Question 1

The basic similarities between job order cost and process cost systems include all of the following except the

Accepted Answer

A) manufacturing cost elements. 
B) flow of costs. 
C) point at which costs are totaled. 
D) accumulation of the costs of materials, labor, and overhead. 
A) manufacturing cost elements. 
B) flow of costs. 
C) point at which costs are totaled. 
D) accumulation of the costs of materials, labor, and overhead.

Question 2

Super-Tech Industries had the following department information about physical units and percentage of completion: $\begin{array}{lr}&\text { Physical Units }\
\text { Work in process, June } 1(75 \%) & 8,000 \
\text { Completed and transferred out } & 22,000 \
\text { Work in process, June } 30(50 \%) & 12,000
\end{array}$ If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?

Accepted Answer

A) 19,000. 
B) 34,000. 
C) 36,000. 
D) 28,000. 
A) 19,000. 
B) 34,000. 
C) 36,000. 
D) 28,000.

Question 3

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 90,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

Accepted Answer

A) 98,000 equivalent units. 
B) 82,000 equivalent units. 
C) 70,000 equivalent units. 
D) 90,000 equivalent units. 
A) 98,000 equivalent units. 
B) 82,000 equivalent units. 
C) 70,000 equivalent units. 
D) 90,000 equivalent units.

Question 4

Mayer Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18,000 and ending work in process equaled 1,200 units. Mayer had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $72,000?

Accepted Answer

A) $4.00. 
B) $4.21. 
C) $16.00. 
D) $3.75. 
A) $4.00. 
B) $4.21. 
C) $16.00. 
D) $3.75.

Question 5

Production cost reports provide a basis for evaluating the productivity of a department.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a true statement about process cost systems?

Accepted Answer

A) In process cost systems, costs are accumulated but not assigned. 
B) A process cost system has one work in process account for each process. 
C) In process cost systems, costs are summarized on job cost sheets. 
D) Unit costs are not computed in process cost systems. 
A) In process cost systems, costs are accumulated but not assigned. 
B) A process cost system has one work in process account for each process. 
C) In process cost systems, costs are summarized on job cost sheets. 
D) Unit costs are not computed in process cost systems.

Question 7

Fewer materials requisitions are generally required in a process cost system than in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 8

Gantner Company had the following department information about physical units and percentage of completion: $\begin{array}{lr}&\text { Physical Units }\
\text { Work in process, May } 1(60 \%) & 60,000 \
\text { Completed and transferred out } & 180,000 \
\text { Work in process, May } 31(40 \%) & 50,000
\end{array}$ If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

Accepted Answer

A) 240,000. 
B) 230,000. 
C) 224,000. 
D) 200,000. 
A) 240,000. 
B) 230,000. 
C) 224,000. 
D) 200,000.

Question 9

If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?

Accepted Answer

A) 75%. 
B) 25%. 
C) 10%. 
D) 20%. 
A) 75%. 
B) 25%. 
C) 10%. 
D) 20%.

The basic similarities between job order cost and process cost systems include all of the following except the

Production cost reports provide a basis for evaluating the productivity of a department.

Which of the following is a true statement about process cost systems?

Fewer materials requisitions are generally required in a process cost system than in a job order cost system.

If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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Exam 15: Process Costing

The basic similarities between job order cost and process cost systems include all of the following except the

Production cost reports provide a basis for evaluating the productivity of a department.

Which of the following is a true statement about process cost systems?

Fewer materials requisitions are generally required in a process cost system than in a job order cost system.

If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters