Process Costing Testbank 1

Chapter 6—Process Costing
MULTIPLE 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.
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
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.
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
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
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
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
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
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
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.
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
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.
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.
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
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.
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.
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.
Chapter 6 5
19. Transferred-in cost represents the cost from

a. the last department only.
b. the last production cycle.
c. all prior departments.
d. the current period only.
20. Which of the following is(are) the same between the weighted average and FIFO methods of
calculating EUPs?
Units to EUP Total cost to

account for calculations account for
a. no yes no
b. yes yes yes
c. yes no no
d. yes no yes

21. Process costing techniques should be used in assigning costs to products

a. if a product is manufactured on the basis of each order received.
b. when production is only partially completed during the accounting period.
c. if a product is composed of mass-produced homogeneous units.
d. whenever standard-costing techniques should not be used.
22. 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. strict FIFO.
b. modified FIFO.
c. weighted average costing.
d. normal costing.
Chapter 6 6
23. A process costing system
a. cannot use standard costs.
b. restates Work in Process Inventory in terms of completed units.
c. accumulates costs by job rather than by department.
d. assigns direct labor and manufacturing overhead costs separately to units of production.
24. A process costing system does which of the following?
Calculates EUPs Assigns costs to inventories
a. no no
b. no yes
c. yes yes
d. yes no

25. A process costing system
Calculates average cost Determines total units to

per whole unit account for
a. yes yes
b. no no
c. yes no
d. no yes

26. A hybrid costing system combines characteristics of

a. job order and standard costing systems.
b. job order and process costing systems.
c. process and standard costing systems.
d. job order and normal costing systems.
Chapter 6 7
27. When standard costs are used in process costing,
a. variances can be measured during the production period.
b. total costs rather than current production and current costs are used.
c. process costing calculations are made simpler.
d. the weighted average method of calculating EUPs makes computing transferred-out costs
easier.
28. Which of the following is subtracted from weighted average EUP to derive FIFO EUP?
a. beginning WIP EUP completed in current period
b. beginning WIP EUP produced in prior period
c. ending WIP EUP not completed
d. ending WIP EUP completed
29. The cost of abnormal continuous losses is

a. considered a product cost.
b. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
c. written off as a loss on an equivalent unit basis.
d. absorbed by all units past the inspection point.
30. Abnormal spoilage can be
continuous discrete
a. yes no
b. no no
c. yes yes
d. no yes
31. When the cost of lost units must be assigned, and those same units must be included in an equivalent
unit schedule, these units are considered
a. normal and discrete.
b. normal and continuous.
c. abnormal and discrete.
d. abnormal and continuous.
Chapter 6 8
32. A continuous loss
a. occurs unevenly throughout a process.
b. never occurs during the production process.
c. always occurs at the same place in a production process.
d. occurs evenly throughout the production process.
33. Which of the following would be considered a discrete loss in a production process?
a. adding the correct ingredients to make a bottle of ketchup
b. putting the appropriate components together for a stereo
c. adding the wrong components when assembling a stereo
d. putting the appropriate pieces for a bike in the box
34. The method of neglect handles spoilage that is

a. discrete and abnormal.
b. discrete and normal.
c. continuous and abnormal.
d. continuous and normal.
35. The cost of normal discrete losses is

a. absorbed by all units past the inspection point on an equivalent unit basis.
b. absorbed by all units in ending inventory.
c. considered a period cost.
d. written off as a loss on an equivalent unit basis.
36. The cost of abnormal continuous losses is

