Question 1

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

Accepted Answer

A) True 
 B)False

Question 2

What are the two sections of a production report?

Accepted Answer

A)  goods produced and goods in process 
B)  Work-in-Process Inventory and completed goods 
C)  Finished Goods Inventory and Cost of Goods Sold 
D)  a unit information section and a cost information section 
A)  goods produced and goods in process 
B)  Work-in-Process Inventory and completed goods 
C)  Finished Goods Inventory and Cost of Goods Sold 
D)  a unit information section and a cost information section

Question 3

The major benefit of the FIFO costing method is simplicity.

Accepted Answer

A) True 
 B)False

Question 4

Suppose a one-to-one relationship exists between the output measures. What would the units started in a subsequent department be equal to?

Accepted Answer

A)  the equivalent units of that department 
B)  the materials added plus conversion costs 
C)  the equivalent units plus the materials added 
D)  the units transferred out from the prior department 
A)  the equivalent units of that department 
B)  the materials added plus conversion costs 
C)  the equivalent units plus the materials added 
D)  the units transferred out from the prior department

Question 5

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Valuation of inventories

Accepted Answer

A) Step 1 in preparing a Production Report 
B) Step 2 in preparing a Production Report 
C) Step 3 in preparing a Production Report 
D) Step 4 in preparing a Production Report 
E) Step 5 in preparing a Production Report 
A) Step 1 in preparing a Production Report 
B) Step 2 in preparing a Production Report 
C) Step 3 in preparing a Production Report 
D) Step 4 in preparing a Production Report 
E) Step 5 in preparing a Production Report

Question 6

Refer to Door Specialists. How many units were started and completed in the second department during March?

Accepted Answer

A)  37,000 
B)  50,000 
C)  60,000 
D)  61,000 
A)  37,000 
B)  50,000 
C)  60,000 
D)  61,000

Question 7

Refer to LuLu, Inc. What would be the cost of goods transferred to the moulding department during May?

Accepted Answer

A)  $210,000 
B)  $261,050 
C)  $281,500 
D)  $294,000 
A)  $210,000 
B)  $261,050 
C)  $281,500 
D)  $294,000

Question 8

Which statement best describes the cost of production report?

Accepted Answer

A)  The production report includes the costs related to a specific job. 
B)  The production report provides information about the physical units processed by the department. 
C)  The production report provides information about the manufacturing costs incurred by the department. 
D)  The production report summarizes the manufacturing activity, including related costs, that takes place in a process department for a given period of time. 
A)  The production report includes the costs related to a specific job. 
B)  The production report provides information about the physical units processed by the department. 
C)  The production report provides information about the manufacturing costs incurred by the department. 
D)  The production report summarizes the manufacturing activity, including related costs, that takes place in a process department for a given period of time.

Question 9

Since the FIFO costing method excludes prior-period work and costs, it is necessary to create three categories of completed units.

Accepted Answer

A) True 
 B)False

Question 10

Which costing system is most likely to be used by manufacturer that produces unique products?

Accepted Answer

A)  parallel costing 
B)  process costing 
C)  job-order costing 
D)  sequential costing 
A)  parallel costing 
B)  process costing 
C)  job-order costing 
D)  sequential costing

Question 11

For which process costing method is simplicity the main advantage?

Accepted Answer

A)  actual cost method 
B)  FIFO costing method 
C)  LIFO costing method 
D)  weighted average costing method 
A)  actual cost method 
B)  FIFO costing method 
C)  LIFO costing method 
D)  weighted average costing method

Question 12

Trush Inc. manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for July follows:
Work-in-Process Inventory, July 1:
Units (30% complete) 15,000
Direct materials $ 4,000
Direct labour $ 3,000
Overhead $ 2,376
During July, 100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during July:
Direct materials $50,000
Direct labour 30,000
Overhead 12,000
At July 31, 8,000 units that were 70% complete remained in the mixing department.
Use the weighted average costing method, and round unit costs to two decimal places.
Required:
A. Determine equivalent units of production for July for the mixing department.
B. Determine July's total costs to account for in the mixing department.
C. Determine total cost per equivalent unit of production for the mixing department.
D. Determine the cost of goods transferred to the packaging department.
E. Determine the cost of July's ending Work-in-Process Inventory for the mixing department.
F. Determine the equivalent units of production for July if ending inventory had been 80% complete.

Accepted Answer

A. 105,600 \[\begin{array}{l}
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Question 13

Match each following terms with their correct description from the items listed below.
-It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Accepted Answer

A) Parallel processing 
B) Sequential processing 
C) Process costing 
D) Weighted average costing method 
A) Parallel processing 
B) Sequential processing 
C) Process costing 
D) Weighted average costing method

Question 14

Refer to LuLu, Inc. What would be the cost of May's ending Work-in-Process Inventory for the mixing department?

Accepted Answer

A)  $17,500 
B)  $21,400 
C)  $22,520 
D)  $25,250 
A)  $17,500 
B)  $21,400 
C)  $22,520 
D)  $25,250

Question 15

Which type of costing system works best with a large number of homogeneous products?

Accepted Answer

A)  parallel costing 
B)  process costing 
C)  job-order costing 
D)  sequential costing 
A)  parallel costing 
B)  process costing 
C)  job-order costing 
D)  sequential costing

Question 16

Refer to LuLu, Inc. What would be the mixing department's equivalent units of production?

Accepted Answer

A)  20,000 
B)  23,000 
C)  27,000 
D)  28,750 
A)  20,000 
B)  23,000 
C)  27,000 
D)  28,750

Question 17

Which statement best describes parallel processing?

Accepted Answer

A)  Units must pass sequentially through a process. 
B)  Units that are not processed in the correct sequence are discarded. 
C)  Units must pass through one process before they can be worked on in later processes. 
D)  Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion. 
A)  Units must pass sequentially through a process. 
B)  Units that are not processed in the correct sequence are discarded. 
C)  Units must pass through one process before they can be worked on in later processes. 
D)  Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.

Question 18

Which method considers the percentage of completion of ending Work-in-Process Inventory?

Accepted Answer

A)  LIFO costing method and CVP analysis 
B)  FIFO costing method and LIFO costing method 
C)  weighted average costing method and CVP analysis 
D)  weighted average costing method and FIFO costing method 
A)  LIFO costing method and CVP analysis 
B)  FIFO costing method and LIFO costing method 
C)  weighted average costing method and CVP analysis 
D)  weighted average costing method and FIFO costing method

Question 19

Which step is physical flow analysis in the general pattern of a process costing production report?

Accepted Answer

A)  the last step 
B)  the first step 
C)  the step after the computation of unit cost 
D)  the step after calculation of equivalent units 
A)  the last step 
B)  the first step 
C)  the step after the computation of unit cost 
D)  the step after calculation of equivalent units

Question 20

Refer to SmartCo. Suppose the company had $12,600 of costs in its beginning Work-in-Process Inventory Inventory and incurred $90,000 in production costs this period. What would be the cost per equivalent unit for the period?

Accepted Answer

A)  $1.84 
B)  $4.50 
C)  $5.13 
D)  $36.64 
A)  $1.84 
B)  $4.50 
C)  $5.13 
D)  $36.64

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

What are the two sections of a production report?

The major benefit of the FIFO costing method is simplicity.

Suppose a one-to-one relationship exists between the output measures. What would the units started in a subsequent department be equal to?

Match the order of the five steps involved in creating the department production report with the descriptions below. -Valuation of inventories

Refer to Door Specialists. How many units were started and completed in the second department during March?

Refer to LuLu, Inc. What would be the cost of goods transferred to the moulding department during May?

Which statement best describes the cost of production report?

Since the FIFO costing method excludes prior-period work and costs, it is necessary to create three categories of completed units.

Which costing system is most likely to be used by manufacturer that produces unique products?

For which process costing method is simplicity the main advantage?

Match each following terms with their correct description from the items listed below. -It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Refer to LuLu, Inc. What would be the cost of May's ending Work-in-Process Inventory for the mixing department?

Which type of costing system works best with a large number of homogeneous products?

Refer to LuLu, Inc. What would be the mixing department's equivalent units of production?

Which statement best describes parallel processing?

Which method considers the percentage of completion of ending Work-in-Process Inventory?

Which step is physical flow analysis in the general pattern of a process costing production report?

Refer to SmartCo. Suppose the company had $12,600 of costs in its beginning Work-in-Process Inventory Inventory and incurred $90,000 in production costs this period. What would be the cost per equivalent unit for the period?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 6: Process Costing

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

What are the two sections of a production report?

The major benefit of the FIFO costing method is simplicity.

Suppose a one-to-one relationship exists between the output measures. What would the units started in a subsequent department be equal to?

Match the order of the five steps involved in creating the department production report with the descriptions below. -Valuation of inventories

Refer to Door Specialists. How many units were started and completed in the second department during March?

Refer to LuLu, Inc. What would be the cost of goods transferred to the moulding department during May?

Which statement best describes the cost of production report?

Since the FIFO costing method excludes prior-period work and costs, it is necessary to create three categories of completed units.

Which costing system is most likely to be used by manufacturer that produces unique products?

For which process costing method is simplicity the main advantage?

Match each following terms with their correct description from the items listed below. -It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Refer to LuLu, Inc. What would be the cost of May's ending Work-in-Process Inventory for the mixing department?

Which type of costing system works best with a large number of homogeneous products?

Refer to LuLu, Inc. What would be the mixing department's equivalent units of production?

Which statement best describes parallel processing?

Which method considers the percentage of completion of ending Work-in-Process Inventory?

Which step is physical flow analysis in the general pattern of a process costing production report?

Refer to SmartCo. Suppose the company had $12,600 of costs in its beginning Work-in-Process Inventory Inventory and incurred $90,000 in production costs this period. What would be the cost per equivalent unit for the period?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters