16.In manufacturing settings with large batches, different units of the same batch might be at different stages of completion. Because we still track costs for the entire batch, we need to distribute the costs of making the batch of units still in process to:
A.Work in process inventory.
B.Cost of goods manufactured.
C.Finished goods inventory.
D.A and B only.
E.A, B and C.
17.Which of the following only applies to process costing?
A.Separate and distinct jobs
B.The use of equivalent units
C.The use of predetermined overhead rates
18.When using the weighted average method, equivalent units are:
A.The number of units completed in a period
B.The number of units completed in a period plus the number of units in process at the end of the period multiplied by the percentage of which the units have been completed
C.The number of units in beginning inventory plus the number of units completed in a period
D.The number of units produced in a period less the number of units in process at the end of the period
19.The Custer Company began the period with no units in process and 80,000 units in finished goods inventory. During the period they sold 280,000 units and also had the following at the end of the period:
Finished goods (units)40,000
Work-in-process (50% conversion complete)12,000
Equivalent units for the period totaled:
20.The Carmello Company began the period with no units in process and or in finished goods inventory. During the period they began 96,000 units and completed 80,000 units. If equivalent units for the period totaled 90,000 then the units in process were what percent complete? (rounded)
21.Which of the following companies would be most likely to use process costing:
A.A catering company
B.A custom yacht maker
C.A tire manufacturer
D.An attorney’s office
22.The Jetson Company began the month of May with no units completed or in-process. During the month the company began 210,000 units but only completed 185,000 units. The units still in process are 40% complete. The company incurred $1,575,600 in manufacturing costs. The cost per equivalent unit is: (rounded to the nearest cent)
23.The Shickman Company provided the following information for the packaging department for the month of October:
Began in October55,000$21,000
Units completed and transferred to finished goods48,000
The company adds material costs at the beginning of the production process. Using the weighted-average method, the cost per equivalent unit for materials is: (rounded)
24.Suppose Hill Manufacturing began production in January with zero units in process. During January, Hill started production of 18,000 units and completed 15,500 units by January 31. Manufacturing costs totaled $68,800 ($43,200 for materials and $25,600 for labor and overhead). How much cost is allocated to WIP ending inventory?
E.None of the above.
25.In the mechanics of process costing, why is an allocation that computes costs based on the number of physical units not accurate?
A.A number based on physical units does not include fixed costs.
B.A number based on physical units does not include overhead costs.
C.It attaches too much variable costs to each unit.
D.It attaches the same value to a unit whether the unit is in process or is complete.
E.None of the above.