Question 1

The method of neglect handles spoilage that is

Accepted Answer

A) discrete and abnormal. 
B) discrete and normal. 
C) continuous and abnormal. 
D) continuous and normal. 
A) discrete and abnormal. 
B) discrete and normal. 
C) continuous and abnormal. 
D) continuous and normal. D

Question 2

Discuss process costing in a multi-department atmosphere.

Accepted Answer

When a business has more than one department in its production process,products are transferred from Department A to Department B and so on.As the products are transferred from department to department so,too,must the costs be transferred.When products are transferred,the units and costs are treated as input material in the next department.The new department may add additional material or may simply add conversion costs and finish the products.The total cost of the products is a cumulative total from all departments within the process.

Question 3

Fischer Company makes small metal containers.The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs.During the month,6,000 containers were started.At month end,1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs).Using the weighted average method,what are the equivalent units for conversion costs?

Accepted Answer

A) 4,265 
B) 5,590 
C) 5,825 
D) 6,300 
A) 4,265 
B) 5,590 
C) 5,825 
D) 6,300 C

Question 4

Riedel Company started 8,600 units in April.The company transferred out 6,400 finished units and ended the period with 3,200 units that were 40 percent complete as to both material and conversion costs.Beginning Work in Process Inventory units were

Accepted Answer

A) 400. 
B) 1,000. 
C) 1,280. 
D) 2,200. 
A) 400. 
B) 1,000. 
C) 1,280. 
D) 2,200.

Question 5

A hybrid costing system combines characteristics of

Accepted Answer

A) job order and standard costing systems. 
B) job order and process costing systems. 
C) process and standard costing systems. 
D) job order and normal costing systems. 
A) job order and standard costing systems. 
B) job order and process costing systems. 
C) process and standard costing systems. 
D) job order and normal costing systems.

Question 6

Stocks Corporation
Stocks Corporation has the following information available for June of the current year:
              Beginning Work in Process Inventory       (20% complete as to conversion)      12,000 units                Started              150,000 units               Ending Work in Process Inventory       (25% complete as to conversion)       35,000 units               Beginning Work in Process Inventory Costs:                                    Material       $ 2,500                      Conversion       2,650               Current Period Costs:                                    Material        $ 36,000                      Conversion       112,750      All material is added at the start of production and all products completed are transferred out.
Refer to Stocks Corporation.Prepare a schedule showing the assignment of costs assuming the (a)FIFO and (b)weighted average method.

Accepted Answer

All material is added at the start of pr

Question 7

Discuss standard costing as used in conjunction with process costing.

Accepted Answer

When standard costing is used in conjunc

Question 8

A hybrid costing system would be appropriate for a company that manufactures several varieties of jam.

Accepted Answer

A) True 
 B)False

Question 9

Schmidt Company manufactures a single product.All material is added at the beginning of the process.
            Costs       Material      Conversion        Total               Beginning inventory       $ 30,000       $ 3,600       $ 33,600               Current period        885,120        335,088        1,220,208               Total costs       $915,120       $338,688       $1,253,808      
$\begin{array}{l}
\text { UNITS }\
\begin{array}{ll}
\text { Beginning inventory (30\% complete-conversion) } & 6,000 &units\
\text { Started } & 180,000&units \
\text { Completed } & 152,000&units \
\text { Ending inventory (70\% complete-conversion) } & 20,000 &units\
\text { Normal spoilage } & 4,800 &units
\end{array}
\end{array}$Required:Find ending WIP inventory,abnormal loss,and COGM.Assume that,for conversion costs,abnormal shrinkage is 60 percent.

Accepted Answer

Question 10

Wright Company
Wright Company adds material at the start of production.The following production information is available for September:
             Beginning Work in Process Inventory                                   (45% complete as to conversion)        10,000 units               Started this period               120,000 units               Ending Work in Process Inventory       80% complete as to conversion)       8,200 units               Beginning Work in Process Inventory Costs:                                    Material       $24,500                      Conversion       68,905               Current Period Costs:                                    Material       $ 75,600                      Conversion       130,053      
Refer to Wright Company.What is the material cost per equivalent unit using the weighted average method?

Accepted Answer

A) $.58 
B) $.62 
C) $.77 
D) $.82 
A) $.58 
B) $.62 
C) $.77 
D) $.82

Question 11

A discrete loss is assumed to occur at a specific point in the production process.

Accepted Answer

A) True 
 B)False

Question 12

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

Accepted Answer

A) normal and discrete. 
B) normal and continuous. 
C) abnormal and discrete. 
D) abnormal and continuous. 
A) normal and discrete. 
B) normal and continuous. 
C) abnormal and discrete. 
D) abnormal and continuous.

Question 13

Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
Beginning Watk in Process             Costs of Begiluing Work in
                                                                      Process:

(75% complete)                      14,500 units            Materil            $ \$ 25,100 $

$\begin{array}{lll}
\text { Started } & 75,000 \text { units } & \text { Conversion } & 50,000 \
\text { Ending Work in Process } & \text { Cumrent Costs: } 
\end{array}$

$\begin{array}{llll}
\text { (60\% complete) } & 16,000 \text { units } & \text { Material } & \$ 120,000 \
\text { Abtormal spoilage } & 2,500 \text { units } & \text { Conversion } & 300,000 \
\text { Normal spoilage (continuous) } & 5,000 \text { units } & \
\text { Tranferred out } & 66,000 \text { units } &
\end{array}$

All materials are added at the start of production.
Refer to Stillwater Corporation.What is the cost per equivalent unit for conversion costs using weighted average?

Accepted Answer

A) $4.62 
B) $4.21 
C) $4.48 
D) $4.34 
A) $4.62 
B) $4.21 
C) $4.48 
D) $4.34

Question 14

The cost of abnormal discrete units must be assigned to
$\text {\underline{ goocl units }}$                             $\text {\underline{ lost units} }$

Accepted Answer

A) yes yes 
B) no no 
C) yes no 
D) no yes 
A) yes yes 
B) no no 
C) yes no 
D) no yes

Question 15

The cost of abnormal continuous losses is

Accepted Answer

A) considered a product cost. 
B) absorbed by all units in ending inventory and transferred out on an equivalent unit basis. 
C) written off as a loss on an equivalent unit basis. 
D) absorbed by all units past the inspection point. 
A) considered a product cost. 
B) absorbed by all units in ending inventory and transferred out on an equivalent unit basis. 
C) written off as a loss on an equivalent unit basis. 
D) absorbed by all units past the inspection point.

Question 16

Wyman Corporation
Wyman Corporation.has the following information for May:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (75\% complete as to conversion) } &7,500 \text { units } \
\text { Started } &  27,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (15\% complete as to conversion) } & 9,400 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 25,500\
\text { Conversion } & 52,725
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 34,300 $
Conversion                                                                            $ 80,845 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Wyman Corporation.How many units were transferred out in May?

Accepted Answer

A) 17,600 
B) 19,500 
C) 25,100 
D) 27,000 
A) 17,600 
B) 19,500 
C) 25,100 
D) 27,000

Question 17

The first step in determining the cost per EUP per cost component under the weighted average method is to

Accepted Answer

A) add the beginning Work in Process Inventory cost to the current period's production cost. 
B) divide the current period's production cost by the equivalent units. 
C) subtract the beginning Work in Process Inventory cost from the current period's production cost. 
D) divide the current period's production cost into the EUP. 
A) add the beginning Work in Process Inventory cost to the current period's production cost. 
B) divide the current period's production cost by the equivalent units. 
C) subtract the beginning Work in Process Inventory cost from the current period's production cost. 
D) divide the current period's production cost into the EUP.

Question 18

Painter Corporation
Painter Corporation has the following information for the current month:
             Units started       100,000 units               Beginning Work in Process: (35% complete)       20,000 units               Normal spoilage (discrete)       3,500 units               Abnormal spoilage       5,000 units               Ending Work in Process: (70% complete)       14,500 units               Transferred out       97,000 units               Beginning Work in Process Costs:                             Material                 $15,000                      Conversion            10,000      
All materials are added at the start of the production process.Painter Corporation inspects goods at 75 percent completion as to conversion.
Refer to Painter Corporation.Assume that the costs per EUP for material and conversion are $1.00 and $1.50,respectively.What is the cost assigned to normal spoilage,using weighted average,and where is it assigned?
$\text {\underline{ Value} }$                                 $\text {\underline{ Assigned To} }$

Accepted Answer

A) $7,438 Units transferred out and Ending Inventory 
B) $7,438 Units transferred out 
C) $8,750 Units transferred out and Ending Inventory 
D) $8,750 Units transferred out 
A) $7,438 Units transferred out and Ending Inventory 
B) $7,438 Units transferred out 
C) $8,750 Units transferred out and Ending Inventory 
D) $8,750 Units transferred out

