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Advanced Multiple Choice Quiz
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1A company has two processing departments: X and Y. 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?
(Learning Objective 1 Ch4)
A)DR Work in Process Y CR Work in Process X
DR Finished Goods CR Work in Process Y
B)DR Finished Goods CR Work in Process X
DR Finished Goods CR Work in Process Y
C)DR Finished goods CR Work in Process
D)DR Work in Process X CR Work in Process Y
DR Finished Goods R Work in Process X



2Janner Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Ad MCQs Ch4 Q2::/sites/dl/free/0077121643/627780/Image1.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Ad MCQs Ch4 Q2 (43.0K)</a>Ad MCQs Ch4 Q2
What were the equivalent units for conversion costs in the Painting Department for April?
(Learning Objective 2 Ch4)
A)93,760
B)92,800
C)91,360
D)88,000



3Stover Company uses the weighted-average method in its process costing system. Information concerning Department A for the month of June follows:
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Ad MCQs Ch4 Q3::/sites/dl/free/0077121643/627780/Image2.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Ad MCQs Ch4 Q3 (37.0K)</a>Ad MCQs Ch4 Q3
All materials are added at the beginning of the process. The cost per equivalent unit for materials costs is closest to:
(Learning Objective 4 Ch4)
A)£0.83
B)£0.85
C)£0.97
D)£1.01



4Darden 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 stock. These units were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process stock was £16,200. An additional 84,000 units were started into production during the month. 17,000 units were in the ending work in process stock of the Welding Department. These units were 70% complete with respect to conversion costs. A total of £836,880 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.)
(Learning Objective 4 Ch4)
A)£8.286
B)£9.000
C)£8.804
D)£9.963



5Saada Company 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. Reference: [Saada Company]

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Ad MCQs Ch4 Q5::/sites/dl/free/0077121643/627780/Image3.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Ad MCQs Ch4 Q5 (39.0K)</a>Ad MCQs Ch4 Q5
The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was £5.99.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
(Learning Objective 5 Ch4)
A)£332,445.00
B)£375,573.00
C)£328,012.40
D)£353,410.00



6The computation of equivalent units under the FIFO method:
(Learning Objective 6 Ch4)
A)treats units in the beginning work in process stock as if they were started and completed during the current period.
B)treats units in the beginning work in process stock as if they represent a separate batch of goods distinct from goods started and completed during the current period.
C)treats units in the ending work in process stock as if they were started and completed during the current period.
D)ignores units in the beginning and ending work in process inventories.



7Jolly Company uses the FIFO method in its process costing system. Beginning stock in the mixing processing centre consisted of 4,000 units, 75% complete with respect to conversion costs. Ending work in process stock consisted of 3,000 units, 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing centre during the period, the equivalent units for conversion costs would be:
(Learning Objective 6 Ch4)
A)13,200 units.
B)10,800 units.
C)12,000 units.
D)13,000 units.



8The use of the FIFO method would result in the quantity schedule of a company's production report showing
(Learning Objective 6 Ch4)
A)units transferred out as one amount with no distinction made for beginning stock.
B)units transferred out as two amounts—one for beginning stock and the other for units started and completed during the month.
C)units transferred out as two amounts—one for units completed during the period and one for ending stock.
D)units transferred out as three amounts—one for beginning stock, one for units started and completed during the period, and one for ending stock.



9Leeds Electronics uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month is listed below:
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::Ad MCQs Ch4 Q9::/sites/dl/free/0077121643/627780/Image5.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Ad MCQs Ch4 Q9 (138.0K)</a>Ad MCQs Ch4 Q9
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.
The total cost transferred from the first processing department to the next processing department during the month is closest to:
(Learning Objective 7 Ch4)
A)£369,163
B)£317,194
C)£331,100
D)£340,000



10Under the FIFO method, the equivalent units of production relate only to work done during the current period.
(Learning Objective 8 Ch4)
A)True
B)False







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