Question 1

What is the major advantage of the weighted average cost method?

Accepted Answer

A) Simplicity 
B) Accuracy 
C) it is the required method 
D) it is the preferred method 
A) Simplicity 
B) Accuracy 
C) it is the required method 
D) it is the preferred method A

Question 2

Figure 6-4. The following information is available for Department X for August:
  Refer to Figure 6-4.Department X's cost per equivalent unit for conversion using the weighted average method would be

Accepted Answer

A) $8.00 
B) $5.00 
C) $3.00 
D) $9.00 
A) $8.00 
B) $5.00 
C) $3.00 
D) $9.00 A

Question 3

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

Accepted Answer

A) job-order costing 
B) process costing 
C) sequential costing 
D) parallel costing 
A) job-order costing 
B) process costing 
C) sequential costing 
D) parallel costing B

Question 4

Process-costing systems are specifically designed to support costing of mass-produced homogeneous products.

Accepted Answer

A) True 
 B)False

Question 5

Beginning inventory for the month contained 3,000 units that were 60 percent complete with respect to materials.During the month,50,000 units were completed and transferred out.Ending inventory contained 5,000 units,30 percent complete with respect to materials.The weighted average equivalent units of production for materials for the month would be

Accepted Answer

A) 50,000 
B) 51,500 
C) 50,300 
D) 49,500 
A) 50,000 
B) 51,500 
C) 50,300 
D) 49,500

Question 6

Under the FIFO method,for the beginning work-in-process units,the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

Accepted Answer

A) True 
 B)False

Question 7

Figure 6-5. For the current period,Haley Co.started 20,000 units and completed 8,000 units,leaving 12,000 units in process 40 percent complete.
Refer to Figure 6-5.How many equivalent units of production did Haley Co.have for the period?

Accepted Answer

A) 13,500 
B) 12,000 
C) 12,800 
D) 8,000 
A) 13,500 
B) 12,000 
C) 12,800 
D) 8,000

Question 8

Which of the following methods considers the percentage of completion of beginning work-in-process?

Accepted Answer

A) FIFO 
B) weighted average 
C) both weighted average and FIFO 
D) neither FIFO nor weighted average 
A) FIFO 
B) weighted average 
C) both weighted average and FIFO 
D) neither FIFO nor weighted average

Question 9

Process costing accumulates costs by individual jobs.

Accepted Answer

A) True 
 B)False

Question 10

The processing pattern in which partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion is known as ____________________.

Accepted Answer

The answer of The processing pattern in which partially completed...

Question 11

Explain the role of the departmental production report in process costing and name the five steps for completing the departmental production report.

Accepted Answer

The production report summarizes cost an

Question 12

Assuming conversion costs represent a single category,how many input categories would a department receiving transferred-in goods normally have?

Accepted Answer

A) 4 
B) 5 
C) 3 
D) 2 
A) 4 
B) 5 
C) 3 
D) 2

Question 13

Figure 6-1. The following information is available for Department Z for the month of July:
  Materials are added at the beginning of the process.(Round unit costs to two decimal places.)
Refer to Figure 6-1.Department Z's cost of ending work in process using the FIFO method would be

Accepted Answer

A) $3,960 
B) $3,552 
C) $3,500 
D) $3,160 
A) $3,960 
B) $3,552 
C) $3,500 
D) $3,160

Question 14

Royal,Inc.,manufactures products that pass through two or more processes.The company uses the weighted average method to compute unit costs.During April,equivalent units were computed as follows:
   The unit cost was computed as follows:
   Required:

Accepted Answer

The answer of Royal,Inc.,manufactures products that pass through two or...

Question 15

Transferred-in costs are a type of raw material cost.

Accepted Answer

A) True 
 B)False

Question 16

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

Accepted Answer

The answer of Under the _________________ method there are two...

Question 17

Two methods used to determine equivalent units of production in process costing are

Accepted Answer

A) weighted average and FIFO 
B) FIFO and LIFO 
C) weighted average and LIFO 
D) weighted average and exact costing 
A) weighted average and FIFO 
B) FIFO and LIFO 
C) weighted average and LIFO 
D) weighted average and exact costing

Question 18

Figure 6-1. The following information is available for Department Z for the month of July:
  Materials are added at the beginning of the process.(Round unit costs to two decimal places.)
Refer to Figure 6-1.Department Z's cost per equivalent unit of production for conversion costs using the FIFO method would be

Accepted Answer

A) $1.18 
B) $1.02 
C) $0.85 
D) $0.73 
A) $1.18 
B) $1.02 
C) $0.85 
D) $0.73

Question 19

Units transferred from a prior process to a subsequent process are referred to as

Accepted Answer

A) transferred in units 
B) finished goods 
C) cost of goods sold 
D) beginning goods 
A) transferred in units 
B) finished goods 
C) cost of goods sold 
D) beginning goods

Question 20

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

Accepted Answer

A) True 
 B)False

What is the major advantage of the weighted average cost method?

Figure 6-4. The following information is available for Department X for August: Refer to Figure 6-4.Department X's cost per equivalent unit for conversion using the weighted average method would be

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

Process-costing systems are specifically designed to support costing of mass-produced homogeneous products.

Under the FIFO method,for the beginning work-in-process units,the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

Figure 6-5. For the current period,Haley Co.started 20,000 units and completed 8,000 units,leaving 12,000 units in process 40 percent complete. Refer to Figure 6-5.How many equivalent units of production did Haley Co.have for the period?

Which of the following methods considers the percentage of completion of beginning work-in-process?

Process costing accumulates costs by individual jobs.

The processing pattern in which partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion is known as ____________________.

Explain the role of the departmental production report in process costing and name the five steps for completing the departmental production report.

Assuming conversion costs represent a single category,how many input categories would a department receiving transferred-in goods normally have?

Figure 6-1. The following information is available for Department Z for the month of July: Materials are added at the beginning of the process.(Round unit costs to two decimal places.) Refer to Figure 6-1.Department Z's cost of ending work in process using the FIFO method would be

Royal,Inc.,manufactures products that pass through two or more processes.The company uses the weighted average method to compute unit costs.During April,equivalent units were computed as follows: The unit cost was computed as follows: Required:

Transferred-in costs are a type of raw material cost.

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

Two methods used to determine equivalent units of production in process costing are

Units transferred from a prior process to a subsequent process are referred to as

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Process Costing

What is the major advantage of the weighted average cost method?

Figure 6-4. The following information is available for Department X for August: Refer to Figure 6-4.Department X's cost per equivalent unit for conversion using the weighted average method would be

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

Process-costing systems are specifically designed to support costing of mass-produced homogeneous products.

Under the FIFO method,for the beginning work-in-process units,the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

Figure 6-5. For the current period,Haley Co.started 20,000 units and completed 8,000 units,leaving 12,000 units in process 40 percent complete. Refer to Figure 6-5.How many equivalent units of production did Haley Co.have for the period?

Which of the following methods considers the percentage of completion of beginning work-in-process?

Process costing accumulates costs by individual jobs.

The processing pattern in which partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion is known as ____________________.

Explain the role of the departmental production report in process costing and name the five steps for completing the departmental production report.

Assuming conversion costs represent a single category,how many input categories would a department receiving transferred-in goods normally have?

Figure 6-1. The following information is available for Department Z for the month of July: Materials are added at the beginning of the process.(Round unit costs to two decimal places.) Refer to Figure 6-1.Department Z's cost of ending work in process using the FIFO method would be

Royal,Inc.,manufactures products that pass through two or more processes.The company uses the weighted average method to compute unit costs.During April,equivalent units were computed as follows: The unit cost was computed as follows: Required:

Transferred-in costs are a type of raw material cost.

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

Two methods used to determine equivalent units of production in process costing are

Units transferred from a prior process to a subsequent process are referred to as

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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