Question 1

Unique or custom-made goods use a process costing system.

Accepted Answer

A) True 
 B)False

Question 2

The costing system used by a company producing custom fireplace mantels 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 3

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

Accepted Answer

A) debit to WIP Inventory-Molding. 
B) debit to Raw Materials Inventory. 
C) credit to Manufacturing Overhead. 
D) credit to Raw Materials Inventory. 
A) debit to WIP Inventory-Molding. 
B) debit to Raw Materials Inventory. 
C) credit to Manufacturing Overhead. 
D) credit to Raw Materials Inventory.

Question 4

At Sunrise Corporation,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) 139,700 
B) 130,500 
C) 135,900 
D) 143,500 
A) 139,700 
B) 130,500 
C) 135,900 
D) 143,500

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the last step of the 5-step process costing procedure?

Accepted Answer

A) Summarize total costs to account for 
B) Assign total costs to units completed and to units in ending WIP Inventory 
C) Compute the cost per equivalent unit 
D) Summarize the flow of physical units 
A) Summarize total costs to account for 
B) Assign total costs to units completed and to units in ending WIP Inventory 
C) Compute the cost per equivalent unit 
D) Summarize the flow of physical units

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 cheese,sauce,and toppings would be closest to

Accepted Answer

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

Question 8

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited when material requests are filled?

Accepted Answer

A) Finished Goods Inventory 
B) WIP Inventory-Finishing 
C) Raw Materials Inventory 
D) Manufacturing Overhead 
A) Finished Goods Inventory 
B) WIP Inventory-Finishing 
C) Raw Materials Inventory 
D) Manufacturing Overhead

Question 9

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

Accepted Answer

A) Fixed costing 
B) Job costing 
C) Process costing 
D) LIFO costing 
A) Fixed costing 
B) Job costing 
C) Process costing 
D) LIFO costing

Question 11

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

Accepted Answer

A) 0%. 
B) 50%. 
C) 100%. 
D) none of the above. 
A) 0%. 
B) 50%. 
C) 100%. 
D) none of the above.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

At Hodgson Corporation,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) 138,700 
B) 129,500 
C) 134,900 
D) 142,500 
A) 138,700 
B) 129,500 
C) 134,900 
D) 142,500

Question 14

At Hodgson Corporation,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) 127,200 
B) 125,300 
C) 129,500 
D) 138,700 
A) 127,200 
B) 125,300 
C) 129,500 
D) 138,700

Question 15

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 equivalent units for flavoring is

Accepted Answer

A) 14,000. 
B) 15,500. 
C) 13,250. 
D) 1,500. 
A) 14,000. 
B) 15,500. 
C) 13,250. 
D) 1,500.

Question 16

At Sunrise Corporation,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) $2.75 
B) $3.00 
C) $3.21 
D) $3.08 
A) $2.75 
B) $3.00 
C) $3.21 
D) $3.08

Question 17

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 total equivalent units for direct materials are

Accepted Answer

A) 1,730. 
B) 1,940. 
C) 1,100. 
D) 2,500. 
A) 1,730. 
B) 1,940. 
C) 1,100. 
D) 2,500.

Question 18

The existence of ending Work In Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory,and how much of the cost should be assigned to units completed during the period.

Accepted Answer

A) True 
 B)False

Question 19

In a process costing system,costs flow into Finished Goods Inventory only from the Work In Process Inventory of the last process.

Accepted Answer

A) True 
 B)False

Question 20

The cost per equivalent unit must be computed for transferred-in costs,as well as direct materials and conversions costs,in a subsequent department.

Accepted Answer

A) True 
 B)False

Unique or custom-made goods use a process costing system.

The costing system used by a company producing custom fireplace mantels would be

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

At Sunrise Corporation,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?

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

Which of the following is the last step of the 5-step process costing procedure?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited when material requests are filled?

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

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

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

At Hodgson Corporation,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?

At Hodgson Corporation,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?

At Sunrise Corporation,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?

The existence of ending Work In Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory,and how much of the cost should be assigned to units completed during the period.

In a process costing system,costs flow into Finished Goods Inventory only from the Work In Process Inventory of the last process.

The cost per equivalent unit must be computed for transferred-in costs,as well as direct materials and conversions costs,in a subsequent department.

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

Unique or custom-made goods use a process costing system.

The costing system used by a company producing custom fireplace mantels would be

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

At Sunrise Corporation,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?

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

Which of the following is the last step of the 5-step process costing procedure?

Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited when material requests are filled?

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

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

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

At Hodgson Corporation,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?

At Hodgson Corporation,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?

At Sunrise Corporation,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?

The existence of ending Work In Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory,and how much of the cost should be assigned to units completed during the period.

In a process costing system,costs flow into Finished Goods Inventory only from the Work In Process Inventory of the last process.

The cost per equivalent unit must be computed for transferred-in costs,as well as direct materials and conversions costs,in a subsequent department.

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