Question 1

The first step performed in preparing a production cost report is computing the equivalent units of production.

Accepted Answer

A) True 
 B)False

Question 2

Conversion cost per unit equals $7.00.Total materials costs are $80,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?

Accepted Answer

A) $11.00. 
B) $7.00. 
C) $4.00. 
D) $3.00. 
A) $11.00. 
B) $7.00. 
C) $4.00. 
D) $3.00.

Question 3

A process cost system would be used for all of the following products except

Accepted Answer

A) chemicals. 
B) computer chips. 
C) motion pictures. 
D) soft drinks. 
A) chemicals. 
B) computer chips. 
C) motion pictures. 
D) soft drinks.

Question 4

Total units to be accounted for less units in beginning work in process equals

Accepted Answer

A) total units accounted for. 
B) units transferred out. 
C) units started into production. 
D) equivalent units. 
A) total units accounted for. 
B) units transferred out. 
C) units started into production. 
D) equivalent units.

Question 5

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process.For the month of July, there was no beginning work in process; 40,000 units were completed and transferred out; and there were 20,000 units in the ending work in process that were 40% complete.During July, $120,000 materials costs and $105,000 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July was $$\begin{array} { l c c } 
& \text { Materials } & \text { Conversion Costs } \
\text { a. } & \$ 2.00 & \$ 1.75 \
\text { b. } & \$ 2.00 & \$ 2.19 \
\text { c. } & \$ 2.50 & \$ 1.75 \
\text { d. } & \$ 3.00 & \$ 2.66
\end{array}$$

Accepted Answer

The answer of A department adds materials at the beginning...

Question 6

Materials requisitions are:

Accepted Answer

A) not used in process costing. 
B) generally used more frequently in process costing than job order costing. 
C) generally used less frequently in process costing than job order costing. 
D) used more frequently by latter stage production departments. 
A) not used in process costing. 
B) generally used more frequently in process costing than job order costing. 
C) generally used less frequently in process costing than job order costing. 
D) used more frequently by latter stage production departments.

Question 7

Zibba Company enters materials at the beginning of the process.In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory.The number of units completed equals the number of

Accepted Answer

A) units started. 
B) units started less 200. 
C) units started plus 200. 
D) equivalent units. 
A) units started. 
B) units started less 200. 
C) units started plus 200. 
D) equivalent units.

Question 8

Equivalent units of production are used to determine the cost per unit of completed products.

Accepted Answer

A) True 
 B)False

Question 9

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Accepted Answer

A) True 
 B)False

Question 10

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

Accepted Answer

A) True 
 B)False

Question 11

The total manufacturing cost per unit is used in costing the units completed and transferred during the period.

Accepted Answer

A) True 
 B)False

Question 12

Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Accepted Answer

A) True 
 B)False

Question 13

Byers Company had the following department information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 48,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 80,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$ What is the total manufacturing cost per unit?

Accepted Answer

A) $4.26. 
B) $4.00. 
C) $4.80. 
D) $8.80. 
A) $4.26. 
B) $4.00. 
C) $4.80. 
D) $8.80.

Question 14

Which of the following is correct regarding cost systems? $\begin{array}{lll}&\text { Job Order }&\text { Process }\\hline
\text { a. Work in process account } & \text { several } & \text { one for each process } \
\text { b. Work in process account } & \text { one } & \text { one } \
\text { c. Work in process account } & \text { one } & \text { one for each process } \
\text { d. Work in process account } & \text { several } & \text { one }
\end{array}$

Accepted Answer

The answer of Which of the following is correct regarding...

Question 15

Maisley Company decided to analyze certain costs for June of the current year.Units started into production equaled 28,000 and ending work in process equaled 4,000.With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $140,000?

Accepted Answer

A) $4.40. 
B) $5.00. 
C) $5.60. 
D) $2.80. 
A) $4.40. 
B) $5.00. 
C) $5.60. 
D) $2.80.

Question 16

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete.During June, 90,000 units were transferred into production from another department.At the end of June there were 10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process.The equivalent units of production for materials for June were

Accepted Answer

A) 100,000 equivalent units. 
B) 110,000 equivalent units. 
C) 114,000 equivalent units. 
D) 90,000 equivalent units. 
A) 100,000 equivalent units. 
B) 110,000 equivalent units. 
C) 114,000 equivalent units. 
D) 90,000 equivalent units.

Question 17

Special Company had the following department information about physical units and percentage of completion: $\begin{array}{ll}&\text { Physical Units }\
\text { Work in process, May } 1(60 \%) & 36,000 \
\text { Completed and transferred out } & 85,000 \
\text { Work in process, May } 31(50 \%) & 30,000
\end{array}$ Materials are added at the beginning of the production process.Conversion costs are added equally throughout production.What is the total number of equivalent units during May for conversion costs if the FIFO method is used?

Accepted Answer

A) 151,000 
B) 100,000 
C) 78,400 
D) 129,400 
A) 151,000 
B) 100,000 
C) 78,400 
D) 129,400

Question 18

Corsi Company had the following department data: $$\begin{array} { l c } 
&  \text { Physical Units }  \
\text { Work in process, beginning } & -0- \
\text { Completed and transferred out } & 90,000 \
\text { Work in process, ending } & 7,000
\end{array}$$ Materials are added at the beginning of the process.What is the total number of equivalent units for materials during the period?

Accepted Answer

A) 90,000. 
B) 9,000. 
C) 97,000. 
D) 83,000. 
A) 90,000. 
B) 9,000. 
C) 97,000. 
D) 83,000.

Question 19

In the production cost report, the total

Accepted Answer

A) physical units accounted for equals the costs accounted for. 
B) physical units accounted for equals the units to be accounted for. 
C) costs charged equals the units to be accounted for. 
D) costs accounted for equals the costs of the units started into production. 
A) physical units accounted for equals the costs accounted for. 
B) physical units accounted for equals the units to be accounted for. 
C) costs charged equals the units to be accounted for. 
D) costs accounted for equals the costs of the units started into production.

Question 20

Hanker Company had the following department data on physical units: $\begin{array}{lr}
\text { Work in process, beginning } & 2,500 \
\text { Completed and transferred out } & 18,000 \
\text { Work in process, ending } & 2,000
\end{array}$ Materials are added at the beginning of the process.What is the total number of equivalent units for materials if the FIFO method is used?

Accepted Answer

A) 18,500 
B) 17,500 
C) 20,000 
D) 15,500 
A) 18,500 
B) 17,500 
C) 20,000 
D) 15,500

The first step performed in preparing a production cost report is computing the equivalent units of production.

Conversion cost per unit equals $7.00.Total materials costs are $80,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?

A process cost system would be used for all of the following products except

Total units to be accounted for less units in beginning work in process equals

Materials requisitions are:

Zibba Company enters materials at the beginning of the process.In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory.The number of units completed equals the number of

Equivalent units of production are used to determine the cost per unit of completed products.

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

The total manufacturing cost per unit is used in costing the units completed and transferred during the period.

Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Byers Company had the following department information for the month: Total materials costs \ 48,000 Equivalent units of materials 10,000 Total conversion costs \ 80,000 Equivalent units of conversion costs 20,000 What is the total manufacturing cost per unit?

Which of the following is correct regarding cost systems? Job Order Process a. Work in process account several one for each process b. Work in process account one one c. Work in process account one one for each process d. Work in process account several one

Corsi Company had the following department data: Physical Units Work in process, beginning -0- Completed and transferred out 90,000 Work in process, ending 7,000 Materials are added at the beginning of the process.What is the total number of equivalent units for materials during the period?

In the production cost report, the total

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

The first step performed in preparing a production cost report is computing the equivalent units of production.

Conversion cost per unit equals $7.00.Total materials costs are $80,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?

A process cost system would be used for all of the following products except

Total units to be accounted for less units in beginning work in process equals

Materials requisitions are:

Zibba Company enters materials at the beginning of the process.In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory.The number of units completed equals the number of

Equivalent units of production are used to determine the cost per unit of completed products.

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

The total manufacturing cost per unit is used in costing the units completed and transferred during the period.

Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Byers Company had the following department information for the month: Total materials costs \ 48,000 Equivalent units of materials 10,000 Total conversion costs \ 80,000 Equivalent units of conversion costs 20,000 What is the total manufacturing cost per unit?

Which of the following is correct regarding cost systems? Job Order Process a. Work in process account several one for each process b. Work in process account one one c. Work in process account one one for each process d. Work in process account several one

Corsi Company had the following department data: Physical Units Work in process, beginning -0- Completed and transferred out 90,000 Work in process, ending 7,000 Materials are added at the beginning of the process.What is the total number of equivalent units for materials during the period?

In the production cost report, the total

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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