Question 1

Process and job order manufacturing operations both combine materials,labor,and overhead items in the process of producing products.

Accepted Answer

A) True 
 B)False

Question 2

To compute equivalent units of production,one must be able to reasonably estimate:

Accepted Answer

A) The percentage of completion. 
B) Units completed. 
C) Units started and completed. 
D) Direct labor cost. 
E) Materials cost. 
A) The percentage of completion. 
B) Units completed. 
C) Units started and completed. 
D) Direct labor cost. 
E) Materials cost.

Question 3

During March,the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods.Of the units transferred,25,000 were in process at the beginning of March and 110,000 were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor.Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the FIFO method.

Accepted Answer

A) 165,000; 165,000. 
B) 135,000; 119,000. 
C) 140,000; 130,250. 
D) 165,000; 144,000. 
E) 144,000; 144,000. 
A) 165,000; 165,000. 
B) 135,000; 119,000. 
C) 140,000; 130,250. 
D) 165,000; 144,000. 
E) 144,000; 144,000.

Question 4

Equivalent units of production is an engineering term used to describe the process by which one company attempts to manufacture units of a product that are equivalent to the product manufactured by a competitor.

Accepted Answer

A) True 
 B)False

Question 5

On a process cost summary,the total costs to account for (the processing costs for the period plus the goods in process at the end of the period)should equal ___________________ (____________________ plus _____________________).

Accepted Answer

the first answer must appear

Question 6

In process costing,factory overhead incurred does not usually equal that applied,which yields either ____________________ or ___________________ overhead.

Accepted Answer

answers c

Question 7

Why is the Process Cost Summary important to management and how does the Process Cost Summary accomplish its purposes?

Accepted Answer

The Process Cost Summary depicts a four-

Question 8

If Department G uses $53,000 of direct labor and Department H uses $21,000 of direct labor,the following journal entry would be recorded using a process cost accounting system:
Goods in Process Inventory,Department G ……..53,000
Goods in Process Inventory,Department H…..21,000
Factory Payroll…………………………… 74,000

Accepted Answer

A) True 
 B)False

Question 9

In a process cost accounting system,with the exception of the first department,each department receives output from the prior department as a partially processed product.

Accepted Answer

A) True 
 B)False

Question 10

The following journal entry would be made to record the use of $6,100 of direct labor in a production department during the reporting period:
Factory Payroll …………………..6,100
Goods in Process Inventory………………………….6,100

Accepted Answer

A) True 
 B)False

Question 11

In process cost accounting,materials are always classified as indirect if they are not physically incorporated into the final product.

Accepted Answer

A) True 
 B)False

Question 12

A company uses the weighted average method for inventory costing.During a period,a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending goods in process inventory and are 75% complete.Compute the number of equivalent units produced by the department.

Accepted Answer

A) 181,500. 
B) 165,000. 
C) 173,500. 
D) 145,000. 
E) 187,000. 
A) 181,500. 
B) 165,000. 
C) 173,500. 
D) 145,000. 
E) 187,000.

Question 13

A ____________________ contains features of both process and job order operations.

Accepted Answer

hybrid cos

Question 14

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August.Indiana Factory uses the FIFO method of inventory costing.
   The cost per equivalent unit of materials is $10.00,and the cost per equivalent unit of labor and overhead is $22.00.Compute the cost that should be assigned all units that were completed and transferred during August.

Accepted Answer

The answer of Refer to the following information about the...

Question 15

Materials and labor costs that are clearly associated with a specific process are known as ___________________.Those costs that are not clearly associated with a specific process are called ________________.

Accepted Answer

answers m

Question 16

Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct labor usage is:

Accepted Answer

A) Debit Factory Payroll $160,000; credit Cash $160,000. 
B) Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000. 
C) Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000. 
D) Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000. 
E) Debit Goods in Process Inventory $160,000; credit Cash $160,000. 
A) Debit Factory Payroll $160,000; credit Cash $160,000. 
B) Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000. 
C) Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000. 
D) Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000. 
E) Debit Goods in Process Inventory $160,000; credit Cash $160,000.

Question 17

A measure of the productivity of a process with respect to its use of direct materials,direct labor,or overhead,and an expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period,is called:

Accepted Answer

A) Manufacturing overhead. 
B) Units in process. 
C) A job cost sheet. 
D) Equivalent units of production. 
E) Process cost summary. 
A) Manufacturing overhead. 
B) Units in process. 
C) A job cost sheet. 
D) Equivalent units of production. 
E) Process cost summary.

Question 18

Process cost accounting systems are used only by companies that manufacture physical products; meaning that companies and other organizations that provide services to their customers do not use process cost accounting.

Accepted Answer

A) True 
 B)False

Question 19

If the factory labor cost for a month was $123,000 (paid in cash),the following journal entry would be recorded by the process cost accounting system:
Factory Payroll………………………………….. 123,000
Cash…………………………………….. 123,000

Accepted Answer

A) True 
 B)False

Question 20

When the final production department completes goods,the cost of the completed goods are transferred to ____________________ .

Accepted Answer

The answer of When the final production department completes goods,the...

Exam 20: Process Costing

Process and job order manufacturing operations both combine materials,labor,and overhead items in the process of producing products.

To compute equivalent units of production,one must be able to reasonably estimate:

Equivalent units of production is an engineering term used to describe the process by which one company attempts to manufacture units of a product that are equivalent to the product manufactured by a competitor.

On a process cost summary,the total costs to account for (the processing costs for the period plus the goods in process at the end of the period)should equal ___________________ (____________________ plus _____________________).

In process costing,factory overhead incurred does not usually equal that applied,which yields either ____________________ or ___________________ overhead.

Why is the Process Cost Summary important to management and how does the Process Cost Summary accomplish its purposes?

In a process cost accounting system,with the exception of the first department,each department receives output from the prior department as a partially processed product.

The following journal entry would be made to record the use of $6,100 of direct labor in a production department during the reporting period: Factory Payroll …………………..6,100 Goods in Process Inventory………………………….6,100

In process cost accounting,materials are always classified as indirect if they are not physically incorporated into the final product.

A ____________________ contains features of both process and job order operations.

Materials and labor costs that are clearly associated with a specific process are known as ___________________.Those costs that are not clearly associated with a specific process are called ________________.

Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct labor usage is:

Process cost accounting systems are used only by companies that manufacture physical products; meaning that companies and other organizations that provide services to their customers do not use process cost accounting.

If the factory labor cost for a month was $123,000 (paid in cash),the following journal entry would be recorded by the process cost accounting system: Factory Payroll………………………………….. 123,000 Cash…………………………………….. 123,000

When the final production department completes goods,the cost of the completed goods are transferred to ____________________ .

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

On a process cost summary,the total costs to account for (the processing costs for the period plus the goods in process at the end of the period)should equal _ ( plus ___).

In process costing,factory overhead incurred does not usually equal that applied,which yields either __ or _ overhead.

Materials and labor costs that are clearly associated with a specific process are known as ___.Those costs that are not clearly associated with a specific process are called .