1.

Ch 04 Practice Test Question 01

Which of the following statements regarding job-order costing and process costing is
FALSE?
Job-order costing uses manufacturing overhead; process costing does not apply
manufacturing overhead.
2.

Ch 04 Practice Test Question 02

Hanson Industries produces a cough syrup in two production departments:
Formulating and Bottling. All of the materials are added in the Formulating
department. Once formulated, the product is transferred to the Bottling
department to be packaged and shipped. If Hanson Industries uses process
costing, what would be the journal entry to transfer the units to the Bottling
department?

3.

Ch 04 Practice Test Question 03

In a process costing system, the journal entry used to record the transfer of
units from Department A, a processing department, to Department B, the
next processing department, includes a debit to:
Work in Process Department B and a credit to Work in Process Department A.
4.

Ch 04 Practice Test Question 04

The Heat Treatment Department at Northern Pipe is the third department in a
sequential process. The work in process account for the department would
consist of:
costs transferred in from the prior department.

materials costs added in the Heat Treatment Department.

conversion costs added in the Heat Treatment Department.
all of the above.
5.

Ch 04 Practice Test Question 19

The costs to be accounted for in a cost reconciliation report consist of:
beginning work in process inventory + costs added to production during the period.
6.
Exercise 4-1 Process Costing Journal Entries [LO4-1]

Quality Brick Company produces bricks in two processing departmentsMolding

and Firing. Information relating to the companys operations in March follows:

a.
Raw materials were issued for use in production: Molding Department,
$23,000; and Firing Department, $8,000.
Direct labor costs were incurred: Molding Department, $12,000; and Firing
Department, $7,000.

b.

Manufacturing overhead was applied: Molding Department, $25,000; and

Firing Department, $37,000.

c.
d.

Unfired, molded bricks were transferred from the Molding Department to

the Firing Department. According to the company's process costing system,
the cost of the unfired, molded bricks was $57,000.
e.
Finished bricks were transferred from the Firing Department to the finished
goods warehouse. According to the company's process costing system, the
cost of the finished bricks was $103,000.
f.
Finished bricks were sold to customers. According to the company's

process costing system, the cost of the finished bricks sold was $101,000.

Required:
Prepare journal entries to record items (a) through (f) above. (If no entry is
required for a transaction/event, select "No journal entry required" in
the first account field.)

7.
Exercise 4-7 Process Costing Journal Entries [LO4-1]

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland.

The company makes chocolate truffles that are sold in popular embossed tins. The
company has two processing departmentsCooking and Molding. In the Cooking
Department, the raw ingredients for the truffles are mixed and then cooked in
special candy-making vats. In the Molding Department, the melted chocolate and
other ingredients from the Cooking Department are carefully poured into molds and
decorative flourishes are applied by hand. After cooling, the truffles are packed for
sale. The company uses a process costing system. The T-accounts below show the
flow of costs through the two departments in April:

Required:
Prepare journal entries showing the flow of costs through the two processing
departments during April. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)

8.
Exercise 4-8 Equivalent Units and Cost per Equivalent Unit-Weighted-Average
Method [LO4-2, LO4-3, LO4-4]

Helix Corporation produces prefabricated flooring in a series of steps carried out in

production departments. All of the material that is used in the first production
department is added at the beginning of processing in that department. Data for
May for the first production department follow:

Required:
1.
Assume that the company uses the weighted-average method of
accounting for units and costs. Determine the equivalent units for May for
the first process.

2.
Compute the costs per equivalent unit for May for the first process.
(Round your answers to 2 decimal places.)

3.
Determine the total cost of ending work in process inventory and the total
cost of units transferred to the next process in May. (Do not round your
intermediate calculations.)

9.
Exercise 4-9 Equivalent Units and Cost per Equivalent Unit-Weighted-Average
Method [LO4-2, LO4-3]
Pureform, Inc., manufactures a product that passes through two departments. Data
for a recent month for the first department follow:

The beginning work in process inventory was 80% complete with respect to
materials and 60% complete with respect to labor and overhead. The ending
work in process inventory was 75% complete with respect to materials and

50% complete with respect to labor and overhead.

Required:
Assume that the company uses the weighted-average method of accounting
for units and costs.

1. Compute the equivalent units for the month for the first department.

2. Determine the costs per equivalent unit for the month. (Round your
answers to 2 decimal places.)

10.
Problem 4-15A Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3,
LO4-4, LO4-5]
Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stages.
Fruit juices are extracted from fresh fruits and then blended in the Blending
Department. The blended juices are then bottled and packed for shipping in the
Bottling Department. The following information pertains to the operations of the
Blending Department for June.

Required:
Assume that the company uses the weighted-average method.
1.Determine the equivalent units for June for the Blending Department.

2.
Compute the costs per equivalent unit for the Blending Department.
(Round your answers to 2 decimal places.)

3.
Determine the total cost of ending work in process inventory and the total
cost of units transferred to the Bottling Department. (Do not round your
intermediate calculations.)

4.
Prepare a cost reconciliation report for the Blending Department for June.
(Do not round your intermediate calculations.)

11.

Problem 4-16A Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3,

LO4-4, LO4-5]

Builder Products, Inc., manufactures a caulking compound that goes through three
processing stages prior to completion. Information on work in the first department,
Cooking, is given below for May:

The company uses the weighted-average method.

Required:
1. Compute the equivalent units of production.

2.
Compute the costs per equivalent unit for the month. (Round your
answers to 2 decimal places.)

3.
Determine the cost of ending work in process inventory and of the units
transferred out to the next department. (Do not round your intermediate
calculations.)

4.
Prepare a cost reconciliation report for the month. (Do not round your
intermediate calculations.)

12.
Exercise 4-1 Process Costing Journal Entries [LO4-1]

Quality Brick Company produces bricks in two processing departments

Molding and Firing. Information relating to the companys operations in
March follows:

a.
Raw materials were issued for use in production: Molding Department,
$28,000; and Firing Department, $4,700.
Direct labor costs were incurred: Molding Department, $18,000; and Firing
Department, $4,700.

b.

c.

Manufacturing overhead was applied: Molding Department, $22,100; and

Firing Department, $37,900.

d.
Unfired, molded bricks were transferred from the Molding Department to
the Firing Department. According to the company's process costing system,
the cost of the unfired, molded bricks was $69,700.
e.
Finished bricks were transferred from the Firing Department to the finished
goods warehouse. According to the company's process costing system, the
cost of the finished bricks was $108,400.
f.
Finished bricks were sold to customers. According to the company's
process costing system, the cost of the finished bricks sold was $104,800.

Required:
Prepare journal entries to record items (a) through (f) above. (If no entry is
required for a transaction/event, select "No journal entry required" in
the first account field.)