ch04-180516141147 2

Managerial Accounting
Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Chapter – 4
Process Costing
Chpter 04: process costing
Chapter 04 Process Costing
True / False Questions
1. The following journal entry would be made in a processing costing system when units that
have been completed with respect to the work done in Processing Department Z are
transferred from Processing Department Z to Processing Department Y:
TRUE
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
2. In a process costing system, overhead costs are traced to units of product as they are
incurred.
FALSE

Bloom's: Knowledge
Level: Easy
3. A process cost system would be used to account for the cost of manufacturing an oil
tanker.
FALSE

AICPA BB: Industry
Bloom's: Knowledge
Level: Easy
1/74
4. A process costing system would be best suited for production of a large quantity of a
homogeneous product.
TRUE

AICPA BB: Industry
Bloom's: Knowledge
Level: Easy
5. In process costing, costs are accumulated in processing departments, rather than by job.
TRUE

Bloom's: Knowledge
Level: Easy
6. Process costing would be used by companies producing the following items: bricks, bolts,
pharmaceutical items, natural gas, and electricity.
TRUE

AICPA BB: Industry
Bloom's: Knowledge
Level: Easy
7. The job cost sheet is used in both job-order and process costing.
FALSE

Bloom's: Knowledge
Level: Easy
2/74
8. In process costing, the equivalent units computed for materials is generally the same as that
computed for direct labor.
FALSE

Bloom's: Comprehension
Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method
Level: Medium
9. The weighted-average method of process costing can only be used if materials are added at
the beginning of the production process.
FALSE

Level: Medium
10. Under the weighted-average method, the cost of materials in the beginning work in
process inventory is not used in the computation of the cost per equivalent unit for materials.
FALSE

Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method
Level: Medium
3/74
11. When computing the cost per equivalent unit, it is not necessary to consider the
percentage completion of the units in beginning inventory under the weighted-average
method.
TRUE

Level: Medium
12. When assigning costs to partially completed units in the ending work in process inventory,
it is not necessary to consider the percentage completion of the units under the weighted-
average method.
FALSE

Learning Objective: 04-04 Assign costs to units using the weighted-average method
Level: Medium
Multiple Choice Questions
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.

Bloom's: Knowledge
Level: Easy
4/74
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

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.

Level: Medium
5/74
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.

Bloom's: Knowledge
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.

Bloom's: Knowledge
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.

Level: Medium
6/74
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.

Bloom's: Knowledge
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
Bloom's: Application
Level: Medium
7/74
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
Level: Easy
8/74
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
Level: Medium
9/74
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
into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000
AACSB: Analytic
Level: Medium
10/74
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
Level: Medium
Source: CMA, adapted
11/74
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
Level: Medium
12/74
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
Level: Medium
13/74
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
Level: Medium
14/74
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
AACSB: Analytic
Level: Medium
15/74
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
AACSB: Analytic
Level: Medium
16/74
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
AACSB: Analytic
Level: Medium
17/74
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
Level: Easy
18/74
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
Level: Easy
19/74
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
AACSB: Analytic
Level: Medium
20/74
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
Level: Easy
21/74
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
Level: Easy
22/74
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
Learning Objective: 04-05 Prepare a cost reconciliation report
Level: Easy
37. In February, one of the processing departments at Whisenhunt Corporation had beginning
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
Level: Medium
23/74
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
Level: Medium
24/74
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
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
Level: Medium
25/74
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
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
Level: Medium
26/74
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
AACSB: Analytic
Level: Medium
27/74
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
AACSB: Analytic
Level: Medium
28/74
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
Level: Medium
29/74
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
Level: Medium
Byklea Corporation uses the weighted-average method in its process costing system. This
30/74
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
production - Units transferred to the next department = 200 + 7,000 - 6,700 = 500
AACSB: Analytic
Level: Easy
department?
A. 6,925
B. 7,200
C. 6,700
D. 225
AACSB: Analytic
Level: Medium
31/74
is closest to:
A. $18.88
B. $18.75
C. $18.33
D. $18.46
AACSB: Analytic
Level: Medium
closest to:
A. $32.03
B. $30.81
C. $33.63
D. $31.64
AACSB: Analytic
Level: Medium
32/74
A. $351,100
B. $366,552
C. $356,800
D. $341,097
AACSB: Analytic
Level: Medium
33/74
A. $22,910
B. $15,703
C. $25,455
D. $11,455
AACSB: Analytic
Level: Medium
Chae Corporation uses the weighted-average method in its process costing system. This
34/74
A. 1,100
B. 900
C. 600
D. 7,600
production - Units transferred to the next department = 500 + 8,100 -7,500 = 1,100
AACSB: Analytic
Level: Easy
department?
A. 8,600
B. 825
C. 7,500
D. 8,325
AACSB: Analytic
Level: Medium
35/74
is closest to:
A. $16.32
B. $17.17
C. $15.91
D. $16.73
AACSB: Analytic
Level: Medium
A. $486,614
B. $472,000
C. $459,200
D. $424,373
AACSB: Analytic
Level: Medium
36/74
Epstein Corporation uses the weighted-average method in its process costing system. This
department?
A. 405
B. 6,905
C. 6,500
D. 7,400
AACSB: Analytic
Level: Medium
37/74
is closest to:
A. $12.84
B. $13.32
C. $13.08
D. $12.61
AACSB: Analytic
Level: Medium
A. $248,529
B. $218,303
C. $236,700
D. $228,800
AACSB: Analytic
Level: Medium
38/74
Froment Corporation uses the weighted-average method in its process costing system. This
A. $328,155
B. $309,200
C. $311,600
D. $299,796
AACSB: Analytic
Level: Medium
39/74
A. $28,359
B. $18,433
C. $7,090
D. $11,809
Weighted-average method:
AACSB: Analytic
Level: Medium
Grosseiller Corporation uses the weighted-average method in its process costing system. This
40/74
A. 2,100
B. 1,200
C. 5,500
D. 900
AACSB: Analytic
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
Level: Medium
41/74
department?
A. 7,300
B. 5,515
C. 5,200
D. 315
AACSB: Analytic
Level: Medium
is closest to:
A. $12.93
B. $14.38
C. $16.38
D. $14.73
AACSB: Analytic
Level: Medium
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closest to:
A. $26.89
B. $22.34
C. $31.05
D. $29.57
AACSB: Analytic
Level: Medium
43/74
A. $270,600
B. $238,935
C. $335,428
D. $242,700
AACSB: Analytic
Level: Medium
44/74
A. $62,720
B. $31,668
C. $14,474
D. $96,493
AACSB: Analytic
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:
45/74
department?
A. 840
B. 9,140
C. 9,700
D. 8,300
AACSB: Analytic
Level: Medium
department?
A. 8,650
B. 9,700
C. 8,300
D. 350
AACSB: Analytic
Level: Medium
46/74
is closest to:
A. $10.51
B. $10.12
C. $9.91
D. $9.54
AACSB: Analytic
Level: Medium
closest to:
A. $18.29
B. $17.42
C. $15.54
D. $17.10
AACSB: Analytic
Level: Medium
47/74
A. $246,800
B. $270,979
C. $240,400
D. $231,869
AACSB: Analytic
Level: Medium
48/74
A. $14,930
B. $23,466
C. $9,778
D. $39,110
AACSB: Analytic
Level: Medium
Kramer Corporation uses the weighted-average method in its process costing system. Data
49/74
A. $306,682
B. $353,149
C. $334,000
D. $341,000
AACSB: Analytic
Level: Medium
50/74
A. $32,527
B. $46,467
C. $34,317
D. $39,497
AACSB: Analytic
Level: Medium
Lothian Corporation uses the weighted-average method in its process costing system. Data
51/74
department?
A. 5,200
B. 325
C. 5,525
D. 5,700
AACSB: Analytic
Level: Medium
closest to:
A. $34.05
B. $32.17
C. $32.43
D. $30.30
AACSB: Analytic
Level: Medium
52/74
A. $8,919
B. $15,405
C. $5,925
D. $23,700
AACSB: Analytic
Level: Medium
Duhamel Corporation uses the weighted-average method in its process costing system. This
53/74
A. 1,400
B. 7,200
C. 900
D. 800
AACSB: Analytic
Level: Easy
department?
A. 8,400
B. 7,700
C. 7,000
D. 700
AACSB: Analytic
Level: Medium
54/74
is closest to:
A. $25.74
B. $23.81
C. $24.87
D. $26.89
AACSB: Analytic
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
55/74
department?
A. 8,800
B. 1,045
C. 10,700
D. 9,845
AACSB: Analytic
Level: Medium
is closest to:
A. $10.50
B. $9.95
C. $10.89
D. $10.32
AACSB: Analytic
Level: Medium
56/74
Jaderston Corporation uses the weighted-average method in its process costing system. Data
is closest to:
A. $19.55
B. $19.20
C. $20.46
D. $20.09
AACSB: Analytic
Level: Medium
57/74
closest to:
A. $38.29
B. $36.47
C. $34.68
D. $36.06
AACSB: Analytic
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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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
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
Level: Easy
59/74
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
Level: Hard
60/74
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
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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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
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
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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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
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
Level: Easy
Essay Questions
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94. Larney Corporation uses process costing. A number of transactions that occurred in June
are listed below.
Required:
Prepare journal entries for each of the transactions listed above.
AACSB: Analytic
Level: Easy
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95. During February, the following transactions were recorded at Ferrington Corporation. The
company uses process costing.
Required:
Prepare journal entries for each of the transactions listed above.
AACSB: Analytic
Level: Easy
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96. Production and cost data for the month of February for Process A of the Packer
manufacturing Company follow:
The company uses the weighted-average cost method in its process costing system.
Required:
a. Calculate the equivalent units and cost per equivalent unit for February for materials and
for conversion costs. (Carry calculations out to the nearest tenth of a cent.)
b. Determine the cost transferred to finished goods.
c. Determine the amount of cost that should be assigned to the ending work in process.
AACSB: Analytic
Level: Hard
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97. Assurer Inc. uses the weighted-average method in its process costing system. The
following data concern the operations of the company's first processing department for a
recent month.
Required:
a. Determine the equivalent units of production.
b. Determine the costs per equivalent unit.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of the units transferred to the next department.
AACSB: Analytic
Level: Medium
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98. Barsoux Inc. uses the weighted-average method in its process costing system. The
recent month.
Required:
Using the weighted-average method:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of units transferred out of the department during the month.
d. Determine the cost of ending work in process inventory in the department.
Level: Medium
AACSB: Analytic
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99. Nygaard Corporation uses the weighted-average method in its process costing. The
following data pertain to its Assembly Department for September.
Required:
Compute the equivalent units of production for both materials and conversion costs for the
Assembly Department for September using the weighted-average method.
Weighted-average method
AACSB: Analytic
Level: Easy
100. The following data have been provided by Fattig Corporation, which uses the weighted-
average method in its process costing. The data are for the company's Shaping Department for
October.
Required:
Compute the equivalent units of production for both materials and conversion costs for the
Shaping Department for October using the weighted-average method.
AACSB: Analytic
Level: Easy
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101. Canler Inc. uses the weighted-average method in its process costing system. The
recent month.
Required:
Using the weighted-average method, determine the equivalent units of production for
materials and conversion costs.
AACSB: Analytic
Level: Easy
102. Garneau Corporation uses process costing. The following data pertain to its Assembly
Department for February.
Required:
Determine the equivalent units of production for the Assembly Department for February using
the weighted-average method.
AACSB: Analytic
Level: Easy
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103. Flitter Corporation uses the weighted-average method in its process costing. The
following data pertain to its Materials Preparation Department for November.
Required:
Determine the equivalent units of production for the Materials Preparation Department for
November using the weighted-average method.
AACSB: Analytic
Level: Easy
104. Jeoffroy Inc. uses the weighted-average method in its process costing. The following
data concern the company's Assembly Department for the month of November.
Required:
Compute the costs per equivalent unit for the Assembly Department for November.
AACSB: Analytic
Level: Easy
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105. Dominick Inc. uses the weighted-average method in its process costing. The following
data concern the company's Mixing Department for the month of December.
Required:
Compute the cost per equivalent unit for materials and conversion for the Mixing Department
in December.
AACSB: Analytic
Level: Easy
106. Ok Corporation uses the weighted-average method in its process costing. The following
data concern the company's Assembly Department for the month of June.
During the month, 7,100 units were completed and transferred from the Assembly
Department to the next department.
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of
the department during June using the weighted-average method.
Level: Medium
AACSB: Analytic
72/74
107. Vanstraten Inc. has provided the following data concerning the Assembly Department
for the month of April. The company uses the weighted-average method in its process costing.
During the month, 4,800 units were completed and transferred from the Assembly
Department to the next department.
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of
the department during April using the weighted-average method.
Level: Medium
AACSB: Analytic
108. In July, one of the processing departments at Wrightsel Corporation had beginning work
in process inventory of $22,000 and ending work in process inventory of $16,000. During the
month, $225,000 of costs were added to production and the cost of units transferred out from
the department was $231,000.
Required:
Construct a cost reconciliation report for the department for the month of July.
AACSB: Analytic
Level: Easy
73/74
109. In November, one of the processing departments at Shelp Corporation had beginning
During the month, the cost of units transferred out from the department was $311,000.
Required:
Construct a cost reconciliation report for the department for the month of November.
AACSB: Analytic
Level: Medium
110. In March, one of the processing departments at Perrill Corporation had beginning work
in process inventory of $31,000. During the month, $368,000 of costs were added to
production and the cost of units transferred out from the department was $367,000.
Required:
Construct a cost reconciliation report for the department for the month of March.
AACSB: Analytic
Level: Medium
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Managerial Accounting

Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

Chapter 04 Process Costing

True / False Questions

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Multiple Choice Questions

AACSB: Reflective Thinking

AACSB: Reflective Thinking

15. A process costing system:

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Beginning work in process inventory + Units started into production or transferred in =

The equivalent units for conversion costs was:

All materials are added at the beginning of the process.

All materials are added at the beginning of the process.

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