Chapter 6 Review_student version1

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Chapter 6 Review 1) The equivalent units of production (weighted-average method) for a department are: A) The number of units transferred to the next department. B) The number of units transferred to the next department (or to finished goods) plus the equivalent units in the department's ending work in process inventory. C) The equivalent units in the department's ending work in process inventory. D) Equivalent units to complete beginning work in process inventory plus units started and completed during the period plus equivalent units in ending work in process inventory. 2) Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows: Materials Units Cost Work in process on October 1 16,000 $3,000 Units started during October 66,000 $25,560 Units completed and transferred to the next Department during October 50,000 What was the materials cost of work in process on October 31? (Round your final answer to the nearest whole dollar amount.) A) $23,060 B) $25,526 C) $26,000 D) $11,145 Version 1 1

3) Larner Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Units Percentage complete Beginning work in process inventory 24,000 40% Started into production during June 86,000 Ending work in process inventory 19,000 20% According to the company's records, the conversion cost in beginning work-in-process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A) $5.575 B) $6.174 C) $6.892 D) $7.090 4) Flo Company, a manufacturer of fans, uses the weighted-average method in its process costing system. The company sold 150,000 units during the month of June. There is only one processing department. The following additional information is provided: Inventory at June 1: Work in process None Finished goods 37,500 units Inventory at June 30: Work in process (75% complete as to conversion costs) 8,000 units Finished goods 30,000 units What were the equivalent units of production for conversion costs for June? A) 148,500 units. B) 125,500 units. C) 123,500 units. D) 150,500 units. Version 1 2

5) The CoCo Company uses the weighted-average method in its process costing system. For a particular department, the company had 100,000 equivalent units of production with respect to conversion costs in March. There were 16,000 units in the department's beginning work- in-process inventory, two-thirds complete with respect to conversion costs. During March, 98,000 units were started and 95,000 units were completed and transferred out of the department. What was the ending work-in-process inventory in the department? A) 10% with respect to conversion costs. B) 26% with respect to conversion costs. C) 65% complete with respect to conversion costs. D) 40% complete with respect to conversion costs. 6) The following data were taken from the accounting records of the Hazel Corporation, which uses the weighted-average method in its process costing system: Beginning work in process inventory (100% complete as to materials; 70% complete as to conversion) 50,000 units Started in process during the period 110,000 units Ending work in process inventory (100% complete as to materials; 60% complete as to conversion) 40,000 units What were the equivalent units of production for conversion costs? A) 102,000 units. B) 144,000 units. C) 111,000 units. D) 100,000 units. 7) (Appendix 6A) On November 1, Yankee Company had 20,000 units of work in process in Department No. 1 that were 100% complete with respect to material costs and 20% complete with respect to conversion costs. During November, 160,000 units were started in Department No. 1, and 170,000 units were completed and transferred to Department No. 2. The work in process on November 30 was 100% complete with respect to material costs and 40% complete with respect to conversion costs. By what amount would the equivalent units of production for conversion costs for the month of November differ if the FIFO method were used instead of the weighted-average method? A) 20,000 decrease. Version 1 3

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