Question 1

The managerial accountant at Duck Manufacturing reported the following information:   The cost of ending WIP is closest to

Accepted Answer

A) $114,207.36. 
B) $266,444.98. 
C) $323,900. 
D) $356,053. 
A) $114,207.36. 
B) $266,444.98. 
C) $323,900. 
D) $356,053.

Question 2

Process costing would not be used by which of the following companies?

Accepted Answer

A) Sherwin-Williams, manufacturer of paint and stains 
B) Coca-Cola, soft drink manufacturer 
C) American Custom Yachts, Inc., manufacturer of custom yachts 
D) Jelly Belly, manufacturer of jelly beans and other candy 
A) Sherwin-Williams, manufacturer of paint and stains 
B) Coca-Cola, soft drink manufacturer 
C) American Custom Yachts, Inc., manufacturer of custom yachts 
D) Jelly Belly, manufacturer of jelly beans and other candy

Question 3

The following information is provided by Adametz Company:   The units in ending WIP Inventory were 90% complete for materials and 85% complete for conversion costs.
At the end of the year, what are the equivalent units for conversion costs?

Accepted Answer

A) 6120 
B) 3000 
C) 6570 
D) 3570 
A) 6120 
B) 3000 
C) 6570 
D) 3570

Question 4

If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.

Accepted Answer

A) True 
 B)False

Question 5

The two basic types of product costing systems are

Accepted Answer

A) department and plant. 
B) FIFO and weighted-average. 
C) variable and process. 
D) job and process. 
A) department and plant. 
B) FIFO and weighted-average. 
C) variable and process. 
D) job and process.

Question 6

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

Accepted Answer

A) Compute output in terms of equivalent units 
B) Summarize total costs to account for 
C) Summarize the flow of physical units 
D) Compute the cost per equivalent unit 
A) Compute output in terms of equivalent units 
B) Summarize total costs to account for 
C) Summarize the flow of physical units 
D) Compute the cost per equivalent unit

Question 7

Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct materials and Conversion costs.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Yummy Tummy Desserts has 3100 quarts of ice cream in WIP Inventory, with all materials already added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 67% through the process?

Accepted Answer

A) 3100 
B) 2077 
C) 1023 
D) 0 
A) 3100 
B) 2077 
C) 1023 
D) 0

Question 10

Yummy Tummy Desserts has2600 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 72% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

Accepted Answer

A) 0 
B) 2600 
C) 1872 
D) 728 
A) 0 
B) 2600 
C) 1872 
D) 728

Question 11

On a production cost report, the following cost(s)would appear

Accepted Answer

A) beginning work in process. 
B) costs added during the period. 
C) total operating costs during the period. 
D) Both A and B are included on a production cost report. 
A) beginning work in process. 
B) costs added during the period. 
C) total operating costs during the period. 
D) Both A and B are included on a production cost report.

Question 12

A golf ball manufacturer 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 cost per equivalent unit for direct materials would be closest to

Accepted Answer

A) $2.05. 
B) $1.87. 
C) $1.45. 
D) $1.63. 
A) $2.05. 
B) $1.87. 
C) $1.45. 
D) $1.63.

Question 13

The journal entry a company would make under process costing to record direct labor worked in the Assembly Department would be

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 14

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 15

What are the ending inventory equivalent units for materials if 15,600 units are completed and transferred out and 4800 remain in ending WIP at 35% complete?

Accepted Answer

A) 3780 
B) 4800 
C) 1680 
D) 5460 
A) 3780 
B) 4800 
C) 1680 
D) 5460

Question 16

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 17

During a period, 39,200 units were completed and 5000 units were in ending WIP Inventory. Ending WIP was 50% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Accepted Answer

A) 44,200 
B) 539,200 
C) 41,700 
D) 22,100 
A) 44,200 
B) 539,200 
C) 41,700 
D) 22,100

Question 18

Process costing is typically used for businesses that make unique goods in relatively small amounts.

Accepted Answer

A) True 
 B)False

Question 19

When units are sold, Cost of Goods Sold is debited.

Accepted Answer

A) True 
 B)False

Question 20

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 23,000 gallons of the drink, and the 1600 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) 1600. 
B) 23,800. 
C) 22,200. 
D) 23,000. 
A) 1600. 
B) 23,800. 
C) 22,200. 
D) 23,000.

The managerial accountant at Duck Manufacturing reported the following information: The cost of ending WIP is closest to

Process costing would not be used by which of the following companies?

The following information is provided by Adametz Company: The units in ending WIP Inventory were 90% complete for materials and 85% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.

The two basic types of product costing systems are

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

Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct materials and Conversion costs.

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

Yummy Tummy Desserts has 3100 quarts of ice cream in WIP Inventory, with all materials already added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 67% through the process?

Yummy Tummy Desserts has2600 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 72% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

On a production cost report, the following cost(s)would appear

A golf ball manufacturer 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 cost per equivalent unit for direct materials would be closest to

The journal entry a company would make under process costing to record direct labor worked in the Assembly Department would be

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

What are the ending inventory equivalent units for materials if 15,600 units are completed and transferred out and 4800 remain in ending WIP at 35% complete?

What does direct labor costs plus Manufacturing Overhead equal?

During a period, 39,200 units were completed and 5000 units were in ending WIP Inventory. Ending WIP was 50% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Process costing is typically used for businesses that make unique goods in relatively small amounts.

When units are sold, Cost of Goods Sold is debited.

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 Evalulation

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 managerial accountant at Duck Manufacturing reported the following information: The cost of ending WIP is closest to

Process costing would not be used by which of the following companies?

The following information is provided by Adametz Company: The units in ending WIP Inventory were 90% complete for materials and 85% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.

The two basic types of product costing systems are

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

Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct materials and Conversion costs.

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

Yummy Tummy Desserts has 3100 quarts of ice cream in WIP Inventory, with all materials already added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 67% through the process?

Yummy Tummy Desserts has2600 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 72% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

On a production cost report, the following cost(s)would appear

A golf ball manufacturer 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 cost per equivalent unit for direct materials would be closest to

The journal entry a company would make under process costing to record direct labor worked in the Assembly Department would be

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

What are the ending inventory equivalent units for materials if 15,600 units are completed and transferred out and 4800 remain in ending WIP at 35% complete?

What does direct labor costs plus Manufacturing Overhead equal?

During a period, 39,200 units were completed and 5000 units were in ending WIP Inventory. Ending WIP was 50% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Process costing is typically used for businesses that make unique goods in relatively small amounts.

When units are sold, Cost of Goods Sold is debited.

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 Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters