Question 1

The journal entry to record the ultimate completion of the units would include a debit to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 2

When units are moved from one processing department to the next,the cost associated with those units must also be moved from one WIP account to the next.What are these costs called?

Accepted Answer

A) Transported costs 
B) Transmitted costs 
C) Transferred costs 
D) Conveyed costs 
A) Transported costs 
B) Transmitted costs 
C) Transferred costs 
D) Conveyed costs

Question 3

The number of equivalent units is computed before computing the cost per equivalent unit.

Accepted Answer

A) True 
 B)False

Question 4

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include:
 
What is the cost per equivalent unit for direct materials?

Accepted Answer

A) $3.00 
B) $3.48 
C) $3.67 
D) $2.68 
A) $3.00 
B) $3.48 
C) $3.67 
D) $2.68

Question 5

Conversion costs are the sum of direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 6

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding,coloring and finishing.When the frisbees and associated costs are transferred out of the coloring process and into the finishing process,the journal entry would include a

Accepted Answer

A) debit to WIP Inventory-Coloring and a credit to WIP-Finishing. 
B) debit to Finished Goods Inventory and a credit to WIP Coloring. 
C) debit to WIP Inventory-Finishing and a credit to WIP Coloring. 
D) debit to WIP Inventory-Coloring and a credit to Finished Goods Inventory. 
A) debit to WIP Inventory-Coloring and a credit to WIP-Finishing. 
B) debit to Finished Goods Inventory and a credit to WIP Coloring. 
C) debit to WIP Inventory-Finishing and a credit to WIP Coloring. 
D) debit to WIP Inventory-Coloring and a credit to Finished Goods Inventory.

Question 7

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 crust ingredients would be closest to

Accepted Answer

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

Question 8

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in beginning WIP Inventory.

Accepted Answer

A) True 
 B)False

Question 9

The full-time employees at Rocky Corporation work 8 hours per day,while the part-time employees work 6 hours per day.Rocky has 2,250 full-time employees and 900 part-time employees.What is the number of full-time equivalent employees?

Accepted Answer

A) 2,363 
B) 2,925 
C) 3,150 
D) 2,250 
A) 2,363 
B) 2,925 
C) 3,150 
D) 2,250

Question 10

A company uses a process system.The number of equivalent units in ending WIP Inventory regarding direct materials costs and conversion costs is

Accepted Answer

A) always lower for direct materials. 
B) always equal. 
C) always lower for conversion costs. 
D) none of the above. 
A) always lower for direct materials. 
B) always equal. 
C) always lower for conversion costs. 
D) none of the above.

Question 11

In process costing,there is only one Work In Process Inventory account for all of the individual processing departments.

Accepted Answer

A) True 
 B)False

Question 12

To assign costs to the units in ending WIP Inventory,the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately,and then sums the two amounts.

Accepted Answer

A) True 
 B)False

Question 13

Process costing would likely be used by which of the following?

Accepted Answer

A) Clear Channel Advertising 
B) PIP Printing 
C) DBA Management Consultants 
D) PepsiCo 
A) Clear Channel Advertising 
B) PIP Printing 
C) DBA Management Consultants 
D) PepsiCo

Question 14

The mixing department has 44,000 equivalent units of direct materials and 25,000 equivalent units of conversion costs.The direct materials cost $33,000,and the conversion costs are $10,000.Assuming no beginning inventory,the total cost per equivalent unit is

Accepted Answer

A) $0.98. 
B) $0.40. 
C) $1.15. 
D) $0.75. 
A) $0.98. 
B) $0.40. 
C) $1.15. 
D) $0.75.

Question 15

In process costing,units that are partially completed are accounted for the same as units in Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 16

The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period.

Accepted Answer

A) True 
 B)False

Question 17

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

Accepted Answer

A) True 
 B)False

Question 18

The journal entry to record the ultimate completion of the units would include a debit to the WIP Inventory account of the last sequential production department.

Accepted Answer

A) True 
 B)False

Question 19

The costing system used by a company making computer chips would be

Accepted Answer

A) process costing. 
B) job costing. 
C) equivalent units costing. 
D) conversion cost costing. 
A) process costing. 
B) job costing. 
C) equivalent units costing. 
D) conversion cost costing.

Question 20

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Requisition of materials to molding includes a

Accepted Answer

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

The journal entry to record the ultimate completion of the units would include a debit to Finished Goods Inventory.

When units are moved from one processing department to the next,the cost associated with those units must also be moved from one WIP account to the next.What are these costs called?

The number of equivalent units is computed before computing the cost per equivalent unit.

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What is the cost per equivalent unit for direct materials?

Conversion costs are the sum of direct labor and direct materials.

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding,coloring and finishing.When the frisbees and associated costs are transferred out of the coloring process and into the finishing process,the journal entry would include a

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in beginning WIP Inventory.

The full-time employees at Rocky Corporation work 8 hours per day,while the part-time employees work 6 hours per day.Rocky has 2,250 full-time employees and 900 part-time employees.What is the number of full-time equivalent employees?

A company uses a process system.The number of equivalent units in ending WIP Inventory regarding direct materials costs and conversion costs is

In process costing,there is only one Work In Process Inventory account for all of the individual processing departments.

To assign costs to the units in ending WIP Inventory,the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately,and then sums the two amounts.

Process costing would likely be used by which of the following?

The mixing department has 44,000 equivalent units of direct materials and 25,000 equivalent units of conversion costs.The direct materials cost $33,000,and the conversion costs are $10,000.Assuming no beginning inventory,the total cost per equivalent unit is

In process costing,units that are partially completed are accounted for the same as units in Finished Goods Inventory.

The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period.

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

The journal entry to record the ultimate completion of the units would include a debit to the WIP Inventory account of the last sequential production department.

The costing system used by a company making computer chips would be

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Requisition of materials to molding includes a

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

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Exam 5: Process Costing

The journal entry to record the ultimate completion of the units would include a debit to Finished Goods Inventory.

When units are moved from one processing department to the next,the cost associated with those units must also be moved from one WIP account to the next.What are these costs called?

The number of equivalent units is computed before computing the cost per equivalent unit.

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What is the cost per equivalent unit for direct materials?

Conversion costs are the sum of direct labor and direct materials.

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding,coloring and finishing.When the frisbees and associated costs are transferred out of the coloring process and into the finishing process,the journal entry would include a

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in beginning WIP Inventory.

The full-time employees at Rocky Corporation work 8 hours per day,while the part-time employees work 6 hours per day.Rocky has 2,250 full-time employees and 900 part-time employees.What is the number of full-time equivalent employees?

A company uses a process system.The number of equivalent units in ending WIP Inventory regarding direct materials costs and conversion costs is

In process costing,there is only one Work In Process Inventory account for all of the individual processing departments.

To assign costs to the units in ending WIP Inventory,the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately,and then sums the two amounts.

Process costing would likely be used by which of the following?

The mixing department has 44,000 equivalent units of direct materials and 25,000 equivalent units of conversion costs.The direct materials cost $33,000,and the conversion costs are $10,000.Assuming no beginning inventory,the total cost per equivalent unit is

In process costing,units that are partially completed are accounted for the same as units in Finished Goods Inventory.

The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period.

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

The journal entry to record the ultimate completion of the units would include a debit to the WIP Inventory account of the last sequential production department.

The costing system used by a company making computer chips would be

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Requisition of materials to molding includes a

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