Chapter 17 Quiz

What is the total amount debited to the Work-in-Process account during the month of March?

$1,820,000

Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor?

$100

What were the costs assigned to the units transferred out this period (round equivalent unit cost to the nearest penny)?

$113,236

Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method. Calculate the total equivalent units in ending inventory for assignment of conversion costs?

50 units

Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor?

A) Total cost per unit = $120,000 / 1,200 = $100

What were the costs assigned to the units transferred out this period (round equivalent unit cost to the nearest penny)?

B) $113,236

What are the equivalent units for direct materials and conversion costs, respectively, for June?

B) 1,250 units; 1,212.5 units

Which of the following statements is true?

B) In a process-costing system, each unit uses approximately the same amount of resources.

If there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be ________.

B) equal to the units completed during the period

Which of the following statements best describes conversion costs?

Conversion costs are all manufacturing costs other than direct materials costs.

Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method. Calculate the total equivalent units in ending inventory for assignment of conversion costs?

Equivalent units in ending inventory = 200 units × 25% = 50 units B) 50 units

Which of the following companies is most likely to use process costing?

Red Paste Inc., a company manufacturing and selling toothpaste on a large scale

Which of the following best describes transferred-in costs in process costing?

These costs are incurred in previous departments that are carried forward to subsequent departments.

In the computation of the cost per equivalent unit, the weighted-average method of process costing considers all the costs ________.

entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period

A disadvantage of the weighted-average method compared to the FIFO process-costing method is that ________.

the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO