ACCT 202H Process Costing Quiz

Which of the following statements is true?
1. Any difference in the equivalent units calculated under the weighted-average and the FIFO method is due to the units in the ending work in process inventory.
2. When comparing the two process costing methods for the same company, equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under the weighted-average method.
3. The equivalent units in the ending work in process inventory will be different under the FIFO and the weighted-average methods of process costing.
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Terms in this set (10)
Which of the following statements is true?
1. Any difference in the equivalent units calculated under the weighted-average and the FIFO method is due to the units in the ending work in process inventory.
2. When comparing the two process costing methods for the same company, equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under the weighted-average method.
3. The equivalent units in the ending work in process inventory will be different under the FIFO and the weighted-average methods of process costing.
Only statement II is true
The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method:
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Under the FIFO method, the cost per equivalent units equals:
Cost added during the period / Equivalent units of production
Salmont Corporation uses the FIFO method in its process costing system. The company reported 30,000 equivalent units of production for materials last month. The company's beginning work in process inventory consisted of 8,500 units, 35% complete with respect to materials. The ending work in process inventory consisted of 6,500 units, 65% complete with respect to materials. The number of units started during the month was:
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Kalyan Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below:

Beg WIP Inventory: 1,200 units, 20% complete w/ respect to conversion
Trans in from prior dept during May: 58,000 units,
End WIP Inventory: 6,600 units, 70% complete w/ respect to conversion

What were the equivalent units of production for conversion costs in the Enameling Department for May?
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Which of the following statements is true?
1. When computing the cost per equivalent unit, it is necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.
2. In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs.
Statement II is true
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:
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The Werner Corporation uses the weighted-average method in its process costing system. The company recorded 24,400 equivalent units for conversion costs for November in a particular department. There were 4,000 units in the ending work in process inventory on November 30 which were 60% complete with respect to conversion costs. The November 1 work in process inventory consisted of 5,000 units which were 40% complete with respect to conversion costs. A total of 22,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:
21,000 units
The Assembly Department started the month with 24,700 units in its beginning work in process inventory. An additional 309,700 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,700 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?
304,700
The Assembly Department started the month with 24,000 units in its beginning work in process inventory. An additional 309,00 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,00 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?
304,000