Question 1

Simplicity is the main advantage of which of the following process costing methods?

Accepted Answer

A)  LIFO 
B)  FIFO 
C)  weighted average 
D)  exact cost method 
A)  LIFO 
B)  FIFO 
C)  weighted average 
D)  exact cost method

Question 2

The following information is provided:   Materials and conversion are incurred uniformly throughout the process.
Equivalent units of production for conversion using the weighted average method would be

Accepted Answer

A)  17,400 
B)  18,600 
C)  21,000 
D)  22,000 
A)  17,400 
B)  18,600 
C)  21,000 
D)  22,000

Question 3

What is the major advantage of the weighted average cost method?

Accepted Answer

A)  simplicity 
B)  accuracy 
C)  it is the required method 
D)  it is the preferred method 
A)  simplicity 
B)  accuracy 
C)  it is the required method 
D)  it is the preferred method

Question 4

The following information is provided:   Materials are added at the beginning of the process.
Equivalent units of production for conversion costs using the weighted average method would be

Accepted Answer

A)  35,600 
B)  34,800 
C)  36,000 
D)  27,600 
A)  35,600 
B)  34,800 
C)  36,000 
D)  27,600

Question 5

The major benefit of the FIFO method is simplicity.

Accepted Answer

A) True 
 B)False

Question 6

In process manufacturing, the manufacturing input categories include

Accepted Answer

A)  only work in process. 
B)  only cost of goods sold. 
C)  only raw materials. 
D)  transferred-in materials, materials added, and conversion costs. 
A)  only work in process. 
B)  only cost of goods sold. 
C)  only raw materials. 
D)  transferred-in materials, materials added, and conversion costs.

Question 7

Choose the most likely used costing system for the industries listed below.
-Costing system used by a tire manufacturer.

Accepted Answer

A) Process Costing 
B) Job Order Costing 
A) Process Costing 
B) Job Order Costing

Question 8

___________________ requires that units pass through one process before they can be worked on in the next process.

Accepted Answer

Sequential

Question 9

Match the five steps involved in creating the department production report with the steps below in the proper order.
-valuation of inventories

Accepted Answer

A) step 1 in preparing a Production Report 
B) step 2 in preparing a Production Report 
C) step 3 in preparing a Production Report 
D) step 4 in preparing a Production Report 
E) step 5 in preparing a Production Report 
A) step 1 in preparing a Production Report 
B) step 2 in preparing a Production Report 
C) step 3 in preparing a Production Report 
D) step 4 in preparing a Production Report 
E) step 5 in preparing a Production Report

Question 10

Figure 6-2.The Bing Corporation produces a product that passes through two processes. During June, the first department transferred 60,000 units to the second department. The cost of the units transferred was $90,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during June:
  
-Refer to Figure 6-2. Units started in the second department during June for Bing Corporation would be

Accepted Answer

A)  60,000. 
B)  55,000. 
C)  73,000. 
D)  48,000. 
A)  60,000. 
B)  55,000. 
C)  73,000. 
D)  48,000.

Question 11

Figure 6-4.The following information is available for Department X for August:
 
-Refer to Figure 6-4. Department X's cost per equivalent unit for materials using the weighted average method would be

Accepted Answer

A)  $2.00. 
B)  $7.00. 
C)  $8.00. 
D)  $9.00. 
A)  $2.00. 
B)  $7.00. 
C)  $8.00. 
D)  $9.00.

Question 12

Since FIFO excludes prior-period work and costs, it is necessary to create three categories of completed units.

Accepted Answer

A) True 
 B)False

Question 13

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

Accepted Answer

A) True 
 B)False

Question 14

Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March.   The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000. 
-Refer to Figure 6-7. Using the weighted average method, the equivalent unit conversion cost for March is

Accepted Answer

A)  $5.95. 
B)  $6.00. 
C)  $5.13. 
D)  $6.23. 
A)  $5.95. 
B)  $6.00. 
C)  $5.13. 
D)  $6.23.

Question 15

Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

Accepted Answer

A)  50,000 
B)  51,500 
C)  50,300 
D)  49,500 
A)  50,000 
B)  51,500 
C)  50,300 
D)  49,500

Question 16

Delilah, Incorporated, manufactures quality hair care products. The ingredients are combined in the mixing department and put in 16-ounce containers in the packaging department.
The following information pertains to the mixing department for the month of May:
   The costs in work in process at May 1 in the mixing department were as follows:
   The costs added by the mixing department during the month of May were as follows:
   Round unit costs to two decimal places.
Required:

Accepted Answer

The answer of Delilah, Incorporated, manufactures quality hair care products....

Question 17

Mermain Inc., manufactures products that pass through two processes. The company uses the weighted average method to compute unit costs. During March, equivalent units were computed as follows:
   Cost was added as follows:
   Required:

Accepted Answer

Unit cost computation:
Materia

Question 18

___________ costs are a type of raw material cost.

Accepted Answer

The answer of ___________ costs are a type of raw...

Question 19

Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.

Accepted Answer

A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report 
A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report

Question 20

Star Inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for June follows:
   During June, 100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during June:
   At June 30, 8,000 units that were 70% complete remained in the mixing department.
Use the weighted average method, and round unit costs to two decimal places.
Required:

Accepted Answer

The answer of Star Inc., manufactures a product that passes...

Simplicity is the main advantage of which of the following process costing methods?

The following information is provided: Materials and conversion are incurred uniformly throughout the process. Equivalent units of production for conversion using the weighted average method would be

What is the major advantage of the weighted average cost method?

The following information is provided: Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be

The major benefit of the FIFO method is simplicity.

In process manufacturing, the manufacturing input categories include

Choose the most likely used costing system for the industries listed below. -Costing system used by a tire manufacturer.

___________________ requires that units pass through one process before they can be worked on in the next process.

Match the five steps involved in creating the department production report with the steps below in the proper order. -valuation of inventories

Figure 6-4.The following information is available for Department X for August: -Refer to Figure 6-4. Department X's cost per equivalent unit for materials using the weighted average method would be

Since FIFO excludes prior-period work and costs, it is necessary to create three categories of completed units.

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

Mermain Inc., manufactures products that pass through two processes. The company uses the weighted average method to compute unit costs. During March, equivalent units were computed as follows: Cost was added as follows: Required:

___________ costs are a type of raw material cost.

Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Process Costing

Simplicity is the main advantage of which of the following process costing methods?

The following information is provided: Materials and conversion are incurred uniformly throughout the process. Equivalent units of production for conversion using the weighted average method would be

What is the major advantage of the weighted average cost method?

The following information is provided: Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be

The major benefit of the FIFO method is simplicity.

In process manufacturing, the manufacturing input categories include

Choose the most likely used costing system for the industries listed below. -Costing system used by a tire manufacturer.

___________________ requires that units pass through one process before they can be worked on in the next process.

Match the five steps involved in creating the department production report with the steps below in the proper order. -valuation of inventories

Figure 6-4.The following information is available for Department X for August: -Refer to Figure 6-4. Department X's cost per equivalent unit for materials using the weighted average method would be

Since FIFO excludes prior-period work and costs, it is necessary to create three categories of completed units.

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

Mermain Inc., manufactures products that pass through two processes. The company uses the weighted average method to compute unit costs. During March, equivalent units were computed as follows: Cost was added as follows: Required:

___________ costs are a type of raw material cost.

Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters