Question 1

The final of the accounting for processes with respect to process costing is to

Accepted Answer

A)  compute the amount of debits to work-in-process. 
B)  compute the amount of credits to work-in-process. 
C)  compute the equivalent units for the period. 
D)  account for all units placed in process during the period. 
E)  account for all units in ending inventory at the end of the period. 
A)  compute the amount of debits to work-in-process. 
B)  compute the amount of credits to work-in-process. 
C)  compute the equivalent units for the period. 
D)  account for all units placed in process during the period. 
E)  account for all units in ending inventory at the end of the period.

Question 2

Unit costs do not fluctuate between periods.

Accepted Answer

A) True 
 B)False

Question 3

Operating personnel must be able to estimate the percentage of work-in-process completed in process costing.

Accepted Answer

A) True 
 B)False

Question 4

Excalibur Ltd. began operations on October 1 of the current year. Its production requires that direct materials are added at the beginning of the process and conversion costs are incurred uniformly. Direct materials costs for October were $380,000 and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units which were 60% complete. The cost per equivalent unit for direct materials was:

Accepted Answer

A)  $4.75 
B)  $15.20 
C)  $5.85 
D)  $5.43 
E)  $7.92 
A)  $4.75 
B)  $15.20 
C)  $5.85 
D)  $5.43 
E)  $7.92

Question 5

Which costing system is well-suited for companies which have infrequent changes in their basic products?

Accepted Answer

A)  equivalent-average unit costing method 
B)  first-in, first-out method 
C)  standard costing 
D)  weighted-average costing 
E)  last in first out costing 
A)  equivalent-average unit costing method 
B)  first-in, first-out method 
C)  standard costing 
D)  weighted-average costing 
E)  last in first out costing

Question 6

Which of the following is False concerning an operations-costing system?

Accepted Answer

A)  It has characteristics of a job-costing system and of a process-costing system. 
B)  Within each operation, all product-units are treated exactly alike with respect to conversion costs. 
C)  Direct materials that are unique to different work orders, are specifically identified with the appropriate work order, as in job-costing. 
D)  Work orders are used to specify direct materials and step-by-step operations. 
E)  A separate conversion cost is calculated for each work order, as in job costing. 
A)  It has characteristics of a job-costing system and of a process-costing system. 
B)  Within each operation, all product-units are treated exactly alike with respect to conversion costs. 
C)  Direct materials that are unique to different work orders, are specifically identified with the appropriate work order, as in job-costing. 
D)  Work orders are used to specify direct materials and step-by-step operations. 
E)  A separate conversion cost is calculated for each work order, as in job costing.

Question 7

There are basically two distinct methods of calculating product costs.
Required:
Compare and contrast the two methods.

Accepted Answer

In job costing the job or product is a d

Question 8

Use the information below to answer the following question(s).
Father Time Clock Shop manufactures clocks on an automated assembly line. It utilizes two cost categories: direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.
Data for the Assembly Department are:
  
-What is the equivalent units for materials costs for May using the weighted average method?

Accepted Answer

A)  180,000 cushions 
B)  160,000 cushions 
C)  140,000 cushions 
D)  118,000 cushions 
E)  123,000 cushions 
A)  180,000 cushions 
B)  160,000 cushions 
C)  140,000 cushions 
D)  118,000 cushions 
E)  123,000 cushions

Question 9

The Zygon Corporation was recently formed to produce a semiconductor chip that forms an essential part of the personal computer manufactured by a major corporation. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. June is Zygon's first month of operations, and therefore, there was no beginning inventory. Direct materials cost for the month totaled $895,000, while conversion costs equaled $4,225,000. Accounting records indicate that 475,000 chips were started in June and 425,000 chips were completed.
Ending inventory was 50% complete as to conversion costs.
Required:
a. What is the total manufacturing cost per chip for June?
b. Allocate the total costs between the completed chips and the chips in ending inventory.

Accepted Answer

a.
 @#IMG-DLM& Equivalent unit

Question 10

Weighty Steel processes a single type of steel. For the current period the following information is given:   All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory was 30% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period?

Accepted Answer

A)  $107,010 
B)  $109,440 
C)  $113,160 
D)  $120,100 
A)  $107,010 
B)  $109,440 
C)  $113,160 
D)  $120,100

Question 11

Managers find operation costing useful in cost management because it

Accepted Answer

A)  often results in profit maximization. 
B)  results in cost minimization. 
C)  captures the financial impact of the control of physical processes. 
D)  overstates production costs. 
E)  understates operating income. 
A)  often results in profit maximization. 
B)  results in cost minimization. 
C)  captures the financial impact of the control of physical processes. 
D)  overstates production costs. 
E)  understates operating income.