a. considered a product cost.
b. absorbed by all units in ending inventory and transferred out on an equivalent unit basis.
c. written off as a loss on an equivalent unit basis.
d. absorbed by all units past the inspection point.
Chapter 6 9
37. Normal spoilage units resulting from a continuous process
a. are extended to the EUP schedule.
b. result in a higher unit cost for the good units produced.
c. result in a loss being incurred.
d. cause estimated overhead to increase.
38. When the cost of lost units must be assigned, and those same units must be included in an equivalent
unit schedule, these units are considered
a. normal and discrete.
b. normal and continuous.
c. abnormal and discrete.
d. abnormal and continuous.
39. Which of the following accounts is credited when abnormal spoilage is written off in an actual cost
system?
a. Miscellaneous Revenue
b. Loss from Spoilage
c. Finished Goods
d. Work in Process
40. The cost of abnormal discrete units must be assigned to
good units lost units
a. yes yes
b. no no
c. yes no
d. no yes
Chapter 6 10
41. Which of the following statements is false? The cost of rework on defective units, if
a. abnormal, should be assigned to a loss account.
b. normal and if actual costs are used, should be assigned to material, labor and overhead
costs of the good production.
c. normal and if standard costs are used, should be considered when developing the overhead
application rate.
d. abnormal, should be prorated among Work In Process, Finished Goods, and Cost of Goods
Sold.
42. If normal spoilage is detected at an inspection point within the process (rather than at the end), the cost
of that spoilage should be
a. included with the cost of the units sold during the period.
b. included with the cost of the units completed in that department during the period.
c. allocated to ending work in process units and units transferred out based on their relative
values.
d. allocated to the good units that have passed the inspection point.
43. Dallas Co. has a production process in which the inspection point is at 65 percent of conversion. The
beginning inventory for July was 35 percent complete and ending inventory was 80 percent complete.
Normal spoilage costs would be assigned to which of the following groups of units, using FIFO
costing?
Beginning Ending Units Started

Inventory Inventory & Completed
a. no yes yes
b. yes yes yes
c. no no yes
d. yes no no

44. Which of the following is not a question that needs to be answered with regard to quality control?
a. What happens to the spoiled units?
b. What is the actual cost of spoilage?
c. How can spoilage be controlled?
d. Why does spoilage happen?
ANS: A PTS: 1 DIF: Moderate OBJ: 6-8
Chapter 6 11
45. Normal spoilage units resulting from a continuous process
a. are extended to the EUP schedule.
b. result in a higher unit cost for the good units produced.
c. result in a loss being incurred.
d. cause estimated overhead to increase.
46. The addition of material in a successor department that causes an increase in volume is called
a. accretion.
b. reworked units.
c. complex procedure.
d. undetected spoilage.
47. Wood Company transferred 5,500 units to Finished Goods Inventory during October. On October 1,
the company had 300 units on hand (40 percent complete as to both material and conversion costs). On
October 31, the company had 800 units (10 percent complete as to material and 20 percent complete as
to conversion costs). The number of units started and completed during October was:
a. 5,200.
b. 5,380.
c. 5,500.
d. 6,300.
ANS: A
Units Transferred Out 5,500
Less: Units in Beginning Inventory (300)
Units Started and Completed 5,200
PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

48. Cole Company transferred 6,000 units to Finished Goods Inventory during August. On August 1, the
company had 400 units on hand (35 percent complete as to both material and conversion costs). On
August 31, the company had 750 units (20 percent complete as to material and 30 percent complete as
to conversion costs). The number of units started and completed during August was:
a. 5,600
b. 5,860
c. 6,000
d. 6,750
ANS: A
Units Transferred Out 6,000
Less: Units in Beginning Inventory (400)

Chapter 6 12
49. Boggs Company started 9,000 units in March. The company transferred out 7,000 finished units and
ended the period with 3,500 units that were 40 percent complete as to both material and conversion
costs. Beginning Work in Process Inventory units were
a. 500.
b. 600.
c. 1,500.
d. 2,000.
ANS: C
Beginning Work in Process 1,500
Add: Units Started 9,000
Deduct: Units Transferred Out (7,000)
Ending Work in Process 3,500

50. Williams Company started 8,600 units in April. The company transferred out 6,400 finished units and
ended the period with 3,200 units that were 40 percent complete as to both material and conversion
costs. Beginning Work in Process Inventory units were
a. 400.
b. 1,000.
c. 1,280.
d. 2,200.
ANS: B

51. Lincoln Company had beginning Work in Process Inventory of 5,000 units that were 40 percent
complete as to conversion costs. Lincoln Company 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
Deduct: Units Transferred Out ( 47,000)
PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills

Chapter 6 13
52. Douglas Company had beginning Work in Process Inventory of 6,000 units that were 45 percent
complete as to conversion costs. Douglas Company started and completed 46,000 units this period and
had ending Work in Process Inventory of 11,000 units. How many units were started this period?
a. 46,000
b. 52,000
c. 57,000
d. 63,000
ANS: C

53. Streete Company uses a weighted average process costing system. Material is added at the start of
production. Streete 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 Streete Company 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

54. Roache Company uses a weighted average process costing system. Material is added at the start of
production. Roache Company started 14,000 units into production and had 5,000 units in process at the
start of the period that were 75 percent complete as to conversion costs. If Roache Company
transferred out 12,250 units, how many units were in ending Work in Process Inventory?
a. 1,750
b. 3,000
c. 5,500
d. 6,750
ANS: D

Chapter 6 14
55. Jones Company uses a weighted average process costing system and started 30,000 units this month.
Jones had 12,000 units that were 20 percent complete as to conversion costs in beginning Work in
Process Inventory and 3,000 units that were 40 percent complete as to conversion costs in ending
Work in Process Inventory. What are equivalent units for conversion costs?
a. 37,800
b. 40,200
c. 40,800
d. 42,000
ANS: B
Beginning Work in Process 12,000 20% 2,400
+ Completion of Units in Process 12,000 80% 9,600
+ Units Started and Completed 27,000 100% 27,000
+ Ending Work in Process 3,000 40% 1,200
Equivalent Units of Production 40,200

56. Summers Company uses a weighted average process costing system and started 36,000 units this
month. Jones had 15,000 units that were 25 percent complete as to conversion costs in beginning Work
in Process Inventory and 6,000 units that were 35 percent complete as to conversion costs in ending
Work in Process Inventory. What are equivalent units for conversion costs?
a. 43,350
b. 47,100
c. 48,900
d. 51,000
ANS: B

57. Weston Company makes small metal containers. 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.
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
Chapter 6 15
ANS: D
Beginning Work in Process 250 40% 100
+ Completion of Units in Process 250 60% 150

58. Meade Company makes small metal containers. 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.
During the month, 6,000 containers were started. At month end, 1,900 containers were still in process
(40 percent complete as to material and 75 percent complete as to conversion costs). Using the
weighted average method, what are the equivalent units for conversion costs?
a. 4,265
b. 5,590
c. 5,825
d. 6,300
ANS: C

59. Ormandy Company 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.

60. Bernstein Company uses a FIFO process costing system. The company had 6,000 units that were 75
percent complete as to conversion costs at the beginning of the month. The company started 25,000
units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent
complete as to conversion costs. What are equivalent units for material, if material is added at the
beginning of the process?
Chapter 6 16
a. 18,500
b. 25,000
c. 26,500
d. 31,000
ANS: B
The material is added at the beginning of the process; therefore there are 25,000 equivalent units of
material.

61. Montgomery Company makes fabric-covered hatboxes. The company began July 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 April 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
Beginning Work in Process (Ignored for FIFO) 500 0% -
+ Ending Work in Process 350 70% 245

62. Hahn Company makes fabric-covered storage totes. The company began July with 600 totes in process
that were 100 percent complete as to cardboard, 75 percent complete as to cloth, and 65 percent
complete as to conversion costs. During the month, 3,600 totes were started. On April 30, 450 totes
were in process (100 percent complete as to cardboard, 60 percent complete as to cloth, and 50 percent
complete as to conversion costs). Using the FIFO method, what are equivalent units for cloth?
a. 3,570
b. 3,750
c. 3,870
d. 4,020
ANS: A
Beginning Work in Process (Ignored for FIFO) 600 0% -

Chapter 6 17
Brewer Corporation
Brewer Corporation. has the following information for August:
Beginning Work in Process Inventory

(70% complete as to conversion) 6,000 units
Started 24,000 units
Ending Work in Process Inventory
Beginning WIP Inventory Costs:

Material $23,400
Conversion 50,607
Current Period Costs:

Material $31,500
Conversion 76,956
All material is added at the start of the process and all finished products are transferred out.
63. Refer to Brewer Corporation. How many units were transferred out in August?
a. 15,500
b. 18,000
c. 21,500
d. 24,000
ANS: C

64. Refer to Brewer Corporation. 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 units = $ 1.83

Chapter 6 18
65. Refer to Brewer Corporation. Assume that FIFO process costing is used. What is the cost per
equivalent unit for conversion?
a. $3.44
b. $4.24
c. $5.71
d. $7.03
ANS: B
Conversion Costs:
Beginning (Ignored for FIFO) $ -
$ 76,956
Equivalent Units
Beginning Inventory (6,000 * 30%) 1,800
Started and Completed (15,500) 15,500
Ending Inventory (8,500 * 10%) 850
18,150 eq units
Cost per equivalent unit $ 4.24

