Objective 17.4
1) The weighted-average process-costing method calculates the equivalent units by:
A) considering only the work done during the current period
B) the units started during the current period minus the units in ending inventory
C) the units started during the current period plus the units in ending inventory
D) the equivalent units completed during the current period plus the equivalent units in ending inventory
2) In the computation of the cost per equivalent unit, the weighted-average method of process costing considers all the costs:
A) entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period
B) costs that have entered work in process from the units started or transferred in during the current accounting period
C) that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory
D) that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory
3) If there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be:
A) equal to the units started or transferred in
B) equal to the units completed
C) less than the units completed
D) Both A and B are correct.
4) Under the weighted-average method, the stage of completion of beginning work in process:
A) is relevant in determining the equivalent units
B) must be combined with the work done during the current period to determine the equivalent units
C) is irrelevant in determining the equivalent-unit calculation
D) can almost always be determined with a high degree of precision
Answer the following questions using the information below:
The Cuckoo Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Cuckoo Clock Shop uses weighted-average costing.
Data for the Assembly Department for June 2013 are:
Work in process, beginning inventory250 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June800 units
Work in process, ending inventory:150 units
Direct materials (100% complete)
Conversion costs (75% complete)
Costs for June 2013:
Work in process, beginning inventory:
Direct materials$90,000
Conversion costs$135,000
Direct materials costs added during June$500,000
Conversion costs added during June$500,000
5) What are the equivalent units for direct materials and conversion costs, respectively, for June?
A) 1,200.5 units; 1,160.64 units
B) 1,050 units; 1,012.5 units
C) 1,050 units; 1,050 units
D) 962 units; 990 units
6) What is the total amount debited to the Work-in-Process account during the month of June?
A) $225,000
B) $1,000,000
C) $1,135,000
D) $1,225,000
7) What is the direct materials cost per equivalent unit during June?
A) $561.90
B) $865.10
C) $789.50
D) $945.18
8) What is the conversion cost per equivalent unit in June?
A) $627.16
B) $789.57
C) $865.10
D) $945.18
9) What amount of direct materials costs is assigned to the ending Work-in-Process account for June?
A) $84,285
B) $141,776.25
C) $129,765
D) $118,425
10) What amount of conversion costs are assigned to the ending Work-in-Process account for June?
A) $509,78.32
B) $70,555.50
C) $63,225.25
D) $90,074
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