating. What is the cost of completing the units in beginning inventory?
a. $ 960
b. $ 1,380
c. $ 1,860
d. $11,940
ANS: C
Ryan Company
Ryan Company adds material at the start to its production process and has the following information
available for March:
66. Refer to Ryan Company. Compute the number of units started and completed in March.
a. 29,500
b. 34,500
c. 36,500
d. 39,000
ANS: A
67. Refer to Ryan Company. Calculate equivalent units of production for material using FIFO.
a. 32,000
b. 36,800
c. 37,125
d. 39,000
ANS: A
Materials are added at the beginning of the process. 32,000 units were started in the current period;
therefore there are 32,000 equivalent units for materials.
68. Refer to Ryan Company. Calculate equivalent units of production for conversion using FIFO.
a. 30,125
b. 34,325
c. 37,125
d. 39,000
ANS: B
Equivalent Units
Beginning Inventory (7,000 * 60%) 4,200
Started and Completed (29,500) 29,500
Ending Inventory (2,500 * 25%) 625
34,325 equivalent units
69. Refer to Ryan Company. Calculate equivalent units of production for material using weighted average.
a. 32,000
b. 34,325
c. 37,125
d. 39,000
ANS: D
Equivalent Units
Beginning Inventory (7,000 units) 7,000
Started this Period (32,000) 32,000
39,000 equivalent units
70. Refer to Ryan Company. Calculate equivalent units of production for conversion using weighted average.
a. 34,325
b. 37,125
c. 38,375
d. 39,925
ANS: B
Equivalent Units
Beginning Inventory (7,000 * 100%) 7,000
Started and Completed (29,500) 29,500
Ending Inventory (2,500 * 25%) 625
37,125 equivalent units
Maxwell Company
Maxwell Company adds material at the start of production. The following production information is
available for June:
72. Refer to Maxwell Company. What is the total cost to account for?
a. $ 93,405
b. $205,653
c. $274,558
d. $299,058
ANS: D
73. Refer to Maxwell Company. How many units were started and completed in the period?
a. 111,800
b. 120,000
c. 121,800
d. 130,000
ANS: A
Equivalent Units
Beginning Inventory (10,000 * 100%) 10,000
Started and Completed (111,800) 111,800
Ending Inventory (8,200 * 25%) 8,200
130,000 equivalent units
75. Refer to Maxwell Company. What are the equivalent units for material using the FIFO method?
a. 111,800
b. 120,000
c. 125,500
d. 130,000
ANS: B
Equivalent Units
Beginning Inventory (Ignored for FIFO) 0
Started and Completed (111,800) 111,800
Ending Inventory (8,200 * 25%) 8,200
120,000 equivalent units
76. Refer to Maxwell Company. What are the equivalent units for conversion using the weighted average
method?
a. 120,000
b. 123,440
c. 128,360
d. 130,000
ANS: C
78. Refer to Maxwell Company. What is the material cost per equivalent unit using the weighted average
method?
a. $.58
b. $.62
c. $.77
d. $.82
ANS: C
Material Costs:
Beginning $ 24,500
Current Period 75,600
100,100 ÷ 130,000 = $ 0.77
units per unit
79. Refer to Maxwell Company. What is the conversion cost per equivalent unit using the weighted average
method?
a. $1.01
b. $1.05
c. $1.55
d. $1.61
ANS: B
Conversion Costs:
Beginning $ 68,905
Current Period 130,053
198,958 ÷ 128,360 = $ 1.55
units per unit
81. Refer to Maxwell Company. What is the conversion cost per equivalent unit using the FIFO method?
a. $1.05
b. $.95
c. $1.61
d. $1.55
ANS: A
Conversion Costs:
Beginning (Ignored)
Current Period 130,053
130,053 ÷ 123,860 = $ 1.05
units per unit
82. Refer to Maxwell Company. What is the cost of all units transferred out using the FIFO method?
a. $204,624
b. $191,289
c. $287,004
d. $298,029
ANS: C
Material A is added at the start of production, while Material B is added uniformly throughout the
process.
83. Refer to Cherub Company. Assuming a weighted average method of process costing, compute EUP units
for Materials A and B.
a. 2,700 and 2,280, respectively
b. 2,700 and 2,450, respectively
c. 2,000 and 2,240, respectively
d. 2,240 and 2,700, respectively
ANS: B
84. Refer to Cherub Company Assuming a FIFO method of process costing, compute EUP units for Materials
A and B.
a. 2,700 and 2,280, respectively
b. 2,700 and 2,450, respectively
c. 2,000 and 2,240, respectively
d. 2,450 and 2,880, respectively
ANS: C
85. Refer to Cherub Company Assuming a weighted average method of process costing, compute EUP for
conversion.
