Question : 17.3   Apply the weighted-average method of process costing to calculate : 1186096

17.3   Apply the weighted-average method of process costing to calculate the cost of goods manufactured and transferred out when there is both beginning and ending work-in-process inventory.

1) The final result of the process costing procedure is to compute the dollar amount of the credit to a work-in-process account and the corresponding debit to finished goods and/or other work-in-process accounts.

2) The weighted-average process costing method assigns the cost of the earliest equivalent units available to units completed and transferred out, and the cost of the most recent equivalent units worked on during the period to ending work-in-process inventory.

3) The weighted-average process costing method distinguishes between units started in the previous period but completed during the current period and units started and completed during the current period.

4) In the weighted-average method, costs of units completed and transferred out, and in ending work-in-process, are calculated using average total costs obtained after merging costs of beginning work-in-process and costs added in the current period.

5) Unit costs do not fluctuate between periods.

6) In the weighted-average costing method, the costs of direct materials in beginning inventory are not included in the cost per unit calculation since direct materials are almost always added at the start of the production process.

7) Equivalent units in beginning work in process + equivalent units of work done in the current period equals equivalent units completed and transferred out in the current period minus equivalent units in ending work in process.

8) Which of the following is an assumption implicit in process-costing?

A) All completed units receive more direct material inputs than units in process.

B) All completed units receive less direct material inputs than units in process.

C) Opening inventory is always nil, for the cost calculations.

D) Ending inventory is always nil, for the cost calculations.

E) All completed units receive the same amount of direct material inputs and the same amount of conversion costs.

9) Which of the following assertions is true concerning conversion costs?

A) Direct labour costs are always included in conversion costs.

B) The conversion period (for conversion costs calculation) can only include one operation.

C) When conversion costs are estimated to be over 80% complete, then the cost-benefit constraint requires us to use 100% as the estimate.

D) Conversion costs are impossible to estimate with any reliability.

E) The conversion period often includes several operations, and it may be impossible to estimate conversion costs with any reliability in some cases.

10) Which of the following is NOT one of the procedures in process costing?

A) summarize the flow of physical units of output

B) assign costs to equivalent units based on their percentage of completion

C) compute equivalent unit costs

D) summarize total costs to account for

E) assign costs to completed units