Question 1

Which of the following is used to record raw materials,direct labour,and applied overhead costs at the time they are used?

Accepted Answer

A) raw materials inventory 
B) finished goods 
C) work in process 
D) cost of goods sold 
A) raw materials inventory 
B) finished goods 
C) work in process 
D) cost of goods sold

Question 2

Which of the following companies would be least likely to use a process-costing system?

Accepted Answer

A) a disposable diaper manufacturer 
B) a print shop 
C) a chemical producer 
D) a paint manufacturer 
A) a disposable diaper manufacturer 
B) a print shop 
C) a chemical producer 
D) a paint manufacturer

Question 3

Which account do the costs of completed products move to after work-in-process?

Accepted Answer

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

Question 4

Which goods are moved from a prior department to subsequent department?

Accepted Answer

A) transferred-in goods 
B) finished goods 
C) work in process 
D) beginning goods 
A) transferred-in goods 
B) finished goods 
C) work in process 
D) beginning goods

Question 5

Which of the following best describes sequential processing?

Accepted Answer

A) A large number of similar products pass through an identical set of processes. 
B) Units typically pass through a series of manufacturing or producing departments at the same time. 
C) Partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion. 
D) Units must pass through one process before they can be worked on in later processes. 
A) A large number of similar products pass through an identical set of processes. 
B) Units typically pass through a series of manufacturing or producing departments at the same time. 
C) Partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion. 
D) Units must pass through one process before they can be worked on in later processes.

Question 6

Habitat Company uses the weighted average method in its costing system.In the assembly department,the equivalent units for conversion costs amounted to 35,000 for the month of May.In beginning work in process,5,000 units were 50% complete.During the month,33,000 units were started and 31,400 were completed and transferred.How many units were in the ending work in process?

Accepted Answer

A) 3,600 units 
B) 5,000 units 
C) 6,600 units 
D) 7,000 units 
A) 3,600 units 
B) 5,000 units 
C) 6,600 units 
D) 7,000 units

Question 7

Extraordinary Incorporated manufactures quality hair care products.The ingredients are combined in the mixing department and put in 473 mL containers in the packaging department.
The following information pertains to the mixing department for the month of March:
The costs in work in process at March 1 in the mixing department were as follows:
   The costs added by the mixing department during the month of March were as follows:
 $\begin{array}{lr}&\text { Mixing }\&\text { Department }\
\text { Work in process, March } 1: & \
\text { Materials } & \$ 15,000 \
\text { Direct labour } & 20,000 \
\text { Manufacturing overhead } & 17,600 \
\text { Total costs } & \$ 52,600
\end{array}$ Round unit costs to two decimal places.
Required:
 $\begin{array}{lr}&\text { Mixing }\&\text { Department }\
\text { Materials } & \$ 90,000 \
\text { Direct labour } & 120,000 \
\text { Manufacturing overhead } & 100,000 \
\text { Total costs added } & \$ 310,000
\end{array}$

Accepted Answer

The answer of Extraordinary Incorporated manufactures quality hair care products.The...

Question 8

What is total cost divided by units produced?

Accepted Answer

A) process costs 
B) unit driver 
C) unit cost 
D) total costs incurred 
A) process costs 
B) unit driver 
C) unit cost 
D) total costs incurred

Question 9

For which of the following are the total associated manufacturing costs under the FIFO method the sum of the prior-period costs plus the costs incurred in the current period to finish the units?

Accepted Answer

A) beginning work-in-process units 
B) ending work-in-process units 
C) units started and completed 
D) conversion costs 
A) beginning work-in-process units 
B) ending work-in-process units 
C) units started and completed 
D) conversion costs

Question 10

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

-Costing system used by a home builder

Accepted Answer

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

Question 11

Describe the differences between sequential and parallel processing.

Accepted Answer

Sequential processing requires that unit

Question 12

Which of the following businesses is most likely to use process costing?

