MIDTERM SUMMATIVE TEST 2
Started: Oct 23 at 4:48pm
Quiz Instruc ons
Question 1 1 pts
A process costing system
accumulates costs by job rather than by department.
cannot use standard costs.
assigns direct labor and manufacturing overhead costs separately to units of production.
restates Work in Process Inventory in terms of completed units.
Question 2 1 pts
A process costing system does which of the following?
Calculates EUPs Assigns costs to inventories
yes no
no no
no yes
yes yes
Question 3 1 pts
Process costing techniques should be used in assigning costs to products
if a product is manufactured on the basis of each order received.
whenever standard-costing techniques should not be used.
when production is only partially completed during the accounting period.
if a product is composed of mass-produced homogeneous units.
Question 4 1 pts
Equivalent units of production are equal to the
number of units worked on during the period by a production department.
units completed by a production department in the period.
identifiable units existing at the end of the period in a production department.
number of whole units that could have been completed if all work of the period had been used to produce whole units.
Question 5 1 pts
The weighted average method is thought by some accountants to be inferior to the FIFO method because it
commingles costs of two periods.
only considers the last units worked on.
is more difficult to apply.
only considers the last units worked on.
Question 6 1 pts
The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units
started and completed during the period.
uncompleted in Work in Process Inventory.
residing in ending Work in Process Inventory.
residing in beginning Work in Process Inventory.
Question 7 1 pts
Spoiled units are
units that cannot be economically reworked to bring them up to standard.
the same as defective units.
considered abnormal losses.
units that can be economically reworked to bring them up to standard.
Question 8 1 pts
Which of the following would fall within the range of tolerance for a production cycle?
Abnormal loss Normal loss
yes no
no yes
no no
yes yes
Question 9 1 pts
If normal spoilage is detected at an inspection point within the process (rather than at the end), the cost of that spoilage
should be
allocated to ending work in process units and units transferred out based on their relative values.
allocated to the good units that have passed the inspection point.
included with the cost of the units completed in that department during the period.
included with the cost of the units sold during the period.
Question 10 1 pts
Normal spoilage is
written off as a period cost.
never shown in EUP schedules.
treated as a product cost.
charged to expense
Question 11 1 pts
Kim Co. 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?
4,560
4,610
4,910
3,450
Question 12 1 pts
Zammillo 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?
18,000
22,000
25,000
27,000
Question 13 1 pts
FTG Co. has the following information for May:
Beginning Work in Process Inventory
(70% complete as to conversion) 6,000 units
Started 24,000 units
Ending Work in Process Inventory
(10% complete as to conversion) 850 Equivalent units
Beginning WIP Inventory Costs:
Material P22,500
Conversion 50,439
Current Period Costs:
Material P32,400
Conversion 76,956
All material is added at the start of the process and all finished products are transferred out.
Assume that weighted average process costing is used. What is the cost ending inventory?
P19,159
P16,320
P15,079
P20,400
Question 14 1 pts
FTG Co. has the following information for May:
Beginning Work in Process Inventory
(70% complete as to conversion) 6,000 units
Started 24,000 units
Ending Work in Process Inventory
(10% complete as to conversion) 850 Equivalent units
Beginning WIP Inventory Costs:
Material P22,500
Conversion 50,439
Current Period Costs:
Material P32,400
Conversion 76,956
All material is added at the start of the process and all finished products are transferred out.
Assume that FIFO process costing is used. What is the total costs of goods finished and transferred?
P163,136
P165,975
P161,895
P167,216
Question 15 1 pts
Roger Company manufactures Product X in a two-stage production cycle in Departments A and B. Materials are added at
the beginning of the process in Department B. Roger uses the average costing method. Conversion costs for Department
B were 50% complete as to the 6,000 units in beginning work in process and 75% complete as to the 8,000 units in ending
work in process. A total of 12,000 units were completed and transferred out of Department B during February. An analysis
of the costs relating to work in process and production activity in Department B for February follows:
Transferred- Materials Conversion
in Costs Costs Costs
Work in process, February 1:
Costs attached $12,000 $2,500 $1,000
February activity:
Costs added 29,000 5,500 5,000
The total cost per equivalent unit transferred out for February of Product X, rounded to the nearest penny, was:
$2.75
$2.82
$2.85
$2.78
Question 16 1 pts
During March, Quig Company's Department Y equivalent unit product costs, computed under the average cost method,
were as follows:
Materials $1
Conversion 3
Transferred-in 5
Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as to
conversion costs) in work in process at March 31. The total costs assigned to the March 31 work in process inventory
should be:
$36,000
$27,200
$24,800
$28,800
Question 17 1 pts
FTG REVISED
The December 25th Co. 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 P1,000
Conversion 1,500
Current Costs:
Material P3,200
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 P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P68,180
Conversion 95,820
What was the cost transferred out of Forming during the month?