Question 12

The weighted-average process costing method assigns the cost of the earliest equivalent units available to units completed and transferred out, and the cost of the most recent equivalent units worked on during the period to ending work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 13

Describe three objectives of a costing system.

Accepted Answer

1. Estimate as accurately as possible th

Question 14

Transferred-in costs incurred in a previous department and charged to a subsequent department

Accepted Answer

A)  are combined with direct materials costs of the subsequent department for a total direct materials costs figure. 
B)  are always from the previous period. 
C)  become part of Cost of Goods Sold in the current period. 
D)  are always assigned using the FIFO method. 
E)  follow the physical movement of the units. 
A)  are combined with direct materials costs of the subsequent department for a total direct materials costs figure. 
B)  are always from the previous period. 
C)  become part of Cost of Goods Sold in the current period. 
D)  are always assigned using the FIFO method. 
E)  follow the physical movement of the units.

Question 15

What is the difference between a weighted-average method of process costing and a first-in, first-out
method of process costing?

Accepted Answer

The weighted average method computes uni

Question 16

Discuss some typical products which would likely use process costing.

Accepted Answer

In a process-costing system, the units p

Question 17

The primary difference between job costing and process costing is the extent of averaging used to compute unit costs of products or services.

Accepted Answer

The answer of The primary difference between job costing and...

Question 18

What is the materials cost per unit in January using the FIFO method?

Accepted Answer

A)  $2.00 
B)  $1.67 
C)  $2.25 
D)  $2.50 
E)  $3.00 
A)  $2.00 
B)  $1.67 
C)  $2.25 
D)  $2.50 
E)  $3.00

Question 19

Operation-costing differs from pure process-costing in that operation-costing charges each work order separately for direct material cost.

Accepted Answer

A) True 
 B)False

Question 20

The weighted-average process costing method distinguishes between units started in the previous period but completed during the current period and units started and completed during the current period.

Accepted Answer

A) True 
 B)False

The final of the accounting for processes with respect to process costing is to

Unit costs do not fluctuate between periods.

Operating personnel must be able to estimate the percentage of work-in-process completed in process costing.

Which costing system is well-suited for companies which have infrequent changes in their basic products?

Which of the following is False concerning an operations-costing system?

There are basically two distinct methods of calculating product costs. Required: Compare and contrast the two methods.

Managers find operation costing useful in cost management because it

The weighted-average process costing method assigns the cost of the earliest equivalent units available to units completed and transferred out, and the cost of the most recent equivalent units worked on during the period to ending work-in-process inventory.

Describe three objectives of a costing system.

Transferred-in costs incurred in a previous department and charged to a subsequent department

What is the difference between a weighted-average method of process costing and a first-in, first-out method of process costing?

Discuss some typical products which would likely use process costing.

The primary difference between job costing and process costing is the extent of averaging used to compute unit costs of products or services.

What is the materials cost per unit in January using the FIFO method?

Operation-costing differs from pure process-costing in that operation-costing charges each work order separately for direct material cost.

The weighted-average process costing method distinguishes between units started in the previous period but completed during the current period and units started and completed during the current period.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 17: Process Costing

The final of the accounting for processes with respect to process costing is to

Unit costs do not fluctuate between periods.

Operating personnel must be able to estimate the percentage of work-in-process completed in process costing.

Which costing system is well-suited for companies which have infrequent changes in their basic products?

Which of the following is False concerning an operations-costing system?

There are basically two distinct methods of calculating product costs. Required: Compare and contrast the two methods.

Managers find operation costing useful in cost management because it

The weighted-average process costing method assigns the cost of the earliest equivalent units available to units completed and transferred out, and the cost of the most recent equivalent units worked on during the period to ending work-in-process inventory.

Describe three objectives of a costing system.

Transferred-in costs incurred in a previous department and charged to a subsequent department

What is the difference between a weighted-average method of process costing and a first-in, first-out method of process costing?

Discuss some typical products which would likely use process costing.

The primary difference between job costing and process costing is the extent of averaging used to compute unit costs of products or services.

What is the materials cost per unit in January using the FIFO method?

Operation-costing differs from pure process-costing in that operation-costing charges each work order separately for direct material cost.

The weighted-average process costing method distinguishes between units started in the previous period but completed during the current period and units started and completed during the current period.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters