Question 1

In process costing, each producing department has its own ________________ account.

Accepted Answer

work-in-pr

Question 2

Scott Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for May follows:
   During May, 65,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during May:
   By May 31, 4,000 units that were 80% complete remained in Mixing. Scott uses the weighted average method.
Required:
A. Calculate the equivalent units of production using the weighted average method.
B. Calculate the total costs to account for.
C. Calculate total cost per equivalent unit of production.
D. Calculate the cost of goods transferred to the molding department during May.
E. Calculate the cost of May's ending work-in-process for the mixing department.

Accepted Answer

A.
 @#IMG-DLM& B.
 @#IMG-DLM&

Question 3

FIFO assumes that units in beginning work in process are completed last.

Accepted Answer

A) True 
 B)False

Question 4

Equivalent production expresses all activity of the period in terms of

Accepted Answer

A)  work in process 
B)  materials labor and overhead 
C)  fully completed units 
D)  partially completed units 
A)  work in process 
B)  materials labor and overhead 
C)  fully completed units 
D)  partially completed units

Question 5

The cost of units finished at the last (final) department will flow from work in process to:

Accepted Answer

A)  raw materials 
B)  finished goods 
C)  cost of goods sold 
D)  accounts receivable 
A)  raw materials 
B)  finished goods 
C)  cost of goods sold 
D)  accounts receivable

Question 6

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 unit cost of materials for March is

Accepted Answer

A)  $4.50. 
B)  $5.33. 
C)  $5.00. 
D)  $5.46. 
A)  $4.50. 
B)  $5.33. 
C)  $5.00. 
D)  $5.46.

Question 7

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

Accepted Answer

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

Question 8

How is unit cost calculated?

Accepted Answer

A)  total units divided by total costs 
B)  sum of all cost drivers 
C)  total cost divided by equivalent units produced 
D)  total of all costs incurred 
A)  total units divided by total costs 
B)  sum of all cost drivers 
C)  total cost divided by equivalent units produced 
D)  total of all costs incurred

Question 9

Two methods used to determine equivalent units of production in process costing are

Accepted Answer

A)  weighted average and FIFO 
B)  FIFO and LIFO 
C)  weighted average and LIFO 
D)  weighted average and exact costing 
A)  weighted average and FIFO 
B)  FIFO and LIFO 
C)  weighted average and LIFO 
D)  weighted average and exact costing

Question 10

Montgomery Corporation produces boxes of cookies that go through three departments: Mixing, Cooking and Packaging. During April, Montgomery produced 250,000 boxes of cookies with the following costs:
  Required:
A. Calculate the costs transferred out of each department.
B. Prepare journal entries that reflect these cost transfers.

Accepted Answer

The answer of Montgomery Corporation produces boxes of cookies that...

Question 11

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 and completed in Bing Corporation's second department during June would be

Accepted Answer

A)  48,000. 
B)  37,000. 
C)  47,000. 
D)  55,000. 
A)  48,000. 
B)  37,000. 
C)  47,000. 
D)  55,000.

Question 12

Which is the best description of the production report?

Accepted Answer

A)  The production report provides information about the manufacturing costs incurred by the department. 
B)  The report provides information about the physical units processed by the department. 
C)  The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. 
D)  None of these. 
A)  The production report provides information about the manufacturing costs incurred by the department. 
B)  The report provides information about the physical units processed by the department. 
C)  The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. 
D)  None of these.

Question 13

__________________________ are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Accepted Answer

Equivalent

Question 14

Which of the following businesses is most likely to use process costing?

Accepted Answer

A)  chemical plant 
B)  architectural firm 
C)  dentist's office 
D)  manufacturer of fine furniture 
A)  chemical plant 
B)  architectural firm 
C)  dentist's office 
D)  manufacturer of fine furniture

Question 15

Process costing accumulates costs by individual jobs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following businesses is most likely to use process costing?

Accepted Answer

A)  custom home builder 
B)  CPA firm 
C)  chemical manufacturer 
D)  custom machine tools manufacturer 
A)  custom home builder 
B)  CPA firm 
C)  chemical manufacturer 
D)  custom machine tools manufacturer

Question 17

Process accounting's solution for nonuniform manufacturing inputs is

Accepted Answer

A)  calculate equivalent units for each category of manufacturing input. 
B)  calculate total unit cost as if there were uniform manufacturing inputs. 
C)  to use the weighted average method. 
D)  to use FIFO method or the weighted average method. 
A)  calculate equivalent units for each category of manufacturing input. 
B)  calculate total unit cost as if there were uniform manufacturing inputs. 
C)  to use the weighted average method. 
D)  to use FIFO method or the weighted average method.

Question 18

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

Accepted Answer

A) True 
 B)False

Question 19

The weighted average costing method combines beginning inventory costs and work done with current period costs and work to calculate this period's unit cost.

Accepted Answer

A) True 
 B)False

Question 20

Select the appropriate definition for each of the items listed below
-partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion

Accepted Answer

A) parallel processing 
B) sequential processing 
C) process costing 
D) weighted-average costing method 
A) parallel processing 
B) sequential processing 
C) process costing 
D) weighted-average costing method

In process costing, each producing department has its own ________________ account.

FIFO assumes that units in beginning work in process are completed last.

Equivalent production expresses all activity of the period in terms of

The cost of units finished at the last (final) department will flow from work in process to:

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

How is unit cost calculated?

Two methods used to determine equivalent units of production in process costing are

Which is the best description of the production report?

__________________________ are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Which of the following businesses is most likely to use process costing?

Process costing accumulates costs by individual jobs.

Which of the following businesses is most likely to use process costing?

Process accounting's solution for nonuniform manufacturing inputs is

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

The weighted average costing method combines beginning inventory costs and work done with current period costs and work to calculate this period's unit cost.

Select the appropriate definition for each of the items listed below -partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion

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

Exam 6: Process Costing

In process costing, each producing department has its own ________________ account.

FIFO assumes that units in beginning work in process are completed last.

Equivalent production expresses all activity of the period in terms of

The cost of units finished at the last (final) department will flow from work in process to:

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

How is unit cost calculated?

Two methods used to determine equivalent units of production in process costing are

Which is the best description of the production report?

__________________________ are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Which of the following businesses is most likely to use process costing?

Process costing accumulates costs by individual jobs.

Which of the following businesses is most likely to use process costing?

Process accounting's solution for nonuniform manufacturing inputs is

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

The weighted average costing method combines beginning inventory costs and work done with current period costs and work to calculate this period's unit cost.

Select the appropriate definition for each of the items listed below -partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion

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