Question 1

To calculate the equivalent units of production, the number of physical units is multiplied by the percentage of completion.

Accepted Answer

A) True 
 B)False

Question 2

Simplicity is the main advantage of which of the following process costing methods?

Accepted Answer

A)  LIFO 
B)  FIFO 
C)  weighted average 
D)  exact cost method 
A)  LIFO 
B)  FIFO 
C)  weighted average 
D)  exact cost method

Question 3

Beginning inventory for the month contained 2,000 units that were 70% complete with respect to materials.During the month, 60,000 units were completed and transferred out.Ending inventory contained 3,000 units, 20% complete with respect to materials.The weighted average equivalent units of production for materials for the month would be

Accepted Answer

A)  62,400 
B)  63,000 
C)  60,600 
D)  60,000 
A)  62,400 
B)  63,000 
C)  60,600 
D)  60,000

Question 4

The cost of units finished at the last (final) department will flow from work in process to:

Accepted Answer

A)  raw materials 
B)  finished goods 
C)  cost of goods sold 
D)  accounts receivable 
A)  raw materials 
B)  finished goods 
C)  cost of goods sold 
D)  accounts receivable

Question 5

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

Accepted Answer

The answer of Under the _________________ method there are two...

Question 6

_________________________ are costs transferred from a prior process to a subsequent process.

Accepted Answer

Transferre

Question 7

Choose the most likely used costing system for the industries listed below.
-Costing system used by a manufacturer of custom furniture.

Accepted Answer

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

Question 8

Beginning inventory of Talisman Inc.for the month had 3,600 units that were 65% complete with respect to materials.During the month, 60,000 units were completed and transferred out.Ending inventory contained 6,000 units that were 40% 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)  62,400. 
C)  50,300. 
D)  49,500. 
A)  50,000. 
B)  62,400. 
C)  50,300. 
D)  49,500.

Question 9

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

The answer of The _______________________ is the document that summarizes...

Question 10

The number of physical units is multiplied by the _____________________ to calculate equivalent units.

Accepted Answer

percentage

Question 11

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 equivalent units of production using the weighted average method would be:

Accepted Answer

A)  41,460. 
B)  32,000. 
C)  35,000. 
D)  24,740. 
A)  41,460. 
B)  32,000. 
C)  35,000. 
D)  24,740.

Question 12

Following is the information about Kartval Enterprises's equivalent units in May:   Using the weighted average method, calculate Kartval Enterprises's equivalent units for May.

Accepted Answer

A)  7,150 
B)  10,350 
C)  10,235 
D)  19,545 
A)  7,150 
B)  10,350 
C)  10,235 
D)  19,545

Question 13

The Learner Company uses the weighted average method.Learner's beginning work in process consists of 6,600 units (100% complete with respect to materials and 60% complete with respect to conversion costs).The number of units completed is 126,000.The ending work in process consists of 10,500 units (100% complete with respect to materials and 30% complete with respect to conversion costs).What are the equivalent units of production for conversion costs?

Accepted Answer

A)  120,850 
B)  132,000 
C)  129,150 
D)  135,000 
A)  120,850 
B)  132,000 
C)  129,150 
D)  135,000

Question 14

Under the FIFO method, for the beginning work-in-process units, the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

Accepted Answer

A) True 
 B)False

Question 15

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 of goods transferred out using the FIFO method would be

Accepted Answer

A)  $40,250. 
B)  $45,540. 
C)  $44,500. 
D)  $45,775. 
A)  $40,250. 
B)  $45,540. 
C)  $44,500. 
D)  $45,775.

Question 16

Which of the following is true of conversion costs?

Accepted Answer

A)  Conversion costs include direct labor and overhead. 
B)  Conversion costs include direct materials and direct labor. 
C)  Conversion costs include direct labor and selling expenses. 
D)  Conversion costs include direct materials and indirect labor. 
A)  Conversion costs include direct labor and overhead. 
B)  Conversion costs include direct materials and direct labor. 
C)  Conversion costs include direct labor and selling expenses. 
D)  Conversion costs include direct materials and indirect labor.

Question 17

Which of the following methods considers the percentage of completion of beginning work-in-process?

Accepted Answer

A)  FIFO 
B)  weighted average 
C)  both weighted average and FIFO 
D)  neither FIFO nor weighted average 
A)  FIFO 
B)  weighted average 
C)  both weighted average and FIFO 
D)  neither FIFO nor weighted average

Question 18

Which is the best description of the production report?

Accepted Answer

A)  The production report provides information about the manufacturing costs incurred by the department. 
B)  The report provides information about the physical units processed by the department. 
C)  The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. 
D)  None of these. 
A)  The production report provides information about the manufacturing costs incurred by the department. 
B)  The report provides information about the physical units processed by the department. 
C)  The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. 
D)  None of these.

Question 19

Excellent 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 65% complete for materials and 25% complete for conversion costs.The ending inventory was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
-
 
Which of the following is the unit cost of materials calculated using the weighted average method? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $4.50 
B)  $5.49 
C)  $5.00 
D)  $5.46 
A)  $4.50 
B)  $5.49 
C)  $5.00 
D)  $5.46

Question 20

Which type of costing system works best with a large number of homogeneous products?

Accepted Answer

A)  job-order costing 
B)  process costing 
C)  sequential costing 
D)  parallel costing 
A)  job-order costing 
B)  process costing 
C)  sequential costing 
D)  parallel costing

To calculate the equivalent units of production, the number of physical units is multiplied by the percentage of completion.

Simplicity is the main advantage of which of the following process costing methods?

The cost of units finished at the last (final) department will flow from work in process to:

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

_________________________ are costs transferred from a prior process to a subsequent process.

Choose the most likely used costing system for the industries listed below. -Costing system used by a manufacturer of custom furniture.

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

The number of physical units is multiplied by the _____________________ to calculate equivalent units.

Following is the information about Kartval Enterprises's equivalent units in May: Using the weighted average method, calculate Kartval Enterprises's equivalent units for May.

Under the FIFO method, for the beginning work-in-process units, the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

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 of goods transferred out using the FIFO method would be

Which of the following is true of conversion costs?

Which of the following methods considers the percentage of completion of beginning work-in-process?

Which is the best description of the production report?

Which type of costing system works best with a large number of homogeneous products?

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

To calculate the equivalent units of production, the number of physical units is multiplied by the percentage of completion.

Simplicity is the main advantage of which of the following process costing methods?

The cost of units finished at the last (final) department will flow from work in process to:

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory.

_________________________ are costs transferred from a prior process to a subsequent process.

Choose the most likely used costing system for the industries listed below. -Costing system used by a manufacturer of custom furniture.

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

The number of physical units is multiplied by the _____________________ to calculate equivalent units.

Following is the information about Kartval Enterprises's equivalent units in May: Using the weighted average method, calculate Kartval Enterprises's equivalent units for May.

Under the FIFO method, for the beginning work-in-process units, the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

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 of goods transferred out using the FIFO method would be

Which of the following is true of conversion costs?

Which of the following methods considers the percentage of completion of beginning work-in-process?

Which is the best description of the production report?

Which type of costing system works best with a large number of homogeneous products?

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