AMIS 3300

Pop Quiz - Chapter 17

1. Which of the following statements related to job-order costing and process costing are
true?
a. Under both costing methods, manufacturing overhead costs are included in
the computation of unit product costs.
b. Under both costing methods, the journal entry to record the completion of
production will involve crediting a work in process account.
c. Under both costing methods, the journal entry to record the cost of goods
sold will involve crediting the finished goods account.
d. All of the above are true.

2. The weighted-average method of process costing differs from the FIFO method of
process costing in that the weighted-average method:
a. does not consider the degree of completion of beginning work in process
inventory when computing equivalent units of production.
b. considers ending work in process inventory to be fully complete.
c. will always yield a higher cost per equivalent unit.
d. All of the above.

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THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 3 THROUGH 8:
The Swiss 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. Swiss Clock Shop uses weighted-average
costing.

Data for the Assembly Department for June 20X5 are:

Work in process, beginning inventory 250 units
Direct materials (100% complete)
Conversion costs (50% complete)

Units started during June 800 units

Work in process, ending inventory: 150 units
Direct materials (100% complete)
Conversion costs (75% complete)

Costs for June 20X5:

Work in process, beginning inventory:
Direct materials $180,000
Conversion costs $270,000
Direct materials costs added during June $1,000,000
Conversion costs added during June $1,000,000

3. 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

4. What is the total amount debited to the Work-in-Process account during the month
of June?
a. $450,000
b. $2,000,000
c. $2,270,000
d. $2,450,000

5. What is the direct materials cost per equivalent unit during June?
a. $1,123.81
b. $1,730.20
c. $1,579,00
d. $1,890.35

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 6. What is the conversion cost per equivalent unit in June?
a. $1,254.32
b. $1,579.14
c. $1,730.20
d. $1,890.35

7. What amount of direct materials costs is assigned to the ending Work-in-Process

account for June?
a. $168,571.50
b. $283,552.50
c. $259,530
d. $236,850

8. What amount of conversion costs are assigned to the ending Work-in-Process

account for June?
a. $101,956.64
b. $141,111.00
c. $126,450.50
d. $188,148.00

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THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 9 THROUGH 12:
The Rest-a-Lot chair company manufacturers a standard recliner. During February, the
firm's Assembly Department started production of 75,000 chairs. During the month, the
firm completed 80,000 chairs, and transferred them to the Finishing Department. The
firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs
in beginning inventory. All direct materials costs are added at the beginning of the
production cycle and conversion costs are added uniformly throughout the production
process. The FIFO method of process costing is used by Rest-a-Lot. Beginning work in
process was 30% complete as to conversion costs, while ending work in process was 80%
complete as to conversion costs.

Beginning inventory:
Direct materials $24,000
Conversion costs $35,000

Manufacturing costs added during the accounting period:

Direct materials $168,000
Conversion costs $278,000

9. How many of the units that were started during February were completed during
February?
a. 85,000
b. 80,000
c. 75,000
d. 65,000

10. What were the equivalent units for conversion costs during February?
a. 83,500
b. 85,000
c. 75,000
d. 79,500

11. What is the amount of direct materials cost assigned to ending work-in-process
inventory at the end of February?
a. $19,200
b. $22,400
c. $25,600
d. $22,500

12. What is the cost of the goods transferred out during February?
a. $417,750
b. $456,015
c. $476,750
d. $505,000

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13. Ampco Disk Company operates a computer disk manufacturing plant. Direct
materials are added at the end of the process. The following data were for August
20X5:

Work in process, beginning inventory 100,000 units

Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (90% complete)

Transferred in during current period 300,000 units

Completed and transferred out 350,000 units

Work in process, ending inventory 50,000

Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)

Calculate equivalent units for conversion costs using the FIFO method.
a. 401,500 units
b. 350,000 units
c. 300,000 units
d. 292,500 units