Question 1

In a process costing system,a separate work in process inventory account is maintained for each customer's job.

Accepted Answer

A) True 
 B)False

Question 2

All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 3

For which of the following businesses would a process cost system be appropriate?

Accepted Answer

A)  boat repair service 
B)  shampoo manufacturer 
C)  dressmaker 
D)  custom furniture manufacturer 
A)  boat repair service 
B)  shampoo manufacturer 
C)  dressmaker 
D)  custom furniture manufacturer

Question 4

Using the FIFO method and rounding cost per unit to four decimal places,the cost of goods completed and transferred out during July was

Accepted Answer

A)  $227,270 
B)  $225,060 
C)  $236,905 
D)  $228,200 
A)  $227,270 
B)  $225,060 
C)  $236,905 
D)  $228,200

Question 5

If the costs for direct materials,direct labor,and factory overhead were $277,300,$52,600,and $61,000,respectively,for 14,000 equivalent units of production,the total conversion cost was $390,900.

Accepted Answer

A) True 
 B)False

Question 6

The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in process inventory (40% complete).During the period,66,000 liters were completed.The ending work in process inventory was 3,000 liters (70% complete).Using the FIFO method,what are the equivalent units for conversion costs?

Accepted Answer

The answer of The Bottling Department of Mountain Springs Water...

Question 7

Direct materials,direct labor,and factory overhead are assigned to each manufacturing process in a process costing system.

Accepted Answer

A) True 
 B)False

Question 8

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 1 were $100,000,$125,000,and $150,000,respectively.The records further indicate that direct materials,direct labor,and applied factory overhead for Department 2 were $50,000,$60,000,and $70,000,respectively.Department 2 has transferred-in costs of $390,000 for the current period.In addition,work in process at the beginning of the period for Department 2 totaled $75,000,and work in process at the end of the period totaled $90,000.The journal entry to record the flow of costs into Department 3 during the period is

Accepted Answer

A)  Work in Process-Department 3 375,000
Work in Process-Department 2 375,000 
B)  Work in Process-Department 3 570,000
Work in Process-Department 2 570,000 
C)  Work in Process-Department 3 490,000
Work in Process-Department 2 490,000 
D)  Work in Process-Department 3 555,000
Work in Process-Department 2 555,000 
A)  Work in Process-Department 3 375,000
Work in Process-Department 2 375,000 
B)  Work in Process-Department 3 570,000
Work in Process-Department 2 570,000 
C)  Work in Process-Department 3 490,000
Work in Process-Department 2 490,000 
D)  Work in Process-Department 3 555,000
Work in Process-Department 2 555,000

Question 9

In a process cost system,the cost of completed production in Department A is transferred to Department B by which of the following entries?

Accepted Answer

A)  debit Work in Process-Dept.B; credit Work in Process-Dept.A 
B)  debit Work in Process-Dept.B; credit Finished Goods-Dept.A 
C)  debit Work in Process-Dept.B; credit Cost of Goods Sold-Dept.A 
D)  debit Finished Goods-Dept.A; credit Work in Process-Dept.B 
A)  debit Work in Process-Dept.B; credit Work in Process-Dept.A 
B)  debit Work in Process-Dept.B; credit Finished Goods-Dept.A 
C)  debit Work in Process-Dept.B; credit Cost of Goods Sold-Dept.A 
D)  debit Finished Goods-Dept.A; credit Work in Process-Dept.B

Question 10

Department M had 600 units 60% completed in process at the beginning of June,6,000 units completed during June,and 700 units 30% completed at the end of June.Using the first-in,first-out method of inventory costing,what was the number of equivalent units of production for conversion costs for the period?

Accepted Answer

A)  7,300 units 
B)  5,640 units 
C)  6,700 units 
D)  5,850 units 
A)  7,300 units 
B)  5,640 units 
C)  6,700 units 
D)  5,850 units

Question 11

Yield measures the ratio of the materials output quantity to the materials input quantity.

Accepted Answer

A) True 
 B)False

Question 12

At the beginning of the period,there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs.During the period,4,500 units were started and completed.Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs.The company uses the FIFO process cost method. ​
The equivalent units of production for direct materials and conversion costs,respectively,were

Accepted Answer

A)  5,340 for direct materials and 4,902 for conversion costs 
B)  4,840 for direct materials and 4,802 for conversion costs 
C)  4,602 for direct materials and 4,802 for conversion costs 
D)  4,902 for direct materials and 4,802 for conversion costs 
A)  5,340 for direct materials and 4,902 for conversion costs 
B)  4,840 for direct materials and 4,802 for conversion costs 
C)  4,602 for direct materials and 4,802 for conversion costs 
D)  4,902 for direct materials and 4,802 for conversion costs

Question 13

The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250,respectively.During January,the first month of the current year,actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000.
​
   Round total cost to nearest dollar value.

Accepted Answer

The answer of The estimated total factory overhead cost and...

Question 14

Explain the concept of equivalent units.Give an example to validate your explanation.

Accepted Answer

Equivalent units are a measure of the am

Question 15

The journal entry to record the flow of costs into Department 2 for applied overhead is

Accepted Answer

A)  Factory Overhead-Department 2 80,000
Work in Process-Department 2 80,000 
B)  Work in Process-Department 2 230,000
Factory Overhead-Department 2 230,000 
C)  Work in Process-Department 2 80,000
Factory Overhead-Department 2 80,000 
D)  Work in Process-Department 2 150,000
Factory Overhead-Department 2 150,000 
A)  Factory Overhead-Department 2 80,000
Work in Process-Department 2 80,000 
B)  Work in Process-Department 2 230,000
Factory Overhead-Department 2 230,000 
C)  Work in Process-Department 2 80,000
Factory Overhead-Department 2 80,000 
D)  Work in Process-Department 2 150,000
Factory Overhead-Department 2 150,000

Question 16

In a process costing system,costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

Accepted Answer

A)  accounting department costs 
B)  raw lumber 
C)  assembly labor's wages 
D)  administrative salaries 
A)  accounting department costs 
B)  raw lumber 
C)  assembly labor's wages 
D)  administrative salaries

Question 18

Alexandra Company's Molding Department opened on July 1.During July,70.000 units were completed and transferred out to the next department.On July 31,the 10,000 units which remained in inventory were 40% complete with respect to conversion costs and 100% complete with respect to materials.
​
How many equivalent units of work did the Molding Department complete during July for materials and conversion costs?

Accepted Answer

Materials:70,000 + (

Question 19

In process cost accounting,the costs of direct materials and direct labor are charged directly to

Accepted Answer

A)  service departments 
B)  processing departments 
C)  customer accounts receivable 
D)  job orders 
A)  service departments 
B)  processing departments 
C)  customer accounts receivable 
D)  job orders

Question 20

The journal entry to record the flow of costs from Department 1 into Department 2 is

Accepted Answer

A)  Work in Process-Department 2 390,000
Work in Process-Department 1 390,000 
B)  Work in Process-Department 2 330,000
Work in Process-Department 1 330,000 
C)  Work in Process-Department 2 215,000
Work in Process-Department 1 215,000 
D)  Work in Process-Department 2 375,000
Work in Process-Department 1 375,000 
A)  Work in Process-Department 2 390,000
Work in Process-Department 1 390,000 
B)  Work in Process-Department 2 330,000
Work in Process-Department 1 330,000 
C)  Work in Process-Department 2 215,000
Work in Process-Department 1 215,000 
D)  Work in Process-Department 2 375,000
Work in Process-Department 1 375,000

In a process costing system,a separate work in process inventory account is maintained for each customer's job.

All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

For which of the following businesses would a process cost system be appropriate?

Using the FIFO method and rounding cost per unit to four decimal places,the cost of goods completed and transferred out during July was

If the costs for direct materials,direct labor,and factory overhead were $277,300,$52,600,and $61,000,respectively,for 14,000 equivalent units of production,the total conversion cost was $390,900.

Direct materials,direct labor,and factory overhead are assigned to each manufacturing process in a process costing system.

In a process cost system,the cost of completed production in Department A is transferred to Department B by which of the following entries?

Yield measures the ratio of the materials output quantity to the materials input quantity.

Explain the concept of equivalent units.Give an example to validate your explanation.

The journal entry to record the flow of costs into Department 2 for applied overhead is

In a process costing system,costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

In process cost accounting,the costs of direct materials and direct labor are charged directly to

The journal entry to record the flow of costs from Department 1 into Department 2 is

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

Filters

Exam 17: Process Cost Systems

In a process costing system,a separate work in process inventory account is maintained for each customer's job.

All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

For which of the following businesses would a process cost system be appropriate?

Using the FIFO method and rounding cost per unit to four decimal places,the cost of goods completed and transferred out during July was

If the costs for direct materials,direct labor,and factory overhead were $277,300,$52,600,and $61,000,respectively,for 14,000 equivalent units of production,the total conversion cost was $390,900.

Direct materials,direct labor,and factory overhead are assigned to each manufacturing process in a process costing system.

In a process cost system,the cost of completed production in Department A is transferred to Department B by which of the following entries?

Yield measures the ratio of the materials output quantity to the materials input quantity.

Explain the concept of equivalent units.Give an example to validate your explanation.

The journal entry to record the flow of costs into Department 2 for applied overhead is

In a process costing system,costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

In process cost accounting,the costs of direct materials and direct labor are charged directly to

The journal entry to record the flow of costs from Department 1 into Department 2 is

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

Filters