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Essay 4
Multiple Choice 6
Question 1. Question : (TCO B) Assume there is no beginning work in
process inventory and the ending work in process inventory is 100%
complete with respect to materials costs. The number of equivalent units
with respect to materials costs under the weighted average method is
Student Answer: the same as the number of units completed.
less than the number of units put into production.
the same as the number of units put into production.
less than the number of units completed.
Question 2. Question : (TCO B) 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 computer consulting firm
A factory that processes sugar and other ingredients into candy
All of the above
Question 3. Question : (TCO B) 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 to three decimal places.)
Student Answer: $7.891
$8.070
$5.928