P5,341
P8,330
P6,419
P8,245
Question 18 1 pts
FTG REVISED
The December 25th Co. 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 P1,000
Conversion 1,500
Current Costs:
Material P3,200
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 P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P68,180
Conversion 95,820
Compute the number of equivalent units must be used in the Decorating for the transferred-in cost component.
4,900
5,500
5,200
4,850
Question 19 1 pts
FTG REVISED
The December 25th Co. 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 P1,000
Conversion 1,500
Current Costs:
Material P3,200
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 P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P68,180
Conversion 95,820
What was the total cost of work in process at the end of the month?
8,925
9,435
9,945
7,020
Question 20 1 pts
FTG REVISED
The December 25th Co. 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 P1,000
Conversion 1,500
Current Costs:
Material P3,200
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 P1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material P68,180
Conversion 95,820
What is the total cost of finished goods transferred to the warehouse for sale?
P162,380
P176,936
P185,266
P165,236
Question 21 1 pts
FG SMILE Co. has the following information for July:
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
Beginning Work in Process Costs:
Material P15,000
Conversion 10,000
Current costs:
Material P198,000
Conversion 127,830
All materials are added at the start of the production process. FG SMILE Co. inspects goods at 75 percent completion as
to conversion.
What are equivalent units of production for material, assuming FIFO?
120,000
96,500
100,000
95,000
Question 22 1 pts
FG SMILE Co. has the following information for July:
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
Beginning Work in Process Costs:
Material P15,000
Conversion 10,000
Current costs:
Material P198,000
Conversion 127,830
All materials are added at the start of the production process. FG SMILE Co. inspects goods at 75 percent completion as
to conversion.
How much is to be charged to abnormal loss, assuming FIFO?
15,900
14,425
11,925
14,400
Question 23 1 pts
Kennedy Company adds materials in the beginning of the process in the Forming Department, which is the first of two
stages of its production cycle. Information concerning the materials used in the Forming Department in October is as
follows:
Materials
Units Costs
Work in process, October 1 6,000 P 3,000
Units started 50,000 25,560
Units completed and transferred out 44,000
Using the average cost method, what was the materials cost of work in process at October 31?
Give the correct figures. Ex. P2,500 not P 2, 500.
Question 24 1 pts
Handy Tool Company manufactures a product in two departments, Shaping and Assembly. The product is cut out of sheet
metal, bent to shape, and painted in the Shaping Department. Then, it is transferred to the Assembly Department where
component parts purchased from outside vendors are added to the unit. A process cost system with a fifo cost flow
assumption is used to account for work in process inventories. Data related to November operations in the Assembly
Department follow:
Units in beginning inventory (90% materials, 80% labor and overhead) 1,000
Units received from the Shaping Department this period 3,000
Units transferred to Finished Goods Inventory this period 2,800
Units in ending inventory (50% materials, 40% labor and overhead) 1,200
Beginning Added
Costs charged to the department: Inventory This Period
Costs from the preceding department P23,600 P29,250
Materials 7,700 13,375
Direct labor 3,500 9,672
Factory overhead 4,900 16,616
What is the total cost per equivalent unit using fifo basis for the Assembly Department?
Give the correct figures. Ex. P2,350.75 not P 2, 350. 75
Question 25 1 pts
All materials are added at the beginning of the process.
Costs Material Conversion Total
Beginning inventory P 30,000 P 3,600 P 33,600
Current period 885,120 335,088 1,220,208
Total costs P915,120 P338,688 P1,253,808
UNITS
Beginning inventory (30% complete—conversion)6,000 units
Started 180,000 units
Completed 152,000 units
Ending inventory (70% complete—conversion) 20,000 units
Normal spoilage 4,800 units
Find the cost assigned to abnormal loss, assume that, for conversion costs, abnormal shrinkage is 60 percent.
Give the correct figures. Ex. P2,350.75 not P 2, 350. 75
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