Question 1

The number of equivalent units of production for the period for materials,if the first-in,first-out method is used to cost inventories was

Accepted Answer

A)  16,700 
B)  12,000 
C)  1,700 
D)  13,700 
A)  16,700 
B)  12,000 
C)  1,700 
D)  13,700

Question 2

If 10,000 units that were 50% completed are in process at November 1,90,000 units were completed during November,and 20,000 were 20% completed at November 30,the number of equivalent units of production for November was 90,000.(Assume no loss of units in production and that inventories are costed by the first-in,first-out method.)

Accepted Answer

A) True 
 B)False

Question 3

Discuss how equivalent units are computed under the average cost method.

Accepted Answer

Under average costing,equivalent units e

Question 4

In a process cost system,the amount of work in process inventory is valued by

Accepted Answer

A)  finding the sum of all open job costs 
B)  allocating departmental costs between completed and partially completed units 
C)  multiplying units in ending inventory by the direct materials cost per unit 
D)  finding the sum of all completed jobs 
A)  finding the sum of all open job costs 
B)  allocating departmental costs between completed and partially completed units 
C)  multiplying units in ending inventory by the direct materials cost per unit 
D)  finding the sum of all completed jobs

Question 5

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

Accepted Answer

A)  $2.70 
B)  $2.53 
C)  $3.31 
D)  $5.60 
A)  $2.70 
B)  $2.53 
C)  $3.31 
D)  $5.60

Question 6

Custom-made goods would be accounted for using a process costing system.

Accepted Answer

A) True 
 B)False

Question 7

The journal entry to record the flow of costs into Department 2 during the period for direct materials is

Accepted Answer

A)  Work in Process-Department 2 100,000
Materials 100,000 
B)  Work in Process-Department 2 55,000
Materials 55,000 
C)  Work in Process-Department 2 150,000
Materials 150,000 
D)  Materials 55,000
Work in Process-Department 2 55,000 
A)  Work in Process-Department 2 100,000
Materials 100,000 
B)  Work in Process-Department 2 55,000
Materials 55,000 
C)  Work in Process-Department 2 150,000
Materials 150,000 
D)  Materials 55,000
Work in Process-Department 2 55,000

Question 8

The two categories of cost comprising conversion costs are

Accepted Answer

A)  direct labor and indirect labor 
B)  direct labor and factory overhead 
C)  factory overhead and direct materials 
D)  direct labor and direct materials 
A)  direct labor and indirect labor 
B)  direct labor and factory overhead 
C)  factory overhead and direct materials 
D)  direct labor and direct materials

Question 9

The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X.

Accepted Answer

A) True 
 B)False

Question 10

The debits to Work in Process-Assembly Department for April,together with data concerning production,are as follows: ​
  All direct materials are added at the beginning of the process,and the first-in,first-out method is used to cost inventories.The conversion cost per equivalent unit for April is

Accepted Answer

A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25 
A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25

Question 11

Equivalent production units are generally determined for

Accepted Answer

A)  direct materials and conversion costs 
B)  direct materials only 
C)  conversion costs only 
D)  direct materials and direct labor costs only 
A)  direct materials and conversion costs 
B)  direct materials only 
C)  conversion costs only 
D)  direct materials and direct labor costs only

Question 12

Costs of ending work in process inventory are included in the cost per equivalent unit computation.

Accepted Answer

A) True 
 B)False

Question 13

Companies that use the average costing method for process costing have unit costs that include costs from more than one accounting period.

Accepted Answer

A) True 
 B)False

Question 14

Department K had 3,000 units 45% completed in process at the beginning of the period; 17,000 units completed during the period; and 1,200 units 40% completed at the end of the period.What was the number of equivalent units of production for the period for conversion if the first-in,first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

Accepted Answer

A)  18,350 
B)  16,310 
C)  15,650 
D)  16,130 
A)  18,350 
B)  16,310 
C)  15,650 
D)  16,130

Question 15

The journal entry to record the flow of costs into Department 1 during the period for direct materials is

Accepted Answer

A)  Work in Process-Department 1 100,000
Materials 100,000 
B)  Work in Process-Department 1 55,000
Materials 55,000 
C)  Materials 100,000
Work in Process-Department 1 100,000 
D)  Materials 55,000
Work in Process-Department 1 55,000 
A)  Work in Process-Department 1 100,000
Materials 100,000 
B)  Work in Process-Department 1 55,000
Materials 55,000 
C)  Materials 100,000
Work in Process-Department 1 100,000 
D)  Materials 55,000
Work in Process-Department 1 55,000

Question 16

When a process cost accounting system records the purchase of materials,the Materials account is credited.

Accepted Answer

A) True 
 B)False

Question 17

Using the FIFO method,the number of units started and completed in July was

Accepted Answer

A)  14,250 
B)  15,000 
C)  13,400 
D)  15,740 
A)  14,250 
B)  15,000 
C)  13,400 
D)  15,740

Question 18

If a company uses average costing instead of FIFO,it will still get the same unit costs.

Accepted Answer

A) True 
 B)False

Question 19

One of the primary uses of a cost of production report is to assist management in controlling production costs.

Accepted Answer

A) True 
 B)False

Question 20

The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.

Accepted Answer

A) True 
 B)False

Exam 17: Process Cost Systems

The number of equivalent units of production for the period for materials,if the first-in,first-out method is used to cost inventories was

Discuss how equivalent units are computed under the average cost method.

In a process cost system,the amount of work in process inventory is valued by

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

Custom-made goods would be accounted for using a process costing system.

The journal entry to record the flow of costs into Department 2 during the period for direct materials is

The two categories of cost comprising conversion costs are

The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X.

The debits to Work in Process-Assembly Department for April,together with data concerning production,are as follows: ​ All direct materials are added at the beginning of the process,and the first-in,first-out method is used to cost inventories.The conversion cost per equivalent unit for April is

Equivalent production units are generally determined for

Costs of ending work in process inventory are included in the cost per equivalent unit computation.

Companies that use the average costing method for process costing have unit costs that include costs from more than one accounting period.

The journal entry to record the flow of costs into Department 1 during the period for direct materials is

When a process cost accounting system records the purchase of materials,the Materials account is credited.

Using the FIFO method,the number of units started and completed in July was

If a company uses average costing instead of FIFO,it will still get the same unit costs.

One of the primary uses of a cost of production report is to assist management in controlling production costs.

The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.

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

The debits to Work in Process-Assembly Department for April,together with data concerning production,are as follows: All direct materials are added at the beginning of the process,and the first-in,first-out method is used to cost inventories.The conversion cost per equivalent unit for April is