Question 1

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Physical flow analysis

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 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 materials when using the weighted average costing method?

Accepted Answer

A)  $2.00 
B)  $7.00 
C)  $8.00 
D)  $9.00 
A)  $2.00 
B)  $7.00 
C)  $8.00 
D)  $9.00

Question 3

Which step is cost reconciliation in the general pattern of a process costing production report?

Accepted Answer

A)  the last step 
B)  part of the physical flow analysis 
C)  the step before the computation of unit cost 
D)  the step before calculation of equivalent units 
A)  the last step 
B)  part of the physical flow analysis 
C)  the step before the computation of unit cost 
D)  the step before calculation of equivalent units

Question 4

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Cruise ship builder

Accepted Answer

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

Question 5

Everything Company manufactures a product that passes through two processes. The following information is available for the first department for August.
All materials are added at the beginning of the process.
Beginning Work-in-Process Inventory consisted of 20,000 units that were 80% complete with respect to conversion.
Ending Work-in-Process Inventory consisted of 15,000 units that were 40% complete with respect to conversion.
During the month, 90,000 units were started in process.
Required:
A. Prepare a physical flow schedule for the first department.
B. Compute equivalent units for the first department using the FIFO costing method.

Accepted Answer

A. Physical flow schedule: @#IMG-DLM& Un

Question 6

What goods are moved from a prior department to subsequent department?

Accepted Answer

A)  Beginning Goods 
B)  Transferred-in Goods 
C)  Finished Goods Inventory 
D)  Work-in-Process Inventory 
A)  Beginning Goods 
B)  Transferred-in Goods 
C)  Finished Goods Inventory 
D)  Work-in-Process Inventory

Question 7

Explain how nonuniform inputs and multiple departments affect process costing.

Accepted Answer

Accounting for production under process

Question 8

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

Accepted Answer

A) True 
 B)False

Question 9

Describe the differences in the ways that prior-period costs and output are treated under the weighted average costing method and the FIFO costing method.

Accepted Answer

The weighted average costing method uses

Question 10

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

Accepted Answer

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

Question 11

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

Accepted Answer

A) True 
 B)False

Question 12

What information is found in the cost of production report?

Accepted Answer

A)  the units planned to be produced by a department 
B)  the fixed costs and the physical units processed by the department 
C)  the manufacturing costs incurred by the department and the variable costs 
D)  the physical units processed and the manufacturing costs incurred by the department 
A)  the units planned to be produced by a department 
B)  the fixed costs and the physical units processed by the department 
C)  the manufacturing costs incurred by the department and the variable costs 
D)  the physical units processed and the manufacturing costs incurred by the department

Question 13

Refer to SmartCo. How many equivalent units of production did the company have for the period?

Accepted Answer

A)  10,000 
B)  11,500 
C)  13,500 
D)  22,800 
A)  10,000 
B)  11,500 
C)  13,500 
D)  22,800

Question 14

Extraordinary Incorporated manufactures quality hair care products. The ingredients are combined in the mixing department and put in 473 mL containers in the packaging department.
The following information pertains to the mixing department for the month of March:
Units
(Litres)
Work-in-Process Inventory, March 1
(100% complete materials,
75% labour and overhead) 10,000
Started during March 50,000
Work-in-Process Inventory, March 31
(100% complete materials,
50% labour and overhead) 8,000
The costs in Work-in-Process Inventory at March 1 in the mixing department were as follows:
Mixing
Department
Work-in-Process Inventory, March 1:
Materials $15,000
Direct labour 20,000
Manufacturing overhead 17,600
Total costs $52,600
The costs added by the mixing department during the month of March were as follows:
Mixing
Department
Materials $ 90,000
Direct labour 120,000
Manufacturing overhead 100,000
Total costs added $310,000
Round unit costs to two decimal places.
Required:
A. Prepare a physical flow schedule for the mixing department for March.
B. Using the weighted average costing method, determine the equivalent units of production for materials and conversion for the mixing department for March.
C. Using the weighted average costing method, determine the cost per equivalent unit of production for materials and conversion for the mixing department for March.
D. Using the weighted average costing method, determine the cost of goods transferred out and the cost of ending Work-in-Process Inventory for the mixing department.

Accepted Answer

A. Physical flow schedule:
Units to acco

Question 15

Match each following terms with their correct description from the items listed below.
-The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

Accepted Answer

A) Equivalent units of production 
B) Transferred-in costs 
C) FIFO costing method 
D) Production report 
A) Equivalent units of production 
B) Transferred-in costs 
C) FIFO costing method 
D) Production report

Question 16

What type of business would likely use process costing?

Accepted Answer

A)  a modular home builder 
B)  a paper cup manufacturer 
C)  a cruise ship manufacturer 
D)  a custom snowboard company 
A)  a modular home builder 
B)  a paper cup manufacturer 
C)  a cruise ship manufacturer 
D)  a custom snowboard company

Match the order of the five steps involved in creating the department production report with the descriptions below. -Physical flow analysis

Which step is cost reconciliation in the general pattern of a process costing production report?

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Cruise ship builder

What goods are moved from a prior department to subsequent department?

Explain how nonuniform inputs and multiple departments affect process costing.

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

Describe the differences in the ways that prior-period costs and output are treated under 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. -Paint manufacturer

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

What information is found in the cost of production report?

Refer to SmartCo. How many equivalent units of production did the company have for the period?

Match each following terms with their correct description from the items listed below. -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

What type of business would likely use process costing?

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

Match the order of the five steps involved in creating the department production report with the descriptions below. -Physical flow analysis

Which step is cost reconciliation in the general pattern of a process costing production report?

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Cruise ship builder

What goods are moved from a prior department to subsequent department?

Explain how nonuniform inputs and multiple departments affect process costing.

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

Describe the differences in the ways that prior-period costs and output are treated under 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. -Paint manufacturer

The weighted average costing method assumes that units in beginning Work-in-Process Inventory are completed first, before any new units are started.

What information is found in the cost of production report?

Refer to SmartCo. How many equivalent units of production did the company have for the period?

Match each following terms with their correct description from the items listed below. -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

What type of business would likely use process costing?

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