Question 1

Which of the following is the second 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

If a company has ending Work In Process Inventory it must use the 3-step process costing procedure to determine the cost of making one unit.

Accepted Answer

A) True 
 B)False

Question 3

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 conversion costs would be closest to

Accepted Answer

A) $0.74. 
B) $1.17. 
C) $1.28. 
D) $1.38. 
A) $0.74. 
B) $1.17. 
C) $1.28. 
D) $1.38.

Question 4

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

Accepted Answer

A) True 
 B)False

Question 5

Conversion costs are generally added evenly throughout a process.

Accepted Answer

A) True 
 B)False

Question 6

To assign costs to the units in ending WIP Inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

Accepted Answer

A) True 
 B)False

Question 7

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly.   The total cost of units remaining in ending WIP Inventory is closest to

Accepted Answer

A) $646,351.37. 
B) $528,525. 
C) $159,155.24. 
D) $586,963.09. 
A) $646,351.37. 
B) $528,525. 
C) $159,155.24. 
D) $586,963.09.

Question 8

If a company has ending Work In Process Inventory it must use the 5-step process costing procedure to determine the cost of making one unit.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A deodorant manufacturer offers the following information:   The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31, what are the total equivalent units for direct materials?

Accepted Answer

A) 35,600 
B) 51,440 
C) 19,760 
D) 25,040 
A) 35,600 
B) 51,440 
C) 19,760 
D) 25,040

Question 11

Equivalent units should be computed separately for direct materials and conversion costs.

Accepted Answer

A) True 
 B)False

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

If a company has ending Work In Process Inventory it must use the 3-step process costing procedure to determine the cost of making one unit.

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

Conversion costs are generally added evenly throughout a process.

To assign costs to the units in ending WIP Inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly. The total cost of units remaining in ending WIP Inventory is closest to

If a company has ending Work In Process Inventory it must use the 5-step process costing procedure to determine the cost of making one unit.

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

A deodorant manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units for direct materials?

Equivalent units should be computed separately for direct materials and conversion 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 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 second step of the 5-step process costing procedure?

If a company has ending Work In Process Inventory it must use the 3-step process costing procedure to determine the cost of making one unit.

The "total physical units to account for" is the sum of the units in beginning WIP Inventory plus the units started in production during the period.

Conversion costs are generally added evenly throughout a process.

To assign costs to the units in ending WIP Inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly. The total cost of units remaining in ending WIP Inventory is closest to

If a company has ending Work In Process Inventory it must use the 5-step process costing procedure to determine the cost of making one unit.

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

A deodorant manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units for direct materials?

Equivalent units should be computed separately for direct materials and conversion 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 Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters