Question 1

Which of the following is the first 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 2

The following information is provided by Arrow Company:   The units in ending WIP Inventory were 80% complete for materials and 42% complete for conversion costs.
At the end of the year, what are the equivalent units for conversion costs?

Accepted Answer

A) 5392 
B) 1092 
C) 4300 
D) 2898 
A) 5392 
B) 1092 
C) 4300 
D) 2898

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Cost for direct materials, direct labor and Manufacturing Overhead are assigned to each job.

Accepted Answer

A) True 
 B)False

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

The Work in Process Inventory account for process costing accumulates which of the following costs?

Accepted Answer

A) Direct materials 
B) Allocated manufacturing overhead 
C) Direct labor 
D) All of the above 
A) Direct materials 
B) Allocated manufacturing overhead 
C) Direct labor 
D) All of the above

Question 8

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 9

A company manufactures mirrors. Last month's costs were:   What were the conversion costs for the month?

Accepted Answer

A) $308,000 
B) $394,000 
C) $235,000 
D) $86,000 
A) $308,000 
B) $394,000 
C) $235,000 
D) $86,000

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) $5.57. 
B) $4.61. 
C) $5.81. 
D) $4.97. 
A) $5.57. 
B) $4.61. 
C) $5.81. 
D) $4.97.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

If a company has a series of processes, the company uses just one work-in-process account.

Accepted Answer

A) True 
 B)False

Question 14

Brambles Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.   What is the total number of equivalent units for direct materials?

Accepted Answer

A) 55,000 
B) 60,400 
C) 63,600 
D) 61,600 
A) 55,000 
B) 60,400 
C) 63,600 
D) 61,600

Question 15

The weighted average and FIFO methods differ only in how they treat beginning inventory.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the fourth 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 17

The mixing department has 49,000 equivalent units of direct materials and 30,000 equivalent units of conversion costs. The direct materials cost $39,000, and the conversion costs are $19,000. Assuming no beginning inventory, the total cost per equivalent unit is (Round any intermediary calculations and your final answer to the nearest cent.)

Accepted Answer

A) $1.18. 
B) $0.63. 
C) $1.43. 
D) $0.80. 
A) $1.18. 
B) $0.63. 
C) $1.43. 
D) $0.80.

Question 18

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 19

The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.

Accepted Answer

A) True 
 B)False

Question 20

Process costing is typically used for businesses that make large quantities of identical items.

Accepted Answer

A) True 
 B)False

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

The following information is provided by Arrow Company: The units in ending WIP Inventory were 80% complete for materials and 42% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

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

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

Cost for direct materials, direct labor and Manufacturing Overhead are assigned to each job.

Which item would appear last on a production cost report?

The Work in Process Inventory account for process costing accumulates which of the following costs?

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

A company manufactures mirrors. Last month's costs were: What were the conversion costs for the month?

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

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

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

If a company has a series of processes, the company uses just one work-in-process account.

Brambles Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. What is the total number of equivalent units for direct materials?

The weighted average and FIFO methods differ only in how they treat beginning inventory.

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

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

The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.

Process costing is typically used for businesses that make large quantities of identical items.

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

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

The following information is provided by Arrow Company: The units in ending WIP Inventory were 80% complete for materials and 42% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

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

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

Cost for direct materials, direct labor and Manufacturing Overhead are assigned to each job.

Which item would appear last on a production cost report?

The Work in Process Inventory account for process costing accumulates which of the following costs?

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

A company manufactures mirrors. Last month's costs were: What were the conversion costs for the month?

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

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

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

If a company has a series of processes, the company uses just one work-in-process account.

Brambles Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. What is the total number of equivalent units for direct materials?

The weighted average and FIFO methods differ only in how they treat beginning inventory.

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

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

The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.

Process costing is typically used for businesses that make large quantities of identical items.

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