Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

LuLu, Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for May follows:
During May, 25,000 units were completed and transferred to the moulding department. The following costs were incurred by the mixing department during May:
 Work in process, May 1:
$\begin{array}{lr}
\text { Units (35\% complete) } & 5,000 \
\text { Direct materials } & \$ 24,000 \
\text { Direct labour } & \$ 30,000 \
\text { Overhead } & \$ 10,000
\end{array}$ By May 31, 2,500 units that were 80% complete remained in the mixing department. LuLu uses the weighted average method. $\begin{array}{lr}
\text { Direct materials } & \$ 90,000 \
\text { Direct labour } & 120,000 \
\text { Overhead } & 30,000
\end{array}$
-Refer to the Figure.What would be LuLu's total costs to account for?

Accepted Answer

A) $176,000 
B) $240,000 
C) $264,000 
D) $304,000 
A) $176,000 
B) $240,000 
C) $264,000 
D) $304,000 D

Question 3

Which of the following is affected by nonuniform manufacturing inputs?

Accepted Answer

A) the calculation of equivalent units, unit cost, and valuation of ending work in process 
B) only the calculation of equivalent units, and valuation of ending work in process 
C) only the valuation of ending work in process 
D) only the manufacturing outputs 
A) the calculation of equivalent units, unit cost, and valuation of ending work in process 
B) only the calculation of equivalent units, and valuation of ending work in process 
C) only the valuation of ending work in process 
D) only the manufacturing outputs A

Question 4

Choose the most likely used costing system for the industries listed below.

-Costing system used by a chocolate bar manufacturer

Accepted Answer

A) Process costing 
B) Job order costing 
A) Process costing 
B) Job order costing

Question 5

What is process accounting's solution for nonuniform manufacturing inputs?

Accepted Answer

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

Question 6

Beginning inventory for the month contained 4,000 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.What would be the weighted average equivalent units of production for materials for the month?

Accepted Answer

A) 56,000 
B) 57,600 
C) 60,000 
D) 62,400 
A) 56,000 
B) 57,600 
C) 60,000 
D) 62,400

Question 7

Which of the following best describes parallel processing?

Accepted Answer

A) Units must pass sequentially through a process. 
B) Units must pass through one process before they can be worked on in later processes. 
C) Units that are not processed in the correct sequence are discarded. 
D) Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion. 
A) Units must pass sequentially through a process. 
B) Units must pass through one process before they can be worked on in later processes. 
C) Units that are not processed in the correct sequence are discarded. 
D) Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.

Question 8

Process costing is most useful in situations where there are a large number of homogeneous products.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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 11

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 12

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 13

Refer to Process Department A.
 A. What is the cost of goods transferred out?
B. What is the cost of ending work-in-process inventory?

Accepted Answer

The answer of Refer to Process Department A.
 A. What...

Question 14

Refer to Process Department A.What is the unit manufacturing cost for Department A for October?

Accepted Answer

Unit cost

Question 15

If changes occur in the prices 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

A) True 
 B)False

Question 16

LuLu, Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for May follows:
During May, 25,000 units were completed and transferred to the moulding department. The following costs were incurred by the mixing department during May:
 Work in process, May 1:
$\begin{array}{lr}
\text { Units (35\% complete) } & 5,000 \
\text { Direct materials } & \$ 24,000 \
\text { Direct labour } & \$ 30,000 \
\text { Overhead } & \$ 10,000
\end{array}$ By May 31, 2,500 units that were 80% complete remained in the mixing department. LuLu uses the weighted average method. $\begin{array}{lr}
\text { Direct materials } & \$ 90,000 \
\text { Direct labour } & 120,000 \
\text { Overhead } & 30,000
\end{array}$
-Refer to the Figure.What would be LuLu's cost of goods transferred to the moulding department during May?

Accepted Answer

A) $210,000 
B) $261,050 
C) $281,500 
D) $294,000 
A) $210,000 
B) $261,050 
C) $281,500 
D) $294,000

Question 17

For the current period, SmartCo. started 20,000 units and completed 20,000 units, leaving 7,000 units in process 40% complete.
-Refer to the Figure.Suppose SmartCo.incurred $102,600 in production costs.What would be SmartCo's cost per equivalent unit for the period?

Accepted Answer

A) $1.84 
B) $4.50 
C) $5.13 
D) $36.64 
A) $1.84 
B) $4.50 
C) $5.13 
D) $36.64

Question 18

Select the appropriate definition for each of the items listed below.
-It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

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 19

Which of the following best describes sequential processing?

Accepted Answer

A) Units must pass through one process before they can be worked on in later processes. 
B) Several sequences of production are applied to a product in the department. 
C) Only one process can be applied to a product in each department. 
D) Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion. 
A) Units must pass through one process before they can be worked on in later processes. 
B) Several sequences of production are applied to a product in the department. 
C) Only one process can be applied to a product in each department. 
D) Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.

Question 20

List the five steps in preparing a production report.

Accepted Answer

The answer of List the five steps in preparing a...

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

Which of the following is affected by nonuniform manufacturing inputs?

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

What is process accounting's solution for nonuniform manufacturing inputs?

Which of the following best describes parallel processing?

Process costing is most useful in situations where there are a large number of homogeneous products.

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

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

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

Refer to Process Department A. A. What is the cost of goods transferred out? B. What is the cost of ending work-in-process inventory?

Refer to Process Department A.What is the unit manufacturing cost for Department A for October?

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

For the current period, SmartCo. started 20,000 units and completed 20,000 units, leaving 7,000 units in process 40% complete. -Refer to the Figure.Suppose SmartCo.incurred $102,600 in production costs.What would be SmartCo's cost per equivalent unit for the period?

Select the appropriate definition for each of the items listed below. -It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Which of the following best describes sequential processing?

List the five steps in preparing a production report.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 6: Process Costing

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

Which of the following is affected by nonuniform manufacturing inputs?

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

What is process accounting's solution for nonuniform manufacturing inputs?

Which of the following best describes parallel processing?

Process costing is most useful in situations where there are a large number of homogeneous products.

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

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

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

Refer to Process Department A. A. What is the cost of goods transferred out? B. What is the cost of ending work-in-process inventory?

Refer to Process Department A.What is the unit manufacturing cost for Department A for October?

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

For the current period, SmartCo. started 20,000 units and completed 20,000 units, leaving 7,000 units in process 40% complete. -Refer to the Figure.Suppose SmartCo.incurred $102,600 in production costs.What would be SmartCo's cost per equivalent unit for the period?

Select the appropriate definition for each of the items listed below. -It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Which of the following best describes sequential processing?

List the five steps in preparing a production report.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters