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| 1 | |
Operation costing differs from process costing in the way that: |
| | A) | the conversion costs are assigned to the products |
| | B) | the manufacturing overhead costs are allocated to the products |
| | C) | the direct labour costs are assigned to the products |
| | D) | the direct materials are assigned to the products |
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| 2 | |
Which of the following statements is true? - If the spoilage is considered to be normal, the costs would be included as part of the costs of the units completed and transferred into the next department.
- If the spoilage is considered to be abnormal, the costs would not be included as part of the costs of the units completed and transferred into the next department; they would be expensed in the current period.
- Normal spoilage is an inventoriable cost.
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| | A) | 1 only. |
| | B) | 2 only. |
| | C) | 3 only. |
| | D) | 1, 2 and 3. |
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| 3 | |
Spencer Company uses a weighted average process costing system. It started 30 000 units this month, had 12 000 units that were 20% complete as to conversion in beginning work in process inventory, and had 3000 units that were 40% complete as to conversion in ending work in process. The equivalent units for conversion for this month were: |
| | A) | 42 000 |
| | B) | 37 800 |
| | C) | 40 200 |
| | D) | 40 800 |
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| 4 | |
Lonsdale Company uses a first in, first out (FIFO) process costing system. It started 30 000 units this month, had 12 000 units that were 20% complete as to conversion in beginning work in process inventory, and had 3000 units that were 40% complete as to conversion in ending work in process. The equivalent units for conversion were: |
| | A) | 42 000 |
| | B) | 37 800 |
| | C) | 40 200 |
| | D) | 40 800 |
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| 5 | |
Which of the following is subtracted from the weighted average equivalent units of production to derive first in, first out (FIFO) equivalent units of production? |
| | A) | Beginning work in process equivalent units of production completed in the current period. |
| | B) | Beginning work in process equivalent units of production produced in the previous period. |
| | C) | Ending work in process equivalent units of production not completed. |
| | D) | Started and completed during the current period equivalent units of production. |
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| 6 | |
Collins Company adds direct materials at the start of production. July information for the company is as follows: Beginning work in process inventory (40% complete as to conversion) |
10000 | Started during July | 120000 | Ending work in process inventory (60% complete as to conversion) |
12000 | Beginning work in process costs: |
| Direct material | $24000 | Conversion cost | $20000 | Current period costs: |
| Direct material | $366000 | Conversion cost | $757500 |
How many units must be accounted for? |
| | A) | 120 000. |
| | B) | 118 000. |
| | C) | 130 000. |
| | D) | 121 200. |
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| 7 | |
Collins Company adds direct materials at the start of production. July information for the company is as follows: Beginning work in process inventory (40% complete as to conversion) |
10000 | Started during July | 120000 | Ending work in process inventory (60% complete as to conversion) |
12000 | Beginning work in process costs: |
| Direct material | $24000 | Conversion cost | $20000 | Current period costs: |
| Direct material | $366000 | Conversion cost | $757500 |
The total cost to account for is: |
| | A) | $1 123 500 |
| | B) | $1 167 500 |
| | C) | $777 500 |
| | D) | $1 143 500 |
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| 8 | |
Collins Company adds direct materials at the start of production. July information for the company is as follows: Beginning work in process inventory (40% complete as to conversion) |
10000 | Started during July | 120000 | Ending work in process inventory (60% complete as to conversion) |
12000 | Beginning work in process costs: |
| Direct material | $24000 | Conversion cost | $20000 | Current period costs: |
| Direct material | $366000 | Conversion cost | $757500 |
How many units were started and completed during July? |
| | A) | 130 000. |
| | B) | 120 000. |
| | C) | 118 000. |
| | D) | 108 000. |
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| 9 | |
Collins Company adds direct materials at the start of production. July information for the company is as follows: Beginning work in process inventory (40% complete as to conversion) |
10000 | Started during July | 120000 | Ending work in process inventory (60% complete as to conversion) |
12000 | Beginning work in process costs: |
| Direct material | $24000 | Conversion cost | $20000 | Current period costs: |
| Direct material | $366000 | Conversion cost | $757500 |
What are the equivalent units for materials using the weighted average method? |
| | A) | 130 000. |
| | B) | 120 000. |
| | C) | 118 000. |
| | D) | 108 000. |
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| 10 | |
Collins Company adds direct materials at the start of production. July information for the company is as follows: Beginning work in process inventory (40% complete as to conversion) |
10000 | Started during July | 120000 | Ending work in process inventory (60% complete as to conversion) |
12000 | Beginning work in process costs: |
| Direct material | $24000 | Conversion cost | $20000 | Current period costs: |
| Direct material | $366000 | Conversion cost | $757500 |
What are the equivalent units for materials using the weighted average method? |
| | A) | 120 000. |
| | B) | 118 000. |
| | C) | 108 000. |
| | D) | 112 000. |
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