Question 1

Equivalent production expresses all activity of the period in terms of

Accepted Answer

A) work in process 
B) materials labor and overhead 
C) fully completed units 
D) partially completed units 
A) work in process 
B) materials labor and overhead 
C) fully completed units 
D) partially completed units

Question 2

Which step is cost reconciliation in the general pattern of a process-costing production report?

Accepted Answer

A) As part of the physical flow analysis. 
B) Before calculation of equivalent units. 
C) Before the computation of unit cost. 
D) The last step. 
A) As part of the physical flow analysis. 
B) Before calculation of equivalent units. 
C) Before the computation of unit cost. 
D) The last step.

Question 3

Which of the following methods uses costs and work of beginning work in process?

Accepted Answer

A) Weighted average method 
B) FIFO method 
C) sequential processing method 
D) Both the weighted average and FIFO method can be used 
A) Weighted average method 
B) FIFO method 
C) sequential processing method 
D) Both the weighted average and FIFO method can be used

Question 4

If changes occur in the prices of the manufacturing inputs from one period to the next,then the weighted average method produces a more accurate unit cost than does the FIFO method.

Accepted Answer

A) True 
 B)False

Question 5

At the time they are used,raw materials,direct labor,and applied overhead costs are recorded in

Accepted Answer

A) raw materials inventory 
B) finished goods 
C) work in process 
D) cost of goods sold 
A) raw materials inventory 
B) finished goods 
C) work in process 
D) cost of goods sold

Question 6

You Decide
The controller has asked you do determine what method you think would be the best approach to dealing with beginning work-in-process; weighted average costing method or FIFO costing method.Explain the differences between the two methods.Which method would you recommend?

Accepted Answer

The weighted average combines beginning

Question 7

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

Accepted Answer

A) True 
 B)False

Question 8

Under the _______________ method equivalent units of output are computed by adding units completed to equivalent units in ending working-in-process.

Accepted Answer

The answer of Under the _______________ method equivalent units of...

Question 9

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

The answer of The _______________________ is the document that summarizes...

Question 10

The two categories of completed units needed in the FIFO method so that each category can be costed correctly are:

Accepted Answer

A) beginning work-in-process units and units started. 
B) units started and completed and ending work-in-process units. 
C) beginning work-in-process units and units started and completed during the current period. 
D) other categories. 
A) beginning work-in-process units and units started. 
B) units started and completed and ending work-in-process units. 
C) beginning work-in-process units and units started and completed during the current period. 
D) other categories.

Question 11

Figure 6-3. Kelley Inc.,manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for October follows:
  During October,32,000 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:
  By October 31,3,000 units that were 75 percent complete remained in Mixing.Kelley uses the weighted average method.
Refer to Figure 6-3.Kelley's equivalent units of production using the weighted average method would be

Accepted Answer

A) 34,250 
B) 32,000 
C) 35,000 
D) 24,740 
A) 34,250 
B) 32,000 
C) 35,000 
D) 24,740

Question 12

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method?

Accepted Answer

The weighted average method uses the sam

Question 13

Montgomery Corporation produces boxes of cookies that go through three departments: Mixing,Cooking and Packaging.During April,Montgomery produced 250,000 boxes of cookies with the following costs:
   Required: 
A.Calculate the costs transferred out of each department.
B.Prepare journal entries that reflect these cost transfers.

Accepted Answer

The answer of Montgomery Corporation produces boxes of cookies that...

Question 14

Figure 6-3. Kelley Inc.,manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for October follows:
  During October,32,000 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:
  By October 31,3,000 units that were 75 percent complete remained in Mixing.Kelley uses the weighted average method.
Refer to Figure 6-3.Kelley's cost of goods transferred to the molding department during October would be

Accepted Answer

A) $310,000 
B) $261,050 
C) $390,400 
D) $294,000 
A) $310,000 
B) $261,050 
C) $390,400 
D) $294,000

Question 15

The Fox Company uses the weighted average method.The beginning work in process consists of 20,000 units (100% completed as to materials and 50% complete as to conversion costs).The number of units completed was 80,000.The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).Calculate the equivalent units of production for conversion costs.

