Question 1

The entry to record the use of direct materials in production would include a

Accepted Answer

A) debit to Finished Goods Inventory. 
B) debit to Raw Materials Inventory. 
C) debit to WIP Inventory. 
D) credit to Finished Goods Inventory. 
A) debit to Finished Goods Inventory. 
B) debit to Raw Materials Inventory. 
C) debit to WIP Inventory. 
D) credit to Finished Goods Inventory.

Question 2

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

Accepted Answer

A) conversion report. 
B) income costing statement. 
C) bill of materials. 
D) production cost report. 
A) conversion report. 
B) income costing statement. 
C) bill of materials. 
D) production cost report.

Question 3

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

Accepted Answer

A) 50%. 
B) 100%. 
C) 0%. 
D) none of the above. 
A) 50%. 
B) 100%. 
C) 0%. 
D) none of the above.

Question 4

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Accepted Answer

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

Question 5

Which costs comprise WIP Inventory on a production cost report?

Accepted Answer

A) Direct materials and direct labor 
B) Direct materials and Manufacturing Overhead 
C) Direct materials, direct labor, and Manufacturing Overhead 
D) Direct labor and Manufacturing Overhead 
A) Direct materials and direct labor 
B) Direct materials and Manufacturing Overhead 
C) Direct materials, direct labor, and Manufacturing Overhead 
D) Direct labor and Manufacturing Overhead

Question 6

The entry to transfer goods in process from Dept. A to Dept. B includes increasing (debiting)WIP Inventory in Dept. A.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

Accepted Answer

A) Fixed costing 
B) Job costing 
C) Process costing 
D) LIFO costing 
A) Fixed costing 
B) Job costing 
C) Process costing 
D) LIFO costing

Question 8

In a job cost system, all costs flow to a particular job.

Accepted Answer

A) True 
 B)False

Question 9

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 materials would be closest to

Accepted Answer

A) $14.62. 
B) $9.46. 
C) $12.80. 
D) $12.09. 
A) $14.62. 
B) $9.46. 
C) $12.80. 
D) $12.09.

Question 10

The following information is provided by Widget Company:   The units were 80% complete for materials and 30% complete for conversion costs.
How much are the total costs to be accounted for during the year?

Accepted Answer

A) $27,500 
B) $24,800 
C) $40,900 
D) $52,300 
A) $27,500 
B) $24,800 
C) $40,900 
D) $52,300

Question 11

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:   What is the total cost of units completed and transferred out?

Accepted Answer

A) $542,154.59 
B) $620,503.58 
C) $505,372.26 
D) $549,072.00 
A) $542,154.59 
B) $620,503.58 
C) $505,372.26 
D) $549,072.00

Question 12

Beginning WIP Inventory is 16,500 units, 75% complete for materials. During the month 94,000 units were started; 81,000 were finished; and ending WIP was 29,500 units that were 50% complete for materials. How many equivalent units should be used to allocate costs for materials (assume as usual, that the weighted average method is used, not FIFO)?

Accepted Answer

A) 93,375 
B) 95,750 
C) 108,750 
D) 103,125 
A) 93,375 
B) 95,750 
C) 108,750 
D) 103,125

Question 13

How is the cost per equivalent unit calculated?

Accepted Answer

A) Total costs to account for divided by total equivalent units 
B) Total equivalent units divided by total cost to account for 
C) Total estimated costs to account for divided by number of units completed 
D) Total product costs divided by equivalent units 
A) Total costs to account for divided by total equivalent units 
B) Total equivalent units divided by total cost to account for 
C) Total estimated costs to account for divided by number of units completed 
D) Total product costs divided by equivalent units

Question 14

In a process costing system, direct labor and manufacturing overhead are normally

Accepted Answer

A) incurred at the end of the process. 
B) incurred evenly throughout the process. 
C) incurred in full at the beginning of the process. 
D) not recorded. 
A) incurred at the end of the process. 
B) incurred evenly throughout the process. 
C) incurred in full at the beginning of the process. 
D) not recorded.

Question 15

Materials are added at the beginning of the process and conversion costs are added uniformly.   What is the total number of physical units to account for?

Accepted Answer

A) 62,500 
B) 53,500 
C) 42,000 
D) 44,500 
A) 62,500 
B) 53,500 
C) 42,000 
D) 44,500

Question 16

The May Corporation uses a process system. During the current period, 2800 units were started and 1600 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $42,405 and conversion costs added were $27,870. There was no beginning WIP Inventory and conversion costs are added evenly throughout the process. At the end of the period, the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

A) $17.42. 
B) $18.28. 
C) $13.02. 
D) $26.50. 
A) $17.42. 
B) $18.28. 
C) $13.02. 
D) $26.50.

Question 17

Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process.

Accepted Answer

A) True 
 B)False

Question 18

Perfect Pigments has 2900 gallons of paint in WIP Inventory, with 72% of materials already added. The paint is 40% 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) 928 
C) 2088 
D) 1160 
A) 0 
B) 928 
C) 2088 
D) 1160

Question 19

Which of the following items would appear first on a production cost report?

Accepted Answer

A) Total costs accounted for 
B) Cost of goods finished for the month 
C) Total equivalent units 
D) Beginning WIP, if any 
A) Total costs accounted for 
B) Cost of goods finished for the month 
C) Total equivalent units 
D) Beginning WIP, if any

Question 20

The following information is provided by Panther Company:   The units were 80% complete for materials and 30% complete for conversion costs.
How much are the total costs to be accounted for during the year?

Accepted Answer

A) $38,000 
B) $50,000 
C) $25,100 
D) $24,900 
A) $38,000 
B) $50,000 
C) $25,100 
D) $24,900

The entry to record the use of direct materials in production would include a

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

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

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Which costs comprise WIP Inventory on a production cost report?

The entry to transfer goods in process from Dept. A to Dept. B includes increasing (debiting)WIP Inventory in Dept. A.

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

In a job cost system, all costs flow to a particular job.

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 materials would be closest to

The following information is provided by Widget Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs to be accounted for during the year?

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the total cost of units completed and transferred out?

How is the cost per equivalent unit calculated?

In a process costing system, direct labor and manufacturing overhead are normally

Materials are added at the beginning of the process and conversion costs are added uniformly. What is the total number of physical units to account for?

Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process.

Perfect Pigments has 2900 gallons of paint in WIP Inventory, with 72% of materials already added. The paint is 40% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

Which of the following items would appear first on a production cost report?

The following information is provided by Panther Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs to be accounted for during the year?

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 entry to record the use of direct materials in production would include a

The document many process costing companies use to summarize the entire five-step process on one schedule is called the

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

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which account is debited when the frisbees are totally completed?

Which costs comprise WIP Inventory on a production cost report?

The entry to transfer goods in process from Dept. A to Dept. B includes increasing (debiting)WIP Inventory in Dept. A.

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?

In a job cost system, all costs flow to a particular job.

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 materials would be closest to

The following information is provided by Widget Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs to be accounted for during the year?

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the total cost of units completed and transferred out?

How is the cost per equivalent unit calculated?

In a process costing system, direct labor and manufacturing overhead are normally

Materials are added at the beginning of the process and conversion costs are added uniformly. What is the total number of physical units to account for?

Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process.

Perfect Pigments has 2900 gallons of paint in WIP Inventory, with 72% of materials already added. The paint is 40% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

Which of the following items would appear first on a production cost report?

The following information is provided by Panther Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs to be accounted for during the year?

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