QUIZ #2 COST ACCOUNTING

1. Assume there was no beginning work in process inventory and the ending work in
process inventory is 70% complete with respect to conversion costs. Under the
weighted-average method, the number of equivalent units of production with respect to
conversion costs would be:
- LESS THAN THE UNITS STARTED DURING THE PERIOD
2. The Assembly Department started the month with 59,000 units in its beginning work in
process inventory. An additional 274,000 units were transferred in from the prior
department during the month to begin processing in the Assembly Department. There
were 21,000 units in the ending work in process inventory of the Assembly Department.
How many units were transferred to the next processing department during the
month? 
- P312,000
3. Black Company uses the weighted-average method in its process costing system. The
company's ending work in process inventory consists of 5,000 units, 80% complete with
respect to materials and 50% complete with respect to labor and overhead. If the total
peso value of the inventory is P60,000 and the cost per equivalent unit for labor and
overhead is P8.00, the cost per equivalent unit for materials must be:
- P10
4. The cost of materials put into production in a department during the month totaled
P188,400. By the end of the month, these materials had been used for 32,000 units, of
which 29,000 were completed and transferred out. Eighty percent of the materials were
already added in the ending inventory. What is the cost per equivalent units for
materials?
- P6.5
5. Dewey Company uses the weighted-average method in its process costing system. The
first processing department, the Welding Department, started the month with 15,000
units in its beginning work in process inventory that were 20% complete with respect to
conversion costs. The conversion cost in this beginning work in process inventory was
$19,200. An additional 86,000 units were started into production during the month.
There were 13,000 units in the ending work in process inventory of the Welding
Department that were 60% complete with respect to conversion costs. A total of
$575,360 in conversion costs were incurred in the department during the month.
The cost per equivalent unit for conversion costs is closest to: 
- P6.206
6. Strap Company uses the weighted-average method in its process costing system. The
company has only one processing department. The ending work in process inventory
consists of 10,000 units, 60% complete with respect to materials. The total peso value of
this inventory is P38,000. The costs per equivalent unit are P5.00 for materials and P4.00
for conversion costs for the period. With respect to conversion costs, the ending work in
process inventory is: 
- 20% COMPLETE
7. Materials costs of P400,000 and conversion costs of P510,000 were charged to a
processing department in the month of September. Materials are added at the
beginning of the process, while conversion costs are incurred uniformly throughout the
process. There were no units in beginning work in process, 20,000 units were started
into production in September, and there were 5,000 units in ending work in process that
were 40% complete at the end of September
What was the total amount of manufacturing costs assigned to the 5,000 units in the
ending work in process?
- P160,000
8. Ermoin Corporation uses the weighted-average method in its process costing system.
This month, the beginning inventory in the first processing department consisted of 600
units. The costs and percentage completion of these units in beginning inventory were:

Percent
Cost
complete
Materials 3,900 65%
Conversion 10,200 35%

A total of 5,700 units were started and 4,700 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:

Materials cost 44,800

Conversion Costs 206,900

The ending inventory was 75% complete with respect to materials and 20% complete
with respect to conversion costs.
What are the equivalent units for conversion costs for the month in the first processing
department?
- 5,020
9. In July, one of the processing departments at Feickert Corporation had beginning work
in process inventory of P23,000 and ending work in process inventory of P16,000.
During the month, P268,000 of costs were added to production and the cost of units
transferred out from the department was P275,000. In the department's cost
reconciliation report for July, the total cost to be accounted for would be: 
- P291,000
10. Lucas Company uses the weighted-average method in its process costing system. The
company adds materials at the beginning of the process in the Forming Department,
which is the first of two stages in its production process. Information concerning
operations in the Forming Department in October follows:

Materials
Units
Cost
work in process, Oct.
6,000 3,000
1
Units Started During
50,000 25,560
October
Units Completed
and transferred to
44,000
the next department
during October

What was the materials cost of work in process at October 31?