Accepted Answer

A) 110,000 
B) 82,000 
C) 80,000 
D) 90,000 
A) 110,000 
B) 82,000 
C) 80,000 
D) 90,000

Question 16

The total associated manufacturing costs under the FIFO method are the sum of the prior-period costs plus the costs incurred in the current period to finish the units for:

Accepted Answer

A) beginning work-in-process units. 
B) ending work-in-process units. 
C) units started and completed. 
D) conversion costs. 
A) beginning work-in-process units. 
B) ending work-in-process units. 
C) units started and completed. 
D) conversion costs.

Question 17

When should process costing techniques be used in assigning costs to products?

Accepted Answer

A) Any time production is only partially completed during the accounting period. 
B) If the product is composed of mass-produced homogeneous products. 
C) If the product is manufactured according to customer specifications. 
D) All of these. 
A) Any time production is only partially completed during the accounting period. 
B) If the product is composed of mass-produced homogeneous products. 
C) If the product is manufactured according to customer specifications. 
D) All of these.

Question 18

Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March.
  The beginning inventory was 70 percent complete for materials and 30 percent complete for conversion costs.The ending inventory was 90 percent complete for materials and 50 percent complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials,$44,400; conversion cost $30,500.
Costs incurred during March are: materials used,$588,000; conversion cost $624,000.
Refer to Figure 6-7.Using the weighted average method,the equivalent unit conversion cost for March is:

Accepted Answer

A) $5.95 
B) $6.00 
C) $5.13 
D) $6.23 
A) $5.95 
B) $6.00 
C) $5.13 
D) $6.23

Question 19

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

A) True 
 B)False

Question 20

Garcia Company uses the weighted average method in its costing system.For the month of May in the Assembly Department,the equivalent units for conversion costs amounted to 35,000.There were 5,000 units in beginning work-in-process that were 50% complete.During the month,33,000 units were started and 31,400 were completed and transferred.The ending work in process consists of:

Accepted Answer

A) 5,000 units 
B) 7,000 units 
C) 3,600 units 
D) 6,600 units 
A) 5,000 units 
B) 7,000 units 
C) 3,600 units 
D) 6,600 units

Equivalent production expresses all activity of the period in terms of

Which step is cost reconciliation in the general pattern of a process-costing production report?

Which of the following methods uses costs and work of beginning work in process?

If changes occur in the prices of the manufacturing inputs from one period to the next,then the weighted average method produces a more accurate unit cost than does the FIFO method.

At the time they are used,raw materials,direct labor,and applied overhead costs are recorded in

You Decide The controller has asked you do determine what method you think would be the best approach to dealing with beginning work-in-process; weighted average costing method or FIFO costing method.Explain the differences between the two methods.Which method would you recommend?

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

Under the _______________ method equivalent units of output are computed by adding units completed to equivalent units in ending working-in-process.

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

The two categories of completed units needed in the FIFO method so that each category can be costed correctly are:

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method?

The total associated manufacturing costs under the FIFO method are the sum of the prior-period costs plus the costs incurred in the current period to finish the units for:

When should process costing techniques be used in assigning costs to products?

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

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

Filters

Exam 6: Process Costing

Equivalent production expresses all activity of the period in terms of

Which step is cost reconciliation in the general pattern of a process-costing production report?

Which of the following methods uses costs and work of beginning work in process?

If changes occur in the prices of the manufacturing inputs from one period to the next,then the weighted average method produces a more accurate unit cost than does the FIFO method.

At the time they are used,raw materials,direct labor,and applied overhead costs are recorded in

You Decide The controller has asked you do determine what method you think would be the best approach to dealing with beginning work-in-process; weighted average costing method or FIFO costing method.Explain the differences between the two methods.Which method would you recommend?

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

Under the _______________ method equivalent units of output are computed by adding units completed to equivalent units in ending working-in-process.

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

The two categories of completed units needed in the FIFO method so that each category can be costed correctly are:

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method?

The total associated manufacturing costs under the FIFO method are the sum of the prior-period costs plus the costs incurred in the current period to finish the units for:

When should process costing techniques be used in assigning costs to products?

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

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

Filters