Question 1

Parallel processing requires that units pass through one process before they can be worked on in the next process.

Accepted Answer

A) True 
 B)False

Question 2

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department are

Accepted Answer

A)  equal to the equivalent units plus the materials added. 
B)  equal to the equivalent units of that department. 
C)  equal to the materials added plus conversion costs. 
D)  equal to the units transferred out from the prior department. 
A)  equal to the equivalent units plus the materials added. 
B)  equal to the equivalent units of that department. 
C)  equal to the materials added plus conversion costs. 
D)  equal to the units transferred out from the prior department.

Question 3

The Fox Company uses the weighted average method.The beginning work in process consists of 20,000 units (100% completed as to materials and 50% complete as to conversion costs).The number of units completed was 80,000.The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).Calculate the equivalent units of production for conversion costs.

Accepted Answer

A)  110,000 
B)  82,000 
C)  80,000 
D)  90,000 
A)  110,000 
B)  82,000 
C)  80,000 
D)  90,000

Question 4

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).Calculate the number of units started during the period.

Accepted Answer

A)  129,900 
B)  100,000 
C)  120,000 
D)  133,500 
A)  129,900 
B)  100,000 
C)  120,000 
D)  133,500

Question 5

Process accounting's solution for nonuniform manufacturing inputs is

Accepted Answer

A)  calculate equivalent units for each category of manufacturing input. 
B)  calculate total unit cost as if there were uniform manufacturing inputs. 
C)  to use the weighted average method. 
D)  to use FIFO method or the weighted average method. 
A)  calculate equivalent units for each category of manufacturing input. 
B)  calculate total unit cost as if there were uniform manufacturing inputs. 
C)  to use the weighted average method. 
D)  to use FIFO method or the weighted average method.

Question 6

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
-
Using the weighted average method, the total equivalent units of production for direct materials is calculated as:

Accepted Answer

A)  120,000. 
B)  120,960. 
C)  116,000. 
D)  105,850. 
A)  120,000. 
B)  120,960. 
C)  116,000. 
D)  105,850.

Question 7

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

Accepted Answer

A)  beginning work-in-process units and units started. 
B)  units started and completed and ending work-in-process units. 
C)  beginning work-in-process units and units started and completed during the current period. 
D)  other categories. 
A)  beginning work-in-process units and units started. 
B)  units started and completed and ending work-in-process units. 
C)  beginning work-in-process units and units started and completed during the current period. 
D)  other categories.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The Planet Corporation produces a product that passes through two processes.During June, the first department transferred 63,000 units to the second department.The cost of the units transferred was $94,500.Materials are added uniformly in the second process.The following information was provided about the second department's operations during June: ?
?
 
- Units started in Planet Corporation's second department during June would be:

Accepted Answer

A)  63,000. 
B)  55,000. 
C)  73,000. 
D)  48,000. 
A)  63,000. 
B)  55,000. 
C)  73,000. 
D)  48,000.

Question 10

Select the appropriate definition for each of the items listed below
-Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Accepted Answer

A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report 
A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report

Question 11

Select the appropriate definition for each of the items listed below
-The document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report 
A) equivalent units of production 
B) transferred-in costs 
C) FIFO costing methods 
D) Production report

Question 12

Choose the most likely used costing system for the industries listed below.
-Costing system used by an architectural firm.

Accepted Answer

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

Question 13

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

Accepted Answer

A) True 
 B)False

Question 14

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the

Accepted Answer

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

Question 15

In process manufacturing, the manufacturing input categories include

Accepted Answer

A)  only work in process. 
B)  only cost of goods sold. 
C)  only raw materials. 
D)  transferred-in materials, materials added, and conversion costs. 
A)  only work in process. 
B)  only cost of goods sold. 
C)  only raw materials. 
D)  transferred-in materials, materials added, and conversion costs.

Question 16

Following is the information of Unicorn Inc.for the month of June:  
  Materials are added at the beginning of the process.
 
The equivalent units of production for conversion costs using the weighted average method would be:

Accepted Answer

A)  35,600. 
B)  34,800. 
C)  36,000. 
D)  31,020. 
A)  35,600. 
B)  34,800. 
C)  36,000. 
D)  31,020.

Question 17

Information concerning Department A of Synergy Company for the month of June is as follows: 
  
-  All materials are added at the beginning of the process.Which of the following is the cost per equivalent unit for materials using the first-in, first-out method? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $0.74 
B)  $0.90 
C)  $0.77 
D)  $0.78 
A)  $0.74 
B)  $0.90 
C)  $0.77 
D)  $0.78

Question 18

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 conversion costs using the FIFO method would be

Accepted Answer

A)  $1.18. 
B)  $1.02. 
C)  $0.85. 
D)  $0.73. 
A)  $1.18. 
B)  $1.02. 
C)  $0.85. 
D)  $0.73.

Question 19

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

Accepted Answer

A) True 
 B)False

Question 20

If great accuracy in computing unit costs is desired, a company should use the _________ method to determine unit cost.

Accepted Answer

The answer of If great accuracy in computing unit costs...

Parallel processing requires that units pass through one process before they can be worked on in the next process.

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department are

Process accounting's solution for nonuniform manufacturing inputs is

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

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

Select the appropriate definition for each of the items listed below -Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Select the appropriate definition for each of the items listed below -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Choose the most likely used costing system for the industries listed below. -Costing system used by an architectural firm.

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the

In process manufacturing, the manufacturing input categories include

Following is the information of Unicorn Inc.for the month of June: Materials are added at the beginning of the process. The equivalent units of production for conversion costs using the weighted average method would be:

Information concerning Department A of Synergy Company for the month of June is as follows: - All materials are added at the beginning of the process.Which of the following is the cost per equivalent unit for materials using the first-in, first-out method? (Note: Round answer to two decimal places.)

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 conversion costs using the FIFO method would be

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

If great accuracy in computing unit costs is desired, a company should use the _________ method to determine unit cost.

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

Parallel processing requires that units pass through one process before they can be worked on in the next process.

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department are

Process accounting's solution for nonuniform manufacturing inputs is

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:

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

Select the appropriate definition for each of the items listed below -Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Select the appropriate definition for each of the items listed below -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Choose the most likely used costing system for the industries listed below. -Costing system used by an architectural firm.

The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs.

When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the

In process manufacturing, the manufacturing input categories include

Following is the information of Unicorn Inc.for the month of June: Materials are added at the beginning of the process. The equivalent units of production for conversion costs using the weighted average method would be:

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 conversion costs using the FIFO method would be

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

If great accuracy in computing unit costs is desired, a company should use the _________ method to determine unit cost.

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