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ACCT 505 QUIZ 1 WEEK 2| VERIFIED SOLUTION
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ACCT 505 QUIZ 1 WEEK 2
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ACCT 505 QUIZ 1 WEEK 21. 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 Chapter 3
Explanation:
Points Received: 5 of 5
Comments:
Question 2. Question : (TCO F) Process costing would be appropriate for each of the following
except:
Student Answer:
custom furniture manufacturing.
oil refining.
grain milling.
newsprint production.
Instructor Chapter 4
Explanation:
Points Received: 5 of 5
Comments:
Question 3. Question : (TCO F) Unizat Corporation uses the weighted-average method in its
process costing system. The following information pertains to one of the
company's processing departments for a recent month:
Units Material Cost
, ACCT 505 QUIZ 1 WEEK 2
Beginning work in 30,000 $22,000
process
Started during the 80,000 $72,000
month
Units completed 85,000
Ending work in 25,000
process
All materials are added at the beginning of the process. The cost per
equivalent unit for materials is closest to:
Student
$0.86
Answer:
$0.90
$1.10
$1.18
Instructor
Explanation:
To solve for ending work in process:
+ Work in process, beginning 30,000
+ Units started into production during the month 80,000
- Units completed and transferred out during the month 85,000
= Work in process, ending 25,000
Equivalent Units of Production
Materials
Transferred to next department 85,000
Ending work in process
(conversion: 25,000 units x 10% complete) 25,000
Equivalent units of production 110,000
Cost per Equivalent Unit
Conversion
Cost of beginning work in process $22,000
Cost added during the period 72,000
Total cost (a) $94,000
Equivalent units of production (b) 110,000
Cost per equivalent unit (a) / (b) $0.85
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