a. 2,600
b. 2,180
c. 2,000
d. 2,700
ANS: A
Weighted Average
Beginning Work in Process 700
Units Started and Completed 1500
Ending Work in Process 400
2600
86. Refer to Cherub Company Assuming a FIFO method of process costing, compute EUP for conversion.
a. 2,240
b. 2,180
c. 2,280
d. 2,700
ANS: B
FIFO
Beginning Work in Process (700 * 40%) 280
Units Started and Completed 1500
Ending Work in Process (500 * 80%) 400
2180
87. Refer to Cherub Company Assuming a weighted average method of process costing, compute the average
cost per unit for Material A.
a. $20.10
b. $20.00
c. $31.25
d. $31.00
ANS: A
89. Refer to Cherub Company Assuming a FIFO method of process costing, compute the average cost per
EUP for Material B.
a. $20.10
b. $31.25
c. $20.00
d. $31.00
ANS: B
90. Refer to Cherub Company Assuming a weighted average method of process costing, compute the average
cost per EUP for Material B.
a. $20.00
b. $31.25
c. $20.10
d. $31.00
ANS: D
92. Refer to Cherub Company Assuming a weighted average method of process costing, compute the average
cost per EUP for conversion.
a. $39.90
b. $45.00
c. $43.03
d. $47.59
ANS: A
Conversion Costs Equivalent Average Cost
(Beginning WIP and Units per EUP
Current Period)
$98,100 + $5,640 2,600 $39.90
Talmidge Company
The following information is available for Talmidge Company for the current year:
94. Refer to Talmidge Company. Using weighted average, what are equivalent units for conversion costs?
a. 80,600
b. 78,100
c. 83,100
d. 75,600
ANS: B
95. Refer to Talmidge Company. What is the cost per equivalent unit for material using weighted average?
a. $1.72
b. $1.62
c. $1.77
d. $2.07
ANS: A
97. Refer to Talmidge Company. What is the cost assigned to normal spoilage using weighted average?
a. $31,000
b. $15,500
c. $30,850
d. None of the responses are correct
ANS: D
No costs are assigned to normal, continuous spoilage. Higher costs are assigned to good units
produced.
98. Refer to Talmidge Company. Assume that the cost per EUP for material and conversion are $1.75 and
$4.55, respectively. What is the cost assigned to ending Work in Process?
a. $100,800
b. $87,430
c. $103,180
d. $71,680
ANS: D
Materials: FIFO
Beginning Work in Process - 0% -
+ Units Started and Completed 51,500 100% 51,500
+ Ending Work in Process 16,000 100% 16,000
+ Abnormal Spoilage 2,500 100% 2,500
Equivalent Units of Production 70,000
100. Refer to Talmidge Company. Using FIFO, what are equivalent units for conversion costs?
a. 72,225
b. 67,225
c. 69,725
d. 78,100
ANS: B
Conversion: FIFO
Beginning Work in Process 14,500 25% 3,625
+ Units Started and Completed 51,500 100% 51,500
+ Ending Work in Process 16,000 60% 9,600
+ Abnormal Spoilage 2,500 100% 2,500
Equivalent Units of Production 67,225
101. Refer to Talmidge Company. Using FIFO, what is the cost per equivalent unit for material?
a. $1.42
b. $1.66
c. $1.71
d. $1.60
ANS: C
FIFO: Materials
FIFO: Conversion
103. Refer to Talmidge Company. Assume that the FIFO EUP cost for material and conversion are $1.50 and
$4.75, respectively. Using FIFO what is the total cost assigned to the units transferred out?
a. $414,194
b. $339,094
c. $445,444
d. $396,975
ANS: A
Bowman Company
All materials are added at the start of the production process. Bowman Company inspects goods at 75
percent completion as to conversion.
104. Refer to Bowman Company. What are equivalent units of production for material, assuming FIFO?
a. 100,000
b. 96,500
c. 95,000
d. 120,000
ANS: A
Materials: FIFO
Beginning Work in Process - 0% -
+ Units Started and Completed 77,000 100% 77,000
+ Normal Spoilage--Discrete 3,500 100% 3,500
+ Abnormal Spoilage 5,000 100% 5,000
+ Ending Work in Process 14,500 100% 14,500
Equivalent Units of Production 100,000
105. Refer to Bowman Company. What are equivalent units of production for conversion costs, assuming
FIFO?
a. 108,900
b. 103,900
c. 108,650
d. 106,525
ANS: D
Conversion: FIFO
Beginning Work in Process 20,000 65% 13,000
+ Units Started and Completed 77,000 100% 77,000
+Normal Spoilage--Discrete 3,500 75% 2,625
+ Abnormal Spoilage 5,000 75% 3,750
+ Ending Work in Process 14,500 70% 10,150
Equivalent Units of Production 106,525
106. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00 and
$1.50, respectively. What is the amount of the period cost for July using FIFO?