Collins Corporation
Collins Corporation. has the following information for May:

Started 27,000 units
Beginning WIP Inventory Costs:

Material $25,500
Conversion 52,725

Material $34,300
Conversion 80,845
All material is added at the start of the process and all finished products are transferred out.
66. Refer to Collins Corporation. How many units were transferred out in May?
a. 17,600
b. 19,500
c. 25,100
d. 27,000
Chapter 6 19
ANS: C

67. Refer to Collins Corporation. Assume that weighted average process costing is used. What is the cost
per equivalent unit for material?
a. $0.99
b. $1.18
c. $1.64
d. $1.73
ANS: D
Material Costs:
Beginning $25,500
Current Period _34,300
$59,800 ÷ 34,500 units = $ 1.73

68. Refer to Collins Corporation. Assume that FIFO process costing is used. What is the cost per
equivalent unit for conversion?
a. $3.05
b. $3.87
c. $4.25
d. $6.40
ANS: B
Conversion Costs:
Beginning (Ignored for FIFO) $ -
$ 80,845
Equivalent Units
Ending Inventory (9,400 * 15%) 1,410
20,885 equivalent units
Cost per equivalent unit ($80,845/20885) $ 3.87

Chapter 6 20
Fantastic Decorations Corporation
The Fantastic Decorations Corporation 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:
Beginning Work in Process Costs:

Material $1,000
Conversion 1,500
Current Costs:
Material $3,200
Conversion 5,045
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. 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
69. Refer to Fantastic Decorations Corporation. How many units were transferred to Decorating during
the month?
a. 600
b. 4,900
c. 5,950
d. 7,000
ANS: B
Wreaths completed from BWIP 500
Wreaths started and completed 4,400
4,900

70. Refer to Fantastic Decorations Corporation. What was the cost transferred out of Forming during the
month?
a. $5,341
b. $6,419
c. $8,245
d. $8,330
Chapter 6 21
ANS: D
Units Transferred Out Cost per Eq. Unit Total
4,900 1.70 $8,330

71. Refer to Fantastic Decorations Corporation. 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.

Compute the number of equivalent units in Decorating for material.
a. 7,970
b. 8,000
c. 8,330
d. 8,450
ANS: A
Materials: Decorating: FIFO Units % Complete Eqiv. Units

Compute the number of equivalent units in Decorating for conversion.
a. 7,925
b. 7,985
c. 8,360
d. 8,465
Chapter 6 22
ANS: B
Conversion: Decorating: FIFO Units % Complete Equiv.
Units


74. Refer to Fantastic Decorations Corporation. Assume that 8,000 units were transferred to Decorating at
a total cost of $16,000. What is the material cost per equivalent unit in Decorating?
a. $8.50
b. $8.65
c. $8.80
d. $9.04
ANS: A
When FIFO is used, consider only current costs.
Current Costs Equiv Cost/

Units Equiv Unit
$67,745 7,970 $8.50

75. Refer to Fantastic Decorations Corporation. 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
When FIFO is used, consider only current costs.
Current Costs Equiv Cost/

Units Equiv Unit
$95,820 7,985 $12.00

Chapter 6 23
76. Refer to Fantastic Decorations Corporation. 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
Costs to Percent to Cost per
Complete Beg Inv Units Complete Unit Total
Materials 600 20% $8 $960
Conversion 600 10% $15 $900
Total Costs to Complete $1,860

Four Seasons Company
Four Seasons Company adds material at the start to its production process and has the following
information available for August:

Started this period 32,000 units
Transferred out ?
77. Refer to Four Seasons Company. Compute the number of units started and completed in August.
a. 29,500
b. 34,500
c. 36,500
d. 39,000
ANS: A
Units started this period 32,000
Less: Ending Work in Process 2,500
Units started and completed this period 29,500

78. Refer to Four Seasons Company. Calculate equivalent units of production for material using FIFO.
a. 32,000
b. 36,800
c. 37,125
d. 39,000
Chapter 6 24
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.

79. Refer to Four Seasons 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 for Conversion
34,325 eq. units

80. Refer to Four Seasons 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--Materials
Beginning Inventory (7,000 units) 7,000
Started this Period (32,000) 32,000
39,000 eq. units

81. Refer to Four Seasons 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--Conversion
37,125 eq. units
Chapter 6 25
Simpson Company
Simpson Company adds material at the start of production. The following production information is
available for September:

Started this period 120,000 units
Beginning Work in Process Inventory Costs:

Material $24,500
Conversion 68,905

Material $ 75,600
Conversion 130,053
82. Refer to Simpson Company. How many units must be accounted for?
a. 118,200
b. 128,200
c. 130,000
d. 138,200
ANS: C
Units Started 120,000
Total Units 130,000

83. Refer to Simpson Company. What is the total cost to account for?
a. $ 93,405
b. $205,653
c. $274,558
d. $299,058
ANS: D
BWIP: Materials $ 24,500
BWIP: Conversion 68,905
Current Period: Materials 75,600
Current Period: Conversion 130,053
Total Costs $299,058

Chapter 6 26
84. Refer to Simpson 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
Units started this period 120,000
Less: Ending Work in Process 8,200
Units started and completed this period 111,800

85. Refer to Simpson Company. What are the equivalent units for material using the weighted average
method?
a. 120,000
b. 123,860
c. 128,360
d. 130,000
ANS: D
Equivalent Units
130,000 eq. units

86. Refer to Simpson 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
120,000 eq. units

87. Refer to Simpson 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
Chapter 6 27
ANS: C

88. Refer to Simpson Company. What are the equivalent units for conversion using the FIFO method?
a. 118,360
b. 122,860
c. 123,860
d. 128,360
ANS: C
Beginning Work in Process (ignored) 10,000 0% -

89. Refer to Simpson 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
100,100 ÷ 130,000 units= $ 0.77 per unit

90. Refer to Simpson 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
Chapter 6 28
ANS: C
Conversion Costs:
Beginning $ 68,905
198,958 ÷ 128,360 units= $ 1.55 per unit

91. Refer to Simpson Company. What is the cost of units completed using the weighted average method?
a. $237,510
b. $266,742
c. $278,400
d. $282,576
ANS: D
Units Completed Costs per Equivalent Unit Total
121,800 (1.55 + .77) = $2.32 $282,576
PTS: 1 DIF: Difficult OBJ: 6-3 NAT: AACSB: Analytical Skills

92. Refer to Simpson 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 units= $1.05 per unit

93. Refer to Simpson 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
Beginning Inventory
10,000 units:
Raw Materials (prior period) $24,500
Direct Labor (prior period 68,905
FOH (10,000 * .55 * $1.05) 5,775
$99,180
Units Started and Completed
111,800 units * $ (.63+1.05): $187,824
Total $287,004
Chapter 6 29
Mercury Corporation
Beginning inventory (30% complete as to Material B 700 units

and 60% complete for conversion)
Started this cycle 2,000 units
Ending inventory (50% complete as to Material B and 500 units
80% complete for conversion)
Beginning inventory costs:

Material A $14,270
Material B 5,950
Conversion 5,640
Current Period costs:

Material A $40,000
Material B 70,000
Conversion 98,100
Material A is added at the start of production, while Material B is added uniformly throughout the
process.
94. Refer to Mercury Corporation. 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
Weighted Average Material A Material B
Beginning Work in Process 700 700
Units Started and Completed 1,500 1,500
Ending Work in Process 500 250
EUP Materials 2,700 2,450

95. Refer to Mercury Corporation 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
FIFO Material A Material B
Beginning Work in Process 0 490
Units Started and Completed 1,500 1,500
Ending Work in Process 500 250
Chapter 6 30
EUP Materials 2,000 2,240

96. Refer to Mercury Corporation 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
Ending Work in Process 400
2,600

97. Refer to Mercury Corporation 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
Ending Work in Process (500 * 80%) 400
2,180

98. Refer to Mercury Corporation 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
Weighted Average: Material A
Beginning $ 14,270
54,270 ÷ 2,700 units= $ 20.10 per unit

Chapter 6 31
99. Refer to Mercury Corporation Assuming a FIFO method of process costing, compute the average cost
per EUP for Material A.
a. $31.25
b. $20.10
c. $20.00
d. $31.00
ANS: C
Material A Costs Equivalent Units Average Cost per EUP
(Current Period)
$40,000 2,000 $20.00

per EUP for Material B.
a. $20.10
b. $31.25
c. $20.00
d. $31.00
ANS: B
Material B Costs
(Current Period) Equivalent Units Average Cost per EUP
$70,000 2,240 $31.25

average cost per EUP for Material B.
a. $20.00
b. $31.25
c. $20.10
d. $31.00
ANS: D
Material B Costs
(Beginning Inventory and Current Period) Equivalent Units Average Cost per EUP
$75,950 2,450 $31.00

per EUP for conversion.
a. $45.50
b. $45.00
c. $43.03
d. $47.59
Chapter 6 32
ANS: B
Conversion Costs Equivalent Units Average Cost per EUP
(Current Period)
$98,100 2,180 $45.00

average cost per EUP for conversion.
a. $39.90
b. $45.00
c. $43.03
d. $47.59
ANS: A
Conversion Costs
(Beginning WIP and Current Period) Equivalent Units Average Cost per EUP
$(98,100 + $5,640)=$103,640 2,600 $39.90

Guthrie Corporation
The following information is available for Guthrie Corporation for the current year:
Beginning Work in Process Costs of Beginning Work in Process:

(75% complete) 14,500 units Material $25,100
Started 75,000 units Conversion 50,000
Ending Work in Process Current Costs:
(60% complete) 16,000 units Material $120,000
Abnormal spoilage 2,500 units Conversion 300,000
Normal spoilage 5,000 units
(continuous)
Transferred out 66,000 units
All materials are added at the start of production.
104. Refer to Guthrie Corporation. Using weighted average, what are equivalent units for material?
a. 82,000
b. 89,500
c. 84,500
d. 70,000
ANS: C
Materials: Weighted Average Units % Complete Eq. Units
+ Abnormal Spoilage 2,500 100% 2,500
Chapter 6 33
105. Refer to Guthrie Corporation. Using weighted average, what are equivalent units for conversion costs?
a. 80,600
b. 78,100
c. 83,100
d. 75,600
ANS: B
Conversion: Weighted Average Units % Complete Eq Units

106. Refer to Guthrie Corporation. 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
Weighted Average: Materials
Beginning $ 25,100
145,100 ÷ 84,500 units= $1.72 per unit

107. Refer to Guthrie Corporation. What is the cost per equivalent unit for conversion costs using weighted
average?
a. $4.62
b. $4.21
c. $4.48
d. $4.34
ANS: C
Weighted Average: Conversion
Beginning $ 50,000
$ 350,000 ÷ 78,100 units = $ 4.48 per unit

Chapter 6 34
108. Refer to Guthrie Corporation. 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.

109. Refer to Guthrie Corporation. 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
Equivalent Cost per
Units Equivalent Unit Total
16,000 $1.75 $28,000
9,600 $4.55 $43,680
$71,680

110. Refer to Guthrie Corporation. Using FIFO, what are equivalent units for material?
a. 75,000
b. 72,500
c. 84,500
d. 70,000
ANS: D
Materials: FIFO
Beginning Work in Process - 0% -

111. Refer to Guthrie Corporation. Using FIFO, what are equivalent units for conversion costs?
a. 72,225
b. 67,225
c. 69,725
d. 78,100
Chapter 6 35
ANS: B
Conversion: FIFO

112. Refer to Guthrie Corporation. 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
Current Period $ 120,000
120,000 ÷ 70,000 units = $1.71 per unit

113. Refer to Guthrie Corporation. Using FIFO, what is the cost per equivalent unit for conversion costs?
a. $4.46
b. $4.15
c. $4.30
d. $3.84
ANS: A
FIFO: Conversion
300,000 ÷ 67,225 units = $ 4.46 per unit

114. Refer to Guthrie Corporation. 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
Transferred Out Units: FIFO Equiv Cost per Total
Units Equiv Unit
+ Completion of Beginning Inventory (14,500 * 25%) 3,625 4.75 17,219
+Units Started and Completed 51,500 6.25 321,875
Chapter 6 36

Crafton Corporation
Crafton Corporation has the following information for the current month:
Units started 100,000 units

Beginning Work in Process: (35% complete) 20,000 units
Normal spoilage (discrete) 3,500 units
Abnormal spoilage 5,000 units
Ending Work in Process: (70% complete) 14,500 units
Material $15,000
Conversion 10,000
All materials are added at the start of the production process. Crafton Corporation inspects goods at 75
percent completion as to conversion.
115. Refer to Crafton Corporation. 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
+ Normal Spoilage--Discrete 3,500 100% 3,500

116. Refer to Crafton Corporation. 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
+Normal Spoilage--Discrete 3,500 75% 2,625
Chapter 6 37

