Name: A) units completed during the period plus equivalent

units in the ending work in process inventory.

Quiz: Process Costing B) units started and completed during the period plus
equivalent units in the ending work in process
1. Costs in an operation costing system are inventory.
accumulated by: C) units completed during the period and transferred
A) department. out.
B) by individual job. D) units started and completed during the period plus
C) by both job and departments. equivalent units in the ending work in process inventory
D) by neither job nor department. plus work needed to complete units in the beginning
work in process inventory.
2. The FIFO method provides a major advantage over 7. Which of the following types of entities would be
the weighted-average method in that: most likely to use a process costing system?
A) the calculation of equivalent units is less complex A) a shipbuilder
under the FIFO method. B) a furniture manufacturer
B) the FIFO method treats units in the beginning C) a law firm
inventory as if they were started and completed D) a utility producing natural gas
during the current period.
C) the FIFO method provides measurements of work 8. Darvin Company uses the weighted-average
done during the current period. method in its process costing system. The first
D) the weighted-average method ignores units in processing department, the Welding Department,
the beginning and ending work in process started the month with 20,000 units in its beginning
inventories. work in process inventory that were 10% complete
with respect to conversion costs. The conversion
3. The weighted-average method of process costing cost in this beginning work in process inventory was
differs from the FIFO method of process costing in P7,000. An additional 63,000 units were started into
that the weighted-average method: production during the month. There were 10,000
A) can be used under any cost flow assumption. units in the ending work in process inventory of the
B) does not require the use of predetermined Welding Department that were 10% complete with
overhead rates. respect to conversion costs. A total of P237,600 in
C) keeps costs in the beginning inventory separate conversion costs were incurred in the department
from current period costs. during the month.
D) does not consider the degree of completion of
units in the beginning work in process inventory What would be the cost per equivalent unit for
when computing equivalent units of production. conversion costs for the month? (Round off to three
decimal places.)
4. Which of the following statements about process A) P3.255
costing system is incorrect? B) P3.771
A) In a process costing system, each processing C) P3.500
department has a work in process account. D) P3.305
B) In a process costing system, equivalent units are
separately computed for materials and for conversion 9. Dedra Company uses the weighted-average method
costs. in its process costing system. The first processing
C) In a process costing system, overhead can be under- department, the Welding Department, started the
or overapplied just as in job order costing. month with 10,000 units in its beginning work in
D) In a process costing system, materials costs are process inventory that were 50% complete with
traced to units of products. respect to conversion costs. The conversion cost in
this beginning work in process inventory was
5. When the weighted-average method of process P37,500. An additional 98,000 units were started
costing is used, a department's equivalent units are into production during the month. There were
computed by: 17,000 units in the ending work in process inventory
A) subtracting the equivalent units in beginning of the Welding Department that were 80%
inventory from the equivalent units in ending inventory. complete with respect to conversion costs. A total
B) subtracting the equivalent units in beginning of P727,080 in conversion costs were incurred in
inventory from the equivalent units for work performed the department during the month. What would be
during the period. the cost per equivalent unit for conversion costs for
C) adding the units transferred out to the equivalent the month? (Round off to three decimal places.)
units in ending inventory. A) P6.322
D) subtracting the equivalent units in beginning B) P7.419
inventory from the sum of the units transferred out and C) P7.500
the equivalent units in ending inventory. D) P7.310

6. Equivalent units for a process costing system using Marlan Manufacturing produces a product that passes
the FIFO method would be equal to: through two processing departments. The units from
the Molding Department are completed in the Assembly Puri Corporation uses the FIFO method in its process
Department. The activity in the Assembly Department costing system. Data concerning the first processing
for the current month is presented below. Marlan uses department for the most recent month are listed below:
the FIFO method in its process costing system. Beginning work in process inventory:
Units in beginning work in process inventory, 400
Units in beginning work in process inventory (materials Materials costs P4,800
0% complete; conversion 25% complete) 8,000 Conversion costs P3,300
Units transferred in from the Molding Department Percentage complete with respect to materials 85%
Percentage complete with respect to conversion 45%
during the month 42,000
Units started into production during the month 5,800
Units completed and transferred to finished goods …. Units transferred to the next department during the month 5,100
38,000 Materials costs added during the month P69,500
Units in ending work in process inventory (materials 0% Conversion costs added during the month P82,300
complete; conversion 40% complete) 12,000 Ending work in process inventory:
Units in ending work in process inventory 1,100
10. The equivalent units (with respect to the Molding Percentage complete with respect to materials 55%
Department's costs) transferred from the Molding Percentage complete with respect to conversion 45%
Department to the Assembly during the month
were: Note: Your answers may differ from those offered
A) 30,000 units below due to rounding error. In all cases, select the
B) 38,000 units answer that is the closest to the answer you computed.
C) 40,800 units To reduce rounding error, carry out all computations to
D) 42,000 units at least three decimal places.

11. The equivalent units for materials for the Assembly 15. What are the equivalent units for materials for the
Department during the month were: month in the first processing department?
A) 30,000 units A) 605
B) 38,000 units B) 6,200
C) 40,800 units C) 4,700
D) 42,000 units D) 5,365

12. The equivalent units for conversion costs for the 16. The cost per equivalent unit for conversion costs for
Assembly Department during the month were: the first department for the month is closest to:
A) 36,800 units A) P15.20
B) 38,000 units B) P18.33
C) 40,800 units C) P15.96
D) 42,800 units D) P16.14

The information below was obtained from the records 17. The total cost transferred from the first processing
of Bapst Company for the month of May. The company department to the next processing department
uses the FIFO method in its process costing system. during the month is closest to:
Units Labor and Overhead A) P159,900
Percent Complete B) P151,800
WIP, May 1 3,000 30% C) P174,549
Started into production 20,000 D) P144,540
WIP, May 31 4,000 40%
Mullins Corporation uses the FIFO method in its process
costing system. Data concerning the first processing
All materials are added at the beginning of the department for the most recent month are listed below:
manufacturing process. Beginning work in process inventory:
Units in beginning work in process inventory 700
13. The equivalent units for material for the month are: Materials costs P11,500
A) 21,600 units Conversion costs . P22,200
B) 22,500 units Percentage complete with respect to materials 75%
C) 16,000 units Percentage complete with respect to conversion 65%
D) 20,000 units Units started into production during the month 8,600
Units transferred to the next department during the month 7,800
Materials costs added during the month P159,300
14. The equivalent units for labor and overhead for the
Conversion costs added during the month P348,500
month are: Ending work in process inventory:
A) 17,600 units Units in ending work in process inventory 1,500
B) 18,500 units Percentage complete with respect to materials 65%
C) 19,700 units Percentage complete with respect to conversion 50%
D) 21,600 units
Note: Your answers may differ from those offered
below due to rounding error. In all cases, select the
answer that is the closest to the answer you computed.
To reduce rounding error, carry out all computations to 25. The equivalent units for labor and overhead for
at least three decimal places. March, using the weighted-average method, are:
18. What are the equivalent units for materials for the A) 69,600 units
month in the first processing department? B) 67,800 units
A) 975 C) 71,000 units
B) 8,250 D) 69,000 units
C) 9,300
D) 7,100 26. The equivalent units for materials for March, using
the weighted-average method, are:
19. What are the equivalent units for conversion costs A) 69,000 units
for the month in the first processing department? B) 65,000 units
A) 8,095 C) 68,400 units
B) 7,100 D) 67,000 units
C) 9,300
D) 750

20. The cost per equivalent unit for materials for the
month in the first processing department is closest
to:
A) P20.42
B) P21.90
C) P19.31
D) P17.13

21. The cost per equivalent unit for conversion costs for
the first department for the month is closest to:
A) P48.79
B) P45.20
C) P44.68
D) P43.05

22. The cost per equivalent whole unit for the month in
the first processing department is closest to:
A) P62.36
B) P76.27
C) P66.10
D) P58.23

23. The total cost transferred from the first processing

department to the next processing department
during the month is closest to:
A) P490,382
B) P579,948
C) P507,800
D) P541,500

24. The cost of ending work in process inventory in the

first processing department according to the
company's cost system is closest to:
A) P51,114
B) P46,770
C) P93,540
D) P60,801

Activity in Saggers Company's Assembly Department for

the month of March follows:
Percent Complete
Units Material Labor &Overhead
WIP inventory, March 1 6,000 60% 45%
Units Started ............. 65,000
WIP inventory, March 31 4,000 35% 20%