Question 1

Match the five steps involved in creating the department production report with the steps below in the proper order.
-Computation of unit costs

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 2

What type of business would likely use process costing?

Accepted Answer

A) a paper cup manufacturer 
B) a cruise ship manufacturer 
C) a modular home builder 
D) a custom snowboard company 
A) a paper cup manufacturer 
B) a cruise ship manufacturer 
C) a modular home builder 
D) a custom snowboard company

Question 3

Refer to Process Department A.
 A. Calculate the equivalent units of production in ending work-in-process inventory.
B. Calculate total equivalent units of production for Department $A$ for October.

Accepted Answer

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

Question 4

Which two methods determine the equivalent units of production in process costing?

Accepted Answer

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

Question 5

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

-Costing system used by a cruise ship builder

Accepted Answer

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

Question 6

Red Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of October.
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of October area as follows:
Beginning inventory costs: materials, $54,560; conversion cost, $35,560.
Costs incurred during October: materials used, $468,000; conversion cost, $574,040.
  
-Refer to the Figure.What would be the unit cost of materials for October when using the weighted average method?

Accepted Answer

A) $4.50 
B) $4.60 
C) $5.03 
D) $5.46 
A) $4.50 
B) $4.60 
C) $5.03 
D) $5.46

Question 7

Since FIFO excludes prior-period work and costs,it is necessary to create three categories of completed units.

Accepted Answer

A) True 
 B)False

Question 8

Green Company adds materials at the beginning of the process in the forming department,which is the first of two stages of its production cycle.Information concerning the materials used in the forming department in May follows:
Using the FIFO method,what is the materials cost of the work in process at May 31? (Round unit calculations to the nearest cent.)

Accepted Answer

The answer of Green Company adds materials at the beginning...

Question 9

The following information is available for Department ABC for the month of September:
Materials are added at the beginning of the process. (Round unit costs to two decimal places.)
  
-Refer to the Figure.What would be Department ABC's cost of goods transferred out when using the FIFO method?

Accepted Answer

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

Question 10

The following information is provided: Materials and conversion are incurred uniformly throughout the process.
What would be the equivalent units of production for conversion when using the weighted average method?

Accepted Answer

A) 17,400 
B) 18,600 
C) 21,000 
D) 22,000 
A) 17,400 
B) 18,600 
C) 21,000 
D) 22,000

Question 11

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

Accepted Answer

A) True 
 B)False

Question 12

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.How many equivalent units of production did SmartCo.have for the period?

Accepted Answer

A) 10,000 
B) 11,500 
C) 13,500 
D) 22,800 
A) 10,000 
B) 11,500 
C) 13,500 
D) 22,800

Question 13

Select the appropriate definition for each of the items listed below.
-It combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

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 14

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

Question 15

Queen Corporation produces a product that passes through two departments.For November,the following equivalent unit schedule was prepared for the first department:
Costs assigned to beginning work in process:
   Manufacturing costs incurred during the month:
 $\begin{array}{ll}
\text { Materials: } & \$ 18,000 \
\text { Conversion: } & \$ 22,000
\end{array}$ Required:
 $\begin{array}{ll}
\text { Materials: } & \$ 44,000 \
\text { Conversion: } & \$ 54,000
\end{array}$ A. Compute the unit cost for November using the weighted average method.
B. Determine the cost of goods transferred out.
C. Determine the cost of ending work in process.

Accepted Answer

A.Cost per equivalent unit:
Materials =

Question 16

Suppose that finished units are now in the last (final)department.To which account will the cost of the finished units flow from the work-in-process account?

Accepted Answer

A) sales 
B) finished goods 
C) inventory 
D) cost of goods sold 
A) sales 
B) finished goods 
C) inventory 
D) cost of goods sold

Question 17

The major benefit of the weighted average method is simplicity.

Accepted Answer

A) True 
 B)False

Question 18

Select the appropriate definition for each of the items listed below.
-Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period

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 19

The following information is provided: Materials are added at the beginning of the process.
What would be the equivalent units of production for conversion costs when using the weighted average method?
$\begin{array}{lr}& \text { Units } \
\text { Work in process, May } 1 \text { ( } 30 \% \text { complete) } &6,000\
\text { Started in June } & 40,000 \
\text { Work in process, May } 31 \text { (40\% complete) } & 14,000
\end{array}$

Accepted Answer

A) 27,600 
B) 34,800 
C) 35,600 
D) 37,600 
A) 27,600 
B) 34,800 
C) 35,600 
D) 37,600

Question 20

Which of the following does NOT appear in the production report?

Accepted Answer

A) costs transferred from prior departments 
B) costs added in the department 
C) physical units passing through the department 
D) retail value of the units produced 
A) costs transferred from prior departments 
B) costs added in the department 
C) physical units passing through the department 
D) retail value of the units produced

Match the five steps involved in creating the department production report with the steps below in the proper order. -Computation of unit costs

What type of business would likely use process costing?

Refer to Process Department A. A. Calculate the equivalent units of production in ending work-in-process inventory. B. Calculate total equivalent units of production for Department $A$ for October.

Which two methods determine the equivalent units of production in process costing?

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

Since FIFO excludes prior-period work and costs,it is necessary to create three categories of completed units.

The following information is available for Department ABC for the month of September: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to the Figure.What would be Department ABC's cost of goods transferred out when using the FIFO method?

The following information is provided: Materials and conversion are incurred uniformly throughout the process. What would be the equivalent units of production for conversion when using the weighted average method?

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

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.How many equivalent units of production did SmartCo.have for the period?

Select the appropriate definition for each of the items listed below. -It combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

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

Suppose that finished units are now in the last (final)department.To which account will the cost of the finished units flow from the work-in-process account?

The major benefit of the weighted average method is simplicity.

Select the appropriate definition for each of the items listed below. -Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period

Which of the following does NOT appear in the 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

Match the five steps involved in creating the department production report with the steps below in the proper order. -Computation of unit costs

What type of business would likely use process costing?

Refer to Process Department A. A. Calculate the equivalent units of production in ending work-in-process inventory. B. Calculate total equivalent units of production for Department AAA for October.

Which two methods determine the equivalent units of production in process costing?

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

Since FIFO excludes prior-period work and costs,it is necessary to create three categories of completed units.

The following information is available for Department ABC for the month of September: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to the Figure.What would be Department ABC's cost of goods transferred out when using the FIFO method?

The following information is provided: Materials and conversion are incurred uniformly throughout the process. What would be the equivalent units of production for conversion when using the weighted average method?

A production report provides information about the physical units processed in a department and also about the manufacturing costs associated with them.

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.How many equivalent units of production did SmartCo.have for the period?

Select the appropriate definition for each of the items listed below. -It combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

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

Suppose that finished units are now in the last (final)department.To which account will the cost of the finished units flow from the work-in-process account?

The major benefit of the weighted average method is simplicity.

Select the appropriate definition for each of the items listed below. -Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period

Which of the following does NOT appear in the 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

Refer to Process Department A. A. Calculate the equivalent units of production in ending work-in-process inventory. B. Calculate total equivalent units of production for Department $A$ for October.