Accepted Answer

A) a dentist 
B) an accounting firm 
C) a tire manufacturer 
D) a custom machine manufacturer 
A) a dentist 
B) an accounting firm 
C) a tire manufacturer 
D) a custom machine manufacturer

Question 13

Manufacturing firms always operate with significant work-in-process inventories.

Accepted Answer

A) True 
 B)False

Question 14

What does equivalent production use to express all activity of the period?

Accepted Answer

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

Question 15

What does an accountant need to know to calculate unit cost?

Accepted Answer

A) materials cost plus overhead 
B) the output for a period and the manufacturing costs for the department for that period 
C) conversion costs and prime costs 
D) total units produced by all departments 
A) materials cost plus overhead 
B) the output for a period and the manufacturing costs for the department for that period 
C) conversion costs and prime costs 
D) total units produced by all departments

Question 16

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method.

Accepted Answer

The weighted average method uses the sam

Question 17

The following information concerns Transformation Inc.'s equivalent units in June: What are Transformation's equivalent units for May when using the weighted average method?
$$\begin{array} { l r } &\text { Units }\
\text { Beginning work in process ( } 50 \% \text { complete) } & 2,000 \
\text { Units started during June } & 8,000 \
\text { Units completed and transferred } & 10,000 \
\text { Ending work in process ( } 70 \% \text { complete) } & 2,900
\end{array}$$

Accepted Answer

A) 10,000 
B) 12,030 
C) 12,900 
D) 22,900 
A) 10,000 
B) 12,030 
C) 12,900 
D) 22,900

Question 18

Select the appropriate definition for each of the items listed below.
-Partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

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

In process costing,which account will the cost of finished goods be transferred to when the goods are sold?

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 20

CandyMan Manufacturing uses a process-cost system and computes cost using the weighted average method.During the current period,the beginning work-in-process inventory cost was $15,000.Manufacturing cost added was $65,000.Suppose CandyMan's ending work-in-process inventory was valued at $22,000.What must have been the cost of goods transferred?

Accepted Answer

A) $43,000 
B) $58,000 
C) $65,000 
D) $80,000 
A) $43,000 
B) $58,000 
C) $65,000 
D) $80,000

Which of the following is used to record raw materials,direct labour,and applied overhead costs at the time they are used?

Which of the following companies would be least likely to use a process-costing system?

Which account do the costs of completed products move to after work-in-process?

Which goods are moved from a prior department to subsequent department?

Which of the following best describes sequential processing?

What is total cost divided by units produced?

For which of the following are the total associated manufacturing costs under the FIFO method the sum of the prior-period costs plus the costs incurred in the current period to finish the units?

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

Describe the differences between sequential and parallel processing.

Which of the following businesses is most likely to use process costing?

Manufacturing firms always operate with significant work-in-process inventories.

What does equivalent production use to express all activity of the period?

What does an accountant need to know to calculate unit cost?

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method.

Select the appropriate definition for each of the items listed below. -Partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

In process costing,which account will the cost of finished goods be transferred to when the goods are sold?

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

Which of the following is used to record raw materials,direct labour,and applied overhead costs at the time they are used?

Which of the following companies would be least likely to use a process-costing system?

Which account do the costs of completed products move to after work-in-process?

Which goods are moved from a prior department to subsequent department?

Which of the following best describes sequential processing?

What is total cost divided by units produced?

For which of the following are the total associated manufacturing costs under the FIFO method the sum of the prior-period costs plus the costs incurred in the current period to finish the units?

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

Describe the differences between sequential and parallel processing.

Which of the following businesses is most likely to use process costing?

Manufacturing firms always operate with significant work-in-process inventories.

What does equivalent production use to express all activity of the period?

What does an accountant need to know to calculate unit cost?

Describe the differences in the ways that prior-period costs and output are treated under the weighted average method and the FIFO method.

Select the appropriate definition for each of the items listed below. -Partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

In process costing,which account will the cost of finished goods be transferred to when the goods are sold?

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