Question 1

The FIFO method separates beginning inventory and current production to compute cost per unit of production.

Accepted Answer

A) True 
 B)False

Question 2

Bartling Company transferred 5,500 units to Finished Goods Inventory during October.On October 1,the company had 300 units on hand (40 percent complete as to both material and conversion costs).On October 31,the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs).The number of units started and completed during October was:

Accepted Answer

A) 5,200. 
B) 5,380. 
C) 5,500. 
D) 6,300. 
A) 5,200. 
B) 5,380. 
C) 5,500. 
D) 6,300.

Question 3

In a FIFO process costing system,which of the following are assumed to be completed first in the current period?

Accepted Answer

A) units started this period 
B) units started last period 
C) units transferred out 
D) units still in process 
A) units started this period 
B) units started last period 
C) units transferred out 
D) units still in process

Question 4

When standard costs are used in process costing,

Accepted Answer

A) variances can be measured during the production period. 
B) total costs rather than current production and current costs are used. 
C) process costing calculations are made simpler. 
D) the weighted average method of calculating EUPs makes computing transferred-out costs easier. 
A) variances can be measured during the production period. 
B) total costs rather than current production and current costs are used. 
C) process costing calculations are made simpler. 
D) the weighted average method of calculating EUPs makes computing transferred-out costs easier.

Question 5

Fox Corporation
Fox Corporation.has the following information for August:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (70\% complete as to conversion) } & 6,000 \text { units } \
\text { Started } &  24,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (10\% complete as to conversion) } & 8,500 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 23,400\
\text { Conversion } & 50,607
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 31,500 $
Conversion                                                                            $ 76.956 $
All material is added at the start of the process and all finished products are transferred out.
Refer to Fox Corporation.How many units were transferred out in August?

Accepted Answer

A) 15,500 
B) 18,000 
C) 21,500 
D) 24,000 
A) 15,500 
B) 18,000 
C) 21,500 
D) 24,000

Question 6

Mansfield Company uses a weighted average process costing system.Material is added at the start of production.Mansfield Company started 14,000 units into production and had 5,000 units in process at the start of the period that were 75 percent complete as to conversion costs.If Mansfield Company transferred out 12,250 units,how many units were in ending Work in Process Inventory?

Accepted Answer

A) 1,750 
B) 3,000 
C) 5,500 
D) 6,750 
A) 1,750 
B) 3,000 
C) 5,500 
D) 6,750

Question 7

The weighted average costing method assumes that units in beginning inventory are the first units transferred.

Accepted Answer

A) True 
 B)False

Question 8

Process costing techniques should be used in assigning costs to products

Accepted Answer

A) if a product is manufactured on the basis of each order received. 
B) when production is only partially completed during the accounting period. 
C) if a product is composed of mass-produced homogeneous units. 
D) whenever standard-costing techniques should not be useD. 
A) if a product is manufactured on the basis of each order received. 
B) when production is only partially completed during the accounting period. 
C) if a product is composed of mass-produced homogeneous units. 
D) whenever standard-costing techniques should not be useD.

Question 9

Colorful Creations Corporation
The Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating.Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.During the month,6,500 wreaths were started.At month end,Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion.Assume Forming uses the weighted average method of process costing.Costs in the Forming Department are as follows:
Beginui
ing Work
in
Process
Costs:

Materiel                          $1,000
Conversion                          1,500

Current
Cast:
Materiel                          $\$ 3,200$
Conversion                    5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion.The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.Decorating uses the FIFO method of process costing,and costs associated with Decorating are:
Beginning WIP Inventory :

$\begin{array} { l l } \text { Transferred In } & \$ 1,170 \ \text { Meteriel } & 4,320 \ \text { Conversion } & 6,210 \end{array}$

Current Perind:

Transferred In                         $?$
 Material                             $67,745
Conversion                        95,820

Refer to Colorful Creations Corporation.Assume the material cost per EUP is $8.00 and the conversion cost per EUP is $15 in Decorating.What is the cost of completing the units in beginning inventory?

Accepted Answer

A) $ 960 
B) $ 1,380 
C) $ 1,860 
D) $11,940 
A) $ 960 
B) $ 1,380 
C) $ 1,860 
D) $11,940

Question 10

TriCities Corporation
TriCities Corporation adds material at the start to its production process and has the following information available for August:
             Beginning Work in Process Inventory       (40% complete as to conversion)      7,000 units                Started this period              32,000 units               Ending Work in Process Inventory       (25% complete as to conversion)       2,500 units               Transferred out       ?             
Refer to TriCities Corporation.Calculate equivalent units of production for material using FIFO.

Accepted Answer

A) 32,000 
B) 36,800 
C) 37,125 
D) 39,000 
A) 32,000 
B) 36,800 
C) 37,125 
D) 39,000

Question 11

Two methods of accounting for cost flows in process costing are ________ and _________.

Accepted Answer

weighted a

Question 12

The number of completed units that could have been produced from the inputs applied is referred to as ___________.

Accepted Answer

The answer of The number of completed units that could...

Question 13

The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units

Accepted Answer

A) started and completed during the period. 
B) residing in beginning Work in Process Inventory. 
C) residing in ending Work in Process Inventory. 
D) uncompleted in Work in Process Inventory. 
A) started and completed during the period. 
B) residing in beginning Work in Process Inventory. 
C) residing in ending Work in Process Inventory. 
D) uncompleted in Work in Process Inventory.

Question 14

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.Using FIFO,what is the cost per equivalent unit for material?

Accepted Answer

A) $1.42 
B) $1.66 
C) $1.71 
D) $1.60 
A) $1.42 
B) $1.66 
C) $1.71 
D) $1.60

Question 15

Colorful Creations Corporation
The Colorful Creations Corporation makes wreaths in two departments: Forming and Decorating.Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.During the month,6,500 wreaths were started.At month end,Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion.Assume Forming uses the weighted average method of process costing.Costs in the Forming Department are as follows:
Beginui
ing Work
in
Process
Costs:

Materiel                          $1,000
Conversion                          1,500

Current
Cast:
Materiel                          $\$ 3,200$
Conversion                    5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete as to material and 90 percent complete as to conversion.The department had 300 units in ending Work in Process that were 50 percent complete as to material and 75 percent complete as to conversion.Decorating uses the FIFO method of process costing,and costs associated with Decorating are:
Beginning WIP Inventory :

$\begin{array} { l l } \text { Transferred In } & \$ 1,170 \ \text { Meteriel } & 4,320 \ \text { Conversion } & 6,210 \end{array}$

Current Perind:

Transferred In                         $?$
 Material                             $67,745
Conversion                        95,820

Refer to Colorful Creations Corporation.Assume that 8,000 units were transferred to Decorating at a total cost of $16,000.What is the material cost per equivalent unit in Decorating?

Accepted Answer

A) $8.50 
B) $8.65 
C) $8.80 
D) $9.04 
A) $8.50 
B) $8.65 
C) $8.80 
D) $9.04

Question 16

The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption.

Accepted Answer

A) True 
 B)False

Question 17

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 assigned to normal spoilage using weighted average?

Accepted Answer

A) $31,000 
B) $15,500 
C) $30,850 
D) None of the responses are correct 
A) $31,000 
B) $15,500 
C) $30,850 
D) None of the responses are correct

Question 18

The weighted average method combines beginning inventory and current production to compute cost per unit of production.

Accepted Answer

A) True 
 B)False

Question 19

EUP calculations for standard process costing are the same as

Accepted Answer

A) the EUP calculations for weighted average process costing. 
B) the EUP calculations for FIFO process costing. 
C) LIFO inventory costing for merchandise. 
D) the EUP calculations for LIFO process costing. 
A) the EUP calculations for weighted average process costing. 
B) the EUP calculations for FIFO process costing. 
C) LIFO inventory costing for merchandise. 
D) the EUP calculations for LIFO process costing.

Question 20

If normal spoilage is detected at an inspection point within the process (rather than at the end),the cost of that spoilage should be

Accepted Answer

A) included with the cost of the units sold during the period. 
B) included with the cost of the units completed in that department during the period. 
C) allocated to ending work in process units and units transferred out based on their relative values. 
D) allocated to the good units that have passed the inspection point. 
A) included with the cost of the units sold during the period. 
B) included with the cost of the units completed in that department during the period. 
C) allocated to ending work in process units and units transferred out based on their relative values. 
D) allocated to the good units that have passed the inspection point.

The FIFO method separates beginning inventory and current production to compute cost per unit of production.

In a FIFO process costing system,which of the following are assumed to be completed first in the current period?

When standard costs are used in process costing,

The weighted average costing method assumes that units in beginning inventory are the first units transferred.

Process costing techniques should be used in assigning costs to products

Two methods of accounting for cost flows in process costing are and _.

The number of completed units that could have been produced from the inputs applied is referred to as ___________.

The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units

The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption.

The weighted average method combines beginning inventory and current production to compute cost per unit of production.

EUP calculations for standard process costing are the same as

If normal spoilage is detected at an inspection point within the process (rather than at the end),the cost of that spoilage should be

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	(40% complete as to conversion)	7,000 units
Started this period		32,000 units
Ending Work in Process Inventory	(25% complete as to conversion)	2,500 units
Transferred out	?

Exam 6: Process Costing

The FIFO method separates beginning inventory and current production to compute cost per unit of production.

In a FIFO process costing system,which of the following are assumed to be completed first in the current period?

When standard costs are used in process costing,

The weighted average costing method assumes that units in beginning inventory are the first units transferred.

Process costing techniques should be used in assigning costs to products

Two methods of accounting for cost flows in process costing are ________ and _________.

The number of completed units that could have been produced from the inputs applied is referred to as ___________.

The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units

The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption.

The weighted average method combines beginning inventory and current production to compute cost per unit of production.

EUP calculations for standard process costing are the same as

If normal spoilage is detected at an inspection point within the process (rather than at the end),the cost of that spoilage should be

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

Two methods of accounting for cost flows in process costing are and _.