Question 1

Which of the following is a measure of the amount of work done,expressed in complete units of output?

Accepted Answer

A) Job costing 
B) Process costing 
C) Conversion costs 
D) Equivalent units 
A) Job costing 
B) Process costing 
C) Conversion costs 
D) Equivalent units

Question 2

The following information is provided by Zander Corporation:
 
The units in ending WIP Inventory were 80% complete for materials and 45% complete for conversion costs.
At the end of the year,what are the equivalent units for conversion costs?

Accepted Answer

A) 11,250 
B) 6,300 
C) 2,250 
D) 9,000 
A) 11,250 
B) 6,300 
C) 2,250 
D) 9,000

Question 3

In a particular department,8,200 units were started and all but 800 were completed at the end of the period.These 800 were 80% complete for materials and 30% for conversion costs.Costs added were $55,400 for materials and $52,100 for conversion costs.What is the total number of equivalent units for conversion costs?

Accepted Answer

A) 8,200 
B) 8,040 
C) 8,440 
D) 7,640 
A) 8,200 
B) 8,040 
C) 8,440 
D) 7,640

Question 4

At Hodgson Corporation,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include:
 
What is the total cost of units completed and transferred out?

Accepted Answer

A) $610,150 
B) $627,375 
C) $562,639 
D) $607,425 
A) $610,150 
B) $627,375 
C) $562,639 
D) $607,425

Question 5

In a process costing environment,direct labor and Manufacturing Overhead are usually combined into one cost category called "conversion cost."

Accepted Answer

A) True 
 B)False

Question 6

In process costing,________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

Accepted Answer

A) Cost of Goods Sold 
B) equivalent units 
C) fixed Manufacturing Overhead costs 
D) conversion costs 
A) Cost of Goods Sold 
B) equivalent units 
C) fixed Manufacturing Overhead costs 
D) conversion costs

Question 7

If conversion costs are added evenly throughout the production process,and the units have made it 50% of the way through the production process,then the percentage completion for conversion costs is 50%.

Accepted Answer

A) True 
 B)False

Question 8

Sunnyside Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 14,000 gallons of the drink,and the 1,500 gallons left in ending WIP were 50% of the way through the process.
The number of equivalent units for conversion costs is

Accepted Answer

A) 1,500. 
B) 14,750. 
C) 13,250. 
D) 14,000. 
A) 1,500. 
B) 14,750. 
C) 13,250. 
D) 14,000.

Question 9

Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding,coloring and finishing.When the balls and associated costs are transferred from the coloring process to the finishing process,which account is credited?

Accepted Answer

A) WIP Inventory-Coloring 
B) WIP Inventory-Molding 
C) Raw Materials Inventory 
D) WIP Inventory-Finishing 
A) WIP Inventory-Coloring 
B) WIP Inventory-Molding 
C) Raw Materials Inventory 
D) WIP Inventory-Finishing

Question 10

Process costing is most likely used in which of the following industries?

Accepted Answer

A) Pharmaceuticals 
B) Health Care 
C) Shipbuilding 
D) Construction 
A) Pharmaceuticals 
B) Health Care 
C) Shipbuilding 
D) Construction

Question 11

If a company has 6,000 units that are 60% complete,the equivalent unit figure is 3,600.

Accepted Answer

A) True 
 B)False

Question 12

The Jones Corporation uses a process system.During the current period,2,500 units were started and 1,100 units were completed and transferred out.Ending units were 60% complete for materials and 45% complete for conversion costs.Direct materials costs added were $35,405 and conversion costs added were $32,870.There was no beginning WIP Inventory and conversion costs are added evenly throughout the process.At the end of the period,the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $29.88. 
B) $18.25. 
C) $19.00. 
D) $32.19. 
A) $29.88. 
B) $18.25. 
C) $19.00. 
D) $32.19.

Question 13

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to WIP-Processing Department #1.

Accepted Answer

A) True 
 B)False

Question 14

When units are transferred from Processing Department #1 to Processing Department #2,a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Accepted Answer

A) True 
 B)False

Question 15

A company manufactures wallets.Last month's costs were:
 
What were the conversion costs for the month?

Accepted Answer

A) $235,000 
B) $390,000 
C) $237,000 
D) $472,000 
A) $235,000 
B) $390,000 
C) $237,000 
D) $472,000

Question 16

The entry to record the use of direct materials in production would include a

Accepted Answer

A) debit to Finished Goods Inventory. 
B) debit to Raw Materials Inventory. 
C) debit to WIP Inventory. 
D) credit to Finished Goods Inventory. 
A) debit to Finished Goods Inventory. 
B) debit to Raw Materials Inventory. 
C) debit to WIP Inventory. 
D) credit to Finished Goods Inventory.

Question 17

The following information is provided by Alexandria Corporation:
 
The units in ending WIP Inventory were 75% complete for materials and 50% complete for conversion costs.
What are the total equivalent units for direct materials?

Accepted Answer

A) 12,750 
B) 3,750 
C) 5,000 
D) 14,000 
A) 12,750 
B) 3,750 
C) 5,000 
D) 14,000

Question 18

A tennis ball maker gives us its data for the year:
 
Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs.
On December 31,the total cost of the units in ending WIP would be closest to

Accepted Answer

A) $6,239. 
B) $7,569. 
C) $19,320. 
D) $10,005. 
A) $6,239. 
B) $7,569. 
C) $19,320. 
D) $10,005.

Question 19

A pizza company produces frozen pizzas in three departments: assembly,freezing,and packaging.In assembly,crust ingredients are added at the beginning of the process.After the crust is made,the sauce,cheese,and toppings are added at the end of the process.Conversion costs are added evenly.Data for the assembly department includes:
 
The cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $1.01. 
B) $1.30. 
C) $1.20. 
D) $1.00. 
A) $1.01. 
B) $1.30. 
C) $1.20. 
D) $1.00.

Question 20

The Jones Corporation uses a process system.During the current period,2,500 units were started and 1,100 units were completed and transferred out.Ending units were 60% complete for materials and 45% complete for conversion costs.Direct materials costs added were $35,405 and conversion costs added were $32,870.There was no beginning WIP Inventory and conversion costs are added evenly throughout the process.At the end of the period,what are the total equivalent units for conversion costs?

Accepted Answer

A) 1,940 
B) 1,400 
C) 1,100 
D) 1,730 
A) 1,940 
B) 1,400 
C) 1,100 
D) 1,730

Which of the following is a measure of the amount of work done,expressed in complete units of output?

The following information is provided by Zander Corporation: The units in ending WIP Inventory were 80% complete for materials and 45% complete for conversion costs. At the end of the year,what are the equivalent units for conversion costs?

At Hodgson Corporation,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What is the total cost of units completed and transferred out?

In a process costing environment,direct labor and Manufacturing Overhead are usually combined into one cost category called "conversion cost."

In process costing,________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

If conversion costs are added evenly throughout the production process,and the units have made it 50% of the way through the production process,then the percentage completion for conversion costs is 50%.

Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding,coloring and finishing.When the balls and associated costs are transferred from the coloring process to the finishing process,which account is credited?

Process costing is most likely used in which of the following industries?

If a company has 6,000 units that are 60% complete,the equivalent unit figure is 3,600.

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to WIP-Processing Department #1.

When units are transferred from Processing Department #1 to Processing Department #2,a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

A company manufactures wallets.Last month's costs were: What were the conversion costs for the month?

The entry to record the use of direct materials in production would include a

The following information is provided by Alexandria Corporation: The units in ending WIP Inventory were 75% complete for materials and 50% complete for conversion costs. What are the total equivalent units for direct materials?

A tennis ball maker gives us its data for the year: Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs. On December 31,the total cost of the units in ending WIP would be closest to

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 5: Process Costing

Which of the following is a measure of the amount of work done,expressed in complete units of output?

The following information is provided by Zander Corporation: The units in ending WIP Inventory were 80% complete for materials and 45% complete for conversion costs. At the end of the year,what are the equivalent units for conversion costs?

At Hodgson Corporation,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What is the total cost of units completed and transferred out?

In a process costing environment,direct labor and Manufacturing Overhead are usually combined into one cost category called "conversion cost."

In process costing,________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

If conversion costs are added evenly throughout the production process,and the units have made it 50% of the way through the production process,then the percentage completion for conversion costs is 50%.

Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding,coloring and finishing.When the balls and associated costs are transferred from the coloring process to the finishing process,which account is credited?

Process costing is most likely used in which of the following industries?

If a company has 6,000 units that are 60% complete,the equivalent unit figure is 3,600.

The journal entry to record the use of direct materials in Processing Department #1 would include a credit to WIP-Processing Department #1.

When units are transferred from Processing Department #1 to Processing Department #2,a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

A company manufactures wallets.Last month's costs were: What were the conversion costs for the month?

The entry to record the use of direct materials in production would include a

The following information is provided by Alexandria Corporation: The units in ending WIP Inventory were 75% complete for materials and 50% complete for conversion costs. What are the total equivalent units for direct materials?

A tennis ball maker gives us its data for the year: Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs. On December 31,the total cost of the units in ending WIP would be closest to

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters