Question 1

Which of the following is not a benefit of activity-based costing?

Accepted Answer

A)  More accurate product costing. 
B)  Enhanced control over overhead costs. 
C)  Better management decisions. 
D)  Less costly to use. 
A)  More accurate product costing. 
B)  Enhanced control over overhead costs. 
C)  Better management decisions. 
D)  Less costly to use. D

Question 2

A production cost report

Accepted Answer

A)  is prepared for each product. 
B)  is prepared from a job cost sheet. 
C)  will show quantity and cost data for a production department. 
D)  will not identify a specific department if more than one department is involved in the production process. 
A)  is prepared for each product. 
B)  is prepared from a job cost sheet. 
C)  will show quantity and cost data for a production department. 
D)  will not identify a specific department if more than one department is involved in the production process. C

Question 3

Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10000 units of ending work in process at 80% completion and 32000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period?

Accepted Answer

A)  42000. 
B)  40000. 
C)  8000. 
D)  30000. 
A)  42000. 
B)  40000. 
C)  8000. 
D)  30000. C

Question 4

In a process cost system costs are tracked through a series of connected manufacturing processes or departments rather than by individual jobs.

Accepted Answer

A) True 
 B)False

Question 5

The assignment of the three manufacturing cost elements to Work in Process in a process cost system is the same as in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 6

In a production cost report which one of the following sections is not shown under Costs?

Accepted Answer

A)  Unit costs. 
B)  Costs to be accounted for. 
C)  Costs during the period. 
D)  Units accounted for. 
A)  Unit costs. 
B)  Costs to be accounted for. 
C)  Costs during the period. 
D)  Units accounted for.

Question 7

Dirt Cleaners Inc. has the following production data for January: $\begin{array}{cr}
\text { Transferred out } & 50,000 \text { units } \
\text { Ending work in process } & 6,000 \text { units }
\end{array}$ The units in ending work in process are 100% complete for materials and 60% complete for conversion costs. There is no beginning work in process. Materials cost is $4 per unit and conversion costs are $11 per unit.
Instructions
Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Accepted Answer

The answer of Dirt Cleaners Inc. has the following production...

Question 8

Which of the following is correct regarding cost systems? $\begin{array}{lll}&&&&&&&&&&&& \underline{\text { Job Order}}& &\underline{\text {  Process}}\\end{array}$
A)$\begin{array}{lll}
\text { Work in process account } & \text { several } & \text { one for each process } \\end{array}$
B)$\begin{array}{lll}\text {  Work in process account } && \text { one } && \text { one } \\end{array}$
C)$\begin{array}{lll}\text { Work in process account } && \text { one } && \text { one for each process } \\end{array}$
D)$\begin{array}{lll}\text { Work in process account } & \text { several } && \text { one }
\end{array}$

Accepted Answer

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

Question 9

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; 40000 units were completed and transferred out; and there were 20000 units in the ending work in process that were 40% complete. During July $120000 materials costs and $105000 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July was $\begin{array} { l c c } 
& \text { Materials } & \text { Conversion Costs } \\end{array}$
A)$\begin{array} { l c c }  & \$ 2.00 &&&&& \$ 1.75 \\end{array}$
B)$\begin{array} { l c c }  & \$ 2.00 &&&&& \$ 2.19 \\end{array}$
C)$\begin{array} { l c c } & \$ 2.50 &&&&& \$ 1.75 \\end{array}$
D)$\begin{array} { l c c }  & \$ 3.00 &&&&& \$ 2.66
\end{array}$

Accepted Answer

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

Question 10

The Cutting Department of Sanderson Company has the following production and cost data for July.   Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
Instructions
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and prepare a cost reconciliation schedule.

Accepted Answer

The answer of The Cutting Department of Sanderson Company has...

Question 11

In computing equivalent units ___________ is not part of the equivalent units of production formula.

Accepted Answer

A)  units transferred out 
B)  beginning work in process 
C)  ending work in process 
D)  None of these is correct. 
A)  units transferred out 
B)  beginning work in process 
C)  ending work in process 
D)  None of these is correct.

Question 12

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

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

Match between columns
                        Premises: A summary of both production quantity and cost data for a production department.
Shows that the total costs accounted for equal the total costs to be accounted for.
Work done during a period expressed in fully completed units.
Costs expressed in terms of equivalent units of production.
Actual units to be accounted for during a period, irrespective of any work performed.
Units transferred out during the period plus units in ending work in process.
Unit materials costs plus unit conversion costs.
Total units accounted for minus units in ending work in process.

Accepted Answer

The Answer of Total manufacturing cost per unit and Equivalent is...

Question 15

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 16

Your roommate is curious about the features of process cost accounting. Identify and explain the distinctive features for your roommate.

Accepted Answer

The features of process costing are: (1)

Question 17

The total units accounted for equals units in

Accepted Answer

A)  beginning work in process - units transferred out. 
B)  beginning work in process + ending work in process. 
C)  ending work in process + units transferred out. 
D)  ending work in process - units started into production. 
A)  beginning work in process - units transferred out. 
B)  beginning work in process + ending work in process. 
C)  ending work in process + units transferred out. 
D)  ending work in process - units started into production.

Question 18

The Assembly Department of Nitz Company has the following production and cost data at the end of May 2017.
Production: 30000 units started into production; 25000 units transferred out and 5000 units 100% completed as to materials and 40% completed as to conversion costs.
Manufacturing Costs: Materials added at beginning of process $90000; labor $75000; overhead $60000.
Instructions
Prepare a production cost report for the month of May.

Accepted Answer

The answer of The Assembly Department of Nitz Company has...

Question 19

In Moyer Company the Cutting Department had beginning work in process of 6000 units transferred out 24000 units and had an ending work in process of 3000 units. How many units were started by Moyer during the month?

Accepted Answer

A)  18000. 
B)  21000. 
C)  24000. 
D)  27000. 
A)  18000. 
B)  21000. 
C)  24000. 
D)  27000.

Question 20

Corsi Company had the following department data: $$\begin{array} { l c } 
& \underline{ \text { Physical Units } } \
\text { Work in process, beginning } &-0-\
\text { Completed and transferred out } & 90,000 \
\text { Work in process, ending } & 7,000
\end{array}$$ 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)  90000. 
B)  9000. 
C)  97000. 
D)  83000. 
A)  90000. 
B)  9000. 
C)  97000. 
D)  83000.

Exam 21: Process Costing

Which of the following is not a benefit of activity-based costing?

A production cost report

In a process cost system costs are tracked through a series of connected manufacturing processes or departments rather than by individual jobs.

The assignment of the three manufacturing cost elements to Work in Process in a process cost system is the same as in a job order cost system.

In a production cost report which one of the following sections is not shown under Costs?

Which of the following is correct regarding cost systems? 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

In computing equivalent units ___________ is not part of the equivalent units of production formula.

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

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 a true statement about process cost systems?

Your roommate is curious about the features of process cost accounting. Identify and explain the distinctive features for your roommate.

The total units accounted for equals units in

In Moyer Company the Cutting Department had beginning work in process of 6000 units transferred out 24000 units and had an ending work in process of 3000 units. How many units were started by Moyer during the month?

Corsi Company had the following department data: 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?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters