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Multiple Choice Quiz
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1
Which of the following statements is (are) true?
A)A manufacturer of ink cartridges would ordinarily use process costing rather than job-order costing.
B)If a company uses a process costing system it accumulates costs by processing department rather than by job.
C)The output of a processing department must be homogeneous in order to use process costing.
D)All of the above are true statements.
2
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
A)Work in Process Department A and a credit to Work in Process Department B.
B)Work in Process Department B and a credit to Work in Process Department A.
C)Work in Process Department B and a credit to Materials.
D)Finished Goods and a credit to Work in Process Department B.
3
Christopher Company uses the weighted-average method in its process costing system. The following data were taken from the company's accounting records:
Beginning work in process inventory (100% complete as to materials; 30% complete as to conversion)
60,000 units
Started in process during the period
180,000 units
Ending work in process inventory (100% complete as to materials; 60% complete as to conversion)
40,000 units

The equivalent units of production for conversion costs were:
A)224,000 units.
B)222,000 units.
C)204,000 units.
D)200,000 units.
4
The Tangelo Company uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 16,000 units, which were 75% complete with respect to conversion costs. That department converted the equivalent of 59,000 units of production during the current month. A total of 50,000 units were completed and transferred out of that department during the current month. There were 12,000 units in that department's ending work in process inventory, which were 50% complete with respect to conversion costs. The number of units started during the month in that department was:
A)54,000 units.
B)46,000 units.
C)42,000 units.
D)29,000 units.
5
The Camden Company uses the weighted-average method in its process costing system. For a particular department, the company had 108,000 equivalent units of production with respect to conversion costs during the current month. There were 15,000 units in the department's beginning work in process inventory, which were two-thirds complete with respect to conversion costs. During the current month, 105,000 units were started and 100,000 were completed and transferred out of the department. The ending work in process inventory in the department:
A)consisted of 10,000 units.
B)consisted of 5,000 units.
C)was 65% complete with respect to conversion costs.
D)was 40% complete with respect to conversion costs.
6
Scarsdale Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. There is only one processing department. The following data were taken from the company's accounting records:
Beginning inventories:
Work in process
None
Finished goods
75,000 units
Ending inventories:
Work in process (75% complete as to
conversion costs)
16,000 units
Finished goods
60,000 units

What were the equivalent units of production for conversion costs for the current month?
A)251,000
B)247,000
C)235,000
D)153,000
7
Monroe Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month:
 
Number of Units
Cost of Materials
Beginning work in process
60,000
$20,000
Started during the month
160,000
$54,000
Units completed
170,000
Ending work in process
50,000

All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
A)$1.48.
B)$0.44.
C)$0.34.
D)$0.25.
8
Equinox Company uses the weighted-average method in its process costing system. The Mixing Department is the third department in its production process. The data below summarize the department's operations during the current month:
Beginning work in process inventory
(70% complete as to conversion)
14,200 units
Transferred in from the prior
department during the current month
122,000 units
Ending work in process inventory
(30% complete as to conversion)
9,200 units

The Mixing Department's production report indicates that the cost per equivalent unit for conversion cost for the current month was $8.24. How much conversion cost was assigned to the units transferred out of the Mixing Department during the current month?
A)$1,122,288
B)$1,046,480
C)$1,005,280
D)$964,574.40
9
The Pointe Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory consisted of 36,000 units. The units in the ending work in process inventory were 50% complete with respect to materials and 30% complete with respect to labor and overhead. If the costs per equivalent unit for the current period were $5.50 for materials and $8.50 for labor and overhead, the total cost assigned to the ending work in process inventory was:
A)$190,800.
B)$252,000.
C)$160,200.
D)$151,200.
10
Fox Valley Manufacturing Company's beginning work in process inventory consisted of 10,000 units, 50% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost of the beginning inventory was $60,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out during the month was:
A)$570,000.
B)$540,000.
C)$510,000.
D)$480,000.





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