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# 4 Multiple choice questions on operating and conversion costs

1. The following information was provided by Fystro Corporation for the month of March. Fystro uses the weighted-average method in its process costing system. Total cost transferred out during March \$74,000; Cost in Work in Process, March 1 \$12,000; Cost in Work in Process, March 31 \$5,000; How much cost did Fystro add to production during March?
a. \$57,000
b. \$62,000
c. \$67,000
d. \$81,000

2. Cavalerio Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs \$9,100 80% Conversion costs \$5,400 25% A total of 7,200 units were started and 6,400 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 \$96,700 Conversion costs \$180,700 The ending inventory was 80% complete with respect to materials and 70% 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. How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 800
b. 1,500
c. 900
d. 6,500

3. Escoffier Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs \$11,400 80% Conversion costs \$2,200 10% A total of 5,000 units were started and 4,400 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 \$112,200 Conversion costs \$178,400 The ending inventory was 85% complete with respect to materials and 25% 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. Escoffier Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs \$11,400 80% Conversion costs \$2,200 10% A total of 5,000 units were started and 4,400 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 \$112,200 Conversion costs \$178,400 The ending inventory was 85% complete with respect to materials and 25% 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. What are the equivalent units for conversion costs for the month in the first processing department?
a. 5,500
b. 4,675
c. 4,400
d. 275

4. For which of the following would it be best to use an operation costing system?
a. home remodeling
b. automobile production