a. $0
b. $9,375
c. $10,625
d. $12,500
ANS: C
107. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00 and
$1.50, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded to the
nearest dollar)?
a. $245,750
b. $244,438
c. $237,000
d. $224,938
ANS: B
Transferred Out Units: FIFO
Beginning Work in Process 25,000
+ Completion of Beginning Inventory (20,000 * 65%) 13,000 1.50 19,500
+ Units Started and Completed 77,000 2.50 192,500
+Normal Spoilage--Discrete-Materials 3,500 1.00 3,500
+Normal Spoilage--Discrete-Conversion 2,625 1.50 3,938
Equivalent Units of Production 244,438
DIF: Difficult OBJ: 6-2,6-4,6-8
108. Refer to Bowman Company. What are equivalent units of production for material assuming weighted
average is used?
a. 107,000
b. 116,500
c. 120,000
d. 115,000
ANS: C
Materials: Weighted Average
Beginning Work in Process 20,000 100% 20,000
+ Units Started and Completed 77,000 100% 77,000
+ Normal Spoilage--Discrete 3,500 100% 3,500
+ Abnormal Spoilage 5,000 100% 5,000
+ Ending Work in Process 14,500 100% 14,500
Equivalent Units of Production 120,000
109. Refer to Bowman Company. What are equivalent units of production for conversion costs assuming
weighted average is used?
a. 113,525
b. 114,400
c. 114,775
d. 115,650
ANS: A
110. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00 and
$1.50, respectively. What is the cost assigned to normal spoilage, using weighted average, and where is it
assigned?
Value Assigned To
111. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00 and
$1.50, respectively. Assuming that weighted average is used, what is the cost assigned to ending
inventory?
a. $29,725.00
b. $37,162.50
c. $38,475.00
d. $36,250.00
ANS: A
All materials are added at the start of production and the inspection point is at the end of the process.
112. Refer to Jones Company. What are equivalent units of production for material using FIFO?
a. 80,000
b. 79,100
c. 78,900
d. 87,500
ANS: A
Materials: FIFO
113. Refer to Jones Company. What are equivalent units of production for conversion costs using FIFO?
a. 79,700
b. 79,500
c. 81,100
d. 80,600
ANS: D
Conversion: FIFO %
Units Complete EUP
7,
Beginning Work in Process 500 60% 4,500
65,
+ Units Started and Completed 000 100% 65,000
13,
+ Ending Work in Process 000 70% 9,100
1,
+ Normal Spoilage (discrete) 100 100% 1,100
114. Refer to Jones Company. What are equivalent units of production for material using weighted average?
a. 86,600
b. 87,500
c. 86,400
d. 85,500
ANS: B
Conversion: FIFO %
Units Complete EUP
7,
Beginning Work in Process 500 100% 7,500
65,
+ Units Started and Completed 000 100% 65,000
13,
+ Ending Work in Process 000 70% 9,100
1,
+ Normal Spoilage (discrete) 100 100% 1,100
116. Refer to Jones Company. What is cost per equivalent unit for material using FIFO?
a. $1.63
b. $1.37
c. $1.50
d. $1.56
ANS: C
FIFO:
Materials
117. Refer to Jones Company. What is cost per equivalent unit for conversion costs using FIFO?
a. $4.00
b. $4.19
c. $4.34
d. $4.38
ANS: C
FIFO: Conversion
118. Refer to Jones Company. What is cost per equivalent unit for material using weighted average?
a. $1.49
b. $1.63
c. $1.56
d. $1.44
ANS: A
Weighted Average:
Materials
Beginning $ 10,400
Current Period 120,000
130,400 ÷ 87,500 = $ 1.49
units per unit
119. Refer to Jones Company. What is cost per equivalent unit for conversion costs using weighted average?
a. $4.19
b. $4.41
c. $4.55
d. $4.35
ANS: D
Weighted Average:
Conversion
Beginning $ 13,800
Current Period 350,000
363,800 ÷ 83,600 = $ 4.35
units per unit
120. Refer to Jones Company. What is the cost assigned to ending inventory using FIFO?
a. $75,920
b. $58,994
c. $56,420
d. $53,144
ANS: B
122. Refer to Jones Company. What is the cost assigned to normal spoilage and how is it classified using
weighted average?
a. $6,193 allocated between WIP and Transferred Out
b. $6,424 allocated between WIP and Transferred Out
c. $6,193 assigned to loss account
d. $6,424 assigned to units Transferred Out
ANS: D
123. Refer to Jones Company. What is the total cost assigned to goods transferred out using weighted average?
a. $435,080
b. $429,824
c. $428,656
d. $423,400
ANS: B
Price per
Goods Equivalent
Transferred Out Unit Total
73,600 $5.84 $429,824