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Lucas Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:           Beginning work in process inventory:       Units in beginning work in process inventory   900   Materials costs $ 9,600   Conversion costs $ 7,700   Percent complete with respect to materials   60 % Percent complete with respect to conversion   45 % Units started into production during the month   8,100   Units transferred to the next department during the month   6,900   Materials costs added during the month $ 115,800   Conversion costs added during the month $ 120,500   Ending work in process inventory:       Units in ending work in process inventory   2,100   Percent complete with respect to materials   75 % Percent complete with respect to conversion   20 %  The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:   A $67,851   B $50,888   C $13,570   D $30,660

Lucas Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:           Beginning work in process inventory:       Units in beginning work in process inventory   900   Materials costs $ 9,600   Conversion costs $ 7,700   Percent complete with respect to materials   60 % Percent complete with respect to conversion   45 % Units started into production during the month   8,100   Units transferred to the next department during the month   6,900   Materials costs added during the month $ 115,800   Conversion costs added during the month $ 120,500   Ending work in process inventory:       Units in ending work in process inventory   2,100   Percent complete with respect to materials   75 % Percent complete with respect to conversion   20 %  The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:   A $67,851   B $50,888   C $13,570   D $30,660

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PB: Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units....
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1) Lucas Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

 


       
Beginning work in process inventory:      
Units in beginning work in process inventory   900  
Materials costs $ 9,600  
Conversion costs $ 7,700  
Percent complete with respect to materials   60 %
Percent complete with respect to conversion   45 %
Units started into production during the month   8,100  
Units transferred to the next department during the month   6,900  
Materials costs added during the month $ 115,800  
Conversion costs added during the month $ 120,500  
Ending work in process inventory:      
Units in ending work in process inventory   2,100  
Percent complete with respect to materials   75 %
Percent complete with respect to conversion   20 %
 

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
  A
$67,851
  B
$50,888
  C
$13,570
  D
$30,660

2)

Which of the following statements concerning a process cost accounting system is false?
  A
If material is used evenly throughout a process, the number of equivalent material units will equal the number of equivalent units for the conversion (processing) costs.
  B
The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month.
  C
The units in beginning inventory plus the units transferred in during the month should equal the units in the ending inventory plus the units transferred out during the month.
  D
Actual costing may be used in a process costing system to assign indirect overhead costs to departments.
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