Question 1

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Accepted Answer

A) True 
 B)False

Question 2

Conversion cost per unit equals $6.Total materials cost equal $90,000.Equivalent units for materials are 10,000.How much is the total manufacturing cost per unit?

Accepted Answer

A) $15. 
B) $6. 
C) $12. 
D) $9. 
A) $15. 
B) $6. 
C) $12. 
D) $9.

Question 3

In a process cost system, labor costs incurred may be captured on time tickets.

Accepted Answer

A) True 
 B)False

Question 4

Total physical units to be accounted for are equal to the units

Accepted Answer

A) started (or transferred) into production. 
B) started (or transferred) into production plus the units in beginning work in process. 
C) started (or transferred) into production less the units in beginning work in process. 
D) completed and transferred out. 
A) started (or transferred) into production. 
B) started (or transferred) into production plus the units in beginning work in process. 
C) started (or transferred) into production less the units in beginning work in process. 
D) completed and transferred out.

Question 5

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

Accepted Answer

A) 42,000 equivalent units. 
B) 49,000 equivalent units. 
C) 56,000 equivalent units. 
D) 28,000 equivalent units. 
A) 42,000 equivalent units. 
B) 49,000 equivalent units. 
C) 56,000 equivalent units. 
D) 28,000 equivalent units.

Question 6

A company that produces motion pictures would likely use a process cost system.

Accepted Answer

A) True 
 B)False

Question 7

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units.How many units were started by Moyer during the month?

Accepted Answer

A) 18,000. 
B) 21,000. 
C) 24,000. 
D) 27,000. 
A) 18,000. 
B) 21,000. 
C) 24,000. 
D) 27,000.

Question 8

Super-Tech Industries had the following department information about physical units and percentage of completion: $$\begin{array} { l c } 
&  \text { Physical Units }  \
\text { Work in process, June } 1(75 \%) & 8,000 \
\text { Completed and transferred out } & 22,000 \
\text { Work in process, June } 30(50 \%) & 12,000
\end{array}$$ 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 9

Under the FIFO method, it is assumed that the beginning work in process is completed before new work is started.

Accepted Answer

A) True 
 B)False

Question 10

Cinder Company had the following department information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 60,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 90,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$ How much is the total manufacturing cost per unit?

Accepted Answer

A) $10.50. 
B) $5.00. 
C) $4.50. 
D) $6.00. 
A) $10.50. 
B) $5.00. 
C) $4.50. 
D) $6.00.

Question 11

If 150,000 units are started into production there was no beginning work in process, and 50,000 units are in process at the end of the period, how many units were completed and transferred out?

Accepted Answer

A) 150,000. 
B) 50,000. 
C) 100,000. 
D) 200,000. 
A) 150,000. 
B) 50,000. 
C) 100,000. 
D) 200,000.

Question 12

A primary driver of overhead costs in continuous manufacturing operations is machine time used.

Accepted Answer

A) True 
 B)False

Question 13

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

Accepted Answer

A) True 
 B)False

Question 14

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete).Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Accepted Answer

A) 500,000. 
B) 455,000. 
C) 470,000. 
D) 450,000. 
A) 500,000. 
B) 455,000. 
C) 470,000. 
D) 450,000.

Question 15

Cohen Company is trying to determine the equivalent units for conversion costs with 5,000 units of ending work in process at 80% completion and 45,000 units that are 100% complete as to materials.There are no beginning units in the department.Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period.What is the equivalent units of production for conversion costs for the current period?

Accepted Answer

A) 50,000. 
B) 49,000. 
C) 4,000. 
D) 44,000. 
A) 50,000. 
B) 49,000. 
C) 4,000. 
D) 44,000.

Question 16

Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs.The beginning and ending inventory is fully complete as to materials costs.How much are equivalent units for materials if the FIFO method is used?

Accepted Answer

A) 75,400 
B) 77,000 
C) 71,000 
D) 73,000 
A) 75,400 
B) 77,000 
C) 71,000 
D) 73,000

Question 17

Madison Industries has equivalent units of 8,000 for materials and for conversion costs.Total manufacturing costs are $128,000.Total materials costs are $96,000.How much is the conversion cost per unit?

Accepted Answer

A) $2. 
B) $4. 
C) $16. 
D) $3. 
A) $2. 
B) $4. 
C) $16. 
D) $3.

Question 18

If 180,000 units are transferred out of a department, there was no beginning work in process, and there are 30,000 units still in process at the end of a period, the number of units that were started into production during the period is

Accepted Answer

A) 210,000. 
B) 180,000. 
C) 150,000. 
D) 30,000. 
A) 210,000. 
B) 180,000. 
C) 150,000. 
D) 30,000.

Question 19

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 20

A process cost accounting system is most appropriate when

Accepted Answer

A) a variety of different products are produced, each one requiring different types of materials, labor, and overhead. 
B) the focus of attention is on a particular job or order. 
C) similar products are mass-produced. 
D) individual products are custom made to the specification of customers. 
A) a variety of different products are produced, each one requiring different types of materials, labor, and overhead. 
B) the focus of attention is on a particular job or order. 
C) similar products are mass-produced. 
D) individual products are custom made to the specification of customers.

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Conversion cost per unit equals $6.Total materials cost equal $90,000.Equivalent units for materials are 10,000.How much is the total manufacturing cost per unit?

In a process cost system, labor costs incurred may be captured on time tickets.

Total physical units to be accounted for are equal to the units

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

A company that produces motion pictures would likely use a process cost system.

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units.How many units were started by Moyer during the month?

Under the FIFO method, it is assumed that the beginning work in process is completed before new work is started.

Cinder Company had the following department information for the month: Total materials costs \ 60,000 Equivalent units of materials 10,000 Total conversion costs \ 90,000 Equivalent units of conversion costs 20,000 How much is the total manufacturing cost per unit?

If 150,000 units are started into production there was no beginning work in process, and 50,000 units are in process at the end of the period, how many units were completed and transferred out?

A primary driver of overhead costs in continuous manufacturing operations is machine time used.

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

Madison Industries has equivalent units of 8,000 for materials and for conversion costs.Total manufacturing costs are $128,000.Total materials costs are $96,000.How much is the conversion cost per unit?

If 180,000 units are transferred out of a department, there was no beginning work in process, and there are 30,000 units still in process at the end of a period, the number of units that were started into production during the period is

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

A process cost accounting system is most appropriate when

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

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

Time Value of Money

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Exam 3: The Accounting Information System

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Conversion cost per unit equals $6.Total materials cost equal $90,000.Equivalent units for materials are 10,000.How much is the total manufacturing cost per unit?

In a process cost system, labor costs incurred may be captured on time tickets.

Total physical units to be accounted for are equal to the units

A process with no beginning work in process, completed and transferred out 35,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?

A company that produces motion pictures would likely use a process cost system.

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units.How many units were started by Moyer during the month?

Under the FIFO method, it is assumed that the beginning work in process is completed before new work is started.

Cinder Company had the following department information for the month: Total materials costs \ 60,000 Equivalent units of materials 10,000 Total conversion costs \ 90,000 Equivalent units of conversion costs 20,000 How much is the total manufacturing cost per unit?

If 150,000 units are started into production there was no beginning work in process, and 50,000 units are in process at the end of the period, how many units were completed and transferred out?

A primary driver of overhead costs in continuous manufacturing operations is machine time used.

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

Madison Industries has equivalent units of 8,000 for materials and for conversion costs.Total manufacturing costs are $128,000.Total materials costs are $96,000.How much is the conversion cost per unit?

If 180,000 units are transferred out of a department, there was no beginning work in process, and there are 30,000 units still in process at the end of a period, the number of units that were started into production during the period is

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

A process cost accounting system is most appropriate when

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

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

Time Value of Money

Filters