Question 1

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

Accepted Answer

A) True 
 B)False

Question 2

The following table of cost information is available for the Messier Company for the month of November:
Based on the table of cost information above, prepare the general journal entry required to record the:
a. Transfer of goods from the molding department to the finished goods inventory.
b. Cost of goods sold for November.

Accepted Answer

The answer of The following table of cost information is...

Question 3

In a process cost accounting system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

Accepted Answer

A) True 
 B)False

Question 4

A process cost summary shows the cost of a particular job manufactured in the reporting period.

Accepted Answer

A) True 
 B)False

Question 5

Lipinski Company completed and transferred 90,000 units during the current period. Based on the following information, determine the cost of the goods completed during the current reporting period and journalize the transfer.

Accepted Answer

Finished Goods Inven

Question 6

Refer to the following information about the Dipping Department of the Indiana Factory for the month of August. Indiana Factory uses the FIFO method of inventory costing.
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00. Compute the cost that should be assigned to the ending goods in process inventory for August.

Accepted Answer

The answer of Refer to the following information about the...

Question 7

Accountants use the term process cost accounting system because this system uses a number of trained individuals and computers to process the collected cost information.

Accepted Answer

A) True 
 B)False

Question 8

When the final production department completes goods, the cost of the completed goods are transferred to ___________________.

Accepted Answer

The answer of When the final production department completes goods,...

Question 9

What are the four steps in accounting for production activity in a period?

Accepted Answer

Accounting for a department's activity f

Question 10

A process cost summary involves computations and analysis at four sequential steps. These are (1) _________ (2) ___________, (3) _____________, and (4) ____________.

Accepted Answer

(1 Physical Flow, (2 Equivalen

Question 11

A company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor. The beginning inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were 20% complete. Calculate the equivalent units of production for the year using the FIFO method.

Accepted Answer

The answer of A company's January 1 goods in process...

Question 12

A company uses the weighted average method for inventory costing. During a period, Department A finished and transferred 50,000 units to Department B. Also, during the period, 10,000 units were started but brought only to a stage of being 3/5 completed. The number of equivalent units produced by Department A during the period was:

Accepted Answer

A)  44,000 units. 
B)  50,000 units. 
C)  54,000 units. 
D)  56,000 units. 
E)  60,000 units. 
A)  44,000 units. 
B)  50,000 units. 
C)  54,000 units. 
D)  56,000 units. 
E)  60,000 units.

Question 13

A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. The department started and finished 127,500 units this period. The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

Accepted Answer

A)  $0.14. 
B)  $0.16. 
C)  $0.17. 
D)  $0.30. 
E)  $0.37. 
A)  $0.14. 
B)  $0.16. 
C)  $0.17. 
D)  $0.30. 
E)  $0.37.

Question 14

Direct costs in process cost accounting include only those costs that can be readily identified with individual product units.

Accepted Answer

A) True 
 B)False

Question 15

Iolaus Company provides the following data for the current year:
Required:
a. Calculate the predetermined overhead allocation rate based on direct labor.
b. Determine the amount of overhead applied to production.
c. Prepare the journal entry to apply factory overhead to goods in process.

Accepted Answer

The answer of Iolaus Company provides the following data for...

Question 16

A process cost summary is a managerial accounting report that describes:

Accepted Answer

A)  The costs charged to a department. 
B)  The equivalent units of production by the department. 
C)  How the costs were assigned to the output. 
D)  Physical transfers for a department. 
E)  All of these. 
A)  The costs charged to a department. 
B)  The equivalent units of production by the department. 
C)  How the costs were assigned to the output. 
D)  Physical transfers for a department. 
E)  All of these.

Question 17

Medina Corp. uses the weighted average method for inventory costs and had the following information available for the year. Equivalent units of production for the year are:

Accepted Answer

A)  3,200 units. 
B)  3,320 units. 
C)  3,240 units. 
D)  3,520 units. 
E)  3,800 units. 
A)  3,200 units. 
B)  3,320 units. 
C)  3,240 units. 
D)  3,520 units. 
E)  3,800 units.

Question 18

Describe the flow of overhead costs in a process cost accounting system, including accounts used.

Accepted Answer

As actual overhead costs are incurred fo

Question 19

The purchase of raw materials on account in a process costing system is recorded with a:

Accepted Answer

A)  Debit to Purchases and credit to Cash. 
B)  Debit to Purchases and a credit to Accounts Payable. 
C)  Debit to Raw Materials Inventory and a credit to Accounts Payable. 
D)  Debit to Accounts Payable and a credit to Raw Materials Inventory. 
E)  Debit to Goods in Process Inventory and a credit to Accounts Payable. 
A)  Debit to Purchases and credit to Cash. 
B)  Debit to Purchases and a credit to Accounts Payable. 
C)  Debit to Raw Materials Inventory and a credit to Accounts Payable. 
D)  Debit to Accounts Payable and a credit to Raw Materials Inventory. 
E)  Debit to Goods in Process Inventory and a credit to Accounts Payable.

Question 20

When the completed goods are sold, the cost of the completed goods are transferred to ___________________.

Accepted Answer

The answer of When the completed goods are sold, the...

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

In a process cost accounting system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

A process cost summary shows the cost of a particular job manufactured in the reporting period.

Lipinski Company completed and transferred 90,000 units during the current period. Based on the following information, determine the cost of the goods completed during the current reporting period and journalize the transfer.

Accountants use the term process cost accounting system because this system uses a number of trained individuals and computers to process the collected cost information.

When the final production department completes goods, the cost of the completed goods are transferred to ___________________.

What are the four steps in accounting for production activity in a period?

A process cost summary involves computations and analysis at four sequential steps. These are (1) ___ (2) _, (3) _, and (4) ____.

Direct costs in process cost accounting include only those costs that can be readily identified with individual product units.

Iolaus Company provides the following data for the current year: Required: a. Calculate the predetermined overhead allocation rate based on direct labor. b. Determine the amount of overhead applied to production. c. Prepare the journal entry to apply factory overhead to goods in process.

A process cost summary is a managerial accounting report that describes:

Medina Corp. uses the weighted average method for inventory costs and had the following information available for the year. Equivalent units of production for the year are:

Describe the flow of overhead costs in a process cost accounting system, including accounts used.

The purchase of raw materials on account in a process costing system is recorded with a:

When the completed goods are sold, the cost of the completed goods are transferred to ___________________.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Filters

Exam 20: Process Cost Accounting

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

In a process cost accounting system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

A process cost summary shows the cost of a particular job manufactured in the reporting period.

Lipinski Company completed and transferred 90,000 units during the current period. Based on the following information, determine the cost of the goods completed during the current reporting period and journalize the transfer.

Accountants use the term process cost accounting system because this system uses a number of trained individuals and computers to process the collected cost information.

When the final production department completes goods, the cost of the completed goods are transferred to ___________________.

What are the four steps in accounting for production activity in a period?

A process cost summary involves computations and analysis at four sequential steps. These are (1) _________ (2) ___________, (3) _____________, and (4) ____________.

Direct costs in process cost accounting include only those costs that can be readily identified with individual product units.

Iolaus Company provides the following data for the current year: Required: a. Calculate the predetermined overhead allocation rate based on direct labor. b. Determine the amount of overhead applied to production. c. Prepare the journal entry to apply factory overhead to goods in process.

A process cost summary is a managerial accounting report that describes:

Medina Corp. uses the weighted average method for inventory costs and had the following information available for the year. Equivalent units of production for the year are:

Describe the flow of overhead costs in a process cost accounting system, including accounts used.

The purchase of raw materials on account in a process costing system is recorded with a:

When the completed goods are sold, the cost of the completed goods are transferred to ___________________.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Filters

A process cost summary involves computations and analysis at four sequential steps. These are (1) ___ (2) _, (3) _, and (4) ____.