Question 1

According to the lean manufacturing philosophy,

Accepted Answer

A)  finished goods should always be available in case a customer wants something 
B)  employees should be expert at one function rather than be cross-trained for multiple functions 
C)  movement of the product and material is reduced 
D)  the product moves from process to process until completion 
A)  finished goods should always be available in case a customer wants something 
B)  employees should be expert at one function rather than be cross-trained for multiple functions 
C)  movement of the product and material is reduced 
D)  the product moves from process to process until completion C

Question 2

Stevens Company's inventory on March 1 and the costs charged to Work in Process-Department B during March are as follows:
​
   ​During March,all direct materials were transferred from Department A,the units in process at March 1 were completed,and of the 55,000 units entering the department,all were completed except 6,000 units which were 70% completed.Inventories are costed by the first-in,first-out method.
​
Prepare a cost of production report for March.Round unit cost data to four decimal places and total cost to nearest cent.

Accepted Answer

​   *$1 rounding

Question 3

The cost of production report reports the cost of the goods sold.

Accepted Answer

A) True 
 B)False  False

Question 4

Process manufacturers typically use large machines to process a continuous flow of raw materials into a finished state.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are characteristics of a process cost system except

Accepted Answer

A)  the system may use several work in process inventory accounts 
B)  manufacturing costs are grouped by department rather than by jobs 
C)  the system accumulates costs per job 
D)  the system emphasizes time periods rather than the time it takes to complete a job 
A)  the system may use several work in process inventory accounts 
B)  manufacturing costs are grouped by department rather than by jobs 
C)  the system accumulates costs per job 
D)  the system emphasizes time periods rather than the time it takes to complete a job

Question 6

The total cost of units completed during the period were

Accepted Answer

A)  $117,000 
B)  $143,400 
C)  $121,000 
D)  $127,450 
A)  $117,000 
B)  $143,400 
C)  $121,000 
D)  $127,450

Question 7

Mocha Company manufactures a single product by a continuous process,involving three production departments.The records indicate that direct materials,direct labor,and applied factory overhead for Department 2 were $100,000,$125,000,and $150,000,respectively.The records further indicate that direct materials,direct labor,and applied factory overhead for Department 3 were $50,000,$60,000,and $70,000,respectively.In addition,work in process at the beginning of the period for Department 3 totaled $75,000,and work in process at the end of the period totaled $60,000.The journal entry to record the flow of costs into Department 3 during the period for direct materials is

Accepted Answer

A)  Work in Process-Department 3 100,000
Materials 100,000 
B)  Work in Process-Department 3 125,000
Materials 125,000 
C)  Work in Process-Department 3 50,000
Materials 50,000 
D)  Work in Process-Department 3 70,000
Materials 70,000 
A)  Work in Process-Department 3 100,000
Materials 100,000 
B)  Work in Process-Department 3 125,000
Materials 125,000 
C)  Work in Process-Department 3 50,000
Materials 50,000 
D)  Work in Process-Department 3 70,000
Materials 70,000

Question 8

The cost of production report summarizes (1)the units for which the department is accountable and the units to be assigned costs and (2)the costs charged to the department and the allocation of those costs.

Accepted Answer

A) True 
 B)False

Question 9

In a process costing system,the cost per equivalent unit is computed before computing equivalent units.

Accepted Answer

A) True 
 B)False

Question 10

Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.

Accepted Answer

A) True 
 B)False

Question 11

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000.During the period,4,000 units of direct materials were added at a cost of $8,200,and 4,500 units were completed.At the end of the period,500 units were 40% completed.All materials are added at the beginning of the process.Direct labor was $28,700 and factory overhead was $4,510.The cost of the 500 units in process at the end of the period if the first-in,first-out method is used to cost inventories was

Accepted Answer

A)  $3,240 
B)  $5,175 
C)  $2,569 
D)  $2,645 
A)  $3,240 
B)  $5,175 
C)  $2,569 
D)  $2,645

Question 12

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $28,072.The conversion cost for the period in the Bottling Department is $10,275.The total equivalent units for direct materials and conversion are 63,800 and 68,500,respectively.Determine the direct materials and conversion cost per equivalent unit.Round answers to nearest cent.

Accepted Answer

Cost per equivalent unit of ma

Question 13

The materials cost per equivalent unit (to the nearest cent)for April is

Accepted Answer

A)  $2.60 
B)  $2.81 
C)  $3.02 
D)  $2.26 
A)  $2.60 
B)  $2.81 
C)  $3.02 
D)  $2.26

Question 14

If the principal products of a manufacturing process are identical,a process cost system is more appropriate than a job order cost system.

Accepted Answer

A) True 
 B)False

Question 15

The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process.

Accepted Answer

A) True 
 B)False

Question 16

The journal entry to record the flow of costs into Department 1 for direct labor is

Accepted Answer

A)  Work in Process-Department 1 65,000
Wages Payable 65,000 
B)  Wages Payable 125,000
Work in Process-Department 1 125,000 
C)  Work in Process-Department 1 125,000
Wages Payable 125,000 
D)  Wages Payable 65,000
Work in Process-Department 1 65,000 
A)  Work in Process-Department 1 65,000
Wages Payable 65,000 
B)  Wages Payable 125,000
Work in Process-Department 1 125,000 
C)  Work in Process-Department 1 125,000
Wages Payable 125,000 
D)  Wages Payable 65,000
Work in Process-Department 1 65,000

Question 17

Both job order and process cost accounting use equivalent units of production to determine costs.

Accepted Answer

A) True 
 B)False

Question 18

Once equivalent units are calculated for materials,this number will also be used for direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 19

The FIFO method of process costing is simpler than the Average cost method.

Accepted Answer

A) True 
 B)False

Question 20

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows:
​
   During June,32,000 units were placed into production and 31,200 units were completed,including those in inventory on June 1.On June 30,the inventory of work in process consisted of 4,600 units which were 40% completed.Inventories are costed by the average cost method and all materials are added at the beginning of the process.
Determine the following,presenting your computations:

Accepted Answer

The answer of The inventory at June 1 and costs...

Exam 17: Process Cost Systems

According to the lean manufacturing philosophy,

The cost of production report reports the cost of the goods sold.

Process manufacturers typically use large machines to process a continuous flow of raw materials into a finished state.

All of the following are characteristics of a process cost system except

The total cost of units completed during the period were

The cost of production report summarizes (1)the units for which the department is accountable and the units to be assigned costs and (2)the costs charged to the department and the allocation of those costs.

In a process costing system,the cost per equivalent unit is computed before computing equivalent units.

Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.

The materials cost per equivalent unit (to the nearest cent)for April is

If the principal products of a manufacturing process are identical,a process cost system is more appropriate than a job order cost system.

The cost of production report reports the cost charged to production and the costs allocated to finished goods and work in process.

The journal entry to record the flow of costs into Department 1 for direct labor is

Both job order and process cost accounting use equivalent units of production to determine costs.

Once equivalent units are calculated for materials,this number will also be used for direct labor and factory overhead.

The FIFO method of process costing is simpler than the Average cost method.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

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