ACCY-Chapter 4 Homework

Daffy Taffy uses the weighted-average method in its process costing system. The company provided the following information: What is the number of equivalent units of production with respect to materials during the period?

600*25%=2750

Conversion cost is composed of _______.

direct labor cost and manufacturing overhead cost

The cost of beginning work in process inventory plus the costs added to production during the period equals the _______.

total cost to be accounted for

Consider the following information from the records of Bennington Corporation. The company uses the weighted-average method. When computing the cost per equivalent unit for conversion, what is the total cost that will be included in the numerator of that calculation? What is the cost per equivalent unit for conversion?

Costs of beginning work in process 350 Costs added during the period 3385 350+3385= 3735 Total cost for conversion 3735 Divided by Equivalent units of production 1660 3375/1660= 2.25

Which of the following statements about processing costing is false?

Process costing is used when a company produces a continuous flow of units that are distinguishable from one another.

Which of the following statements about companies that use processing costing is false?

Raw material costs are added only to the first processing department.

Consider the following information from the records of Willette Corporation. The company uses the weighted-average method. What is the Bottling Department's cost of ending work in process inventory? What is the cost of the units transferred out of the Bottling Department during May?

Materials 1500*4= 6000 Conversion 1300*3= 3900 Cost of ending work in process inventory 6000+3900= 9900 Materials 8500*4= 34000 Conversion 8500*3= 25500 Cost of ending work in process inventory 34000+25500= 59500

A company has three processing departments: Mixing, Baking, and Packaging. The Baking Department transfers 500 units to the Packaging Department. How will the Packaging Department account for the costs of those 500 units?

Costs transferred in

Equivalent units is computed using which of the following formulas?

Equivalent units = Number of partially completed units x Percentage completion

Sneaker Styles Company manufactures a wide variety of sneakers. Which of the following systems is most suitable for Sneaker Styles?

Operation Costing