Question 1

Direct labor and indirect labor are recorded, respectively, to:

Accepted Answer

A)  Factory Overhead and Goods in Process Inventory. 
B)  Goods in Process Inventory and Finished Goods Inventory. 
C)  Finished Goods Inventory and Goods in Process Inventory. 
D)  Goods in Process Inventory and Factory Overhead. 
E)  Cost of Goods Sold and Finished Goods Inventory. 
A)  Factory Overhead and Goods in Process Inventory. 
B)  Goods in Process Inventory and Finished Goods Inventory. 
C)  Finished Goods Inventory and Goods in Process Inventory. 
D)  Goods in Process Inventory and Factory Overhead. 
E)  Cost of Goods Sold and Finished Goods Inventory.

Question 2

A company uses the FIFO method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending goods in process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

Accepted Answer

A)  181,500. 
B)  165,000. 
C)  173,500. 
D)  145,000. 
E)  187,000. 
A)  181,500. 
B)  165,000. 
C)  173,500. 
D)  145,000. 
E)  187,000.

Question 3

The following is an account for a production department, showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the units in ending goods in process inventory cost $4,590, and the started and completed units cost $41,850, what was the cost of completing the units in the beginning goods in process inventory?

Accepted Answer

A)  $12,150. 
B)  $2,160. 
C)  $7,560. 
D)  $54,000. 
E)  $37,260. 
A)  $12,150. 
B)  $2,160. 
C)  $7,560. 
D)  $54,000. 
E)  $37,260.

Question 4

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

Accepted Answer

A) True 
 B)False

Question 5

Process cost accounting systems consider overhead costs to include those costs that cannot be traced to a specific process.

Accepted Answer

A) True 
 B)False

Question 6

In process cost accounting, all labor that is applied exclusively in a single production department is considered to be direct labor.

Accepted Answer

A) True 
 B)False

Question 7

In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

Accepted Answer

A) True 
 B)False

Question 8

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of units transferred to finished goods.

Accepted Answer

A)  110,000. 
B)  135,000. 
C)  105,000. 
D)  165,000. 
E)  144,000. 
A)  110,000. 
B)  135,000. 
C)  105,000. 
D)  165,000. 
E)  144,000.

Question 9

Equivalent units of production refer to the number of units that would be completed if all effort during a period had been applied only to those units that were started and completed in a period.

Accepted Answer

A) True 
 B)False

Question 10

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Accepted Answer

A)  Production department. 
B)  Service department. 
C)  Primary department. 
D)  Responsibility department. 
E)  Control department. 
A)  Production department. 
B)  Service department. 
C)  Primary department. 
D)  Responsibility department. 
E)  Control department.

Question 11

In a manufacturing operation with two process departments (1 and 2), the flow of costs would proceed from Goods in Process, Dept #1 to ______________.

Accepted Answer

Goods in P

Question 12

A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 10,000 units in ending goods in process inventory. The units in ending goods in process inventory were 50% complete with respect to both direct materials and conversion costs. There were 1,000 units in beginning goods in process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Accepted Answer

A)  10,000 units. 
B)  10,300 units. 
C)  15,000 units. 
D)  15,300 units. 
E)  10,700 units. 
A)  10,000 units. 
B)  10,300 units. 
C)  15,000 units. 
D)  15,300 units. 
E)  10,700 units.

Question 13

Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:

Accepted Answer

A)  Debit Factory Payroll $160,000; credit Cash $160,000. 
B)  Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000. 
C)  Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000. 
D)  Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000. 
E)  Debit Goods in Process Inventory $160,000; credit Cash $160,000. 
A)  Debit Factory Payroll $160,000; credit Cash $160,000. 
B)  Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000. 
C)  Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000. 
D)  Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000. 
E)  Debit Goods in Process Inventory $160,000; credit Cash $160,000.

Question 14

The FIFO method does not use the beginning inventory costs in computing the cost per equivalent unit for the current period.

Accepted Answer

A) True 
 B)False

Question 15

Refer to the following information about the Painting Department in the Richardson Factory for the month of June. Richardson Factory uses the weighted-average method of inventory costing.
Compute the total cost of all units that were completed and transferred to finished goods during June. Compute the total cost of the ending goods in process inventory.

Accepted Answer

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

Question 16

Materials and labor costs that are clearly associated with a specific process are known as _________________. Those costs that are not clearly associated with a specific process are called ______________.

Accepted Answer

Direct cos

Question 17

The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

Accepted Answer

A) True 
 B)False

Question 18

If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period, the equivalent units of production with respect to direct labor also must be 100.

Accepted Answer

A) True 
 B)False

Question 19

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is most accurate?

Accepted Answer

A)  In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials. 
B)  The weighted average method uses the stage of completion of the current period's beginning goods in process inventory account in calculating equivalent units. 
C)  The weighted average method focuses on the total costs and total equivalent units completed to date; this is the major difference between the weighted average method and the FIFO method of calculating equivalent units of production. 
D)  The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period. 
E)  It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods. 
A)  In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials. 
B)  The weighted average method uses the stage of completion of the current period's beginning goods in process inventory account in calculating equivalent units. 
C)  The weighted average method focuses on the total costs and total equivalent units completed to date; this is the major difference between the weighted average method and the FIFO method of calculating equivalent units of production. 
D)  The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period. 
E)  It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

Direct labor and indirect labor are recorded, respectively, to:

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

Process cost accounting systems consider overhead costs to include those costs that cannot be traced to a specific process.

In process cost accounting, all labor that is applied exclusively in a single production department is considered to be direct labor.

In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

Equivalent units of production refer to the number of units that would be completed if all effort during a period had been applied only to those units that were started and completed in a period.

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

In a manufacturing operation with two process departments (1 and 2), the flow of costs would proceed from Goods in Process, Dept #1 to ______________.

Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:

The FIFO method does not use the beginning inventory costs in computing the cost per equivalent unit for the current period.

Materials and labor costs that are clearly associated with a specific process are known as ___. Those costs that are not clearly associated with a specific process are called .

The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period, the equivalent units of production with respect to direct labor also must be 100.

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Which of the following statements is most accurate?

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

Direct labor and indirect labor are recorded, respectively, to:

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

Process cost accounting systems consider overhead costs to include those costs that cannot be traced to a specific process.

In process cost accounting, all labor that is applied exclusively in a single production department is considered to be direct labor.

In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

Equivalent units of production refer to the number of units that would be completed if all effort during a period had been applied only to those units that were started and completed in a period.

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

In a manufacturing operation with two process departments (1 and 2), the flow of costs would proceed from Goods in Process, Dept #1 to ______________.

Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:

The FIFO method does not use the beginning inventory costs in computing the cost per equivalent unit for the current period.

Materials and labor costs that are clearly associated with a specific process are known as _________________. Those costs that are not clearly associated with a specific process are called ______________.

The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period, the equivalent units of production with respect to direct labor also must be 100.

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Which of the following statements is most accurate?

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

Materials and labor costs that are clearly associated with a specific process are known as ___. Those costs that are not clearly associated with a specific process are called .