Question : Objective 17.4 1) The weighted-average process-costing method calculates the equivalent units : 1211897

 

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

Answer the following questions using the information below:

 

Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method.

 

2) The number of equivalent units of work done during the month for direct materials is ________.

A) 600 units

B) 800 units

C) 700 units

D) 500 units

 

3) Calculate the total equivalent units in ending inventory for assignment of conversion costs?

A) 25 units

B) 50 units

C) 150 units

D) 200 units

 

4) What is the total equivalent units in ending inventory for assignment of direct materials cost?

A) 25 units

B) 50 units

C) 150 units

D) 200 units

5) 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

 

6) 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) more than the units started or transferred in during the period

B) equal to the units completed during the period

C) less than the units completed during the period

D) equal to total of units started and units completed during the period

 

7) 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:

 

Timekeeper Inc. 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. Timekeeper Inc. uses weighted-average costing.

 

Data for the Assembly Department for June 2015 are:

Work in process, beginning inventory300 units

Direct materials (100% complete)

Conversion costs (50% complete)

 

Units started during June950 units

Work in process, ending inventory:150 units

Direct materials (100% complete)

Conversion costs (75% complete)

 

Costs for June 2015:

Work in process, beginning inventory:

Direct materials$90,000

Conversion costs$135,000

Direct materials costs added during June$600,000

Conversion costs added during June$400,000

 

8) What are the equivalent units for direct materials and conversion costs, respectively, for June?

A) 1,250 units; 1,210.64 units

B) 1,250 units; 1,212.5 units

C) 1,100 units; 1,100 units

D) 1012 units; 1040 units

 

9) 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

10) What is the direct materials cost per equivalent unit during June?

A) $569

B) $560

C) $552

D) $480