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Multiple Choice Quiz
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1
Which of the following statements is (are) true?
A)A manufacturer of paper 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
Goethe Company uses the weighted-average method in its process costing system. The following information was available about one of the company’s processing departments:
  • There were 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)was 40% complete with respect to conversion costs.
B)was 65% complete with respect to conversion costs.
C)consisted of 5,000 units.
D)consisted of 10,000 units.
4
Golden Company uses the weighted-average method in its process costing system. The following information was available for one of its processing departments:
  • The beginning work in process inventory consisted of 16,000 units, which were 75% complete with respect to conversion costs.
  • The 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.
  • The ending work in process inventory consisted of 12,000 units, which were 50% complete with respect to conversion costs.
The number of units started during the month in that department was:
A)29,000 units.
B)42,000 units.
C)46,000 units.
D)54,000 units.
5
Barnes Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. The following data were taken from the company's accounting records:
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What were the equivalent units of production for conversion costs in the Packing Department for the current month?
A)153,000
B)235,000
C)247,000
D)251,000
6
Zook Company uses the weighted-average method in its process costing system. The following data for the Mixing Department were taken from the company’s accounting records.
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The equivalent units of production for conversion costs were:
A)200,000 units.
B)204,000 units.
C)222,000 units.
D)224,000 units.
7
Addingly 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:
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All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
A)$0.25.
B)$0.34.
C)$0.44.
D)$1.48.
8
Erie 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)$151,200.
B)$160,200.
C)$252,000.
D)$190,800.
9
Ontario Company uses the weighted-average method in its process costing system. The Baking Department is the third department in its production process. The data below summarize the department's operations during the current month:
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The Baking 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 Baking Department during the current month?
A)$964,574.40
B)$1,005,280
C)$1,046,480
D)$1,122,288
10
The beginning work in process inventory in the Milling Department 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 of this department. 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 of this department during the month was:
A)$480,000.
B)$510,000.
C)$540,000.
D)$570,000.







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