Question 1

A cost reconciliation schedule is prepared to assign total costs to units ______________ and to the units in the _________________ work in process.

Accepted Answer

transferre

Question 2

A primary driver of overhead costs in continuous manufacturing operations is _______________.

Accepted Answer

The answer of A primary driver of overhead costs in...

Question 3

Under the ABC philosophy

Accepted Answer

A)  all inventories should be reduced or eliminated. 
B)  the push approach should be used in the first department of a process and the pull approach should be used in all subsequent departments. 
C)  the cost of a product is equal to the sum of the costs of all activities performed to manufacture it. 
D)  only one cost driver can be used. 
A)  all inventories should be reduced or eliminated. 
B)  the push approach should be used in the first department of a process and the pull approach should be used in all subsequent departments. 
C)  the cost of a product is equal to the sum of the costs of all activities performed to manufacture it. 
D)  only one cost driver can be used.

Question 4

Apoly Company has the following production data for January.   Instructions
Compute the physical units for January.

Accepted Answer

\[\begin{array} { l c } 
\text { Beginni

Question 5

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 6

A department had the following information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 300,000 \
\text { Conversion cost per unit } & \$ 3.00 \
\text { Total manufacturing cost per unit } & \$ 5.00
\end{array}$ What are the equivalent units of production for materials?

Accepted Answer

A)  150000. 
B)  100000. 
C)  60000. 
D)  Cannot be determined 
A)  150000. 
B)  100000. 
C)  60000. 
D)  Cannot be determined

Question 7

When finished goods are sold the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 8

If beginning work in process is 4000 units ending work in process is 2000 units and the units accounted for equals 15000 units what must units started into production be?

Accepted Answer

A)  19000. 
B)  17000. 
C)  11000. 
D)  13000. 
A)  19000. 
B)  17000. 
C)  11000. 
D)  13000.

Question 9

Equivalent units are calculated by

Accepted Answer

A)  multiplying the percentage of work done by the equivalent units of output. 
B)  dividing physical units by the percentage of work done. 
C)  multiplying the percentage of work done by the physical units. 
D)  dividing equivalent units by the percentage of work done. 
A)  multiplying the percentage of work done by the equivalent units of output. 
B)  dividing physical units by the percentage of work done. 
C)  multiplying the percentage of work done by the physical units. 
D)  dividing equivalent units by the percentage of work done.

Question 10

In process cost accounting manufacturing costs are summarized on a

Accepted Answer

A)  job order cost sheet. 
B)  process order cost sheet. 
C)  production cost report. 
D)  manufacturing cost sheet. 
A)  job order cost sheet. 
B)  process order cost sheet. 
C)  production cost report. 
D)  manufacturing cost sheet.

Question 11

Lowman Painting Company has the following production data for March:
$\bullet$Beginning work in process 2000 units
$\bullet$Units transferred out 42000
$\bullet$Units in ending work in process 15000 which are 80% complete for conversion costs
Materials are added only at the beginning of the process.
Instructions
Compute equivalent units of production for both materials and conversion costs.

Accepted Answer

The answer of Lowman Painting Company has the following production...

Question 12

In a process cost system total costs are determined at the end of a month or year.

Accepted Answer

A) True 
 B)False

Question 13

Materials costs of $600000 and conversion costs of $642600 were charged to a processing department in the month of September. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process 100000 units were started into production in September and there were 8000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

Accepted Answer

A)  $552000. 
B)  $1173000. 
C)  $1242600. 
D)  $1275600. 
A)  $552000. 
B)  $1173000. 
C)  $1242600. 
D)  $1275600.

Question 14

Madison Industries has equivalent units of 8000 for materials and for conversion costs. Total manufacturing costs are $200000. Total materials costs are $150000. How much is the conversion cost per unit?

Accepted Answer

A)  $2.50. 
B)  $6.25. 
C)  $25.00. 
D)  $5.00. 
A)  $2.50. 
B)  $6.25. 
C)  $25.00. 
D)  $5.00.

Question 15

For the Assembly Department unit materials cost is $6 and unit conversion cost is $9. If there are 10000 units in ending work in process 75% complete as to conversion costs the costs to be assigned to the inventory are

Accepted Answer

A)  $150000. 
B)  $127500. 
C)  $112500. 
D)  $135000. 
A)  $150000. 
B)  $127500. 
C)  $112500. 
D)  $135000.

Question 16

In a JIT cost accounting system

Accepted Answer

A)  reduced product quality is offset by reduced cost. 
B)  manufacturing overhead is applied in the traditional manner. 
C)  Raw Materials and Work in Process Inventory accounts are replaced by Raw and In-Process Inventory. 
D)  conversion costs are eliminated. 
A)  reduced product quality is offset by reduced cost. 
B)  manufacturing overhead is applied in the traditional manner. 
C)  Raw Materials and Work in Process Inventory accounts are replaced by Raw and In-Process Inventory. 
D)  conversion costs are eliminated.

Question 17

If 180000 units are transferred out of a department there was no beginning work in process and there are 30000 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)  210000. 
B)  180000. 
C)  150000. 
D)  30000. 
A)  210000. 
B)  180000. 
C)  150000. 
D)  30000.

Question 18

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 19

In the month of June a department had 20000 units in beginning work in process that were 70% complete. During June 90000 units were transferred into production from another department. At the end of June there were 10000 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 conversion costs for June were

Accepted Answer

A)  90000 equivalent units. 
B)  104000 equivalent units. 
C)  100000 equivalent units. 
D)  110000 equivalent units. 
A)  90000 equivalent units. 
B)  104000 equivalent units. 
C)  100000 equivalent units. 
D)  110000 equivalent units.

Question 20

If there are no units in process at the beginning of the period then

Accepted Answer

A)  the company must be using a job order cost system. 
B)  only one computation of equivalent units of production will be necessary. 
C)  the units started into production will equal the number of units transferred out. 
D)  the units to be accounted for will equal the units transferred out and the units in process at the end of the period. 
A)  the company must be using a job order cost system. 
B)  only one computation of equivalent units of production will be necessary. 
C)  the units started into production will equal the number of units transferred out. 
D)  the units to be accounted for will equal the units transferred out and the units in process at the end of the period.

Exam 21: Process Costing

A cost reconciliation schedule is prepared to assign total costs to units ______________ and to the units in the _________________ work in process.

A primary driver of overhead costs in continuous manufacturing operations is _______________.

Under the ABC philosophy

Apoly Company has the following production data for January. Instructions Compute the physical units for January.

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

A department had the following information for the month: Total materials costs \ 300,000 Conversion cost per unit \ 3.00 Total manufacturing cost per unit \ 5.00 What are the equivalent units of production for materials?

When finished goods are sold the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.

If beginning work in process is 4000 units ending work in process is 2000 units and the units accounted for equals 15000 units what must units started into production be?

Equivalent units are calculated by

In process cost accounting manufacturing costs are summarized on a

In a process cost system total costs are determined at the end of a month or year.

Madison Industries has equivalent units of 8000 for materials and for conversion costs. Total manufacturing costs are $200000. Total materials costs are $150000. How much is the conversion cost per unit?

For the Assembly Department unit materials cost is $6 and unit conversion cost is $9. If there are 10000 units in ending work in process 75% complete as to conversion costs the costs to be assigned to the inventory are

In a JIT cost accounting system

If 180000 units are transferred out of a department there was no beginning work in process and there are 30000 units still in process at the end of a period the number of units that were started into production during the period is

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

If there are no units in process at the beginning of the period then

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

A cost reconciliation schedule is prepared to assign total costs to units and to the units in the ___ work in process.