Week 2: Job Order and Process Costing Systems - Quiz
Top of Form
Grade Details - All Questions
Page:
1 2
Question 1.
Question :
(TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system?
Student Answer:
A steel factory that processes iron ore into steel bars
A factory that processes sugar and other ingredients into black licorice
A costume maker that makes specialty costumes for figure skaters
All of these Instructor Explanation:
Chapter 3
Points Received:
5 of 5 Comments:
Question 2.
Question :
(TCO F) Luft 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:
Units
Percent Complete with respect to Conversion
Beginning work in process inventory
11,000
90%
Started in production during June
58,000
Ending work in process inventory
17,000
10%
According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 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.)
Student Answer:
$8.070
$7.891
$5.928
$4.584 Instructor Explanation:
To solve for units transferred: + Work in progress, beginning
11,000
+ Units started into production during the month
58,000
- Work in process, ending
17,000
= Units completed and transferred out during the month
$52,000
Equivalent Units of Production
Conversion
Transferred to next department
52,000
Ending work in process (conversion: 17,000 units x 10% complete
1,700
Equivalent units of production
53,700
Cost per Equivalent Unit
Conversion
Cost of
Grade Details - All Questions
Page:
1 2
Question 1.
Question :
(TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system?
Student Answer:
A steel factory that processes iron ore into steel bars
A factory that processes sugar and other ingredients into black licorice
A costume maker that makes specialty costumes for figure skaters
All of these Instructor Explanation:
Chapter 3
Points Received:
5 of 5 Comments:
Question 2.
Question :
(TCO F) Luft 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:
Units
Percent Complete with respect to Conversion
Beginning work in process inventory
11,000
90%
Started in production during June
58,000
Ending work in process inventory
17,000
10%
According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 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.)
Student Answer:
$8.070
$7.891
$5.928
$4.584 Instructor Explanation:
To solve for units transferred: + Work in progress, beginning
11,000
+ Units started into production during the month
58,000
- Work in process, ending
17,000
= Units completed and transferred out during the month
$52,000
Equivalent Units of Production
Conversion
Transferred to next department
52,000
Ending work in process (conversion: 17,000 units x 10% complete
1,700
Equivalent units of production
53,700
Cost per Equivalent Unit
Conversion
Cost of