Question 1

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials Inventory.

Accepted Answer

A) True 
 B)False

Question 2

Assigning costs to units completed and to units in ending WIP Inventory in a second department is a three-step process.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) 12,600 
B) 10,880 
C) 4000 
D) 8600 
A) 12,600 
B) 10,880 
C) 4000 
D) 8600

Question 4

Assume 21,500units were in beginning WIP; 44,200 units were started; 56,000 units were completed; and 9700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

Accepted Answer

A) 53,900 
B) 77,500 
C) 44,200 
D) 65,700 
A) 53,900 
B) 77,500 
C) 44,200 
D) 65,700

Question 5

Conversion costs are the sum of direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 6

When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Accepted Answer

A) True 
 B)False

Question 7

Prime costs include direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 8

Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:
   Required:
a. What are the total equivalent units for direct materials?
b. What are the total equivalent units for conversion costs?
c. What is the cost per equivalent unit for direct materials?
d. What is the cost per equivalent unit for conversion costs?
e. What is the total cost of units completed and transferred out?
f. What is the total cost of units remaining in ending WIP?

Accepted Answer

The answer of Direct materials are added at the beginning...

Question 9

Which of the following is unique to a process costing system?

Accepted Answer

A) Work is not started on a product until an order is received. 
B) Direct materials, direct labor and Manufacturing Overhead are assigned to the first department only. 
C) Costs for each process stay with that process until the goods are moved to Finished Goods Inventory. 
D) Each process has its own WIP account. 
A) Work is not started on a product until an order is received. 
B) Direct materials, direct labor and Manufacturing Overhead are assigned to the first department only. 
C) Costs for each process stay with that process until the goods are moved to Finished Goods Inventory. 
D) Each process has its own WIP account.

Question 10

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 22,000 gallons of the drink, and the 2200 gallons left in ending WIP were 50% of the way through the process. Costs incurred during the period were:
  The cost assigned to ending work in process would be closest to

Accepted Answer

A) $3650. 
B) $2408. 
C) $1936. 
D) $1450. 
A) $3650. 
B) $2408. 
C) $1936. 
D) $1450.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Total direct materials = $67,500, and there is no beginning WIP Inventory. Units completed are 15,000 with no ending Work In Process Inventory. The cost per unit is $4.50.

Accepted Answer

A) True 
 B)False

Question 13

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

Accepted Answer

A) True 
 B)False

Question 14

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

Accepted Answer

A) the units completed and transferred out plus the units in ending WIP. 
B) the units in ending WIP plus the units started in production during the month. 
C) the units in beginning WIP plus the units in ending WIP. 
D) the units in beginning WIP plus the units completed and transferred out. 
A) the units completed and transferred out plus the units in ending WIP. 
B) the units in ending WIP plus the units started in production during the month. 
C) the units in beginning WIP plus the units in ending WIP. 
D) the units in beginning WIP plus the units completed and transferred out.

Question 15

In a process costing system, the number of WIP inventories

Accepted Answer

A) equal the number of production departments. 
B) equal the number of products produced. 
C) equal the number used in a job cost system. 
D) cannot equal the number of parts used in the product. 
A) equal the number of production departments. 
B) equal the number of products produced. 
C) equal the number used in a job cost system. 
D) cannot equal the number of parts used in the product.

Question 16

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in ending WIP Inventory.

Accepted Answer

A) True 
 B)False

Question 17

A deodorant manufacturer offers the following information:   The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
What is the total cost of units in ending WIP?

Accepted Answer

A) $1,016,589 
B) $403,200 
C) $551,040 
D) $609,958 
A) $1,016,589 
B) $403,200 
C) $551,040 
D) $609,958

Question 18

Beginning WIP Inventory is 800 units; completed and transferred out were 4100 units; and Ending WIP Inventory is 800 units. What is the number of units started?

Accepted Answer

A) 5700 
B) 3300 
C) 4100 
D) 4900 
A) 5700 
B) 3300 
C) 4100 
D) 4900

Question 19

The managerial accountant at Pembroke Manufacturing reported the following data:   Costs of units transferred to Finished Goods Inventory would be closest to

Accepted Answer

A) $3,011,300. 
B) $1,487,992. 
C) $2,858,220. 
D) $3,349,200. 
A) $3,011,300. 
B) $1,487,992. 
C) $2,858,220. 
D) $3,349,200.

Question 20

In a process system with multiple processes, the cost of units completed in Department One is transferred to

Accepted Answer

A) Finished Goods Inventory. 
B) WIP in Department Two. 
C) Cost of Goods Sold. 
D) overhead. 
A) Finished Goods Inventory. 
B) WIP in Department Two. 
C) Cost of Goods Sold. 
D) overhead.

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials Inventory.

Assigning costs to units completed and to units in ending WIP Inventory in a second department is a three-step process.

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

Assume 21,500units were in beginning WIP; 44,200 units were started; 56,000 units were completed; and 9700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

Conversion costs are the sum of direct labor and direct materials.

When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Prime costs include direct labor and direct materials.

Which of the following is unique to a process costing system?

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

Total direct materials = $67,500, and there is no beginning WIP Inventory. Units completed are 15,000 with no ending Work In Process Inventory. The cost per unit is $4.50.

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

In a process costing system, the number of WIP inventories

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in ending WIP Inventory.

A deodorant manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. What is the total cost of units in ending WIP?

Beginning WIP Inventory is 800 units; completed and transferred out were 4100 units; and Ending WIP Inventory is 800 units. What is the number of units started?

The managerial accountant at Pembroke Manufacturing reported the following data: Costs of units transferred to Finished Goods Inventory would be closest to

In a process system with multiple processes, the cost of units completed in Department One is transferred to

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

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Exam 5: Process Costing

The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials Inventory.

Assigning costs to units completed and to units in ending WIP Inventory in a second department is a three-step process.

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

Assume 21,500units were in beginning WIP; 44,200 units were started; 56,000 units were completed; and 9700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

Conversion costs are the sum of direct labor and direct materials.

When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Prime costs include direct labor and direct materials.

Which of the following is unique to a process costing system?

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

Total direct materials = $67,500, and there is no beginning WIP Inventory. Units completed are 15,000 with no ending Work In Process Inventory. The cost per unit is $4.50.

The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work In Process Inventory.

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

In a process costing system, the number of WIP inventories

The "total physical units accounted for" is the sum of the units completed and transferred out during the period plus the units in ending WIP Inventory.

A deodorant manufacturer offers the following information: The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. What is the total cost of units in ending WIP?

Beginning WIP Inventory is 800 units; completed and transferred out were 4100 units; and Ending WIP Inventory is 800 units. What is the number of units started?

The managerial accountant at Pembroke Manufacturing reported the following data: Costs of units transferred to Finished Goods Inventory would be closest to

In a process system with multiple processes, the cost of units completed in Department One is transferred to

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