117. Refer to Crafton Corporation. 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
Abnormal spoilage is a period cost.
Materials 5,000 * $1.00/unit $5,000
Conversion Costs 3,750 * $1.50/unit 5,625
Total Abnormal Spoilage $10,625

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

119. Refer to Crafton Corporation. 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
Chapter 6 38
ANS: C
Materials: Weighted Average

120. Refer to Crafton Corporation. 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
Conversion: Weighted Average

and $1.50, respectively. What is the cost assigned to normal spoilage, using weighted average, and
where is it assigned?
Value Assigned To
a. $7,438 Units transferred out and Ending Inventory

b. $7,438 Units transferred out
c. $8,750 Units transferred out and Ending Inventory
d. $8,750 Units transferred out
ANS: B
Cost per
Equivalent Units Equivalent Unit Total
3,500 $1.00 $3,500
2,625 $1.50 3,938
$7,438
This amount is transferred out.

Chapter 6 39
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
Ending Inventory: Weighted Average
Materials 14,500 $1.00 $ 14,500.00
Conversion (14,500 * 70%) 10,150 1.50 15,225.00
Total $ 29,725.00

Knight Corporation
Knight Corporation has the following information for the current month:
Units started 95,000 units

Beginning Work in Process: (30% complete) 15,000 units
Abnormal spoilage 4,000 units
Ending Work in Process: (75% complete) 15,000 units
Material $18,000
Conversion 14,000
All materials are added at the start of the production process. Knight Corporation inspects goods at 75
percent completion as to conversion.
123. Refer to Knight Corporation. What are equivalent units of production for material, assuming FIFO?
a. 91,000
b. 92,000
c. 95,000
d. 110,000
ANS: C
Materials: FIFO

Chapter 6 40
124. Refer to Knight Corporation. What are equivalent units of production for conversion costs, assuming
FIFO?
a. 97,750
b. 100,000
c. 101,750
d. 104,500
ANS: B
Conversion: FIFO

125. Refer to Knight Corporation. Assume that the costs per EUP for material and conversion are $2.00 and
$2.25, respectively. What is the amount of the period cost for July using FIFO?
a. $0
b. $12,750
c. $14,750
d. $17,000
ANS: C
Abnormal spoilage is a period cost.
Materials 4,000 * $2.00/unit $ 8,000
Conversion Costs 3,000 * $2.25/unit 6,750
Total Abnormal Spoilage $14,750

$2.25, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded to
the nearest dollar)?
a. $344,938
b. $365,875
c. $376,938
d. $378,625
ANS: C
Transferred Out Units: FIFO
Beginning Work in Process $ 32,000
+ Completion of Beginning Inventory (15,000 * 70%) 10,500 $2.25 23,625
+ Units Started and Completed 73,000 4.25 310,250
+Normal Spoilage--Discrete-Materials 3,000 2.00 6,000
+Normal Spoilage--Discrete-Conversion (3,000 * 75%) 2,250 2.25 5,063
Total Costs Assigned to Transferred Units $376,938

Chapter 6 41
127. Refer to Knight Corporation. What are equivalent units of production for material assuming weighted
average is used?
a. 105,500
b. 106,000
c. 107,000
d. 110,000
ANS: D
Materials: Weighted Average

128. Refer to Knight Corporation. What are equivalent units of production for conversion costs assuming
weighted average is used?
a. 103,750
b. 104,500
c. 104,750
d. 105,500
ANS: B
Conversion: Weighted Average

$2.25, respectively. What is the cost assigned to normal spoilage, using weighted average, and where
is it assigned?
Value Assigned To
a. $11,063 Units transferred out and Ending Inventory

b. $11,063 Units transferred out
c. $12,750 Units transferred out and Ending Inventory
d. $12,750 Units transferred out
Chapter 6 42
ANS: B
Equivalent Cost per
Units Equivalent Unit Total
3,000 $2.00 $6,000
2,250 $2.25 5,063
$11,063
This amount is transferred out.

$2.25, respectively. Assuming that weighted average is used, what is the cost assigned to ending
inventory?
a. $55,312.50
b. $63,750.00
c. $66,375.00
d. $72,312.50
ANS: A
Ending Inventory: Weighted Average
Materials 15,000 $2.00 $ 30,000.00
Conversion (15,000 * 75%) 11,250 2.25 25,312.50
Total $ 55,312.50

Chapman Corporation
The following information is available for Chapman Corporation for the current month:
Started this month 80,000 units

Beginning WIP
(40% complete) 7,500 units
Abnormal spoilage 900 units
Ending WIP
(70% complete) 13,000 units

Material $10,400
Conversion 13,800
Current Costs:
Material $120,000
Conversion 350,000
All materials are added at the start of production and the inspection point is at the end of the process.
Chapter 6 43
131. Refer to Chapman Corporation. 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
-
Beginning Work in Process 0% -
+ Normal Spoilage (discrete) 1,100 100% 1,100
+ Abnormal Spoilage 900 100% 900

132. Refer to Chapman Corporation. 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 % Complete
Units EUP

133. Refer to Chapman Corporation. 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
Materials: Weighted Average Units % Complete EUP
Chapter 6 44

134. Refer to Chapman Corporation. What are equivalent units of production for conversion costs using
weighted average?
a. 83,600
b. 82,700
c. 82,500
d. 81,600
ANS: A
Conversion: FIFO Units % Complete EUP

135. Refer to Chapman Corporation. 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
$ 120,000 ÷ 80,000 $ 1.50 per unit
units=

136. Refer to Chapman Corporation. 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
$ 350,000 ÷ 80,600 units = $ 4.34 per unit

Chapter 6 45
137. Refer to Chapman Corporation. 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
130,400 ÷ 87,500 units = $ 1.49 /unit

138. Refer to Chapman Corporation. 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
363,800 ÷ 83,600 units = $4.35 per unit

139. Refer to Chapman Corporation. What is the cost assigned to ending inventory using FIFO?
a. $75,920
b. $58,994
c. $56,420
d. $53,144
ANS: B
Ending Inventory: FIFO
Materials 13,000 $ 1.50 $ 19,500
Conversion (13,000 * 70%) 9,100 4.34 39,494
Total $ 58,994

140. Refer to Chapman Corporation. What is the cost assigned to abnormal spoilage using FIFO?
a. $1,350
b. $3,906
c. $5,256
d. $6,424
Chapter 6 46
ANS: C
Abnormal
Spoiled Units Price per Equivalent Unit Total
900 $5.84 $5,256

141. Refer to Chapman Corporation. 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
Normal
Spoiled Units Price per Equivalent Unit Total
1,100 $5.84 $6,424 Transferred Out

142. Refer to Chapman Corporation. 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
Goods Transferred Out/ Price per Eq Unit Total
73,600 $5.84 $429,824


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Chapter 6—Process Costing

1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing

2. Process costing is used in companies that

3. A producer of ____ would not use a process costing system.

6. Equivalent units of production are equal to the

19. Transferred-in cost represents the cost from

Units to EUP Total cost to

ANS: D PTS: 1 DIF: Easy OBJ: 6-4

21. Process costing techniques should be used in assigning costs to products

24. A process costing system does which of the following?

Calculates EUPs Assigns costs to inventories

ANS: C PTS: 1 DIF: Easy OBJ: 6-3

25. A process costing system

Calculates average cost Determines total units to

ANS: D PTS: 1 DIF: Easy OBJ: 6-2

26. A hybrid costing system combines characteristics of

29. The cost of abnormal continuous losses is

30. Abnormal spoilage can be

34. The method of neglect handles spoilage that is

35. The cost of normal discrete losses is

36. The cost of abnormal continuous losses is

40. The cost of abnormal discrete units must be assigned to

good units lost units

Beginning Ending Units Started

ANS: B PTS: 1 DIF: Moderate OBJ: 6-8

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-3 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Easy OBJ: 6-4 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills

Brewer Corporation. has the following information for August:

Beginning Work in Process Inventory

Beginning WIP Inventory Costs:

Current Period Costs:

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills

Cost per equivalent unit $ 4.24

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills

Collins Corporation. has the following information for May:

Beginning Work in Process Inventory

Beginning WIP Inventory Costs:

Current Period Costs:

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills

Cost per equivalent unit ($80,845/20885) $ 3.87

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills

Beginning Work in Process Costs:

Beginning WIP Inventory:

PTS: 1 DIF: Easy OBJ: 6-2 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-3 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills

PTS: 1 DIF: Moderate OBJ: 6-4 NAT: AACSB: Analytical Skills