- P6,120
11. The "costs accounted for" portion of the cost reconciliation report includes the cost of
beginning work in process inventory and the cost of ending work in process inventory.
- TRUE
12. Fauste Corporation uses the weighted-average method in its process costing system.
The Assembly Department started the month with 10,000 units in its beginning work in
process inventory that were 70% complete with respect to conversion costs. An
additional 55,000 units were started during the month to begin processing in the
Assembly Department. During the month 52,000 units were completed in the Assembly
Department and transferred to the next processing department. There were 13,000
units in the ending work in process inventory of the Assembly Department that were
80% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for
the month? 
- P62,400
13. The following information were given by Haikyuu Inc.

units Material Costs

Work in process,
6,000 P3,000
beginning
Started in process 50,000 P25,560
Completed and
44,000
Transferred out

Haikyuu adds materials at the beginning of the process. Using the average method,
what was the materials cost of the ending inventory?
- P6,120
14. Guasson Corporation uses the weighted-average method in its process costing system.
This month, the beginning inventory in the first processing department consisted of 500
units. The costs and percentage completion of these units in beginning inventory were:

Percent
Cost
complete
Materials 8,400 65%
Conversion 13,700 55%

A total of 6,400 units were started and 5,800 units were transferred to the second
processing department during the month. The following costs were incurred in the
first processing department during the month:

Materials cost 142,100

Conversion Costs 271,000

The ending inventory was 85% complete with respect to materials and 50%
complete with respect to conversion costs.
What are the equivalent units for conversion costs for the month in the first
processing department?
- P6,350
15. In September, one of the processing departments at Shenkel Corporation had beginning
work in process inventory of P25,000 and ending work in process inventory of P18,000.
During the month, the cost of units transferred out from the department was P304,000.
In the department's cost reconciliation report for September, the total cost accounted
for would be: 
- P322,000
16. Overland, Inc., uses the weighted-average method in its process costing system. The
company's work in process inventory on April 30 consists of 25,000 units. The units in
the ending inventory are 100% complete with respect to materials and 75% complete
with respect to conversion costs. If the cost per equivalent unit is P3.00 for materials
and P5.50 for conversion costs, the total cost in the April 30 work in process inventory
is:
- P178,125
17. Materials costs of P400,000 and conversion costs of P510,000 were charged to a
processing department in the month of September. Materials are added at the
beginning of the process, while conversion costs are incurred uniformly throughout the
process. There were no units in beginning work in process, 20,000 units were started
into production in September, and there were 5,000 units in ending work in process that
were 40% complete at the end of September.
What was the total amount of manufacturing costs assigned to those units that were
completed and transferred out of the process in September?
- P750,000
18. The cost of materials put into production in a department during the month totaled
P188,400. By the end of the month, these materials had been used for 32,000 units, of
which 29,000 were completed and transferred out. Eighty percent of the materials were
already added in the ending inventory. What is the equivalent units of production for
materials?
- 31,400
19. The Morgan Company uses the weighted-average method in its process costing system.
For a particular department, the company had 54,000 equivalent units with respect to
conversion costs in March. There were 7,500 units in the department's beginning work
in process inventory, two thirds complete with respect to conversion costs. During
March, 52,500 units were started and 50,000 were completed and transferred out of
the department. The ending work in process inventory in the department: 
- WAS 40% COMPLETE WITH RESPECT TO CONVERSION COSTS
20. Department E had 4,000 units in Work in Process that were 40% completed at the
beginning of the period at a cost of P12,500. Of the P12,500, P8,000 was for material
and P4,500 was for conversion costs. 14,000 units of direct materials were added during
the period at a cost of P28,700. 15,000 units were completed during the period, and
3,000 units were 75% completed at the end of the period. All materials are added at the
beginning of the process. Direct labor was P32,450 and factory overhead was P18,710. If
 the average cost method is used the conversion cost per unit (to the nearest cent)
would be:
3.23