Question 1

Equivalent units express the amount of work done during a period of time in terms of fully completed units of output.

Accepted Answer

A) True 
 B)False

Question 2

Perfect Pigments has 3200 gallons of paint in WIP Inventory, with 73% of materials already added. What are equivalent units in ending WIP Inventory for materials if the paint is 46% through the process?

Accepted Answer

A) 2336 
B) 1472 
C) 0 
D) 864 
A) 2336 
B) 1472 
C) 0 
D) 864

Question 3

There are 35,000 units started. 24,600 were completed and transferred out and the 11,400 remaining units were 55% complete for conversion costs. The total number of equivalent units for conversion costs is

Accepted Answer

A) 24,600. 
B) 30,870. 
C) 19,800. 
D) 6270. 
A) 24,600. 
B) 30,870. 
C) 19,800. 
D) 6270.

Question 4

At Opal Incorporated, 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 conversion costs?

Accepted Answer

A) $1.64 
B) $2.02 
C) $1.79 
D) $2.30 
A) $1.64 
B) $2.02 
C) $1.79 
D) $2.30

Question 5

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 0%.

Accepted Answer

A) True 
 B)False

Question 6

At Billy Distillery, direct materials are added at the beginning of the process and conversion costs are added throughout the process. Data for the Finishing Department follows:
   Required:
a. What are the equivalent units for conversion costs?
b. What is the cost per equivalent unit for conversion costs?
c. What are the equivalent units for direct materials?
d. What are the total number of physical units for which to account?

Accepted Answer

The answer of At Billy Distillery, direct materials are added...

Question 7

The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 8

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 50%.

Accepted Answer

A) True 
 B)False

Question 9

Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?

Accepted Answer

A) Finished Goods Inventory 
B) WIP Inventory-Coloring 
C) WIP Inventory-Finishing 
D) WIP Inventory-Molding 
A) Finished Goods Inventory 
B) WIP Inventory-Coloring 
C) WIP Inventory-Finishing 
D) WIP Inventory-Molding

Question 10

The following information is provided by Easy Street, Inc.:   The units in ending WIP Inventory were 75% complete for materials and 43% complete for conversion costs.
At the end of the year, what are the equivalent units for conversion costs?

Accepted Answer

A) 5805 
B) 8500 
C) 2150 
D) 10,650 
A) 5805 
B) 8500 
C) 2150 
D) 10,650

Question 11

If all direct materials are added at the beginning 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 0%.

Accepted Answer

A) True 
 B)False

Question 12

Equivalent units are calculated by

Accepted Answer

A) multiplying the physical number of units by the percentage of completion. 
B) adding the physical number of units with the number of units completed last period. 
C) subtracting the physical units finished this period from the physical units in beginning inventory. 
D) dividing the physical number of units by the percentage of completion. 
A) multiplying the physical number of units by the percentage of completion. 
B) adding the physical number of units with the number of units completed last period. 
C) subtracting the physical units finished this period from the physical units in beginning inventory. 
D) dividing the physical number of units by the percentage of completion.

Question 13

The mixing department has 23,000 units and $50,000 in costs for which to account. Of the 23,000 units, 10,000 were completed and transferred to the next department. The 13,000 remaining were 25% complete for conversion costs. Direct materials are added at the beginning of the process, and the conversion costs are added evenly throughout the process. The cost per equivalent unit is $3.25 for direct materials and $0.80 for conversion costs. The total costs to account for are

Accepted Answer

A) $73,288. 
B) $50,000. 
C) $44,850. 
D) $52,650. 
A) $73,288. 
B) $50,000. 
C) $44,850. 
D) $52,650.

Question 14

There are 34,400 units started. 22,600 were completed and transferred out and the 9800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is

Accepted Answer

A) 28,480. 
B) 19,440. 
C) 22,600. 
D) 5880. 
A) 28,480. 
B) 19,440. 
C) 22,600. 
D) 5880.

Question 15

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

Accepted Answer

A) True 
 B)False

Question 16

When units are sold, Finished Goods Inventory is debited.

Accepted Answer

A) True 
 B)False

Question 17

A separate Work in Process Inventory account is maintained for each process.

Accepted Answer

A) True 
 B)False

Question 18

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) $1.18. 
B) $0.76. 
C) $1.27. 
D) $1.53. 
A) $1.18. 
B) $0.76. 
C) $1.27. 
D) $1.53.

Question 19

Satellite Manufacturing is a company that manufactures satellite parts. The two departments in the company include the Placement Department and the Organization Department. The managerial accountant assigned total costs to units completed and to units in ending Work In Process Inventory and reported the following information:   Which of the following journal entry is needed to transfer the costs?

Accepted Answer

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

Question 20

In process costing, the costs flow from Raw Materials Inventory, to Work In Process Inventory, to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Equivalent units express the amount of work done during a period of time in terms of fully completed units of output.

Perfect Pigments has 3200 gallons of paint in WIP Inventory, with 73% of materials already added. What are equivalent units in ending WIP Inventory for materials if the paint is 46% through the process?

There are 35,000 units started. 24,600 were completed and transferred out and the 11,400 remaining units were 55% complete for conversion costs. The total number of equivalent units for conversion costs is

At Opal Incorporated, 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 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 0%.

The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.

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 50%.

Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?

The following information is provided by Easy Street, Inc.: The units in ending WIP Inventory were 75% complete for materials and 43% 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 beginning 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 0%.

Equivalent units are calculated by

There are 34,400 units started. 22,600 were completed and transferred out and the 9800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

When units are sold, Finished Goods Inventory is debited.

A separate Work in Process Inventory account is maintained for each process.

In process costing, the costs flow from Raw Materials Inventory, to Work In Process Inventory, to Finished Goods Inventory.

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

Equivalent units express the amount of work done during a period of time in terms of fully completed units of output.

Perfect Pigments has 3200 gallons of paint in WIP Inventory, with 73% of materials already added. What are equivalent units in ending WIP Inventory for materials if the paint is 46% through the process?

There are 35,000 units started. 24,600 were completed and transferred out and the 11,400 remaining units were 55% complete for conversion costs. The total number of equivalent units for conversion costs is

At Opal Incorporated, 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 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 0%.

The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.

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 50%.

Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?

The following information is provided by Easy Street, Inc.: The units in ending WIP Inventory were 75% complete for materials and 43% 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 beginning 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 0%.

Equivalent units are calculated by

There are 34,400 units started. 22,600 were completed and transferred out and the 9800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost."

When units are sold, Finished Goods Inventory is debited.

A separate Work in Process Inventory account is maintained for each process.

In process costing, the costs flow from Raw Materials Inventory, to Work In Process Inventory, to Finished Goods Inventory.

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