Question 1

Direct materials used in production, direct labor, and applied overhead are charged to the:

Accepted Answer

A)  raw materials account. 
B)  overhead account. 
C)  work in process account. 
D)  indirect labor account. 
A)  raw materials account. 
B)  overhead account. 
C)  work in process account. 
D)  indirect labor account.

Question 2

Following is the information of Piper Company for the month of May: Materials and conversion are incurred uniformly throughout the process.
   
The equivalent units of production for conversion using the weighted average method would be:

Accepted Answer

A)  19,467. 
B)  18,900. 
C)  21,575. 
D)  22,000. 
A)  19,467. 
B)  18,900. 
C)  21,575. 
D)  22,000.

Question 3

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

Accepted Answer

A) True 
 B)False

Question 4

An accountant calculates unit cost from:

Accepted Answer

A)  conversion costs and indirect labor. 
B)  the total output of a period and the total costs for that period. 
C)  the total prime cost for a period and the direct materials used in that period. 
D)  direct labor and manufacturing overhead. 
A)  conversion costs and indirect labor. 
B)  the total output of a period and the total costs for that period. 
C)  the total prime cost for a period and the direct materials used in that period. 
D)  direct labor and manufacturing overhead.

Question 5

What types of costs are normally found in a process accounting system?

Accepted Answer

A)  materials, labor and overhead 
B)  materials and labor 
C)  labor and overhead 
D)  overhead, selling and administrative 
A)  materials, labor and overhead 
B)  materials and labor 
C)  labor and overhead 
D)  overhead, selling and administrative

Question 6

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 ending work in process using the FIFO method would be

Accepted Answer

A)  $3,960. 
B)  $3,552. 
C)  $3,500. 
D)  $3,160. 
A)  $3,960. 
B)  $3,552. 
C)  $3,500. 
D)  $3,160.

Question 7

In process costing, the cost of units finished in the last department will be transferred from work in process to

Accepted Answer

A)  cost of goods sold. 
B)  completed processes. 
C)  finished goods. 
D)  sales. 
A)  cost of goods sold. 
B)  completed processes. 
C)  finished goods. 
D)  sales.

Question 8

Equivalent production expresses all activity of the period in terms of

Accepted Answer

A)  work in process 
B)  materials, labor and overhead 
C)  fully completed units 
D)  partially completed units 
A)  work in process 
B)  materials, labor and overhead 
C)  fully completed units 
D)  partially completed units

Question 9

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

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

Question 10

The following information is available for Department X for the month of August: ?
?
 
- Department X's cost per equivalent unit for conversion using the weighted average method would be:

Accepted Answer

A)  $8.00. 
B)  $5.00. 
C)  $3.00. 
D)  $9.00. 
A)  $8.00. 
B)  $5.00. 
C)  $3.00. 
D)  $9.00.

Question 11

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 completed in Planet Corporation's second department during June would be:

Accepted Answer

A)  48,000. 
B)  54,600. 
C)  49,000. 
D)  55,000. 
A)  48,000. 
B)  54,600. 
C)  49,000. 
D)  55,000.

Question 12

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

Accepted Answer

A) True 
 B)False

Question 13

In the current period, Forward Co.started with the production of 21,000 units and completed 8,400 units, leaving 13,200 units in process that are 42% complete.
-If Forward Co.incurred production costs of $34,980, what was Forward's cost per equivalent unit for the period? (Note: Round your answer to two decimal places.)

Accepted Answer

A)  $2.51 
B)  $3.00 
C)  $2.75 
D)  $3.25 
A)  $2.51 
B)  $3.00 
C)  $2.75 
D)  $3.25

Question 14

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

Accepted Answer

A) True 
 B)False

Question 15

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

Accepted Answer

A) True 
 B)False

Question 16

The _________________________ combines beginning inventory costs and work done with current-period costs and work done to calculate this period's unit cost.

Accepted Answer

weighted a

Question 17

Estimating the degree of completion of ending work in process requires:

Accepted Answer

A)  judgement and ethical behavior 
B)  The degree of completion of beginning work in process 
C)  adjusting the degree of completion of completed units 
D)  use of the weighted average method 
A)  judgement and ethical behavior 
B)  The degree of completion of beginning work in process 
C)  adjusting the degree of completion of completed units 
D)  use of the weighted average method

Question 18

Two methods used to determine equivalent units of production in process costing are

Accepted Answer

A)  weighted average and FIFO 
B)  FIFO and LIFO 
C)  weighted average and LIFO 
D)  weighted average and exact costing 
A)  weighted average and FIFO 
B)  FIFO and LIFO 
C)  weighted average and LIFO 
D)  weighted average and exact costing

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

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

Direct materials used in production, direct labor, and applied overhead are charged to the:

Following is the information of Piper Company for the month of May: Materials and conversion are incurred uniformly throughout the process. The equivalent units of production for conversion using the weighted average method would be:

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

An accountant calculates unit cost from:

What types of costs are normally found in a process accounting system?

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 ending work in process using the FIFO method would be

In process costing, the cost of units finished in the last department will be transferred from work in process to

Equivalent production expresses all activity of the period in terms of

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

The following information is available for Department X for the month of August: ? ? - Department X's cost per equivalent unit for conversion using the weighted average method would be:

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

The _________________________ combines beginning inventory costs and work done with current-period costs and work done to calculate this period's unit cost.

Estimating the degree of completion of ending work in process requires:

Two methods used to determine equivalent units of production in process costing are

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

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

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

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Exam 6: Process Costing

Direct materials used in production, direct labor, and applied overhead are charged to the:

Following is the information of Piper Company for the month of May: Materials and conversion are incurred uniformly throughout the process. The equivalent units of production for conversion using the weighted average method would be:

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

An accountant calculates unit cost from:

What types of costs are normally found in a process accounting system?

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 ending work in process using the FIFO method would be

In process costing, the cost of units finished in the last department will be transferred from work in process to

Equivalent production expresses all activity of the period in terms of

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

The following information is available for Department X for the month of August: ? ? - Department X's cost per equivalent unit for conversion using the weighted average method would be:

A production report contains information on costs transferred in from prior departments as well as costs added in the department such as direct materials, direct labor, and overhead.

The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

The _________________________ combines beginning inventory costs and work done with current-period costs and work done to calculate this period's unit cost.

Estimating the degree of completion of ending work in process requires:

Two methods used to determine equivalent units of production in process costing are

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

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

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