Question 19

Wright Company
Wright Company adds material at the start of production.The following production information is available for September:
             Beginning Work in Process Inventory                                   (45% complete as to conversion)        10,000 units               Started this period               120,000 units               Ending Work in Process Inventory       80% complete as to conversion)       8,200 units               Beginning Work in Process Inventory Costs:                                    Material       $24,500                      Conversion       68,905               Current Period Costs:                                    Material       $ 75,600                      Conversion       130,053      
Refer to Wright Company.What are the equivalent units for material using the weighted average method?

Accepted Answer

A) 120,000 
B) 123,860 
C) 128,360 
D) 130,000 
A) 120,000 
B) 123,860 
C) 128,360 
D) 130,000

Question 20

In a process costing system,the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a

Accepted Answer

A) debit Work in Process Inventory #2,credit Finished Goods Inventory. 
B) debit Finished Goods Inventory,credit Work in Process Inventory #1. 
C) debit Finished Goods Inventory,credit Work in Process Inventory #2. 
D) debit Cost of Goods Sold,credit Work in Process Inventory #2. 
A) debit Work in Process Inventory #2,credit Finished Goods Inventory. 
B) debit Finished Goods Inventory,credit Work in Process Inventory #1. 
C) debit Finished Goods Inventory,credit Work in Process Inventory #2. 
D) debit Cost of Goods Sold,credit Work in Process Inventory #2.

The method of neglect handles spoilage that is

Discuss process costing in a multi-department atmosphere.

Riedel Company started 8,600 units in April.The company transferred out 6,400 finished units and ended the period with 3,200 units that were 40 percent complete as to both material and conversion costs.Beginning Work in Process Inventory units were

A hybrid costing system combines characteristics of

Discuss standard costing as used in conjunction with process costing.

A hybrid costing system would be appropriate for a company that manufactures several varieties of jam.

A discrete loss is assumed to occur at a specific point in the production process.

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

The cost of abnormal discrete units must be assigned to $\text {\underline{ goocl units }}$ $\text {\underline{ lost units} }$

The cost of abnormal continuous losses is

The first step in determining the cost per EUP per cost component under the weighted average method is to

In a process costing system,the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Beginning Work in Process Inventory	(20% complete as to conversion)	12,000 units
Started		150,000 units
Ending Work in Process Inventory	(25% complete as to conversion)	35,000 units
Beginning Work in Process Inventory Costs:
	Material	$ 2,500
	Conversion	2,650
Current Period Costs:
	Material	$ 36,000
	Conversion	112,750

Costs	Material	Conversion	Total
Beginning inventory	$ 30,000	$ 3,600	$ 33,600
Current period	885,120	335,088	1,220,208
Total costs	$915,120	$338,688	$1,253,808

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000 units
Started this period		120,000 units
Ending Work in Process Inventory	80% complete as to conversion)	8,200 units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Units started	100,000 units
Beginning Work in Process: (35% complete)	20,000 units
Normal spoilage (discrete)	3,500 units
Abnormal spoilage	5,000 units
Ending Work in Process: (70% complete)	14,500 units
Transferred out	97,000 units
Beginning Work in Process Costs:
	Material $15,000
	Conversion 10,000

Exam 6: Process Costing

The method of neglect handles spoilage that is

Discuss process costing in a multi-department atmosphere.

Riedel Company started 8,600 units in April.The company transferred out 6,400 finished units and ended the period with 3,200 units that were 40 percent complete as to both material and conversion costs.Beginning Work in Process Inventory units were

A hybrid costing system combines characteristics of

Discuss standard costing as used in conjunction with process costing.

A hybrid costing system would be appropriate for a company that manufactures several varieties of jam.

A discrete loss is assumed to occur at a specific point in the production process.

When the cost of lost units must be assigned,and those same units must be included in an equivalent unit schedule,these units are considered

The cost of abnormal discrete units must be assigned to goocl units ‾\text {\underline{ goocl units }} goocl units ​ lost units‾ \text {\underline{ lost units} } lost units​

The cost of abnormal continuous losses is

The first step in determining the cost per EUP per cost component under the weighted average method is to

In a process costing system,the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

The cost of abnormal discrete units must be assigned to $\text {\underline{ goocl units }}$ $\text {\underline{ lost units} }$