Question 1

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

Accepted Answer

A) True 
 B)False

Question 2

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for manufacturing overhead?

Accepted Answer

A) WIP inventory-molding 
B) WIP inventory-finishing 
C) WIP inventory-coloring 
D) All of the above 
A) WIP inventory-molding 
B) WIP inventory-finishing 
C) WIP inventory-coloring 
D) All of the above

Question 3

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly.   The total cost of units transferred out to finished goods is closest to

Accepted Answer

A) $ 909,450. 
B) $1,004,625. 
C) $ 350,450. 
D) $1,151,100. 
A) $ 909,450. 
B) $1,004,625. 
C) $ 350,450. 
D) $1,151,100.

Question 4

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Accepted Answer

A) WIP inventory-finishing 
B) Finished goods inventory 
C) Manufacturing overhead 
D) WIP inventory-coloring 
A) WIP inventory-finishing 
B) Finished goods inventory 
C) Manufacturing overhead 
D) WIP inventory-coloring

Question 5

Unique or custom-made goods use a process costing system.

Accepted Answer

A) True 
 B)False

Question 6

To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.

Accepted Answer

A) True 
 B)False

Question 7

Which costs comprise WIP inventory on a production cost report?

Accepted Answer

A) Direct materials and direct labor 
B) Direct materials and manufacturing overhead 
C) Direct materials, direct labor, and manufacturing overhead 
D) Direct labor and manufacturing overhead 
A) Direct materials and direct labor 
B) Direct materials and manufacturing overhead 
C) Direct materials, direct labor, and manufacturing overhead 
D) Direct labor and manufacturing overhead

Question 8

A company uses a process system. The number of equivalent units in ending WIP inventory regarding direct materials costs and conversion costs is

Accepted Answer

A) always lower for direct materials. 
B) always equal. 
C) always lower for conversion costs. 
D) none of the above. 
A) always lower for direct materials. 
B) always equal. 
C) always lower for conversion costs. 
D) none of the above.

Question 9

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows:   The cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $5.11. 
B) $4.53. 
C) $5.43. 
D) $4.88. 
A) $5.11. 
B) $4.53. 
C) $5.43. 
D) $4.88.

Question 10

A tennis ball maker gives us its data for the year:   Units in ending WIP inventory were 90% complete for materials and 60% complete for conversion costs.
On December 31, the cost per equivalent unit for direct materials would be closest to:

Accepted Answer

A) $2.01. 
B) $1.80. 
C) $1.33. 
D) $1.65. 
A) $2.01. 
B) $1.80. 
C) $1.33. 
D) $1.65.

Question 11

In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

Accepted Answer

A) True 
 B)False

Question 12

If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

Accepted Answer

A) 0%. 
B) 100%. 
C) 50%. 
D) cannot determine 
A) 0%. 
B) 100%. 
C) 50%. 
D) cannot determine

Question 13

Both process costing and job costing assign costs to units as they proceed through the process.

Accepted Answer

A) True 
 B)False

Question 14

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:   What is the cost per equivalent unit for conversion costs?

Accepted Answer

A) $2.32 
B) $2.09 
C) $2.25 
D) $2.10 
A) $2.32 
B) $2.09 
C) $2.25 
D) $2.10

Question 15

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:   What is the cost per equivalent unit for conversion costs?

Accepted Answer

A) $1.73 
B) $2.00 
C) $1.82 
D) $2.18 
A) $1.73 
B) $2.00 
C) $1.82 
D) $2.18

Question 16

What would be included in the entry to record actual manufacturing overhead costs incurred in a process department?

Accepted Answer

A) Debit to WIP inventory 
B) Debit to manufacturing overhead 
C) Credit to manufacturing overhead 
D) Credit Finished Goods inventory 
A) Debit to WIP inventory 
B) Debit to manufacturing overhead 
C) Credit to manufacturing overhead 
D) Credit Finished Goods inventory

Question 17

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:   What are the total equivalent units for conversion costs?

Accepted Answer

A) 130,460 
B) 165,200 
C) 142,600 
D) 151,640 
A) 130,460 
B) 165,200 
C) 142,600 
D) 151,640

Question 18

A shampoo manufacturer offers the following information:   The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31, the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $32.45. 
B) $27.82. 
C) $42.00. 
D) $39.59. 
A) $32.45. 
B) $27.82. 
C) $42.00. 
D) $39.59.

Question 19

A company manufactures mirrors. Last month's costs were:   What were the conversion costs for the month?

Accepted Answer

A) $302,000 
B) $392,000 
C) $234,000 
D) $90,000 
A) $302,000 
B) $392,000 
C) $234,000 
D) $90,000

Question 20

On a production cost report, where would current costs added during the period appear?

Accepted Answer

A) After any beginning WIP inventory cost 
B) As part of unit output for the period 
C) After any ending WIP inventory cost 
D) As part of beginning WIP inventory cost 
A) After any beginning WIP inventory cost 
B) As part of unit output for the period 
C) After any ending WIP inventory cost 
D) As part of beginning WIP inventory cost

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for manufacturing overhead?

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly. The total cost of units transferred out to finished goods is closest to

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Unique or custom-made goods use a process costing system.

To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.

Which costs comprise WIP inventory on a production cost report?

A company uses a process system. The number of equivalent units in ending WIP inventory regarding direct materials costs and conversion costs is

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows: The cost per equivalent unit for conversion costs would be closest to

A tennis ball maker gives us its data for the year: Units in ending WIP inventory were 90% complete for materials and 60% complete for conversion costs. On December 31, the cost per equivalent unit for direct materials would be closest to:

In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

Both process costing and job costing assign costs to units as they proceed through the process.

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for conversion costs?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for conversion costs?

What would be included in the entry to record actual manufacturing overhead costs incurred in a process department?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

A shampoo manufacturer offers the following information: The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, the cost per equivalent unit for conversion costs would be closest to

A company manufactures mirrors. Last month's costs were: What were the conversion costs for the month?

On a production cost report, where would current costs added during the period appear?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 5: Process Costing

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for manufacturing overhead?

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly. The total cost of units transferred out to finished goods is closest to

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Unique or custom-made goods use a process costing system.

To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.

Which costs comprise WIP inventory on a production cost report?

A company uses a process system. The number of equivalent units in ending WIP inventory regarding direct materials costs and conversion costs is

Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows: The cost per equivalent unit for conversion costs would be closest to

A tennis ball maker gives us its data for the year: Units in ending WIP inventory were 90% complete for materials and 60% complete for conversion costs. On December 31, the cost per equivalent unit for direct materials would be closest to:

In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

Both process costing and job costing assign costs to units as they proceed through the process.

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for conversion costs?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for conversion costs?

What would be included in the entry to record actual manufacturing overhead costs incurred in a process department?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

A shampoo manufacturer offers the following information: The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, the cost per equivalent unit for conversion costs would be closest to

A company manufactures mirrors. Last month's costs were: What were the conversion costs for the month?

On a production cost report, where would current costs added during the period appear?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters