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Managerial Accounting Canadian 10th Edition by Garrison – Test Bank

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  • ISBN-10 ‏ : ‎ 1259024903
  • ISBN-13 ‏ : ‎ 978-1259024900

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Managerial Accounting Canadian 10th Edition by Garrison – Test Bank

Chapter 6 Student: ___________________________________________________________________________ 1. (Appendix 6A) Which of the following statements referring to a production report is not correct? A. The quantity schedule deals with physical units, not whole units. B. The total “Costs to be accounted for” must equal the total cost of the units completed and transferred out, plus the cost of the ending work-in-process inventory. C. The equivalent units in the ending work-in-process inventory will be different if the weighted-average method is used than it will be if the FIFO method is used. D. The total of the “Units to be accounted for” will equal the total of the “Units accounted for.” 2. Assume that there is no beginning work-in-process inventory, and the ending work-in-process inventory is 50% complete with respect to conversion costs. What would be the number of equivalent units of production with respect to conversion costs under the weighted-average method? A. The same as the units completed. B. The same as the units started during the period. C. Less than the units completed. D. Less than the units started during the period. 3. (Appendix 6A) All production costs have been steadily rising in the Donner Company for several periods, and the company maintains large work-in-process inventories. What is the Donner Company’s cost per equivalent unit, as computed using the FIFO method? A. The same as that computed under the weighted-average method. B. Higher than that computed under the weighted-average method. C. Lower than that computed under the weighted-average method. D. It could be the lower than, the same as, or higher than that computed under the weighted-average method. 4. (Appendix 6A) If a company uses two different unit cost figures to cost transfers from one department to another under a process costing system, then which of the following statements is reasonable to assume? A. There was no beginning work-in-process inventory. B. Processing centres are arranged in a sequential pattern. C. The FIFO cost method is being used. D. The weighted-average cost method is being used. 5. For which of the following industries would it NOT be appropriate to use process costing? A. Custom furniture building. B. Oil refining. C. Grain milling. D. Newsprint production. 6. Which of the following statements best defines an operation costing system? A. It is identical to a process costing system except that actual manufacturing overhead costs are traced to units of product. B. It is the same as a process costing system except that direct materials costs are accounted for in the same way as in job-order costing system. C. It is the same as a job-order costing system except that direct materials costs are accounted for in the same way as in a process costing system. D. It is identical to a job-order costing system except that actual manufacturing overhead costs are traced to units of product. 7. 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: What was the materials cost of work in process on October 31? A. $3,060. B. $5,520. C. $6,000. D. $6,120. 8. David Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units that were 80% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 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? (Round off to three decimal places.) A. $7.547. B. $7.700. C. $4.634. D. $5.988. 9. Larner Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company’s records, the conversion cost in beginning work-in-process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A. $5.575. B. $6.174. C. $6.892. D. $7.090. 10. Glo Co., a manufacturer of combs, uses the weighted-average method in its process costing system. The company sold 125,000 units during the month of April. There is only one processing department. The following additional information is provided: What were the equivalent units of production for conversion costs for April? A. 126,500 units. B. 125,500 units. C. 123,500 units. D. 117,500 units. 11. The Morgan Company uses the weighted-average method in its process costing system. For a particular department, the company had 54,000 equivalent units of production 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. What was the ending work-in-process inventory in the department? A. Consisted of 5,000 units. B. Consisted of 2,500 units. C. 65% complete with respect to conversion costs. D. 40% complete with respect to conversion costs. 12. The following data were taken from the accounting records of the Hazel Corporation, which uses the weighted-average method in its process costing system: What were the equivalent units of production for conversion costs? A. 102,000 units. B. 112,000 units. C. 111,000 units. D. 100,000 units. 13. Baker Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work-in-process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work-in-process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month? A. 94,700 units. B. 101,900 units. C. 98,000 units. D. 92,000 units. 14. Jawson Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: What were the equivalent units of production for conversion costs in the Painting Department for April? A. 67,300 units. B. 68,820 units. C. 70,520 units. D. 63,900 units. 15. Sarver Company uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department’s operations in March: The Fitting Department’s production report indicates that the cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? A. $482,287.20. B. $502,640.00. C. $523,240.00. D. $561,144.00. 16. The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units of production for conversion costs for November in a particular department. There were 6,000 units in the ending work-in-process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month. What was the number of units started during November in the department? A. 24,500 units. B. 23,000 units. C. 27,000 units. D. 21,000 units. 17. The Assembly Department started the month with 35,000 units in its beginning work-in-process inventory. Additional units 472,000 were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 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? A. 507,000 units. B. 473,000 units. C. 471,000 units. D. 541,000 units. 18. Huffer Company uses the weighted-average method in its process costing system. The following information pertains to Processing Department D for the month of May: All materials are added at the beginning of the process. Which of the following costs is closest to the cost per equivalent unit for materials? A. $0.43. B. $0.45. C. $0.55. D. $0.59. 19. Harker Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work-in-process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $29,440. An additional 59,000 units were started into production during the month, and 61,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 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? (Round off to three decimal places.) A. $4.176. B. $4.600. C. $3.375. D. $4.421. 20. Paxton Company uses the weighted-average method in its process costing system. The Moulding Department is the second department in its production process. The data below summarize the department’s operations in January: The accounting records indicate that the conversion cost that had been assigned to beginning work-in-process inventory was $10,973, and a total of $268,107 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Moulding Department? (Round off to three decimal places.) A. $5.348. B. $4.038. C. $5.080. D. $4.704. 21. The Richmond Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company’s ending work-in-process inventory on August 31 consisted of 18,000 units. The units in the ending work-in-process inventory were 100% complete with respect to materials and 60% complete with respect to labour and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labour and overhead, what was the total cost assigned to the ending work-in-process inventory? A. $126,000. B. $75,600. C. $80,100. D. $95,400. 22. (Appendix 6A) On November 1, Yankee Company had 20,000 units of work in process in Department No. 1 that were 100% complete with respect to material costs and 20% complete with respect to conversion costs. During November, 160,000 units were started in Department No. 1, and 170,000 units were completed and transferred to Department No. 2. The work in process on November 30 was 100% complete with respect to material costs and 40% complete with respect to conversion costs. By what amount would the equivalent units of production for conversion costs for the month of November differ if the FIFO method were used instead of the weighted-average method? A. 20,000 decrease. B. 16,000 decrease. C. 8,000 decrease. D. 4,000 decrease. 23. Fabian Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. During the month, an additional 90,000 units were transferred in from the prior department to begin processing in the Assembly Department. During the month, 87,000 units were completed in the Assembly Department and transferred to the next processing department. There were 12,000 units in the ending work-in-process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month? A. 93,000 units. B. 83,100 units. C. 87,000 units. D. 89,400 units. 24. Narver Company uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units of production for conversion costs in the Lubricating Department for October? A. 43,100 units. B. 37,100 units. C. 44,780 units. D. 47,780 units. 25. 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 labour and overhead. If the total dollar value of the inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, what is the cost per equivalent unit for materials? A. $5.00. B. $10.00. C. $8.00. D. $4.00. 26. Department 2 is the second of three sequential processes. All materials are added at the beginning of processing in Department 2. During October, Department 2 reported the following data: The company uses the weighted-average method in its process costing system. To the nearest cent, what is the cost per equivalent unit on the production report for conversion costs? A. $5.51. B. $6.45. C. $6.30. D. $7.38. 27. 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 $3.00 for materials and $5.50 for conversion costs, what is the total cost in the April 30 work-in-process inventory? A. $212,500. B. $178,125. C. $159,375. D. $109,375. 28. Valley Manufacturing Company’s beginning work-in-process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, what was the total cost of the units completed and transferred out? A. $255,000. B. $270,000. C. $240,000. D. $285,000. 29. Ogden Company uses the weighted-average method in its process costing system. Information for the month of January concerning Department A, the first stage of the company’s production process, follows: Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. What cost would be recorded for the ending work-in-process inventory? A. $6,800. B. $8,800. C. $3,400. D. $4,400. 30. Trapp Company uses the weighted-average method in its process costing system. The beginning work-in-process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work-in-process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. What was the cost of units transferred out during the month? A. $39,600. B. $45,000. C. $45,400. D. $35,400. 31. 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 dollar value of this inventory is $38,000. The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period. With respect to conversion costs, what is the ending work-in-process inventory? A. 10% complete. B. 20% complete. C. 38% complete. D. 30% complete. 32. Rariton Company uses the weighted-average method in its process costing system. The Moulding Department is the second department in its production process. The data below summarize the department’s operations in January: The Moulding Department’s production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work-in-process inventory in the Moulding Department for January? A. $4,081.20. B. $10,203.00. C. $10,310.40. D. $6,121.80. 33. (Appendix 6A) Ebis Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 13,000 units in its beginning work-in-process inventory; 10% of the units were complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $12,610. An additional 89,000 units were started into production during the month. There were 22,000 units in the ending work-in-process inventory of the Welding Department; 30% of these units were complete with respect to conversion costs. A total of $806,085 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 on the department’s production report? (Round off to three decimal places.) A. $8.026. B. $9.700. C. $9.057. D. $9.450. 34. (Appendix 6A) Marten Company uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below: According to the company’s records, the conversion cost in beginning work-in-process inventory was $83,600 at the beginning of September. Additional conversion costs of $427,682 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September on the Casting Department’s production report? (Round off to three decimal places.) A. $5.498. B. $5.779. C. $5.620. D. $5.500. 35. (Appendix 6A) Herston Company uses the FIFO method in its process costing system. The beginning work-in-process inventory in a particular department consisted of 6,000 units, two-thirds complete with respect to conversion costs. During the month, 42,000 units were started and 40,000 units were completed and transferred out of the department. The company had 40,000 equivalent units of production for conversion costs. Which of the following represents the ending work-in-process inventory in the department? (Do not round intermediate calculations.) A. 8,000 units, 25% complete with respect to conversion costs. B. 0 units. C. 8,000 units, 50% complete with respect to conversion costs. D. 4,000 units, 100% complete with respect to conversion costs. 36. (Appendix 6A) Carson Company uses the FIFO method in its process costing system. The Assembly Department started the month with 6,000 units in its beginning work-in-process inventory; 20% of the units were complete with respect to conversion costs. An additional 74,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. Of the 8,000 units in the ending work-in-process inventory of the Assembly Department, 60% were complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month? A. 72,000 units. B. 75,600 units. C. 76,000 units. D. 76,800 units. 37. (Appendix 6A) Karmen Company uses the FIFO method in its process costing system. Operating data for the Enamelling Department for the month of May appear below: What were the equivalent units of production for conversion costs in the Enamelling Department for May? A. 85,000 units. B. 85,960 units. C. 93,200 units. D. 80,800 units. 38. (Appendix 6A) Creer Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the beginning of January, and 40% were complete with respect to conversion costs. All materials are added at the beginning of the process in Department A. The January 1 work-in-process inventory in Department A contained $10,000 in materials cost and $11,600 in conversion cost. During January, materials costs were $0.50 per equivalent unit, and conversion costs were $1.50 per equivalent unit. All of the units in the beginning work-in-process inventory were completed and transferred out during the month. What was the total cost attached to these units when they were transferred to the next department? A. $39,600. B. $33,600. C. $45,600. D. $37,600. 39. (Appendix 6A) Mukluk Company uses the FIFO method in its process costing system. The conversion cost for the month of April is $5.00 per equivalent unit, and the materials cost is $2.90 per equivalent unit. At the beginning of the month, 1,000 units were in process, and 100% were complete with respect to materials and 30% were complete with respect to conversion, with a total cost at that point of $2,400. If these units are fully complete by the end of the month, what will be their total cost? A. $3,500. B. $3,900. C. $5,900. D. $8,000. 40. (Appendix 6A) Index Company uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 17,000 units in its beginning work-in-process inventory; the units were 10% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $9,010. An additional 76,000 units were started into production during the month, and 83,000 units were completed and transferred to the next processing department. There were 10,000 units in the ending work-in-process inventory of the Forming Department; 70% of the units were complete with respect to conversion costs. A total of $445,915 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 on the Forming Department’s production report? (Round off to three decimal places.) A. $5.050. B. $5.300. C. $5.867. D. $5.150. 41. (Appendix 6A) Qart Company uses the FIFO method in its process costing system. Operating data for the Cutting Department for the month of March appear below: According to the company’s records, the conversion cost in beginning work-in-process inventory was $1,656 at the beginning of March. Additional conversion costs of $129,960 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for March on the Cutting Department’s production report? (Round off to three decimal places.) A. $1.710. B. $1.677. C. $1.756. D. $1.840.

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