Q1-Under the weighted-average method, partially completed units in work-in-process inventory are

• always less than 100% complete with respect to conversion

• always less than 100% complete with respect to direct materials

• usually less than 100% complete with respect to conversion

• never less than 100% complete with respect to direct materials
  
  Q2-The Weaving Department of Dolly Company had $8,000 of conversion cost in its beginning work in process inventory and added $64,000 of conversion cost during the month. The department completed 37,000 units during the month and had 10,000 units in the ending work in process inventory that were 30% complete as to conversion cost. Using the weighted-average method, the amount of cost assigned to the units in ending inventory would be:
  
  
  Q3 -Mercer Corp. uses the FIFO method in its process costing system. The cutting department had $6,000 of material cost in its beginning work in process inventory and $75,000 in material cost was added during the period. The equivalent units of production for material for the period was 20,000. The cost per equivalent unit for materials would be:
  
  Q4 -The cost of goods transferred under the FIFO method is calculated in which one of the following ways:

  Multiple Choice

• Total costs to account for plus cost in ending inventory

• Costs from beginning WIP less costs to complete beginning WIP plus costs to start and finish units introduced in the period

• Total costs to account for less cost in beginning inventory

• Costs from beginning WIP plus costs to complete beginning WIP plus costs to start and finish units introduced in the period
  
  Q5-Under the FIFO method, units started and completed can be computed by:

  Multiple Choice

• deducting units in ending work in process from units transferred and completed

• adding units transferred and completed to units in beginning work in process

• deducting units in ending work in process from units started in production

• adding units in ending work in process with units started in production
  
  Q6-Directs materials and conversion costs are accumulated in a

  Multiple Choice

• finished goods account

• cost of goods sold account

• work in process account

• cost of goods manufactured account
  
  Q7-Conversion cost is the combination of

  Multiple Choice

• direct materials and direct labour

• direct materials and manufacturing overhead

• direct labour and manufacturing overhead

• direct materials, direct labour and manufacturing overhead
  
  Q8-Units completed and transferred out are always ____ complete in terms of direct materials and conversion costs.

  Multiple Choice

• 50%

• 0%

• 100%

• 75%
  
  Q9-The Mixing Department of Deerdon Company started 4,800 units into process during the month. 500 units were in the beginning inventory and 300 units were in the ending inventory. How many units were completed and transferred out during the month?

  Multiple Choice

• 5,000

• 4,600

• 5,300

• 5,100
  
  
  Q10-

  At the beginning of the month, 200 units were in process in the Stamping Department of Farwest Industrials Inc. and they were 70% complete with respect to materials. During the month, 2,000 units were transferred to the next department. At the end of the month, 100 units were still in process and they were 60% complete with respect to materials. The materials cost in the beginning work in process inventory was $2,721 and $39,200 of materials costs were added during the month. Using the weighted-average method, what is the cost per equivalent unit for materials costs?

  Multiple Choice

• $19.06

• $20.35

• $20.42

• $19.60

Answer rating: 100% (QA)

Q1 usually less than 100 complete with respect to conversion This is because the weightedaverage method uses the total cost of all units in workinprocess inventory including partially completed units ... View the full answer