Question 1

_____ is an example of a product that would not be manufactured using process costing.

Accepted Answer

A) Flour 
B) Glass 
C) Toothpaste 
D) A building 
A) Flour 
B) Glass 
C) Toothpaste 
D) A building

Question 2

Fighter Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of June follow: $\begin{array}{lr}\text { Work-in-process inventory, June } 1\\
\text { Units } & 15,000 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \
\text { Conversion costs 30\% complete) } & \$ 14,000\\\text { Units started in June } & 65,000  \text { units } \
\text { Units completed in June } & 62,000  \text { units } \
\text { Work-in-process inventory, June 30 } & 20,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 60 \% \text { complete with regard to conversi on costs) }\\\text { Direct material s added in June } & \$ 285,000 \
\text { Conversion costs added in June } & \$ 210,000
\end{array}$ The total cost of the ending work-in-process inventory is _____.

Accepted Answer

A) $122,175 
B) $127,260 
C) $105,084 
D) $111,996 
A) $122,175 
B) $127,260 
C) $105,084 
D) $111,996

Question 3

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Accepted Answer

A) True 
 B)False

Question 4

Perch Company manufactures generic greeting cards.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of September follow: $\begin{array}{lr}\text { Work-in-process inventory, September } 1\\
\text { Units } & 22,500 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 51,000 \
\text { Conversion costs 30\% complete) } & \$ 20,472\\\text { Units started in September } & 127,500 \text { units } \
\text { Units completed in September } & 125,000 \text { units } \
\text { Work-in-process inventory, September 30 } & 27,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 60 \% \text { complete with regard to conversion costs) }\\\text { Direct materials added in September }&\$427,500\\text { Conversion costs added in September }&\$315,000
\end{array}$ The total cost of goods transferred out of the Printing department is _____.

Accepted Answer

A) $813,972 
B) $688,800 
C) $714,000 
D) $742,500 
A) $813,972 
B) $688,800 
C) $714,000 
D) $742,500

Question 5

Highlight Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: Direct materials added
Direct 1abor
$\$ 336,000$
460,800
230,200
$\$ 1,027,200$ There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 75% complete as far as conversion costs.The ending balance in Work-in-Process Inventory, Assembly is _____.

Accepted Answer

A) $168,960 
B) $140,160 
C) $887,040 
D) $862,848 
A) $168,960 
B) $140,160 
C) $887,040 
D) $862,848

Question 6

Some companies use hybrid costing, which blends the ideas from both job costing and process costing.

Accepted Answer

A) True 
 B)False

Question 7

Identify which one of the following statements regarding process costing is true.

Accepted Answer

A) Process-costing systems are usually simpler than job-order costing systems. 
B) Individual jobs exist in process costing. 
C) The process-costing approach does not distinguish among individual units of product. 
D) The unit cost for inventory purposes is calculated by accumulating the costs of all processing departments and dividing the total costs by the number of units produced. 
A) Process-costing systems are usually simpler than job-order costing systems. 
B) Individual jobs exist in process costing. 
C) The process-costing approach does not distinguish among individual units of product. 
D) The unit cost for inventory purposes is calculated by accumulating the costs of all processing departments and dividing the total costs by the number of units produced.

Question 8

Each job has its own job-cost record in a job-costing system.

Accepted Answer

A) True 
 B)False

Question 9

The entry to record factory overhead incurred would include a credit to Factory Department Overhead Control.

Accepted Answer

A) True 
 B)False

Question 10

The weighted-average process-costing method adds the cost of all work done in the current period to _____.

Accepted Answer

A) work done in the preceding period to the current period's beginning work-in-process inventory 
B) the ending work-in-process inventory 
C) all costs estimated to be incurred in the next department 
D) the work done in the preceding department to the current period's ending work-in-process inventory 
A) work done in the preceding period to the current period's beginning work-in-process inventory 
B) the ending work-in-process inventory 
C) all costs estimated to be incurred in the next department 
D) the work done in the preceding department to the current period's ending work-in-process inventory

Question 11

Backflush costing has no WIP account

Accepted Answer

A) True 
 B)False

Question 12

The method of allocating costs to products by averaging costs over large numbers of nearly identical products

Accepted Answer

The answer of The method of allocating costs to products...

Question 13

Joel Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of June follow: $\begin{array}{lr}\text { Work-in-process inventory, June } 1\\
\text { Units } & 15,000 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \
\text { Conversion costs 30\% complete) } & \$ 14,000\\\text { Units started in June } & 65,000  \text { units } \
\text { Units completed in June } & 62,000  \text { units } \
\text { Work-in-process inventory, June 30 } & 20,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 60 \% \text { complete with regard to conversi on costs) }\\\text { Direct material s added in June } & \$ 285,000 \
\text { Conversion costs added in June } & \$ 210,000
\end{array}$ The equivalent units for materials are _____.

Accepted Answer

A) 62,000 
B) 77,000 
C) 82,000 
D) 83,000 
A) 62,000 
B) 77,000 
C) 82,000 
D) 83,000

Question 14

_____ is a job-cost source document.

Accepted Answer

A) A job-cost record 
B) An inventory summary record 
C) A budgeted overhead rate 
D) A labor time ticket 
A) A job-cost record 
B) An inventory summary record 
C) A budgeted overhead rate 
D) A labor time ticket

Question 15

Gilmore Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$
$\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$ These units had all materials added but were only 40% complete as far as conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The unit cost of conversion costs is _____.

Accepted Answer

A) $3.00 
B) $3.42 
C) $3.24 
D) $24.00 
A) $3.00 
B) $3.42 
C) $3.24 
D) $24.00

Question 16

Black Company produces plastic cups in a one-department process.The following information is available: $$\begin{array} { l r } 
\text { Work-in-process inventory, beginning } & 0 \
\text { Units started } & 60,000 \
\text { Units complete and transferred out } & 48,000 \
\text { Work-in-process inventory, ending } & 12,000 \
& \
\text { Direct materials added } & \$ 240,000 \
\text { Direct labor } & \$ 165,600 \
\text { Factory overhead } & \$ 82,800
\end{array}$$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs.The total cost of units completed and transferred is _____.

Accepted Answer

A) $90,240 
B) $488,400 
C) $408,000 
D) $456,000 
A) $90,240 
B) $488,400 
C) $408,000 
D) $456,000

Question 17

In a production-cost report, the total costs accounted for are equal to the cost of units completed and transferred plus the cost of _____.

Accepted Answer

A) beginning work-in-process inventory 
B) the units started and finished 
C) the units completed but still on hand 
D) ending work-in-process inventory 
A) beginning work-in-process inventory 
B) the units started and finished 
C) the units completed but still on hand 
D) ending work-in-process inventory

Question 18

Backflush costing is most useful for companies with low inventory levels and short production cycles.

Accepted Answer

A) True 
 B)False

Question 19

Actual overhead rates are used to apply factory overhead to products.

Accepted Answer

A) True 
 B)False

Question 20

Except for WIP, all of the journal entries for process costing are the same as job costing.

Accepted Answer

A) True 
 B)False

_____ is an example of a product that would not be manufactured using process costing.

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Some companies use hybrid costing, which blends the ideas from both job costing and process costing.

Identify which one of the following statements regarding process costing is true.

Each job has its own job-cost record in a job-costing system.

The entry to record factory overhead incurred would include a credit to Factory Department Overhead Control.

The weighted-average process-costing method adds the cost of all work done in the current period to _____.

Backflush costing has no WIP account

The method of allocating costs to products by averaging costs over large numbers of nearly identical products

_____ is a job-cost source document.

In a production-cost report, the total costs accounted for are equal to the cost of units completed and transferred plus the cost of _____.

Backflush costing is most useful for companies with low inventory levels and short production cycles.

Actual overhead rates are used to apply factory overhead to products.

Except for WIP, all of the journal entries for process costing are the same as job costing.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 14: Job-Costing and Process-Costing Systems

_____ is an example of a product that would not be manufactured using process costing.

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Some companies use hybrid costing, which blends the ideas from both job costing and process costing.

Identify which one of the following statements regarding process costing is true.

Each job has its own job-cost record in a job-costing system.

The entry to record factory overhead incurred would include a credit to Factory Department Overhead Control.

The weighted-average process-costing method adds the cost of all work done in the current period to _____.

Backflush costing has no WIP account

The method of allocating costs to products by averaging costs over large numbers of nearly identical products

_____ is a job-cost source document.

In a production-cost report, the total costs accounted for are equal to the cost of units completed and transferred plus the cost of _____.

Backflush costing is most useful for companies with low inventory levels and short production cycles.

Actual overhead rates are used to apply factory overhead to products.

Except for WIP, all of the journal entries for process costing are the same as job costing.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters