Question 1

FIFO assumes that units in beginning work in process are completed last.

Accepted Answer

A) True 
 B)False

Question 2

Firms that have adopted a __________ approach try to reduce WIP inventories to very low levels.

Accepted Answer

just-in-ti

Question 3

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

Accepted Answer

The answer of _____________________ checks to see if the costs...

Question 4

Which of the following companies would be least likely to use a process costing system?

Accepted Answer

A)  an oil refinery 
B)  a home-builder 
C)  a fertilizer company 
D)  a chemical company 
A)  an oil refinery 
B)  a home-builder 
C)  a fertilizer company 
D)  a chemical company

Question 5

Direct materials used in production, direct labor, and applied overhead are charged to the _______________ account.

Accepted Answer

The answer of Direct materials used in production, direct labor,...

Question 6

Different percentage completion figures for manufacturing inputs pose a problem for the calculation of equivalent units, unit cost, and valuation of ending work in process.

Accepted Answer

A) True 
 B)False

Question 7

How is unit cost calculated?

Accepted Answer

A)  It is calculated by multiplying total units by total costs. 
B)  It is calculated by adding all cost drivers. 
C)  It is calculated by subtracting the ending work in process from the total sales of the period. 
D)  It is calculated by dividing the total costs for the period by the total output of the period. 
A)  It is calculated by multiplying total units by total costs. 
B)  It is calculated by adding all cost drivers. 
C)  It is calculated by subtracting the ending work in process from the total sales of the period. 
D)  It is calculated by dividing the total costs for the period by the total output of the period.

Question 8

Which of the following businesses is most likely to use process costing?

Accepted Answer

A)  chemical plant 
B)  architectural firm 
C)  dentist's office 
D)  manufacturer of fine furniture 
A)  chemical plant 
B)  architectural firm 
C)  dentist's office 
D)  manufacturer of fine furniture

Question 9

Process costing is most appropriate for manufacturers of homogeneous products.

Accepted Answer

A) True 
 B)False

Question 10

The total associated manufacturing costs for beginning work in process units under the FIFO method are:

Accepted Answer

A)  the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process 
B)  the cost of ending work-in-process units. 
C)  the cost of units started and completed. 
D)  conversion costs. 
A)  the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process 
B)  the cost of ending work-in-process units. 
C)  the cost of units started and completed. 
D)  conversion costs.

Question 11

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:

Accepted Answer

A)  5,043 units. 
B)  7,000 units. 
C)  3,600 units. 
D)  7,920 units. 
A)  5,043 units. 
B)  7,000 units. 
C)  3,600 units. 
D)  7,920 units.

Question 12

Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials.During the month, 50,000 units were completed and transferred out.Ending inventory contained 5,000 units, 30% complete with respect to materials.The weighted average equivalent units of production for materials for the month would be

Accepted Answer

A)  50,000 
B)  51,500 
C)  50,300 
D)  49,500 
A)  50,000 
B)  51,500 
C)  50,300 
D)  49,500

Question 13

Choose the most likely used costing system for the industries listed below.
-Costing system used by a home builder.

Accepted Answer

A) Process Costing 
B) Job Order Costing 
A) Process Costing 
B) Job Order Costing

Question 14

In process costing, each producing department has its own work-in-process account.

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 the month of 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 the mixing department.
- Eclypso uses the weighted average method.Eclypso's total costs to account for would be:

Accepted Answer

A)  $304,000. 
B)  $264,000. 
C)  $502,800. 
D)  $155,000. 
A)  $304,000. 
B)  $264,000. 
C)  $502,800. 
D)  $155,000.

Question 16

_________________ works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Accepted Answer

The answer of _________________ works well whenever relatively homogeneous products...

Question 17

Match the five steps involved in creating the department production report with the steps below in the proper order.
-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 18

​Which of the following is true of parallel processing?​

Accepted Answer

A)  In parallel processing, a large number of heterogeneous products pass through an identical set of processes. 
B)  It is a processing pattern in which units are subjected to the different operations for a given process. 
C)  It is a processing pattern in which two or more sequential processes are required to produce a finished product. 
D)  In parallel processing, each unit produced in a period receives the unit cost at a varying rate. 
A)  In parallel processing, a large number of heterogeneous products pass through an identical set of processes. 
B)  It is a processing pattern in which units are subjected to the different operations for a given process. 
C)  It is a processing pattern in which two or more sequential processes are required to produce a finished product. 
D)  In parallel processing, each unit produced in a period receives the unit cost at a varying rate.

Question 19

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units as if there were uniform manufacturing inputs.

Accepted Answer

A) True 
 B)False

Question 20

The following information is available for Department Z for the month of July: ?
?
  
-Materials are added at the beginning of the process.Department Z's cost per equivalent unit of production for materials using the FIFO method would be

Accepted Answer

A)  $1.20. 
B)  $1.04. 
C)  $0.96. 
D)  $0.90. 
A)  $1.20. 
B)  $1.04. 
C)  $0.96. 
D)  $0.90.

FIFO assumes that units in beginning work in process are completed last.

Firms that have adopted a __________ approach try to reduce WIP inventories to very low levels.

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

Which of the following companies would be least likely to use a process costing system?

Direct materials used in production, direct labor, and applied overhead are charged to the _______________ account.

Different percentage completion figures for manufacturing inputs pose a problem for the calculation of equivalent units, unit cost, and valuation of ending work in process.

How is unit cost calculated?

Which of the following businesses is most likely to use process costing?

Process costing is most appropriate for manufacturers of homogeneous products.

The total associated manufacturing costs for beginning work in process units under the FIFO method are:

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:

Choose the most likely used costing system for the industries listed below. -Costing system used by a home builder.

In process costing, each producing department has its own work-in-process account.

_________________ works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

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

Which of the following is true of parallel processing?

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units as if there were uniform manufacturing inputs.

The following information is available for Department Z for the month of July: ? ? -Materials are added at the beginning of the process.Department Z's cost per equivalent unit of production for materials using the FIFO method would be

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

FIFO assumes that units in beginning work in process are completed last.

Firms that have adopted a __________ approach try to reduce WIP inventories to very low levels.

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

Which of the following companies would be least likely to use a process costing system?

Direct materials used in production, direct labor, and applied overhead are charged to the _______________ account.

Different percentage completion figures for manufacturing inputs pose a problem for the calculation of equivalent units, unit cost, and valuation of ending work in process.

How is unit cost calculated?

Which of the following businesses is most likely to use process costing?

Process costing is most appropriate for manufacturers of homogeneous products.

The total associated manufacturing costs for beginning work in process units under the FIFO method are:

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:

Choose the most likely used costing system for the industries listed below. -Costing system used by a home builder.

In process costing, each producing department has its own work-in-process account.

_________________ works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

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

​Which of the following is true of parallel processing?​

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units as if there were uniform manufacturing inputs.

The following information is available for Department Z for the month of July: ? ? -Materials are added at the beginning of the process.Department Z's cost per equivalent unit of production for materials using the FIFO method would be

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

Which of the following is true of parallel processing?