Exam 7: Process-Costing Systems

Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows: There was no beginning inventory, and of the 400,000 units started in production 336,000 were completed and transferred to the Finishing department, while 64,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs. -The total cost of ending work-in-process inventory is

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Question 1

Correct Answer:

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Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow: Work-in-process, April 1. -The equivalent units for materials are

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Question 2

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A hybrid-costing system often used for batch or group manufacturing of goods that have some common characteristic plus some individual characteristics is called

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Question 3

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The following information pertains to the mixing department of National Paint Products for May 2006. Prepare a cost of production report using the weighted average method.

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Question 4

The following information pertains to the mixing department of Carson Company for September 2006: The costs of work-in-process at September 1 for the mixing department were as follows: Costs added by the mixing department during September were as follows: Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006. -The equivalent units of production for conversion is

(Multiple Choice)

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Question 5

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The equivalent units for conversion costs are

(Multiple Choice)

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Question 6

Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows: There was no beginning inventory, and of the 400,000 units started in production 336,000 were completed and transferred to the Finishing department, while 64,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs. -The equivalent units for materials are

(Multiple Choice)

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(80)

Question 7

When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

(True/False)

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Question 8

Backflush costing is a standardized method or technique that is repetitively performed, regardless of the distinguishing features of the finished product.

(True/False)

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Question 9

Backflush costing has only two categories of costs: materials and conversion costs.

(True/False)

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Question 10

In backflush costing, the journal entry to record the cost of goods sold during the period would include a

(Multiple Choice)

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Question 11

Conversion costs include all manufacturing costs other than direct materials.

(True/False)

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Question 12

Bunn Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The total of costs to account for is

(Multiple Choice)

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Question 13

The expression of a department's processing activity in terms of fully completed units.

(Short Answer)

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Question 14

The first step in preparing a production-cost report is to calculate unit cost.

(True/False)

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Question 15

A method of process manufacturing in which subunits pass through different sequential processes before being brought together in a final process.

(Short Answer)

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Question 16

The following information pertains to the mixing department of Carson Company for September 2006: The costs of work-in-process at September 1 for the mixing department were as follows: Costs added by the mixing department during September were as follows: Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006. -Cost of goods transferred out is

(Multiple Choice)

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Question 17

Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow: Work-in-process, April 1. -Under process costing, the method of handling beginning work-in-process inventory that is almost never used in practice is

(Multiple Choice)

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Question 18

All product costing uses averaging to determine total costs of production.

(True/False)

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Question 19

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -In process costing, the journal entry to record direct labour would include a

(Multiple Choice)

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Question 20

Showing 1 - 20 of 82

A hybrid-costing system often used for batch or group manufacturing of goods that have some common characteristic plus some individual characteristics is called

The following information pertains to the mixing department of National Paint Products for May 2006. Prepare a cost of production report using the weighted average method.

Edwards Company produces calendars in a one-department process. The following information is available: The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. -The equivalent units for conversion costs are

When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

Backflush costing is a standardized method or technique that is repetitively performed, regardless of the distinguishing features of the finished product.

Backflush costing has only two categories of costs: materials and conversion costs.

In backflush costing, the journal entry to record the cost of goods sold during the period would include a

Conversion costs include all manufacturing costs other than direct materials.

The expression of a department's processing activity in terms of fully completed units.

The first step in preparing a production-cost report is to calculate unit cost.

A method of process manufacturing in which subunits pass through different sequential processes before being brought together in a final process.

All product costing uses averaging to determine total costs of production.

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

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