Question 1

The four-steps of tracking product costs in a process costing system are ________.

Accepted Answer

A)  verify, analyze, record, and adjust 
B)  assign, analyze, approximate, and allocate 
C)  accumulate, assign, allocate, and adjust 
D)  arrive, analyze, assume, and allocate 
A)  verify, analyze, record, and adjust 
B)  assign, analyze, approximate, and allocate 
C)  accumulate, assign, allocate, and adjust 
D)  arrive, analyze, assume, and allocate C

Question 2

The weighted-average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

Accepted Answer

A) True 
 B)False  False

Question 3

Iowa,Inc.purchased raw materials for $6,000 and $25,000 for cash and on account,respectively.Provide the journal entry to record the purchase of raw materials.

Accepted Answer

$$\begin{array} { | c | r | r | } 
\hline \text { Raw Materials Inventory } & 31,000 & \
\hline \text { Cash } & & 6,000 \
\hline \text { Accounts Payable } & & 25,000 \
\hline \text { Materials purchased, accumulated in RM } & & \
\hline
\end{array}$$

Question 4

Direct labor costs are accumulated in the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Question 5

A process is one of a series of steps in manufacturing production,usually associated with making large quantities of similar items.

Accepted Answer

A) True 
 B)False

Question 6

The Assembly Department of Smart,Inc.,a manufacturer of computers,had a beginning inventory of 5,000 units.During November,it assembled 4,000 units and transferred them to the Packaging Department.It incurred $250,000 in direct materials and $75,000 in conversion costs.The ending inventory in November was 3,000 units,which were 100% and 50% complete with respect to materials and conversion costs,respectively.Calculate the total equivalent units of production for conversion costs for November.

Accepted Answer

A)  4,000 units 
B)  7,000 units 
C)  5,500 units 
D)  1,500 units 
A)  4,000 units 
B)  7,000 units 
C)  5,500 units 
D)  1,500 units

Question 7

The Raw Materials Inventory account is debited when direct materials are issued for production.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a way in which managers use the production cost reports to make decisions for their companies?

Accepted Answer

A)  evaluating performance 
B)  identifying the most profitable products 
C)  controlling period costs 
D)  preparing the financial statements 
A)  evaluating performance 
B)  identifying the most profitable products 
C)  controlling period costs 
D)  preparing the financial statements

Question 9

Which of the following is used to calculate the number of units accounted for under first-in,first-out (FIFO)method of inventory valuation of process costing?

Accepted Answer

A)  Accounted for = Beginning balance + Started and completed + In process 
B)  Accounted for = Beginning balance + Started and completed 
C)  Accounted for = Beginning balance + In process 
D)  Accounted for = Beginning balance + Amount transferred in 
A)  Accounted for = Beginning balance + Started and completed + In process 
B)  Accounted for = Beginning balance + Started and completed 
C)  Accounted for = Beginning balance + In process 
D)  Accounted for = Beginning balance + Amount transferred in

Question 10

The Polishing Department of Laminates,Inc.had 15,000 units in process on June 1 and received 25,000 units from the Machining Department.What is the number of units to account for by the Polishing Department for June? The company uses the FIFO costing method.

Accepted Answer

A)  25,000 units 
B)  15,000 units 
C)  40,000 units 
D)  10,000 units 
A)  25,000 units 
B)  15,000 units 
C)  40,000 units 
D)  10,000 units

Question 11

In a process costing system,each process or department has its own Work-in-Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 12

The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report.

Accepted Answer

A) True 
 B)False

Question 13

A production cost report aids in preparing an income statement by providing data for ________.

Accepted Answer

A)  period costs incurred during the period 
B)  various inventory accounts 
C)  cost of goods sold during the period 
D)  revenues generated during the period 
A)  period costs incurred during the period 
B)  various inventory accounts 
C)  cost of goods sold during the period 
D)  revenues generated during the period

Question 14

Powderhouse,Inc.has two processes-Coloring Department and Mixing Department.The company sold 2,000 gallons of paint for $220,000,of which $150,000 was sold on account.The total cost of processing was $385,000 for 5,500 gallons of paint.What are the journal entries to record a sale if the company follows a process costing system?

Accepted Answer

\[\begin{array} { | l | r | r | } 
\hlin

Question 15

Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.

Accepted Answer

A)  Manufacturing Overhead 
B)  Sales Revenue 
C)  Finished Goods Inventory 
D)  Accounts Payable 
A)  Manufacturing Overhead 
B)  Sales Revenue 
C)  Finished Goods Inventory 
D)  Accounts Payable

Question 16

Anthony Products manufactures a line of desk chairs.Anthony's production operations are divided into two departments - Department 1 and Department 2.The company uses a process costing system.Anthony incurred the following costs during the year to produce 26,400 chairs: $$\begin{array} { | l | l | } 
\hline \text { Department 1 } & \$ 859,500 \
\hline \text { Department 2 } & \$ 294,000 \
\hline
\end{array}$$ If Anthony sells 23,100 chairs during the year,what will be the cost per chair produced? (Round your answer to two decimal places.)

Accepted Answer

A)  $32.56 
B)  $37.21 
C)  $43.69 
D)  $49.94 
A)  $32.56 
B)  $37.21 
C)  $43.69 
D)  $49.94

Question 17

Under the first-in,first-out (FIFO)method,the cost of equivalent units of production is calculated by ________.

Accepted Answer

A)  summing up only the transferred in costs of each department 
B)  combining beginning inventory costs with current period costs 
C)  considering only the transferred out costs of each department 
D)  accounting for beginning inventory costs separately from current period costs 
A)  summing up only the transferred in costs of each department 
B)  combining beginning inventory costs with current period costs 
C)  considering only the transferred out costs of each department 
D)  accounting for beginning inventory costs separately from current period costs

Question 18

If 30,000 units are 60% complete with respect to direct materials,then the equivalent units of production for direct materials are ________.

Accepted Answer

A)  30,000 units 
B)  18,000 units 
C)  12,000 units 
D)  42,000 units 
A)  30,000 units 
B)  18,000 units 
C)  12,000 units 
D)  42,000 units

Question 19

The Assembling Department of Mat Liners,Inc.had 8,000 units in process on December 1 and received 11,000 units from the Sewing Department.Calculate the number of units to account for by the Assembling Department for December.

Accepted Answer

A)  19,000 units 
B)  11,000 units 
C)  8,000 units 
D)  3,000 units 
A)  19,000 units 
B)  11,000 units 
C)  8,000 units 
D)  3,000 units

Question 20

The adjusting entry for overallocated or underallocated manufacturing overhead is usually prepared at the beginning of the accounting period.

Accepted Answer

A) True 
 B)False

The four-steps of tracking product costs in a process costing system are ________.

The weighted-average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

Iowa,Inc.purchased raw materials for $6,000 and $25,000 for cash and on account,respectively.Provide the journal entry to record the purchase of raw materials.

Direct labor costs are accumulated in the Manufacturing Overhead account.

A process is one of a series of steps in manufacturing production,usually associated with making large quantities of similar items.

The Raw Materials Inventory account is debited when direct materials are issued for production.

Which of the following is not a way in which managers use the production cost reports to make decisions for their companies?

Which of the following is used to calculate the number of units accounted for under first-in,first-out (FIFO)method of inventory valuation of process costing?

The Polishing Department of Laminates,Inc.had 15,000 units in process on June 1 and received 25,000 units from the Machining Department.What is the number of units to account for by the Polishing Department for June? The company uses the FIFO costing method.

In a process costing system,each process or department has its own Work-in-Process Inventory account.

The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report.

A production cost report aids in preparing an income statement by providing data for ________.

Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.

Under the first-in,first-out (FIFO)method,the cost of equivalent units of production is calculated by ________.

If 30,000 units are 60% complete with respect to direct materials,then the equivalent units of production for direct materials are ________.

The Assembling Department of Mat Liners,Inc.had 8,000 units in process on December 1 and received 11,000 units from the Sewing Department.Calculate the number of units to account for by the Assembling Department for December.

The adjusting entry for overallocated or underallocated manufacturing overhead is usually prepared at the beginning of the accounting period.

Introduction to Managerial Accounting

Job Order Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 20: Process Costing

The four-steps of tracking product costs in a process costing system are ________.

The weighted-average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

Iowa,Inc.purchased raw materials for $6,000 and $25,000 for cash and on account,respectively.Provide the journal entry to record the purchase of raw materials.

Direct labor costs are accumulated in the Manufacturing Overhead account.

A process is one of a series of steps in manufacturing production,usually associated with making large quantities of similar items.

The Raw Materials Inventory account is debited when direct materials are issued for production.

Which of the following is not a way in which managers use the production cost reports to make decisions for their companies?

Which of the following is used to calculate the number of units accounted for under first-in,first-out (FIFO)method of inventory valuation of process costing?

The Polishing Department of Laminates,Inc.had 15,000 units in process on June 1 and received 25,000 units from the Machining Department.What is the number of units to account for by the Polishing Department for June? The company uses the FIFO costing method.

In a process costing system,each process or department has its own Work-in-Process Inventory account.

The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report.

A production cost report aids in preparing an income statement by providing data for ________.

Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.

Under the first-in,first-out (FIFO)method,the cost of equivalent units of production is calculated by ________.

If 30,000 units are 60% complete with respect to direct materials,then the equivalent units of production for direct materials are ________.

The Assembling Department of Mat Liners,Inc.had 8,000 units in process on December 1 and received 11,000 units from the Sewing Department.Calculate the number of units to account for by the Assembling Department for December.

The adjusting entry for overallocated or underallocated manufacturing overhead is usually prepared at the beginning of the accounting period.

Introduction to Managerial Accounting

Job Order Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters