ACC 220 CH.5 Problem Session

Carpenter Corporation uses the weighted-average method in its process costing system. The first processing department, the Molding Department, started the month with 20,000 units in its beginning work in process inventory that were 15% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $17,500. An additional 94,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Molding Department that were 60% complete with respect to conversion costs. A total of $846,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

• 9.000

• 8.033

• 8.776

• 7.220

Swift Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were:

• 375,187

• 462,334

• 556,276

• 478,242

The Grove Corporation uses the weighted-average method in its process costing system. The company recorded 25,000 equivalent units for conversion costs for September in a particular department. There were 5,000 units in the ending work in process inventory on September 30 which were 65% complete with respect to conversion costs. The September 1 work in process inventory consisted of 6,000 units which were 40% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. The number of units started during September  in the department was:

• 25,000

• 24,000

• 26,000

• 27,000

Bailey Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 3,000 units in its beginning work in process inventory that were 65% complete with respect to conversion costs. An additional 51,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 19,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.

What were the equivalent units for conversion costs in the Assembly Department for the month?

• 46,400

• 43,200

• 44,000

• 43,300

Nelson Corporation has a process costing system and uses the weighted-average method. The company had 6,000 units in process on August 1 that were 70% complete with respect to conversion costs. During the month, 11,000 units were completed. At the end of the month, 5,000 units remained in work in process that were 45% complete with respect to conversion costs. Materials were added at the beginning of the process.

How many units were started into production during August?

• 10,000

• 7,500

• 12,000

• 11,000

Clover Corporation manufactures yachts in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a yacht- shaped aluminum frame. The yachts are then transferred to the Waterproofing department to be coated with sealant. Clover uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On August 1, the Fabrication Department had 50 yachts in process that were 20% complete with respect to conversion cost. On August 31, Fabrication had 30 canoes in process that were 30% complete with respect to conversion cost. During August, the Fabrication Department completed 35 yachts and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to conversion costs for August?

• 50

• 67

• 76

• 44

Which of the following types of companies would typically use process costing rather than job-order costing?

• Small appliance repair shop

• Individual hand-crafted textiles

• Custom made engines

• A fridge manufacturer

Michael Corporation uses the weighted-average method in its process costing system. The company recorded 24,400 equivalent units for conversion costs for November in a particular department. There were 5,000 units in the ending work in process inventory on November 30 which were 60% complete with respect to conversion costs. The November 1 work in process inventory consisted of 6,000 units which were 40% complete with respect to conversion costs. A total of 26,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:

• 22,000 units

• 17,000 units

• 25,000 units

• 21,000

Alex Corporation has a process costing system and uses the weighted-average method. The company had 4,000 units in work in process on February 1 that were 60% complete with respect to conversion costs. During the month, 11,000 units were completed. At the end of the month, 6,000 units remained in work in process that were 40% complete with respect to conversion costs. Materials are added at the beginning of the process.

How many units were started into production during February?

• 9,800

• 13,000

• 10,000

• 9,000