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Accounting Practice Test: Weighted-Average Process Costing, Exercises of Principles of Accounting

A practice test for chapter 4 of an accounting course focusing on weighted-average process costing. The test includes multiple-choice questions based on various scenarios and calculations. Students are expected to determine the equivalent units for conversion cost and materials, identify the cost per equivalent unit for conversion costs and the cost per equivalent whole unit, and find the cost of the ending work in process inventory.

Typology: Exercises

2011/2012

Uploaded on 12/20/2012

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ACCOUNTING
Chapter 4 Practice Test
1. Bart Co. adds materials at the beginning of the process in Department M. The company uses
the weighted-average method in its process costing system. The following information pertains to
Department M’s work in process during April:
Units
Work in process, April 1 (conversion 60% complete)…….. 3,000
Started in April……………………………………………. 25,000
Completed………………………………………………… 20,000
Work in process, April 30 (conversion 75% complete)……. 8,000
The equivalent units for conversion cost are:
A) 26,000.
B) 25,000.
C) 24,200.
D) 21,800.
2. Kew Company uses the weighted-average method in its process costing system. The company
had 3,000 units in work in process at April 1, that were 60% complete with respect to conversion
cost. During April, 10,000 units were completed. At April 30, 4,000 units remained in work in
process and they were 40% complete with respect to conversion cost. Direct materials are added at
the beginning of the process. How many units were started during April?
A) 9,000
B) 9,800
C) 10,000
D) 11,000
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ACCOUNTING

Chapter 4 Practice Test

  1. Bart Co. adds materials at the beginning of the process in Department M. The company uses the weighted-average method in its process costing system. The following information pertains to Department M’s work in process during April:

Units Work in process, April 1 (conversion 60% complete)…….. 3, Started in April……………………………………………. 25, Completed………………………………………………… 20, Work in process, April 30 (conversion 75% complete)……. 8,

The equivalent units for conversion cost are: A) 26,000. B) 25,000. C) 24,200. D) 21,800.

  1. Kew Company uses the weighted-average method in its process costing system. The company had 3,000 units in work in process at April 1, that were 60% complete with respect to conversion cost. During April, 10,000 units were completed. At April 30, 4,000 units remained in work in process and they were 40% complete with respect to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April? A) 9, B) 9, C) 10, D) 11,

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Use the following to answer questions 3-6.

Lamb Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month sare listed below:

Beginning work in process inventory: Units in beginning work in process inventory…………………… 200 Materials costs…………………………………………………… $2, Conversion costs………………………………………………… $2, Percentage complete with respect to materials………………….. 60% Percentage complete with respect to conversion ……………….. 35% Units started into production during the month…………………….. 7, Units transferred to the next department during the month………… 7, Materials costs added during the month……………………………. $166, Conversion costs added during the month ………………………… $261, Ending work in process inventory: Units in ending work in process inventory…………………….. 700 Percentage complete with respect to materials ………………... 85% Percentage complete with respect to conversion…………………….. 45%

  1. What are the equivalent units for materials for the month in the first processing department? A) 595 B) 7, C) 8, D) 7,
  2. The cost per equivalent for conversion costs for the first department for the month is closet to: A) $35. B) $32. C) $34. D) $33.
  3. The cost per equivalent whole unit for the month in the first processing department is closet to: A) $55. B) $58. C) $53. D) $58.
  4. The cost of the ending work in process inventory in the first processing department according to the company’s cost system is closet to: A) $32, B) $23, C) $17, D) $38,

ANSWERS 1. A 2. D 3. B 4. C 5. A 6. B

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