Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Firms that offer services cannot have work-in-process inventories.

Accepted Answer

A) True 
 B)False  False

Question 3

Match the five steps involved in creating the department production report with the steps below in the proper order.
-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 E

Question 4

If changes occur in the ________ of the manufacturing inputs from one period to the next, then FIFO produces a more accurate unit cost than does the weighted average method.

Accepted Answer

The answer of If changes occur in the ________ of...

Question 5

Select the appropriate definition for each of the items listed below
-combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost

Accepted Answer

A) parallel processing 
B) sequential processing 
C) process costing 
D) weighted-average costing method 
A) parallel processing 
B) sequential processing 
C) process costing 
D) weighted-average costing method

Question 6

Which of the following methods uses costs and work of beginning work in process?

Accepted Answer

A)  weighted average method 
B)  FIFO method 
C)  sequential processing method 
D)  both the weighted average and FIFO methods 
A)  weighted average method 
B)  FIFO method 
C)  sequential processing method 
D)  both the weighted average and FIFO methods

Question 7

Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method.During the current period, the beginning work-in-process inventory cost was $13,525.Manufacturing cost added was $57,000.If Burgundy's ending work-in-process inventory was valued at $15,100, then cost of goods transferred must have been

Accepted Answer

A)  $70,525 
B)  $55,425 
C)  $84,625 
D)  $58,575 
A)  $70,525 
B)  $55,425 
C)  $84,625 
D)  $58,575

Question 8

A cost received by a subsequent process from a prior process is referred to as a:

Accepted Answer

A)  cost of ending work-in-process. 
B)  cost of goods transferred out. 
C)  transferred-in cost. 
D)  cost of beginning work-in-process. 
A)  cost of ending work-in-process. 
B)  cost of goods transferred out. 
C)  transferred-in cost. 
D)  cost of beginning work-in-process.

Question 9

Since transferred-in material is treated as a separate material category for calculating equivalent units, the department receiving transferred-in goods would have:

Accepted Answer

A)  four input categories. 
B)  two input categories. 
C)  three input categories. 
D)  five input categories. 
A)  four input categories. 
B)  two input categories. 
C)  three input categories. 
D)  five input categories.

Question 10

Manufacturing firms may operate without significant work-in-process inventories.

Accepted Answer

A) True 
 B)False

Question 11

Match the five steps involved in creating the department production report with the steps below in the proper order.
-valuation of inventories

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 12

Any product or service that is basically homogeneous and repetitively produced can take advantage of a process-costing approach.

Accepted Answer

A) True 
 B)False

Question 13

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
  During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is Eclypso's cost of October's ending work in process for the mixing department? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $27,500.40 
B)  $29,200.60 
C)  $22,520.50 
D)  $37,117.80 
A)  $27,500.40 
B)  $29,200.60 
C)  $22,520.50 
D)  $37,117.80

Question 14

The major benefit of the FIFO method is simplicity.

Accepted Answer

A) True 
 B)False

Question 15

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
  During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

- By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is the total cost per equivalent unit of production? (Note: Round answer to two decimal places)

Accepted Answer

A)  $12.13 
B)  $10.76 
C)  $11.26 
D)  $8.52 
A)  $12.13 
B)  $10.76 
C)  $11.26 
D)  $8.52

Question 16

In process manufacturing, partially completed goods received from prior departments are referred to as:

Accepted Answer

A)  transferred-in goods. 
B)  finished goods 
C)  equivalent units. 
D)  units in ending work-in-process. 
A)  transferred-in goods. 
B)  finished goods 
C)  equivalent units. 
D)  units in ending work-in-process.

Question 17

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
  During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Eclypso's cost of goods transferred to the molding department (Note: Round answer to two decimal places.) during October would be:

Accepted Answer

A)  $310,347. 
B)  $261,050. 
C)  $465,792. 
D)  $294,000. 
A)  $310,347. 
B)  $261,050. 
C)  $465,792. 
D)  $294,000.

Question 18

Which of the following does not appear in the production report?

Accepted Answer

A)  costs transferred from prior departments 
B)  costs added in the department 
C)  physical units passing through the department 
D)  retail value of the units produced 
A)  costs transferred from prior departments 
B)  costs added in the department 
C)  physical units passing through the department 
D)  retail value of the units produced

Question 19

Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March. ​
​
  The beginning inventory was 70% complete for materials and 30% complete for conversion costs.The ending inventory was 90% complete for materials and 50% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.
​
Costs incurred during March are: materials used, $588,000; conversion cost $624,000.
​
Using the weighted average method, the equivalent unit conversion cost, rounded to 2 decimal places, for March is

Accepted Answer

A)  $5.95. 
B)  $6.00. 
C)  $5.13. 
D)  $6.23. 
A)  $5.95. 
B)  $6.00. 
C)  $5.13. 
D)  $6.23.

Question 20

Which step is physical flow analysis in the general pattern of a process-costing production report?

Accepted Answer

A)  the first step 
B)  after calculation of equivalent units 
C)  after the computation of unit cost 
D)  the last step 
A)  the first step 
B)  after calculation of equivalent units 
C)  after the computation of unit cost 
D)  the last step

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

Firms that offer services cannot have work-in-process inventories.

Match the five steps involved in creating the department production report with the steps below in the proper order. -cost reconciliation

If changes occur in the ________ of the manufacturing inputs from one period to the next, then FIFO produces a more accurate unit cost than does the weighted average method.

Select the appropriate definition for each of the items listed below -combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost

Which of the following methods uses costs and work of beginning work in process?

A cost received by a subsequent process from a prior process is referred to as a:

Since transferred-in material is treated as a separate material category for calculating equivalent units, the department receiving transferred-in goods would have:

Manufacturing firms may operate without significant work-in-process inventories.

Match the five steps involved in creating the department production report with the steps below in the proper order. -valuation of inventories

Any product or service that is basically homogeneous and repetitively produced can take advantage of a process-costing approach.

The major benefit of the FIFO method is simplicity.

In process manufacturing, partially completed goods received from prior departments are referred to as:

Which of the following does not appear in the production report?

Which step is physical flow analysis in the general pattern of a process-costing production report?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 6: Process Costing

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

Firms that offer services cannot have work-in-process inventories.

Match the five steps involved in creating the department production report with the steps below in the proper order. -cost reconciliation

If changes occur in the ________ of the manufacturing inputs from one period to the next, then FIFO produces a more accurate unit cost than does the weighted average method.

Select the appropriate definition for each of the items listed below -combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost

Which of the following methods uses costs and work of beginning work in process?

A cost received by a subsequent process from a prior process is referred to as a:

Since transferred-in material is treated as a separate material category for calculating equivalent units, the department receiving transferred-in goods would have:

Manufacturing firms may operate without significant work-in-process inventories.

Match the five steps involved in creating the department production report with the steps below in the proper order. -valuation of inventories

Any product or service that is basically homogeneous and repetitively produced can take advantage of a process-costing approach.

The major benefit of the FIFO method is simplicity.

In process manufacturing, partially completed goods received from prior departments are referred to as:

Which of the following does not appear in the production report?

Which step is physical flow analysis in the general pattern of a process-costing production report?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters