7. Process costing would most likely be used to account for costs in a: a. Car repair service. b. Public accounting firm. c. Plastic surgery clinic. d. Instant noodle manufacturing firm. 8. In a process costing system, which of the following statements regarding the calculation of equivalent units is true? a. Equivalent units facilitate the assignment of appropriate values to partially completed units for financial statement reporting. b. Cost per equivalent unit is calculated as total number of units divided by total manufacturing cost. c. Equivalent units calculated for direct materials and conversion costs must be equal. d. Equivalent units apply only to the FIFO method of process costing. 9. In preparing the production report, which of the following sequences are correct? a. Calculate the cost per equivalent unit > Prepare a production report > Reconcile the number of physical units worked on during the period. b. Reconcile the number of physical units worked on during the period > Translate physical units into equivalent units > Calculate the cost per equivalent unit. c. Translate physical units into equivalent units > Reconcile the total cost of Work In Process > Reconcile the number of physical units worked on during the period. d. Reconcile the number of physical units worked on during the period > Reconcile the total cost of Work In Process inventory > Calculate the cost per equivalent unit. 10. Under the FIFO method of process costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period. a. True b. False 11. If Vinamilk Corp. has 35,700 units that are estimated to be 55% complete, how many equivalent units are there? a. 5,500 c. 16,065 b. 19,635 d. 21,120 12. Wilson Company has calculated a cost per unit of $14 for materials and $23 for conversion to manufacture a specific product. Ending work in process has 6,800 units that are fully complete for materials and 70% complete for conversion. What amount will Wilson have in its ending Work in Process Inventory? a. $176,120 c. $251,600 b. $204,680 d. None of the above. 13. The primary difference between FIFO and Weighted Average methods of process costing has to do with the treatment of a. Ending inventory b. Number of units started c. Beginning inventory d. Direct labor. 14. Jumil Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: Units Percentage complete Beginning work in process inventory .............................. 9,200 30% Transferred in from the prior department during April ... 35,000 Ending work in process inventory ................................... 12,000 60% What were the equivalent units for conversion costs in the Painting Department for April? a. 43,500 c. 39,400 b. 40,500 d. 32,200 15. The FIFO method provides a major advantage over the weighted-average method in that: a. The calculation of equivalent units is less complex under the FIFO method. b. The FIFO method treats units in the beginning inventory as if they were started and completed during the current period. c. The FIFO method provides measurements of work done during the current period. d. The weighted-average method ignores units in the beginning and ending work in process inventories. 16. Mann Company uses the FIFO method in its process costing system. Department A is the first stage of the company's production process. The following information is available for conversion costs for the month of April in Department A: Units Work in process, beginning (55% complete) .................. 18,000 Started in April ................................................................ 150,000 Completed in April and transferred to Department B ..... 160,000 Work in process, ending (70% complete) ....................... 8,000 The equivalent units for conversion costs are: a. 175,500 c. 160,000 b. 165,600 d. None of the above 17. Darvin Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 25,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $105,000. An additional 55,000 units were started into production during the month. There were 20,000 units in the ending work in process inventory of the Welding Department that were 60% complete with respect to conversion costs. A total of $650,000 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? a. $10.5 c. $9.03 b. $12.6 d. $10.8 18. When calculating product cost using the weighted average method, which of the following amounts are combined? a. Ending finished goods and cost of goods sold. b. Beginning finished goods and cost of goods sold. c. Beginning work in process and beginning finished goods. d. Beginning work in process and current period costs. 19. Work in process includes: a. Direct materials c. Manufacturing overhead b. Direct labor d. All of the above 20.When materials are purchased in a process costing system, a work in process account is debited with the cost of the materials? a. True b. False