Question 1

Process cost accounting is most appropriate

Accepted Answer

A) when a company produces more than one product in batches rather than on a continuous basis. 
B) when there is continuous production on a single product. 
C) for companies with either continuous or batch processing of different products. 
D) for all manufacturing companies. 
A) when a company produces more than one product in batches rather than on a continuous basis. 
B) when there is continuous production on a single product. 
C) for companies with either continuous or batch processing of different products. 
D) for all manufacturing companies. B

Question 2

In the -----------accounting system, costs for materials, labor, and manufacturing overhead are charged to the Work in Process Inventory accounts of the production departments.

Accepted Answer

process cost

Question 3

Fraser Manufacturing had no work in process at the beginning of a month. It transferred 6,300 units to finished goods during the month, and 500 units were still in process at the end of the month. Equivalent production for the month was 6,620 units. At what stage of completion were the unfinished units at the end of the month?

Accepted Answer

A) 36 percent 
B) 64 percent 
C) 95 percent 
D) 46 percent 
A) 36 percent 
B) 64 percent 
C) 95 percent 
D) 46 percent B

Question 4

When beginning inventory is part of the production report, costs from the prior department are included. They are

Accepted Answer

A) the beginning inventory amount and the costs transferred in. 
B) the beginning inventory amount. 
C) the costs transferred in. 
D) the beginning inventory costs transferred in. 
A) the beginning inventory amount and the costs transferred in. 
B) the beginning inventory amount. 
C) the costs transferred in. 
D) the beginning inventory costs transferred in.

Question 5

An ending work in process inventory of 600 units that are 45 percent complete is calculated as-----------equivalent units of production.

Accepted Answer

The answer of An ending work in process inventory of...

Question 6

Labor and manufacturing overhead costs are usually considered to be at the same stage of production.

Accepted Answer

A) True 
 B)False

Question 7

During the month, 2,100 units of a product were completed and 1,200 units were two-thirds complete with respect material and one-third complete with respect to labor and overhead. After completing equivalent unit cost calculations, the company determined material cost was $3.52 and the combined labor and overhead cost was $6.80 per unit.
- What is the cost of the completed units?

Accepted Answer

A) $11,984. 
B) $12,384. 
C) $21,672. 
D) $14,280. 
A) $11,984. 
B) $12,384. 
C) $21,672. 
D) $14,280.

Question 8

In a process cost accounting system,

Accepted Answer

A) the Work in Process Inventory accounts are used to accumulate the costs for labor, materials, and manufacturing overhead. 
B) the Finished Goods Inventory account is debited for the cost of completed units any time during the month. 
C) manufacturing overhead is not included in the determination of inventory costs. 
D) inventory costs are calculated when goods are sold. 
A) the Work in Process Inventory accounts are used to accumulate the costs for labor, materials, and manufacturing overhead. 
B) the Finished Goods Inventory account is debited for the cost of completed units any time during the month. 
C) manufacturing overhead is not included in the determination of inventory costs. 
D) inventory costs are calculated when goods are sold.

Question 9

Unit Manufacturing Company had no work in process at the beginning of a month. At the end of the month, 500 units were still in process which were 60% complete. Equivalent production for the month was 7,160 units. How many units were transferred out of production to finished goods during the month?

Accepted Answer

A) 6,660 units. 
B) 6,960 units. 
C) 6,860 units. 
D) 7,160 units. 
A) 6,660 units. 
B) 6,960 units. 
C) 6,860 units. 
D) 7,160 units.

Question 10

In a process cost accounting system, the average unit cost of a product is determined by dividing the total manufacturing cost incurred by the number of units placed in production during the period.

Accepted Answer

A) True 
 B)False

Question 11

At the beginning of the current period, there were 900 units of product in a department, 30% completed; during the period 5,000 units were completed and transferred out and 800 units were still in process at the end of the period, 25% completed. The equivalent production units for the current period are

Accepted Answer

A) 5,470 units. 
B) 5,800 units. 
C) 5,200 units. 
D) 6,700 units. 
A) 5,470 units. 
B) 5,800 units. 
C) 5,200 units. 
D) 6,700 units.

Question 12

McGill Manufacturing had 900 units in its work in process inventory at the beginning of a month, which were 40 percent were complete with respect to labor, and 100% complete with respect to materials, and overhead. The firm transferred 5,130 units to the finished goods inventory during the month and there were 680 units which were 35 percent complete and still in process at the end of the month. Equivalent production for the month was

Accepted Answer

A) 4,910 units. 
B) 5,350 units. 
C) 5,368 units. 
D) 5,130 units. 
A) 4,910 units. 
B) 5,350 units. 
C) 5,368 units. 
D) 5,130 units.

Question 13

On a cost of production report, the -----------total cost must equal the total costs accounted for.

Accepted Answer

The answer of On a cost of production report, the...

Question 14

The entry to record the transfer of goods from Department A to Department B would include a debit to the Work in Process account for Department B.

Accepted Answer

A) True 
 B)False

Question 15

Total costs accounted for consists of the

Accepted Answer

A) cumulative cost plus the work in process-ending costs. 
B) total costs transferred out plus the total work in process-ending costs. 
C) cumulative cost plus total costs transferred out. 
D) total costs transferred out less the total work in process-ending costs. 
A) cumulative cost plus the work in process-ending costs. 
B) total costs transferred out plus the total work in process-ending costs. 
C) cumulative cost plus total costs transferred out. 
D) total costs transferred out less the total work in process-ending costs.

Question 16

A department transferred 7,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 500 units were still in process at the end of the month. Equivalent production for the month was 7,400 units, and production costs incurred totaled
$23,960. Inventory costs would be determined using a unit cost (rounded to two decimal places)of

Accepted Answer

A) $3.03. 
B) $3.24. 
C) $3.19. 
D) $3.37. 
A) $3.03. 
B) $3.24. 
C) $3.19. 
D) $3.37.

Question 17

The source of the cost data that appears in a cost of production report is

Accepted Answer

A) the Finished Goods Inventory account. 
B) the Work in Process Inventory accounts. 
C) the prior period income statement. 
D) the job order cost sheet. 
A) the Finished Goods Inventory account. 
B) the Work in Process Inventory accounts. 
C) the prior period income statement. 
D) the job order cost sheet.

Question 18

In a process cost accounting system, the average unit cost of a product is determined by dividing the appropriate costs by

Accepted Answer

A) the number of units placed in production during the period. 
B) In a process cost accounting system, the average unit . 
C) the number of units transferred to another department. 
D) the number of units transferred to the finished goods inventory. 
A) the number of units placed in production during the period. 
B) In a process cost accounting system, the average unit . 
C) the number of units transferred to another department. 
D) the number of units transferred to the finished goods inventory.

Question 19

During the month, 2,100 units of a product were completed and 1,200 units were two-thirds complete with respect material and one-third complete with respect to labor and overhead. After completing equivalent unit cost calculations, the company determined material cost was $3.52 per unit and the combined labor and overhead cost was $6.80 per unit.
- What is the cost of ending work in process?

Accepted Answer

A) $12,384. 
B) $11,984. 
C) $6,848. 
D) $5,536. 
A) $12,384. 
B) $11,984. 
C) $6,848. 
D) $5,536.

Question 20

Equivalent production units may be computed

Accepted Answer

A) for labor only. 
B) for labor and materials only. 
C) for materials and manufacturing overhead only. 
D) for labor, materials, and manufacturing overhead. 
A) for labor only. 
B) for labor and materials only. 
C) for materials and manufacturing overhead only. 
D) for labor, materials, and manufacturing overhead.

Exam 28: Process Cost Accounting

Process cost accounting is most appropriate

In the -----------accounting system, costs for materials, labor, and manufacturing overhead are charged to the Work in Process Inventory accounts of the production departments.

When beginning inventory is part of the production report, costs from the prior department are included. They are

An ending work in process inventory of 600 units that are 45 percent complete is calculated as-----------equivalent units of production.

Labor and manufacturing overhead costs are usually considered to be at the same stage of production.

In a process cost accounting system,

Unit Manufacturing Company had no work in process at the beginning of a month. At the end of the month, 500 units were still in process which were 60% complete. Equivalent production for the month was 7,160 units. How many units were transferred out of production to finished goods during the month?

In a process cost accounting system, the average unit cost of a product is determined by dividing the total manufacturing cost incurred by the number of units placed in production during the period.

On a cost of production report, the -----------total cost must equal the total costs accounted for.

The entry to record the transfer of goods from Department A to Department B would include a debit to the Work in Process account for Department B.

Total costs accounted for consists of the

The source of the cost data that appears in a cost of production report is

In a process cost accounting system, the average unit cost of a product is determined by dividing the appropriate costs by

Equivalent production units may be computed

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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