Question 1

The cost per equivalent unit for direct materials will always be equal to the cost per equivalent unit for conversion costs.

Accepted Answer

A) True 
 B)False

Question 2

During a period,38,200 units were completed and 5,300 units were in ending WIP Inventory.Ending WIP was 70% complete for direct materials and 50% complete for conversion costs.What are the equivalent units for direct materials?

Accepted Answer

A) 43,500 
B) 40,850 
C) 41,910 
D) 30,450 
A) 43,500 
B) 40,850 
C) 41,910 
D) 30,450

Question 3

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited for direct labor used during the molding process?

Accepted Answer

A) Wages Payable 
B) Manufacturing Overhead 
C) Raw Materials Inventory 
D) WIP Inventory-Molding 
A) Wages Payable 
B) Manufacturing Overhead 
C) Raw Materials Inventory 
D) WIP Inventory-Molding

Question 4

The "total costs to account for" is the sum of the costs in beginning WIP Inventory plus the manufacturing costs added during the period.

Accepted Answer

A) True 
 B)False

Question 5

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

Accepted Answer

A) conversion report. 
B) income costing statement. 
C) bill of materials. 
D) production cost report. 
A) conversion report. 
B) income costing statement. 
C) bill of materials. 
D) production cost report.

Question 6

Which item would appear last on a production cost report?

Accepted Answer

A) Cost of goods finished for the month 
B) Total costs accounted for 
C) Beginning WIP Inventory,if any 
D) Ending WIP Inventory,if any 
A) Cost of goods finished for the month 
B) Total costs accounted for 
C) Beginning WIP Inventory,if any 
D) Ending WIP Inventory,if any

Question 7

For which of the following do we prepare calculations for equivalent units?

Accepted Answer

A) Both direct labor and Manufacturing Overhead 
B) Both direct materials and conversion costs 
C) Both direct labor and direct materials 
D) Neither direct materials nor conversion costs 
A) Both direct labor and Manufacturing Overhead 
B) Both direct materials and conversion costs 
C) Both direct labor and direct materials 
D) Neither direct materials nor conversion costs

Question 8

The managerial accountant at Pembroke Manufacturing reported the following data:
 
Costs of units transferred to Finished Goods Inventory would be closest to

Accepted Answer

A) $3,002,300. 
B) $1,531,200. 
C) $2,900,000. 
D) $3,314,200. 
A) $3,002,300. 
B) $1,531,200. 
C) $2,900,000. 
D) $3,314,200.

Question 9

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the Finishing Department follows:
 
The cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $5.15. 
B) $4.31. 
C) $4.69. 
D) $5.47. 
A) $5.15. 
B) $4.31. 
C) $4.69. 
D) $5.47.

Question 10

In a job cost system,all costs flow to a particular job.

Accepted Answer

A) True 
 B)False

Question 11

In a process system,direct labor and Manufacturing Overhead are normally

Accepted Answer

A) incurred at the end of the process. 
B) incurred evenly throughout the process. 
C) incurred in full at the beginning of the process. 
D) not recorded. 
A) incurred at the end of the process. 
B) incurred evenly throughout the process. 
C) incurred in full at the beginning of the process. 
D) not recorded.

Question 12

When calculating equivalent units in a second or later processing department,all physical units should be considered 50% complete with respect to transferred-in work and costs.

Accepted Answer

A) True 
 B)False

Question 13

What does direct labor costs plus Manufacturing Overhead equal?

Accepted Answer

A) Prime costs 
B) Operating costs 
C) Conversion costs 
D) Equivalent costs 
A) Prime costs 
B) Operating costs 
C) Conversion costs 
D) Equivalent costs

Question 14

Assume no beginning WIP Inventory.The ending WIP Inventory is 30% complete for materials.The total number of equivalents for materials would be

Accepted Answer

A) less than the units started. 
B) less than the units completed. 
C) equal to the units completed. 
D) equal to the units started. 
A) less than the units started. 
B) less than the units completed. 
C) equal to the units completed. 
D) equal to the units started.

Question 15

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include:
 
What are the total equivalent units for conversion costs?

Accepted Answer

A) 130,460 
B) 165,200 
C) 142,600 
D) 151,640 
A) 130,460 
B) 165,200 
C) 142,600 
D) 151,640

Question 16

In a process costing system,the number of WIP inventories

Accepted Answer

A) equal the number of production departments. 
B) equal the number of products produced. 
C) equal the number used in a job cost system. 
D) cannot equal the number of parts used in the product. 
A) equal the number of production departments. 
B) equal the number of products produced. 
C) equal the number used in a job cost system. 
D) cannot equal the number of parts used in the product.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) 165,200 
B) 135,200 
C) 195,200 
D) 142,600 
A) 165,200 
B) 135,200 
C) 195,200 
D) 142,600

Question 19

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

The cost per equivalent unit for direct materials will always be equal to the cost per equivalent unit for conversion costs.

During a period,38,200 units were completed and 5,300 units were in ending WIP Inventory.Ending WIP was 70% complete for direct materials and 50% complete for conversion costs.What are the equivalent units for direct materials?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited for direct labor used during the molding process?

The "total costs to account for" is the sum of the costs in beginning WIP Inventory plus the manufacturing costs added during the period.

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

Which item would appear last on a production cost report?

For which of the following do we prepare calculations for equivalent units?

The managerial accountant at Pembroke Manufacturing reported the following data: Costs of units transferred to Finished Goods Inventory would be closest to

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the Finishing Department follows: The cost per equivalent unit for conversion costs would be closest to

In a job cost system,all costs flow to a particular job.

In a process system,direct labor and Manufacturing Overhead are normally

When calculating equivalent units in a second or later processing department,all physical units should be considered 50% complete with respect to transferred-in work and costs.

What does direct labor costs plus Manufacturing Overhead equal?

Assume no beginning WIP Inventory.The ending WIP Inventory is 30% complete for materials.The total number of equivalents for materials would be

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What are the total equivalent units for conversion costs?

In a process costing system,the number of WIP inventories

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

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

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

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

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

The cost per equivalent unit for direct materials will always be equal to the cost per equivalent unit for conversion costs.

During a period,38,200 units were completed and 5,300 units were in ending WIP Inventory.Ending WIP was 70% complete for direct materials and 50% complete for conversion costs.What are the equivalent units for direct materials?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited for direct labor used during the molding process?

The "total costs to account for" is the sum of the costs in beginning WIP Inventory plus the manufacturing costs added during the period.

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

Which item would appear last on a production cost report?

For which of the following do we prepare calculations for equivalent units?

The managerial accountant at Pembroke Manufacturing reported the following data: Costs of units transferred to Finished Goods Inventory would be closest to

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the Finishing Department follows: The cost per equivalent unit for conversion costs would be closest to

In a job cost system,all costs flow to a particular job.

In a process system,direct labor and Manufacturing Overhead are normally

When calculating equivalent units in a second or later processing department,all physical units should be considered 50% complete with respect to transferred-in work and costs.

What does direct labor costs plus Manufacturing Overhead equal?

Assume no beginning WIP Inventory.The ending WIP Inventory is 30% complete for materials.The total number of equivalents for materials would be

At Onyx Incorporated,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: What are the total equivalent units for conversion costs?

In a process costing system,the number of WIP inventories

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

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

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

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

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