1) In a process costing system, costs are traced directly to jobs.

2) When materials are purchased in a process costing system, a work in process account is
debited with the cost of the materials.

3) In a process costing system, overhead is allocated to departments after being applied to units
of product.

4) In a process costing system, manufacturing overhead cost is also called conversion cost.

5) The units in beginning work in process inventory plus the units started into production must
equal the units transferred out of the department plus the units in ending work in process
inventory.

6) The following journal entry would be made in a processing costing system when units that
have been completed in the final processing department are transferred to the finished goods
warehouse:

Finished Goods XXX

Materials XXX

7) The equivalent units in beginning work in process inventory plus the equivalent units in
ending work in process inventory equals the units transferred out plus the equivalent units for the
work done during the period.

8) When all materials are added at the beginning of the production process, under a weighted-
average process costing system the equivalent units for materials is equal to the units completed
and transferred out.

9) In process costing, the equivalent units computed for materials is generally the same as that
computed for conversion costs.

10) When computing the cost per equivalent unit, it is necessary to consider the percentage
completion of the units in beginning inventory under the weighted-average method.

11) In calculating cost per equivalent unit under the weighted-average method, prior period costs
are combined with current period costs.

12) Under the weighted-average method, the cost of ending work in process inventory is
determined by dividing the equivalent units of production for ending inventory by the cost per
equivalent unit for each cost category and then summing the result.

13) The cost reconciliation report has two sections: "Costs to be accounted for" followed by
"Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report
includes the cost of ending work in process inventory and the cost of beginning work in process
inventory.

14) The cost reconciliation report has two sections: "Costs to be accounted for" followed by
"Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report
includes the cost of beginning work in process inventory and the cost of units transferred out.

15) The cost reconciliation report has two sections: "Costs to be accounted for" followed by
"Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report
includes the cost of beginning work in process inventory and the costs added during the period.

16) Job-order costing would be more likely to be used than process costing in situations where
many different products or services are produced each period to customer specifications.

17) A job-order costing system would be best suited for production of a large quantity of a
homogeneous product.

18) A flour manufacturer is more likely to use process costing than job-order costing whereas a
manufacturer of customized leather jackets is more likely to use job-order costing than process
costing.

19) Process costing is employed in industries that produce basically homogeneous products such
as bricks, flour, or cement but would not be appropriate for assembly-type operations such as
those that manufacture computers.

1. The Fremont Company uses the weighted-average method in its process costing system.
The company recorded 47,775 equivalent units for conversion costs for November in a
particular department. There were 7,700 units in the ending work-in-process inventory on
November 30, 75% complete with respect to conversion costs. The November 1 work-in-
process inventory consisted of 9,700 units, 50% complete with respect to conversion costs.
A total of 42,000 units were completed and transferred out of the department during the
month. The number of units started during November in the department was:

A. 41,160 units.
B. 40,000 units.
C. 44,000 units.
D. 37,150 units.

Beg WIP + started= completed and transfer + ending

9700+x = 42000+7700

2. The Phantom Corporation started 5,800 units during February. Phantom started the month
with 800 units in process (45% complete) and ended the month with 500 units in process
(45% complete). How many units were transferred to the Finished Goods Inventory during
February?

A. 6,600 units
B. 6,460 units
 C. 6,100 units
D. 5,300 units

800 + 5800=X+500

3. The Miracle Company had 39,000 units in process on December 31, 2023 which was 80%
complete as to materials but only 40% complete as to conversion costs. The company's
records show 59,000 units were transferred to the Finished Goods Inventory during January
2024. On January 31, 2024, 35,000 units were on hand which were 30% complete as to
conversion costs and 60% complete as to materials. What are the equivalent units of
production (EUPs) for the conversion costs in January, assuming Miracle uses first-in, first-
out (FIFO)?

A. 66,400 EUPs
B. 74,000 EUPs
C. 53,900 EUPs
D. 57,900 EUPs
39000 + X = 59000 + 35000
59000 :

4. The Townson Manufacturing Company has gathered the following information for the month
of September:

 8,700 units in the beginning Work-in-Process Inventory (80% complete as to materials, 1/3
complete with respect to the conversion costs).
 69,000 units were started into production.
 59,000 units were completed and transferred to the next department.
 The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with
respect to conversion costs.

What are the equivalent units of production (EUPs) for materials in the month of September
assuming Townson uses weighted-average process costing?

A. 61,900 EUPs
B. 75,960 EUPs
C. 77,700 EUPs
D. 70,740 EUPs

5. The Marshall Company has a process costing system. All materials are added when the
process is first begun. At the beginning of September, there were no units of product in
process. During September 67,000 units were started; 6,700 of these were still in process at
the end of September and were 3/5 finished. The equivalent units of material in September
were:

A. 53,600.
B. 60,300.
 C. 64,320.
D. 67,000.

6. The Chart Company has a process costing system. All materials are added when the
process is first begun. At the beginning of September, there were no units of product in
process. During September 57,000 units were started; 5,700 of these were still in process at
the end of September and were 3/5 finished. The equivalent units for the conversion costs in
September were:

A. 45,600.
B. 49,020.
C. 54,720.
D. 57,000.

7. Tori Company uses the FIFO method in its process costing system. The first processing
department, the Soldering Department, started the month with 29,000 units in its beginning
to conversion costs. The conversion cost in this beginning work-in-process inventory was
$113,150. An additional 81,200 units were started into production during the month. There
were 35,000 units in the ending work-in-process inventory of the Soldering Department that
were 90% complete with respect to conversion costs. A total of $577,125 in conversion costs
were incurred in the department during the month.

What would be the cost per equivalent unit for conversion costs?

A. $7.261
B. $7.107
C. $6.912
D. $6.422

8. Cranford Company completed and transferred out 2,300 units in May 2023. There were 200
units in the Work-in-Process Inventory on May 31, 2023, 30% complete as to conversion
costs and 100% complete as to materials. The month's charges for conversion costs and
material costs were $9,440 and $6,250, respectively. There was no beginning inventory on
May 1, 2023. What is the cost of the work transferred-out during May, assuming that
Cranford uses weighted-average process costing?

A. $8,510
B. $14,950
C. $15,690
D. $16,250
 9. Bentley Enterprises uses process costing to control costs in the manufacture of Dust
Sensors for the mining industry. The following information pertains to operations for
November. (CMA adapted)
Units

Work in process, November 1st 16,000

Started in production during

November
100,000

Work in process, November 30th 24,000

The beginning inventory was 60% complete as to materials and 20% complete as to conversion
costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion
costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead,
$15,240. Costs incurred during the month: direct materials, $468,000; direct labor, $182,880;
manufacturing overhead, $391,160.

What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in,
first-out (FIFO) process costing?
Note: Round costs per equivalent unit to two decimal places.

A. $153,600
B. $154,800
C. $155,328
D. $156,960

10. Cranford Company completed and transferred out 3,800 units in May 2023. There were 200
units in the Work-in-Process Inventory on May 31, 2023, 30% complete as to conversion
costs and 100% complete as to materials. The month's charges for conversion costs and
material costs were $21,230 and $16,000, respectively. There was no beginning inventory
on May 1, 2023. What is the cost of the work transferred-out during May, assuming that
Cranford uses weighted-average process costing?

A. $17,870
B. $36,091
C. $37,230
D. $26,000

11. Tori Company uses the FIFO method in its process costing system. The first processing
department, the Soldering Department, started the month with 18,000 units in its beginning
work-in-process inventory that were 80% complete with respect to conversion costs. The
 conversion cost in this beginning work-in-process inventory was $102,150. An additional
69,100 units were started into production during the month. There were 24,000 units in the
ending work-in-process inventory of the Soldering Department that were 90% complete with
respect to conversion costs. A total of $566,125 in conversion costs were incurred in the
department during the month.

What would be the cost per equivalent unit for conversion costs?

A. $8.311
B. $8.193
C. $8.053
D. $7.659

12. Bentley Enterprises uses process costing to control costs in the manufacture of Dust
Sensors for the mining industry. The following information pertains to operations for
November. (CMA adapted)
Units

Work in process, November 1st 16,900

Started in production during

November
109,000

Work in process, November 30th 24,900

The beginning inventory was 70% complete as to materials and 10% complete as to conversion
costs. The ending inventory was 90% complete as to materials and 30% complete as to conversion
costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $55,460; direct labor, $21,220; manufacturing overhead,
$16,140.
Costs incurred during the month: direct materials, $477,000; direct labor, $191,880; manufacturing
overhead, $400,160.

What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses weighted-
average process costing?
Note: Round costs per equivalent unit to two decimal places.

A. $94,590
B. $137,733
C. $137,672
D. $139,913

13. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
 come from Department #1. The units completed include the 1,200 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
1,200 units, ¼ completed $ 1,200 Product X, 6,200 units ????
From Department 1, 6,000 units 3,600
Direct Labor 8,000
Factory OH 4,800
1,000 units, ½ complete ????

The cost of the ending Work-in-Process Inventory is:

A. $2,600.
B. $1,600.
C. $600.
D. $1,000.
Tính theo FIFO

14. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
come from Department #1. The units completed include the 3,100 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
3,100 units, ¼ completed $ 3,100 Product X, 10,000 units ????
From Department 1, 9,800 units 5,880
Direct Labor 9,900
Factory OH 8,600
2,900 units, ½ complete ????

What are the equivalent units of production for conversion costs?

A. 880
B. 9,300
C. 9,700
D. 10,675

15. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
come from Department #1. The units completed include the 1,400 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
1,400 units, ¼ completed $ 1,400 Product X, 6,600 units ????
 Work-in-Process – Department #2
Debit Credit
From Department 1, 6,400 3,840
units
Direct Labor 8,200
Factory OH 5,200
1,200 units, ½ complete ????

What are the equivalent units of production for conversion costs?

A. 540
B. 5,900
C. 6,300
D. 6,850

16. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
come from Department #1. The units completed include the 1,900 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
1,900 units, ¼ completed $ 1,900 Product X, 7,600 units ????
From Department 1, 7,400 4,440
units
Direct Labor 8,700
Factory OH 6,200
1,700 units, ½ complete ????

The conversion costs per equivalent unit is:

A. $0.94.
B. $1.40.
C. $1.87.
D. $2.36.

17. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
come from Department #1. The units completed include the 1,200 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
1,200 units, ¼ completed $ 1,200 Product X, 6,200 units ????
From Department 1, 6,000 3,600
units
Direct Labor 8,000
Factory OH 4,800
 Work-in-Process – Department #2
Debit Credit
1,000 units, ½ complete ????

The unit cost of Product X started in the prior period and completed in the current period is:

A. $2.00
B. $2.50
C. $2.55
D. $3.45

18. The debits to Work-in-Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials
come from Department #1. The units completed include the 2,300 in process at the
beginning of the period. Department #2 uses FIFO costing.

Work-in-Process – Department #2
Debit Credit
2,300 units, ¼ completed $ 2,300 Product X, 8,400 units ????
From Department 1, 8,200 4,920
units
Direct Labor 9,100
Factory OH 7,000
2,100 units, ½ complete ????

The unit cost of Product X started and completed in the current period is:

A. $1.81.
B. $2.31.
C. $2.36.
D. $2.41.

19. Bentwood Corporation uses the FIFO method in its process costing system. Data concerning
the first processing department for the most recent month are listed below:
Beginning work-in-process inventory:

Units in beginning work-in-process inventory 1,900

Materials costs $ 36,100

Conversion costs $ 20,900

Percent complete with respect to materials 70%

Percent complete with respect to conversion 25%

 Units started into production during the month 9,300

Units transferred to the next department during the

month
8,100

Materials costs added during the month $ 156,200

Conversion costs added during the month $ 255,500

Ending work-in-process inventory:

Units in ending work-in-process inventory 3,100

Percent complete with respect to materials 80%

Percent complete with respect to conversion 35%

The cost per equivalent unit for conversion costs for the first department for the month is closest to:

A. $31.78
B. $35.51
C. $29.00
D. $29.33

20. Bentley Enterprises uses process costing to control costs in the manufacture of Dust
Sensors for the mining industry. The following information pertains to operations for
November. (CMA adapted)
Units

Work in process, November 1st 16,700

Started in production during November 107,000

Work in process, November 30th 24,700

The beginning inventory was 60% complete as to materials and 20% complete as to conversion
costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion
costs.

Costs pertaining to November are as follows:

Beginning inventory: direct materials, $55,260; direct labor, $21,020; manufacturing overhead,
$15,940.
Costs incurred during the month: direct materials, $475,000; direct labor, $189,880; manufacturing
overhead, $398,160.

What is the equivalent unit cost for materials assuming Bentley uses weighted-average process
costing?

A. $3.87
B. $4.27
C. $4.37
D. $4.57