In a process-costing system when goods move from department to department, the accounting for such transfers is relatively simple under: standard costing FIFO costing weighted-average costing operations costing

Under the weighted-average method, the stage of completion of beginning work in process: is relevant in determining the equivalent units must be combined with the work done during the current period to determine the equivalent units is irrelevant in determining the equivalent-unit calculation can almost always be determined with a high degree of precision

Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000 Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances, assuming that the Assembly Department used 10% less materials than expected? A. Work in Process — Assembly                                         160,000                            Assembly Department Materials Cost Control                               160,000 B. Work in Process — Assembly                                         160,000                            Direct Materials Variance                                                                 16,000                            Assembly Department Materials Cost Control                               144,000 C. Work in Process — Assembly                                         144,000                            Assembly Department Materials Cost Control                               144,000 D. Work in Process — Assembly                                         144,000                            Direct Materials Variances                                                               16,000                            Assembly Department Materials Cost Control                             160,000’

The purpose of the equivalent-unit computation is to: convert completed units into the amount of partially completed output units that could be made with that quantity of input. assist the business in determining ending inventory. convert partially completed units into the amount of completed output units that could be made with that quantity of input. Both b and c are correct.  

Activity-based costing has less applicability in a process-costing environment because: the use of activity-based costing makes the computational process more difficult the products tend to be similar and thus use the resources in a similar manner cost control in process costing is achieved by controlling the cost of the various processes rather than the individual activities Both b and c are correct.  

Standard costing is popular among companies that: produce masses of similar or identical products manufacture textiles or ceramics produce a product that uses few direct materials items, and has relatively few operational activities All of these answers are correct.  

A disadvantage of the weighted-average method compared to the FIFO process-costing method is that: FIFO is computationally simpler FIFO provides better management information for planning and control purposes when unit cost per input prices fluctuate markedly from month to month, its per unit cost is less representative than FIFO the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO

What amount of direct materials costs is assigned to the ending Work-in-Process account for June? $168,571.50 $283,552.50 $259,530 $236,850

THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 THROUGH 21: Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000 Which of the following journal entries properly records the assignment of conversion costs to work-in-process inventory and the conversion-cost variances of the Assembly Department, assuming that conversion costs are 20% higher than expected? A. Work in Process — Assembly                                      1,680,000                            Conversion-Cost Variances                                                           280,000                            Assembly Department Conversion Cost Control                        1,400,000 B. Work in Process —Assembly                                       1,680,000                            Direct Materials Variances                                                            280,000                            Testing Department Conversion Cost Control                            1,400,000 C. Work in Process — Assembly                                      1,400,000                            Conversion-Cost Variances                                                           280,000                            Assembly Department Conversion Cost Control                        1,680,000 D. Work in Process — Testing                                          1,400,000                            Assembly Department Conversion Cost Control                        1,400,000  

If there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be: equal to the units started or transferred in equal to the units completed less than the units completed Both a and b are correct.