Question 1

Costs are transferred, along with the units, from one WIP Inventory to the next.

Accepted Answer

A) True 
 B)False

Question 2

Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

Accepted Answer

A) The denominator would include 100 units for both. 
B) The denominator would include 70 units for direct materials and 20 for conversion. 
C) The denominator would include 20 units for direct materials and 80 for conversion. 
D) You cannot determine what constitutes the denominator. 
A) The denominator would include 100 units for both. 
B) The denominator would include 70 units for direct materials and 20 for conversion. 
C) The denominator would include 20 units for direct materials and 80 for conversion. 
D) You cannot determine what constitutes the denominator.

Question 3

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 is the total cost of units completed and transferred?

Accepted Answer

A) $598,000 
B) $371,232 
C) $481,702 
D) $1,194,400 
A) $598,000 
B) $371,232 
C) $481,702 
D) $1,194,400

Question 4

Equivalent units express the amount of work done during a period in terms of partially completed units.

Accepted Answer

A) True 
 B)False

Question 5

When the units are sold, Cost of Goods Sold is credited.

Accepted Answer

A) True 
 B)False

Question 6

In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

Accepted Answer

A) Cost of Goods Sold 
B) equivalent units 
C) fixed Manufacturing Overhead costs 
D) conversion costs 
A) Cost of Goods Sold 
B) equivalent units 
C) fixed Manufacturing Overhead costs 
D) conversion costs

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In a mass-production environment, direct labor is usually a relatively small component of the total manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a measure of the amount of work done, expressed in complete units of output?

Accepted Answer

A) Job costing 
B) Process costing 
C) Conversion costs 
D) Equivalent units 
A) Job costing 
B) Process costing 
C) Conversion costs 
D) Equivalent units

Question 10

Start the Day Right has 2800 gallons of orange juice in WIP Inventory, with 72% of materials already added. The orange juice is 55% 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) 476 
C) 1540 
D) 2016 
A) 0 
B) 476 
C) 1540 
D) 2016

Question 11

In a particular department, 8200 units were started and all but 1300 were completed at the end of the period. These 1300 were 80% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for conversion costs?

Accepted Answer

A) 8200 
B) 7940 
C) 8590 
D) 7290 
A) 8200 
B) 7940 
C) 8590 
D) 7290

Question 12

How is the cost per equivalent unit computed?

Accepted Answer

A) Total equivalent units divided by total costs to account for 
B) Total costs to account for divided by total equivalent units 
C) Costs in beginning WIP Inventory divided by equivalent units in beginning WIP 
D) Costs added to production during the month divided by equivalent units in ending WIP 
A) Total equivalent units divided by total costs to account for 
B) Total costs to account for divided by total equivalent units 
C) Costs in beginning WIP Inventory divided by equivalent units in beginning WIP 
D) Costs added to production during the month divided by equivalent units in ending WIP

Question 13

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, the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $26.11. 
B) $36.98. 
C) $55.13. 
D) $52.14. 
A) $26.11. 
B) $36.98. 
C) $55.13. 
D) $52.14.

Question 14

Materials are added at the beginning of the process and conversion costs are added uniformly.   At period end, what would be the total equivalent units for direct materials?

Accepted Answer

A) 43,500 
B) 67,500 
C) 54,000 
D) 42,000 
A) 43,500 
B) 67,500 
C) 54,000 
D) 42,000

Question 15

Unique or custom-made goods use a process costing system.

Accepted Answer

A) True 
 B)False

Question 16

Conversion costs are usually incurred evenly throughout productions.

Accepted Answer

A) True 
 B)False

Question 17

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Shaping Department   What are the equivalent units for conversion costs?

Accepted Answer

A) 56,000 
B) 46,600 
C) 52,750 
D) 48,200 
A) 56,000 
B) 46,600 
C) 52,750 
D) 48,200

Question 18

Manufacturing costs are usually combined into two categories in a process costing system. These two categories are

Accepted Answer

A) direct labor and conversion costs. 
B) direct materials and conversion costs. 
C) Manufacturing Overhead and conversion costs. 
D) direct materials and direct labor. 
A) direct labor and conversion costs. 
B) direct materials and conversion costs. 
C) Manufacturing Overhead and conversion costs. 
D) direct materials and direct labor.

Question 19

At Opal Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:   What are the total equivalent units for conversion costs?

Accepted Answer

A) 128,440 
B) 178,200 
C) 146,600 
D) 159,240 
A) 128,440 
B) 178,200 
C) 146,600 
D) 159,240

Question 20

Freddie Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:   The total number of physical units for which we have to account is

Accepted Answer

A) 44,000. 
B) 63,000. 
C) 71,000. 
D) 55,000. 
A) 44,000. 
B) 63,000. 
C) 71,000. 
D) 55,000.

Costs are transferred, along with the units, from one WIP Inventory to the next.

Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

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 is the total cost of units completed and transferred?

Equivalent units express the amount of work done during a period in terms of partially completed units.

When the units are sold, Cost of Goods Sold is credited.

In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

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

In a mass-production environment, direct labor is usually a relatively small component of the total manufacturing costs.

Which of the following is a measure of the amount of work done, expressed in complete units of output?

Start the Day Right has 2800 gallons of orange juice in WIP Inventory, with 72% of materials already added. The orange juice is 55% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

How is the cost per equivalent unit computed?

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, the cost per equivalent unit for conversion costs would be closest to

Materials are added at the beginning of the process and conversion costs are added uniformly. At period end, what would be the total equivalent units for direct materials?

Unique or custom-made goods use a process costing system.

Conversion costs are usually incurred evenly throughout productions.

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Shaping Department What are the equivalent units for conversion costs?

Manufacturing costs are usually combined into two categories in a process costing system. These two categories are

At Opal Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

Freddie Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows: The total number of physical units for which we have to account is

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

Costs are transferred, along with the units, from one WIP Inventory to the next.

Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

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 is the total cost of units completed and transferred?

Equivalent units express the amount of work done during a period in terms of partially completed units.

When the units are sold, Cost of Goods Sold is credited.

In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.

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

In a mass-production environment, direct labor is usually a relatively small component of the total manufacturing costs.

Which of the following is a measure of the amount of work done, expressed in complete units of output?

Start the Day Right has 2800 gallons of orange juice in WIP Inventory, with 72% of materials already added. The orange juice is 55% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

How is the cost per equivalent unit computed?

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, the cost per equivalent unit for conversion costs would be closest to

Materials are added at the beginning of the process and conversion costs are added uniformly. At period end, what would be the total equivalent units for direct materials?

Unique or custom-made goods use a process costing system.

Conversion costs are usually incurred evenly throughout productions.

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Shaping Department What are the equivalent units for conversion costs?

Manufacturing costs are usually combined into two categories in a process costing system. These two categories are

At Opal Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?

Freddie Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows: The total number of physical units for which we have to account is

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