Question 1

In JIT manufacturing, work cells are created that produce a product from start to finish.

Accepted Answer

A) True 
 B)False

Question 2

Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during April: $\begin{array}{ll}
\text { Units, beginning work in process } & 4,000 \
\text { Units, ending work in process } & 5,500
\end{array}$ The number of units started in the second department during April is

Accepted Answer

A) 15,000 units. 
B) 13,500 units. 
C) 19,000 units. 
D) 23,000 units. 
A) 15,000 units. 
B) 13,500 units. 
C) 19,000 units. 
D) 23,000 units.

Question 3

Spoilage in a process costing process means that more units enter the process than leave it.

Accepted Answer

A) True 
 B)False

Question 4

Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will

Accepted Answer

A) decrease total ending work in process. 
B) change the amount of factory overhead included in the ending work in process. 
C) increase total unit cost. 
D) not change the dollar amount transferred out of the department. 
A) decrease total ending work in process. 
B) change the amount of factory overhead included in the ending work in process. 
C) increase total unit cost. 
D) not change the dollar amount transferred out of the department.

Question 5

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r } 
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$  0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Rounded to two decimal places, Mountainside's cost per equivalent unit for conversion using weighted average would be

Accepted Answer

A) $15.50. 
B) $19.00. 
C) $20.00. 
D) $24.52. 
A) $15.50. 
B) $19.00. 
C) $20.00. 
D) $24.52.

Question 6

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 goods transferred out using the weighted average method is

Accepted Answer

A) $273,600. 
B) $241,500. 
C) $273,240. 
D) none of the above. 
A) $273,600. 
B) $241,500. 
C) $273,240. 
D) none of the above.

Question 7

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r } 
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$  0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using weighted average would be

Accepted Answer

A) 15. 
B) 90. 
C) 105. 
D) 120. 
A) 15. 
B) 90. 
C) 105. 
D) 120.

Question 8

Moccasin Company produces 15,000 bars of chocolates and has the following cost data for the month of January: $$\begin{array} { l r r } 
& \text { Blending } & \text { Molding } \
& \text { Process } & \text { Process } \
\text { Direct materials } & \$ 12,000 & \$ 3,000 \
\text { Direct labor } & 9,000 & 6,000 \
\text { Applied overhead } & 3,500 & 2,500
\end{array}$$
Calculate the costs transferred out of the Molding Department for the month of January. Assume no work-in-process inventories.

Accepted Answer

A) $24,500 
B) $36,000 
C) $11,500 
D) $30,000 
A) $24,500 
B) $36,000 
C) $11,500 
D) $30,000

Question 9

Rawlings, 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 January follows: $\begin{array}{lr}
\text { Work in process, January } 1: & \
\text { Units (35\% complete) } & 7,500 \
\text { Direct materials } & \$ 36,000 \
\text { Direct labor } & \$ 45,000 \
\text { Overhead } & \$ 15,000
\end{array}$ During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: $\begin{array}{lr}
\text { Direct materials } & \$ 133,050 \
\text { Direct lab or } & 180,000 \
\text { Overhead (applied) } & 45,000
\end{array}$
There were 3,750 units that were 80 percent complete remaining in Mixing at January 31. The cost of goods transferred to the Molding Department during January using the FIFO method is

Accepted Answer

A) $414,450. 
B) $391,575. 
C) $323,400. 
D) none of the above. 
A) $414,450. 
B) $391,575. 
C) $323,400. 
D) none of the above.

Question 10

Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Accepted Answer

A) 55,000 units. 
B) 55,550 units. 
C) 56,500 units. 
D) 57,550 units. 
A) 55,000 units. 
B) 55,550 units. 
C) 56,500 units. 
D) 57,550 units.

Question 11

The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating __________ .

Accepted Answer

The answer of The usual approach in process manufacturing is...

Question 12

When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good units.

Accepted Answer

A) True 
 B)False

Question 13

The weighted average costing method picks up __________ inventory costs and outputs and treats them as if they belong in the current period.

Accepted Answer

The answer of The weighted average costing method picks up...

Question 14

Mannassass Company manufactures chairs. The following information was given for the company: $$\begin{array} { l r } 
\text { units, beginning work in process } & 0 \
\text { units started } & 20,000 \
\text { units completed } & ? \
\text { units, ending work in process } & 5,000 \
\text { cost of direct materials } & \$ 440,000 \
\text { cost of conversion } & \$ 64,000
\end{array}$$ Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What cost is assigned to ending work in process?

Accepted Answer

A) $110,000 
B) $126,000 
C) $130,000 
D) $114,000 
E) none of the above 
A) $110,000 
B) $126,000 
C) $130,000 
D) $114,000 
E) none of the above

Question 15

Transferred-in costs are accounted for in the same manner as

Accepted Answer

A) materials added at the beginning of the process. 
B) materials added at the end of the process. 
C) conversion costs. 
D) labor costs. 
A) materials added at the beginning of the process. 
B) materials added at the end of the process. 
C) conversion costs. 
D) labor costs.

Question 16

The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs is called:

Accepted Answer

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

Question 17

The FIFO method unit costs are used to value output that is related to future periods.

Accepted Answer

A) True 
 B)False

Question 18

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: $\begin{array} { l  }
&\text { Large } & \text { Larger } \
&\text { Work Order } 10 & \text { Work Order } 11\
\text {Direct materials (actual costs) }&\$45,000&\$75,000\
\text { Applied conversion costs:}\
\text {Mixing }&?&?\
\text { Cooking } & \$ 12,000 & \$ 12,000 \
\text { Bottling } & \$ 10,000 & \$ 15,000 \\
\text { Batch size (bottles) } & 5,000 & 5,000
\end{array}$
 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
What is Golden Ring Company's journal entry to apply conversion costs in the Mixing Department for Work Order 10?

Accepted Answer

A) Materials 45,000 Work in Process-Mixing 45,000 
B) Work in Process-Mixing 17,500 Conversion Costs Control 17,500 
C) Conversion Costs Control 17,500 Work in Process-Mixing 17,500 
D) Work in Process-Mixing 45,000 Materials 45,000 
A) Materials 45,000 Work in Process-Mixing 45,000 
B) Work in Process-Mixing 17,500 Conversion Costs Control 17,500 
C) Conversion Costs Control 17,500 Work in Process-Mixing 17,500 
D) Work in Process-Mixing 45,000 Materials 45,000

Question 19

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

Accepted Answer

A) the FIFO method. 
B) the LIFO method. 
C) the specific identification method. 
D) the weighted average method. 
A) the FIFO method. 
B) the LIFO method. 
C) the specific identification method. 
D) the weighted average method.

Question 20

Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows: $$\begin{array} { | l | r | r | r | } 
\hline & &  { \text { Costs } } \
\hline & \text { Units } & \text { Materials } & { \text { Conversion } } \
\hline \text { Work in process, May 1 } & 25,000 & \$ 68,750 & \$ 167,650 \
\hline \text { Started during May } & 100,000 & 300,000 & 903,350 \
\hline \text { Work in process, May 31 } & 10,000 & & \
\hline
\end{array}$$ Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO method?

Accepted Answer

A) 100,000 units 
B) 111,500 units 
C) 125,000 units 
D) 101,500 units 
A) 100,000 units 
B) 111,500 units 
C) 125,000 units 
D) 101,500 units

In JIT manufacturing, work cells are created that produce a product from start to finish.

Spoilage in a process costing process means that more units enter the process than leave it.

Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will

The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating __________ .

When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good units.

The weighted average costing method picks up __________ inventory costs and outputs and treats them as if they belong in the current period.

Transferred-in costs are accounted for in the same manner as

The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs is called:

The FIFO method unit costs are used to value output that is related to future periods.

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

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

In JIT manufacturing, work cells are created that produce a product from start to finish.

Spoilage in a process costing process means that more units enter the process than leave it.

Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will

The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating __________ .

When spoilage is assumed to be normal, it is not tracked separately, it is simply included in the total cost of good units.

The weighted average costing method picks up __________ inventory costs and outputs and treats them as if they belong in the current period.

Transferred-in costs are accounted for in the same manner as

The costing system that uses job-order costing to assign material costs and process costing to assign conversion costs is called:

The FIFO method unit costs are used to value output that is related to future periods.

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

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