# Chapter 4 Practice Exam

Topics: Inventory, Costs, Cost Pages: 6 (1052 words) Published: January 27, 2013
Garrison 14e Practice Exam – Chapter 4

Print these pages. Answer each of the following questions, explaining your answers or showing your work, and then compare your solutions to those provided at the end of the practice exam.

1.Hooker Company uses the weighted-average method in its process costing system. The following data about the Packaging Department were taken from the company’s accounting records:

• There were no units in the work in process inventory and 150,000 units in the finished goods inventory at the beginning of the month. • The company sold 500,000 units during the month.
• There were 32,000 units, which were 75% complete as to conversion costs, in the work in process inventory and 120,000 units in the finished goods inventory at the end of the month.

Part (a)
How many units were transferred from the Packaging Department to the Finished Goods Department during the month?

Part (b)
What were the equivalent units of production for conversion costs for the month?

2. Mann Company uses the weighted-average method in its process costing system. The following data for the Blending Department were taken from the company’s accounting records: • The department’s beginning work in process inventory, which was 100% complete as to materials and 70% complete as to conversion, was comprised of 120,000 units. • 360,000 units were started in process during the period. • The company’s ending work in process inventory, which was 100% complete as to materials and 60% complete as to conversion, was comprised of 80,000 units.

Part (a)
How many units were transferred out of the Blending Department during the month?

Part (b)
What were the equivalent units of production for conversion costs for the month?

3.Elliott Company uses the weighted-average method in its process costing system. All materials are added at the beginning of the process. The following information pertains to its Packaging Department for the current month:

| |Number of units |Cost of materials | |Beginning work in process |120,000 |\$  40,000 | |Started during month |320,000 |\$108,000 | |Units completed |340,000 | | |Ending work in process |100,000 | |

Part (a)
What were the equivalent units of production for materials for the current month?

Part (b)
What is the cost per equivalent unit for materials for the current month?

4.Hatteburg Company uses the weighted-average method in its process costing system. The following data about one of its processing department were taken from the company’s accounting records:

• The department’s ending work in process inventory consisted of 36,000 units. • The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. • The costs per equivalent unit for November was \$11.00 for materials and \$17.00 for labor and overhead.

What was the total cost assigned to the ending work in process inventory in this department?

GNB 14e Practice Exam Solutions – Chapter 4

1.Part (a) Solution (Learning Objective 2):
The number of units transferred out during the month would be determined as follows. Account for all units in the finished goods department in order to compute the number of units that were transferred from the Packaging Department to the...