1.When the beginning work in process inventory balance is $24,000, and the ending inventory is 8,000 equivalent units and the cost per equivalent unit is $12, what is the cost of the ending work in process (assuming no jobs were completed)?
A: $96,000
2. When classifying the units into one of the three groups of whole units, based on when they were started and completed, which group consists of the units started the previous month and completed this month?
A: Group 2
3. In the process costing system, both the costs of units transferred out of each department and the cost of any partially completed units remaining within the department must be determined. Therefore, both the total and per-unit costs of products that were completed are also determined. What are the two groups to which these completed units are classified?
A: Those started in the previous month and those started in the current month
4. Group 2 consists of the units that were started this month. ABC Business started 56,700 units, and completed 80% by the end of the month. Use this data to complete this month’s equivalent units of production for whole units, materials and conversion costs.
A:
5. ABC Business has a beginning work in process inventory of $30,000 for conversion costs, incurred $180,000 in conversion costs during the period, and had an ending work in process inventory of $20,000 for conversion costs. What is the total cost of the completed and partially completed units for conversion costs?
A: $210,000
6. Group 3 consists of the units that were started this month but will not be totally completed until next month. ABC Business has 11,340 units that were started this month (30% complete). Use the data to complete this month’s equivalent units of production for whole units, materials and conversion costs.
7. Group 1 consists of the units that were started the previous month and completed this month. Last month ABC Business started 10,900 units and was 25% complete by the end of the month. Use this data to complete this month’s equivalent units of production for whole units, materials and conversion costs.
A:
8. When classifying the units into one of the three groups of whole units, based on when they were started and completed, which group consists of the units started this month to be completed next month?
A: Group 3
9. A manufacturing process began with 10,000 units in the beginning work in process where 25% of the units were already complete. During the period, ABC Business incurred and completed 60,000 units during the period, and ended with 5,000 units in the ending work in process that were 40% complete for conversion costs. What are the equivalent units of production for conversion costs?
A: 69,500 units
10. When classifying the units into one of the three groups of whole units, based on when they were started and completed, which group consists of the units that are both started and completed this month?
A: Group 2
11. There are three costs of a manufactured item: direct materials, direct labor and factory overhead. Which two costs of manufactured items are considered conversion costs?
A: Direct labor & factory overhead
12. A department began the month with 10,000 units in process that were 60% complete. During the month, 30,000 units were started, and 25,000 units were completed. What are the equivalent units of production for the month?
A: 35,000 units
13. ABC Construction had a beginning work in process inventory of $20,000, incurred $80,000 in direct materials costs, and $60,000 in conversion costs during the period. If the ending work in process inventory is $25,000, what is the total cost of the completed and partially completed units?
A: $135,000
14. In a production process with several departments, what term is used to describe costs incurred in a previous department and carried forward as raw materials in the next department?
A: transferred-in costs
15. ABC Business has sales of $180,000, and the breakeven point is $120,000. How much is the margin of safety?
A: $60,000