Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

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

False

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

False

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

False

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

False

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.

True

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	10,600				65%
Conversion costs	$	12,800				30%

A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	142,100
Conversion costs	$	359,500

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to:

Multiple Choice

Top of Form

$61,227

$48,071

Correct

$42,859

$122,453

Bottom of Form

Explanation

Weighted-average method

	Materials				Conversion
Units transferred to the next department		7,400				7,400
Ending work in process:
Materials: 1,900 units × 50%		950
Conversion: 1,900 units × 35%						665
Equivalent units of production		8,350				8,065

	Materials				Conversion
Cost of beginning work in process inventory	$	10,600			$	12,800
Costs added during the period		142,100				359,500
Total cost (a)	$	152,700			$	372,300
Equivalent units of production (b)		8,350				8,065
Cost per equivalent unit (a) ÷ (b)	$	18.287			$	46.162

	Materials				Conversion				Total
Ending work in process inventory:
Equivalent units of production (a)		950				665
Cost per equivalent unit (b)	$	18.287			$	46.162
Cost of ending work in process inventory (a) × (b)	$	17,373.05			$	30,698.02		$	48,071.07

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	15,700				75%
Conversion costs	$	7,700				20%

A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	186,300
Conversion costs	$	329,800

The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

How many units are in ending work in process inventory in the first processing department at the end of the month?

Multiple Choice

Top of Form

7,600

900

1,700

Correct

1,200

Bottom of Form

Explanation

Units in ending work in process = Units in beginning work in process + Units started into production – Units transferred to the next department = 800 + 8,400 – 7,500 = 1,700

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	15,700				75%
Conversion costs	$	7,700				20%

A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	186,300
Conversion costs	$	329,800

The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

What are the equivalent units for conversion costs for the month in the first processing department?

Garrison 16e Rechecks 2017-08-28

Multiple Choice

Top of Form

9,200

8,520

Correct

7,500

1,020

Bottom of Form

Explanation

Weighted-average method

	Conversion
Units transferred to the next department		7,500
Ending work in process: Conversion: 1,700 units × 60%		1,020
Equivalent units of production		8,520

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	15,700				75%
Conversion costs	$	7,700				20%

A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	186,300
Conversion costs	$	329,800

The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Multiple Choice

Top of Form

$21.44

$21.96

$20.25

$23.25

Correct

Bottom of Form

Explanation

Weighted-average method

	Materials
Units transferred to the next department		7,500
Ending work in process: Materials: 1,700 units × 70%		1,190
Equivalent units of production		8,690

	Materials
Cost of beginning work in process inventory	$	15,700
Costs added during the period		186,300
Total cost (a)	$	202,000
Equivalent units of production (b)		8,690
Cost per equivalent unit (a) ÷ (b)	$	23.245

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	15,700				75%
Conversion costs	$	7,700				20%

A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	186,300
Conversion costs	$	329,800

The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

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

Multiple Choice

Top of Form

$41.59

$38.71

$39.61

Correct

$36.68

Bottom of Form

Explanation

Weighted-average method

	Conversion
Units transferred to the next department		7,500
Ending work in process: Conversion: 1,700 units × 60%		1,020
Equivalent units of production		8,520

	Conversion
Cost of beginning work in process inventory	$	7,700
Costs added during the period		329,800
Total cost (a)	$	337,500
Equivalent units of production (b)		8,520
Cost per equivalent unit (a) ÷ (b)	$	39.613

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	15,700				75%
Conversion costs	$	7,700				20%

A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	186,300
Conversion costs	$	329,800

The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Garrison 16e Rechecks 2017-07-13

Multiple Choice

Top of Form

$516,100

$471,435

Correct

$539,500

$578,294

Bottom of Form

Explanation

Weighted-average method

	Materials				Conversion
Units transferred to the next department		7,500				7,500
Ending work in process:
Materials: 1,700 units × 70%		1,190
Conversion: 1,700 units × 60%						1,020
Equivalent units of production		8,690				8,520

	Materials				Conversion
Cost of beginning work in process inventory	$	15,700			$	7,700
Costs added during the period		186,300				329,800
Total cost (a)	$	202,000			$	337,500
Equivalent units of production (b)		8,690				8,520
Cost per equivalent unit (a) ÷ (b)	$	23.245			$	39.613

	Materials				Conversion				Total
Units completed and transferred out:
Units transferred to the next department (a)		7,500				7,500
Cost per equivalent unit (b)	$	23.245			$	39.613
Cost of units completed and transferred out (a) × (b)	$	174,337.50			$	297,097.50			$	471,435.00

Which of the following journal entries would be used to record direct labor costs in a company having two processing departments (Department A and Department B)?

Multiple Choice

Top of Form

Work in Process	XXX
Salaries and Wages Payable		XXX

Salaries and Wages Expense	XXX
Salaries and Wages Payable		XXX

Work in Process-Department A	XXX
Work in Process-Department B	XXX
Salaries and Wages Payable		XXX

• Correct

Salaries and Wages Payable	XXX
Work in Process		XXX

Bottom of Form