Question 1

Suppose a one-to-one relationship exists between the output measures.What would the units started in a subsequent department be equal to?

Accepted Answer

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

Question 2

Which two methods are used to determine equivalent units of production in process costing?

Accepted Answer

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

Question 3

Transferred-in costs are a type of raw material cost.

Accepted Answer

A) True 
 B)False

Question 4

Beginning inventory for the month contained 3,000 units that were 60% complete with respect to materials.During the month,50,000 units were completed and transferred out.Ending inventory contained 5,000 units that were 30% complete with respect to materials.What would be the weighted average equivalent units of production for materials for the month?

Accepted Answer

A) 49,500 
B) 50,000 
C) 50,300 
D) 51,500 
A) 49,500 
B) 50,000 
C) 50,300 
D) 51,500

Question 5

Which of the following are included in conversion costs?

Accepted Answer

A) direct labour and manufacturing overhead 
B) direct materials and administrative costs 
C) direct materials and manufacturing overhead 
D) direct labour and administrative costs 
A) direct labour and manufacturing overhead 
B) direct materials and administrative costs 
C) direct materials and manufacturing overhead 
D) direct labour and administrative costs

Question 6

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best describes parallel 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. 
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. 
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 8

Which of the following is included in the cost of a department's transferred-in goods?

Accepted Answer

A) its materials, labour, and overhead 
B) the goods transferred out as computed in the prior department 
C) its materials and conversion costs 
D) its materials and overhead 
A) its materials, labour, and overhead 
B) the goods transferred out as computed in the prior department 
C) its materials and conversion costs 
D) its materials and overhead

Question 9

The Stewart Company had computed the flow of units for Department 123 for the month of July as follows:
 $\begin{array}{ll}
\text { Work in process, July 1: } & 10,000 \
\text { Started into production during July } & 39,000 \
\text { Units to be accounted for } & 49,000
\end{array}$ Materials are added at the beginning of the process.There were 8,000 units of work in process at July 31.The work in process at July 1 was 70% complete as to direct labour and factory overhead costs,and the work in process at July 31 was 60% complete as to direct labour and factory overhead costs.What was the cost of the goods transferred out and in ending work in process using the FIFO method?

Accepted Answer

Unit output for the month:
Uni

Question 10

Door Specialists make a product that passes through two processes. During March, the first department transferred 50,000 units to the second department. The cost of the units transferred was $75,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during March:
 $\begin{array}{ll}
\text { Units, beginning work in process } & 10,000 \
\text { Units, ending work in process } & 13,000
\end{array}$
-Refer to the Figure.How many units were completed in Door Specialists second department during March?

Accepted Answer

A) 40,000 
B) 47,000 
C) 63,000 
D) 73,000 
A) 40,000 
B) 47,000 
C) 63,000 
D) 73,000

Question 11

Which of the following is the cost of partially completed goods from a prior period?

Accepted Answer

A) a work-in-process transfer cost 
B) beginning work-in-process cost 
C) a transferred-in cost 
D) an added-in cost 
A) a work-in-process transfer cost 
B) beginning work-in-process cost 
C) a transferred-in cost 
D) an added-in cost

Question 12

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 13

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 first-in,first-out (FIFO)method.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which step is cost reconciliation in the general pattern of a process-costing production report?

Accepted Answer

A) part of the physical flow analysis 
B) the step before calculation of equivalent units 
C) the step before the computation of unit cost 
D) the last step 
A) part of the physical flow analysis 
B) the step before calculation of equivalent units 
C) the step before the computation of unit cost 
D) the last step

Question 16

Match the five steps involved in creating the department production report with the steps below in the proper order.
-Calculation of equivalent units

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 17

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

-Costing system used by a manufacturer of custom kayaks

Accepted Answer

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

Suppose a one-to-one relationship exists between the output measures.What would the units started in a subsequent department be equal to?

Which two methods are used to determine equivalent units of production in process costing?

Transferred-in costs are a type of raw material cost.

Which of the following are included in conversion costs?

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

Which of the following best describes parallel processing?

Which of the following is included in the cost of a department's transferred-in goods?

Which of the following is the cost of partially completed goods from a prior period?

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

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 first-in,first-out (FIFO)method.

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

Which step is cost reconciliation in the general pattern of a process-costing production report?

Match the five steps involved in creating the department production report with the steps below in the proper order. -Calculation of equivalent units

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

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

Suppose a one-to-one relationship exists between the output measures.What would the units started in a subsequent department be equal to?

Which two methods are used to determine equivalent units of production in process costing?

Transferred-in costs are a type of raw material cost.

Which of the following are included in conversion costs?

The solution for different percentage completion figures for manufacturing inputs is to calculate equivalent units for one category of manufacturing input.

Which of the following best describes parallel processing?

Which of the following is included in the cost of a department's transferred-in goods?

Which of the following is the cost of partially completed goods from a prior period?

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

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 first-in,first-out (FIFO)method.

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

Which step is cost reconciliation in the general pattern of a process-costing production report?

Match the five steps involved in creating the department production report with the steps below in the proper order. -Calculation of equivalent units

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

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