Acct. Test 2 chapters 4-7 - Name Accounting 2302 Test 2...

Unformatted text preview: Name: __________________________ Accounting 2302 Test 2 chapters 4-7 Spring 2008 Use the following to answer questions 1-8: Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs................... $10,600 65% Conversion costs ............... $12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs................... $142,100 Conversion costs ............... $359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. 1. How many units are in ending work in process inventory in the first processing department at the end of the month? A) 1,900 B) 1,100 C) 7,700 D) 900 2. What are the equivalent units for materials for the month in the first processing department? A) 7,400 B) 9,300 C) 8,350 D) 950 Page 1 3. What are the equivalent units for conversion costs for the month in the first processing department? A) 9,300 B) 8,065 C) 7,400 D) 665 4. The cost per equivalent unit for materials for the month in the first processing department is closest to: A) $18.29 B) $17.02 C) $16.42 D) $15.28 5. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $40.03 B) $46.16 C) $44.58 D) $48.47 6. The cost per equivalent whole unit for the month in the first processing department is closest to: A) $64.45 B) $56.45 C) $68.32 D) $70.95 7. The total cost transferred from the first processing department to the next processing department during the month is closest to: A) $476,923 B) $599,376 C) $501,600 D) $525,000 8. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A) $61,227 B) $48,071 C) $42,859 D) $122,453 Use the following to answer questions 9-11: Callis Corporation is a wholesaler that sells a single product. Management has provided the Callis Corporation is a wholesaler that sells a single product....
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