Question 1

The process that produces batches of different products which are identical in many ways but differ in others is called:

Accepted Answer

A) Operating costing 
B) Batch production process 
C) Cost reconciliation 
D) Equivalent unit of output 
A) Operating costing 
B) Batch production process 
C) Cost reconciliation 
D) Equivalent unit of output

Question 2

Beginning inventory consisted of 1,000 units with costs of $31,000. All materials and 60 percent of labor and overhead were added in the prior period. In addition, another 8,000 units were started and completed. Unit costs are materials, $8.00; labor, $20.00; overhead, $9.00. What is the total cost of goods transferred out using FIFO?

Accepted Answer

A) $296,000 
B) $338,600 
C) $332,400 
D) $338,000 
A) $296,000 
B) $338,600 
C) $332,400 
D) $338,000

Question 3

The process that determines the equality of the costs in beginning work in process and the costs incurred during the period is called __________ .

Accepted Answer

The answer of The process that determines the equality of...

Question 4

The units that could have been produced in a period given the amount of manufacturing inputs used are called __________ .

Accepted Answer

equivalent

Question 5

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials issued to the department during the year divided by

Accepted Answer

A) units in process. 
B) units started and completed. 
C) total units manufactured. 
D) equivalent units of output. 
A) units in process. 
B) units started and completed. 
C) total units manufactured. 
D) equivalent units of output.

Question 6

Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.

Accepted Answer

A) True 
 B)False

Question 7

The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. $$\begin{array} { | l | r | r | } 
\hline \text { Units: } &  { \text { units } } & \begin{array} { c } 
\% \text { complete for } \
\text { conversions }
\end{array} \
\hline \text { work in process, } 1 / 1 & 60,000 & 15 \% \
\hline \text { started } & 105,000 & \
\hline \text { work in process, } 1 / 31 & 40,000 & 20 \% \\hline \
\hline \text { Costs: } & & \
\hline & \text { Materials } & \text { Conversion } \
\hline \text { beginning work in process } & \$ 16,500 & \$ 33,250 \
\hline \text { current costs } & \$ 643,500 & \$ 332,500 \
\hline
\end{array}$$ What is the cost per unit for materials?

Accepted Answer

A) $4.00 
B) $3.90 
C) $4.96 
D) $2.75 
E) none of the above 
A) $4.00 
B) $3.90 
C) $4.96 
D) $2.75 
E) none of the above

Question 8

Equivalent units expresses all activity of the period in terms of

Accepted Answer

A) direct labor hours. 
B) partially completed units. 
C) fully completed units. 
D) units of input. 
A) direct labor hours. 
B) partially completed units. 
C) fully completed units. 
D) units of input.

Question 9

Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units:
Units, beginning work in process 40,000 (20\% complete for materials, $60 \%$ complete for conversion)
Started
Completed?
Units, ending work in process $\quad 50,000 \quad$ (25\% complete for materials, $80 \%$ complete for conversion)
$\begin{array} { l l r r } \text { Costs: } & \text { Materials } & \text { Conversion } & \text { Total } \ \text { beginning workin process } & \$ 6,080 & \$ 2,160 & \$ 8,240 \ \text { current costs } & \$ 220,875 & \$ 30,600 & \$ 251,475 \ \text { total costs } & \$ 226,955 & \$ 32,760 & \$ 259,715 \end{array}$ The company uses FIFO inventory assumption.
What are the FIFO equivalent units for materials?

Accepted Answer

A) 304,500 
B) 294,500 
C) 302,500 
D) 262,500 
E) none of the above 
A) 304,500 
B) 294,500 
C) 302,500 
D) 262,500 
E) none of the above

Question 10

Aquamarine Company produces car batteries. The following information is provided for the month of April with respect to conversion costs: $\begin{array}{lr}&\text { Units }\
\text { Work-in-process (WIP) inventory, April } 1 \text { (30\% complete) } & 6,000 \
\text { Units transferred in } & 30,000 \
\text { Work-in-process inventory, April } 30 \text { (60\% complete) } & 4,000
\end{array}$ Materials are added at the start of the process.
Compute the equivalent units with respect to conversion costs using the first-in, first-out method?

Accepted Answer

A) 27,000 units 
B) 30,200 units 
C) 26,000 units 
D) 32,600 units 
A) 27,000 units 
B) 30,200 units 
C) 26,000 units 
D) 32,600 units

Question 11

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

Accepted Answer

A) contract costing 
B) variable costing 
C) process costing 
D) job-order costing 
A) contract costing 
B) variable costing 
C) process costing 
D) job-order costing

Question 12

In a process-costing system, the costing of goods transferred out in BWIP inventory is difficult because there are multiple categories of completed units.

Accepted Answer

A) True 
 B)False

Question 13

Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process ( $ 1 / 3 $ complete) $ \quad 6,000 $
Units, ending work in process ( $ 1 / 2 $ complete) $ \quad 4,000 $ The equivalent units for conversion using FIFO would be

Accepted Answer

A) 10,000 units. 
B) 12,000 units. 
C) 26,000 units. 
D) 22,000 units. 
A) 10,000 units. 
B) 12,000 units. 
C) 26,000 units. 
D) 22,000 units.

Question 14

The following information is available for Department C for the month of June: $\begin{array}{lr}&\text { Units }& \text { Cost }\
\text { Work in process, June } 1 \text { (70\% complete) } & 10,000\
\text { Direct materials } && \$ 36,000 \
\text { Direct labor } && 18,000 \
\text { Manufacturing overhead } && 24.000\
 \text {Total work in process, June 1 }&&\$78,000\
 \text {Started in production during June }&40,000\
\text { Costs added: } & \
\text { Direct materials } && \$ 108,000 \
\text { Direct labor } && 48,000 \
\text { Manufacturing overhead } && 60,600\
\text { Total costs added during June }&&\$216,600\
\text { Work in process, June } 30 \text { (80\% complete })&4,000
\end{array}$
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost of ending work in process using the weighted average method is

Accepted Answer

A) $23,760. 
B) $21,312. 
C) $16,992. 
D) none of the above. 
A) $23,760. 
B) $21,312. 
C) $16,992. 
D) none of the above.

Question 15

For the receiving department of a process-costing manufacturer, transferred-in goods are materials that are added at the end of the process.

Accepted Answer

A) True 
 B)False

Question 16

The following information is available for Department C for the month of June: $\begin{array}{lr}&\text { Units }& \text { Cost }\
\text { Work in process, June } 1 \text { (70\% complete) } & 10,000\
\text { Direct materials } && \$ 36,000 \
\text { Direct labor } && 18,000 \
\text { Manufacturing overhead } && 24.000\
 \text {Total work in process, June 1 }&&\$78,000\
 \text {Started in production during June }&40,000\
\text { Costs added: } & \
\text { Direct materials } && \$ 108,000 \
\text { Direct labor } && 48,000 \
\text { Manufacturing overhead } && 60,600\
\text { Total costs added during June }&&\$216,600\
\text { Work in process, June } 30 \text { (80\% complete })&4,000
\end{array}$
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost per equivalent unit of production for conversion using the weighted average method is

Accepted Answer

A) $3.54. 
B) $3.06. 
C) $2.55. 
D) $2.19. 
A) $3.54. 
B) $3.06. 
C) $2.55. 
D) $2.19.

Question 17

Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process.
What is the unit cost for materials for Layla using the FIFO method?

Accepted Answer

A) $2.00 
B) $2.03 
C) $4.53 
D) none of the above 
A) $2.00 
B) $2.03 
C) $4.53 
D) none of the above

Question 18

Abnormal spoilage costs are treated the same as normal spoilage for process costing.

Accepted Answer

A) True 
 B)False

Question 19

"Total costs to account for" does NOT include which of the following costs?

Accepted Answer

A) direct materials requisitioned for the department 
B) prior department costs transferred in 
C) ending work-in-process balance 
D) beginning work-in-process balance 
A) direct materials requisitioned for the department 
B) prior department costs transferred in 
C) ending work-in-process balance 
D) beginning work-in-process balance

Question 20

Which of the following process costing methods is simpler to use?

Accepted Answer

A) weighted average 
B) LIFO 
C) FIFO 
D) specific identification 
A) weighted average 
B) LIFO 
C) FIFO 
D) specific identification

The process that produces batches of different products which are identical in many ways but differ in others is called:

The process that determines the equality of the costs in beginning work in process and the costs incurred during the period is called __________ .

The units that could have been produced in a period given the amount of manufacturing inputs used are called __________ .

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials issued to the department during the year divided by

Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.

Equivalent units expresses all activity of the period in terms of

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

In a process-costing system, the costing of goods transferred out in BWIP inventory is difficult because there are multiple categories of completed units.

For the receiving department of a process-costing manufacturer, transferred-in goods are materials that are added at the end of the process.

Abnormal spoilage costs are treated the same as normal spoilage for process costing.

"Total costs to account for" does NOT include which of the following costs?

Which of the following process costing methods is simpler to use?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 6: Process Costing

The process that produces batches of different products which are identical in many ways but differ in others is called:

The process that determines the equality of the costs in beginning work in process and the costs incurred during the period is called __________ .

The units that could have been produced in a period given the amount of manufacturing inputs used are called __________ .

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials issued to the department during the year divided by

Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.

Equivalent units expresses all activity of the period in terms of

What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?

In a process-costing system, the costing of goods transferred out in BWIP inventory is difficult because there are multiple categories of completed units.

For the receiving department of a process-costing manufacturer, transferred-in goods are materials that are added at the end of the process.

Abnormal spoilage costs are treated the same as normal spoilage for process costing.

"Total costs to account for" does NOT include which of the following costs?

Which of the following process costing methods is simpler to use?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters