Question 1

What type of service firm would be least likely to use process costing?

Accepted Answer

A)  sorting of mail 
B)  processing cheques 
C)  laundering of shirts 
D)  filling printing orders 
A)  sorting of mail 
B)  processing cheques 
C)  laundering of shirts 
D)  filling printing orders

Question 2

Painting Department
The following information is available for Painting Department for June: $\begin{array}{l}
\text { Work-in-Process Inventory, June 1: }\
\text { Materials } & \$ 8,000 \
\text { Conversion costs } & \$ 15,000\\\text { Costs added during June: }\
\text { Materials } & \$ 28,000 \
\text { Conversion costs } & \$ 25,000\\\text { Equivalent units of production (weighted av erage): }\\text { Materials } & 4,000 \
\text { Conversion } & 5,000
\end{array}$
-Refer to Painting Department. What would be the cost per equivalent unit for conversion when using the weighted average costing method?

Accepted Answer

A)  $3.00 
B)  $5.00 
C)  $8.00 
D)  $9.00 
A)  $3.00 
B)  $5.00 
C)  $8.00 
D)  $9.00

Question 3

Which statement best describes process accounting?

Accepted Answer

A)  It accumulates costs by individual job. 
B)  It works best with a small number of unique products. 
C)  It is used on unique products that are produced on a continuous basis. 
D)  It uses equivalent units computed by the weighted average costing method or the FIFO costing method. 
A)  It accumulates costs by individual job. 
B)  It works best with a small number of unique products. 
C)  It is used on unique products that are produced on a continuous basis. 
D)  It uses equivalent units computed by the weighted average costing method or the FIFO costing method.

Question 4

Refer to LuLu, Inc. What would be the total costs to account for?

Accepted Answer

A)  $176,000 
B)  $240,000 
C)  $264,000 
D)  $304,000 
A)  $176,000 
B)  $240,000 
C)  $264,000 
D)  $304,000

Question 5

The usual approach is to treat transferred-in goods as a separate conversion category when calculating equivalent units.

Accepted Answer

A) True 
 B)False

Question 6

Zero beginning and ending Work-in-Process Inventory leads to much of the complication surrounding process costing.

Accepted Answer

A) True 
 B)False

Question 7

Describe the differences between sequential and parallel processing.

Accepted Answer

Sequential processing requires that unit

Question 8

List the five steps in preparing a production report.

Accepted Answer

1) Physical unit flow analysis
2) Calcul

Question 9

Which statement best describes sequential processing?

Accepted Answer

A)  Only one process can be applied to a product in each department. 
B)  Several sequences of production are applied to a product in the department. 
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)  Only one process can be applied to a product in each department. 
B)  Several sequences of production are applied to a product in the department. 
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 10

The major benefit of the weighted average costing method is simplicity.

Accepted Answer

A) True 
 B)False

Question 11

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

A) True 
 B)False

Question 12

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning Work-in-Process Inventory: the weighted average costing method and the FIFO costing method.

Accepted Answer

A) True 
 B)False

Question 13

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Manufacturer of custom kayaks

Accepted Answer

A) Process costing 
B) Job-order costing 
A) Process costing 
B) Job-order costing

Question 14

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

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 15

The following information is provided: Units
Work-in-Process Inventory, May 1 (30% complete) 6,000
Started in June 40,000
Work-in-Process Inventory, May 31 (40% complete) 14,000
Materials are added at the beginning of the process.
What would be the equivalent units of production for conversion costs when using the weighted average costing method?

Accepted Answer

A)  27,600 
B)  34,800 
C)  35,600 
D)  37,600 
A)  27,600 
B)  34,800 
C)  35,600 
D)  37,600

Question 16

Which method can be used to account for the costs and work of beginning Work-in-Process Inventory?

Accepted Answer

A)  FIFO costing method and sequential processing method 
B)  sequential processing method and LIFO costing method 
C)  weighted average costing method and LIFO costing method 
D)  weighted average costing method and FIFO costing method 
A)  FIFO costing method and sequential processing method 
B)  sequential processing method and LIFO costing method 
C)  weighted average costing method and LIFO costing method 
D)  weighted average costing method and FIFO costing method

Question 17

Which of the following is affected by nonuniform manufacturing inputs?

Accepted Answer

A)  only the manufacturing outputs 
B)  only the valuation of ending Work-in-Process Inventory 
C)  only the calculation of equivalent units, and valuation of ending Work-in-Process Inventory 
D)  the calculation of equivalent units, unit cost, and valuation of ending Work-in-Process Inventory 
A)  only the manufacturing outputs 
B)  only the valuation of ending Work-in-Process Inventory 
C)  only the calculation of equivalent units, and valuation of ending Work-in-Process Inventory 
D)  the calculation of equivalent units, unit cost, and valuation of ending Work-in-Process Inventory

Question 18

Describe how process costing for services differs from process costing for manufactured goods.

Accepted Answer

Service firms generally do not

Question 19

Beginning inventory for the month contained 4,000 units that were 65% complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 6,000 units that were 40% complete with respect to materials. What would be the weighted average equivalent units of production for materials for the month?

Accepted Answer

A)  62,400 
B)  60,000 
C)  57,600 
D)  56,000 
A)  62,400 
B)  60,000 
C)  57,600 
D)  56,000

Question 20

What is included in the cost of a department's transferred-in goods?

Accepted Answer

A)  materials and overhead 
B)  materials and conversion costs 
C)  materials, labour, and overhead 
D)  goods transferred out as computed in the prior department 
A)  materials and overhead 
B)  materials and conversion costs 
C)  materials, labour, and overhead 
D)  goods transferred out as computed in the prior department

What type of service firm would be least likely to use process costing?

Which statement best describes process accounting?

Refer to LuLu, Inc. What would be the total costs to account for?

The usual approach is to treat transferred-in goods as a separate conversion category when calculating equivalent units.

Zero beginning and ending Work-in-Process Inventory leads to much of the complication surrounding process costing.

Describe the differences between sequential and parallel processing.

List the five steps in preparing a production report.

Which statement best describes sequential processing?

The major benefit of the weighted average costing method is simplicity.

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning Work-in-Process Inventory: the weighted average costing method and the FIFO costing method.

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Manufacturer of custom kayaks

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

Which method can be used to account for the costs and work of beginning Work-in-Process Inventory?

Which of the following is affected by nonuniform manufacturing inputs?

Describe how process costing for services differs from process costing for manufactured goods.

What is included in the cost of a department's transferred-in goods?

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

What type of service firm would be least likely to use process costing?

Which statement best describes process accounting?

Refer to LuLu, Inc. What would be the total costs to account for?

The usual approach is to treat transferred-in goods as a separate conversion category when calculating equivalent units.

Zero beginning and ending Work-in-Process Inventory leads to much of the complication surrounding process costing.

Describe the differences between sequential and parallel processing.

List the five steps in preparing a production report.

Which statement best describes sequential processing?

The major benefit of the weighted average costing method is simplicity.

The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning Work-in-Process Inventory: the weighted average costing method and the FIFO costing method.

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Manufacturer of custom kayaks

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

Which method can be used to account for the costs and work of beginning Work-in-Process Inventory?

Which of the following is affected by nonuniform manufacturing inputs?

Describe how process costing for services differs from process costing for manufactured goods.

What is included in the cost of a department's transferred-in goods?

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