Question : 46.The Shaping Department began June with 5,000 units which were : 1302708

 

 

46.The Shaping Department began June with 5,000 units which were 50% complete. During June, the department received another 60,000 units from the prior department and completed 62,000 units. The remaining units were 75% complete as to conversion costs. Materials are added at the beginning of the process. How much are equivalent units for conversion costs in the Shaping Department’s Work in Process inventory at the end of June?

A.3,000 units

B.5,250 units

C.2,250 units

D.1,250 units

 

47.When partially completed units are converted to a comparable number of completed units, they are referred to as

A.conversion units.

B.transferred-out units.

C.equivalent units.

D.units to be accounted for.

 

48.Equivalent units

A.are used in calculating actual physical units completed in a process costing system.

B.are partially completed units that have been converted to a comparable number of completed units.

C.represent the cost of producing one unit of product.

D.All of these answer choices are correct.

 

49.The Molding Department’s Work in Process inventory on May 1 consists of 1,400 units and its Work in Process inventory on May 31 consists of 1,100 units. If 22,000 units were completed during the period, how many units were started in the Molding Department during the month of May?

A.21,700 units

B.23,100 units

C.24,800 units

D.21,400 units

 

50.Why may the number of equivalent units in Work in Process inventory differ for material and for conversion costs?

A.A mistake was made in counting or recording the inventory amounts.

B.Material and conversion costs enter the production process at different times and at different rates.

C.Conversion costs are calculated at the end of the accounting period.

D.Some units may have been transferred in from previous departments.

 

51.The number of equivalent units for an input cannot exceed the

A.units started.

B.units completed.

C.units to account for.

D.total cost to account for.

 

52.HTC Calculators uses process costing. At the beginning June, there were 1,100 units in process, 70% complete with respect to material and 60% complete with respect to conversion costs. During June, 24,000 units were started and 23,600 units were completed. The units in ending Work in Process inventory were 90% complete with respect to material and 30% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials?

A.24,950 units

B.24,050 units

C.25,720 units

D.22,950 units

 

53.The cost per equivalent unit calculation is

A.the cost carried forward from beginning inventory plus the current production costs divided by equivalent units.

B.based on the costs incurred in this period divided by the equivalent units.

C.current period costs plus costs of beginning inventory multiplied by the equivalent units.

D.the total of all transferred-in costs plus beginning inventory costs minus ending inventory costs, all divided by equivalent units.

 

54.Hanover Glassware produces crystal serve ware and uses process costing. At the start of May, 2,300 units were in process. During May, 11,000 units were completed and 2,000 units were in process at the end of May. The units in process at the end of May were 80% complete with respect to material and 30% complete with respect to conversion costs. Other information is as follows:

 

Work in process, May 1:

Direct material$28,800

Conversion costs48,000

Costs incurred during May:

Direct material$198,000

Conversion costs242,000

 

How much is the cost per equivalent unit for direct materials?

A.$18.00

B.$25.00

C.$15.71

D.$39.75

 

55.Mash Company uses process costing. During March, its Varnishing Department incurred costs of $63,250 for conversion. The beginning inventory was 1,500 units and 9,700 units were transferred to the Varnishing Department from the Sanding Department during March. The Varnishing Department’s conversion costs in beginning inventory totaled $5,554. The ending inventory consisted of 1,200 units that were 25% complete with respect to conversion costs. Materials are added at the beginning of the process. What is the cost per equivalent unit for conversion costs?

A.$6.14

B.$6.88

C.$5.42

D.$6.38

 

 

 

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