Question 1

Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory. The number of units completed equals the number of

Accepted Answer

A)  units started.
B)  units started less 200.
C)  units started plus 200.
D)  equivalent units. B

Question 2

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 475,000 units, completed and transferred out 450,000 units, and ending work in process 50,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Accepted Answer

A)  500,000.
B)  425,000.
C)  450,000.
D)  525,000. A

Question 3

In order to compute the physical unit flow, a company must first compute unit production costs.

Accepted Answer

A) True 
 B)False  True

Question 4

A process cost system would be used for all of the following products except

Accepted Answer

A)  chemicals.
B)  computer chips.
C)  motion pictures.
D)  soft drinks.

Question 5

The weighted-average method of computing equivalent units is the most widely used method in practice.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following manufacturing cost elements occurs in a process cost system?

Accepted Answer

A)  Direct materials.
B)  Direct labor.
C)  Manufacturing overhead.
D)  All of these.

Question 7

Maisley Company decided to analyze certain costs for June of the current year. Units started into production equaled 28,000 and ending work in process equaled 4,000. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $140,000?

Accepted Answer

A)  $4.40.
B)  $5.00.
C)  $5.60.
D)  $2.80.

Question 8

Hanker Company had the following department data on physical units: $\begin{array}{lr}
\text { Work in process, beginning } & 3,000 \
\text { Completed and transferred out } & 18,000 \
\text { Work in process, ending } & 2,400
\end{array}$ Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Accepted Answer

A)  18,600.
B)  2,400.
C)  20,400.
D)  15,000.

Question 9

In a process cost system, a production cost report is prepared

Accepted Answer

A)  only for the first processing department.
B)  for all departments in the aggregate.
C)  for each processing department.
D)  only for the last processing department.

Question 10

It is necessary to calculate equivalent units of production in a department because

Accepted Answer

A)  a physical count of units is impossible.
B)  some units worked on in the department are not fully complete.
C)  the physical units in the department are always 100% complete.
D)  at times a department may use a job order cost system and then switch to a process cost system.

Question 11

Charley Company's Assembly Department has materials cost at $2 per unit and conversion cost at $4 per unit. There are 20,000 units in ending work in process, all of which are 70% complete as to conversion costs and 100% complete as to materials. How much are total costs to be assigned to inventory?

Accepted Answer

A)  $56,000.
B)  $96,000.
C)  $84,000.
D)  $120,000.

Question 12

A primary driver of overhead costs in continuous manufacturing operations is:

Accepted Answer

A)  direct labor dollars.
B)  direct labor hours.
C)  machine hours.
D)  machine maintenance dollars.

Question 13

In a process cost system, unit costs are determined using a

Accepted Answer

A)  numerator of costs of each job.
B)  denominator of units produced during the period.
C)  denominator of units produced for the job.
D)  denominator of units produced for the day.

Question 14

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

Accepted Answer

A)  770,000.
B)  650,000.
C)  690,000.
D)  810,000.

Question 15

If 180,000 units are transferred out of a department, there was no beginning work in process, and there are 30,000 units still in process at the end of a period, the number of units that were started into production during the period is

Accepted Answer

A)  210,000.
B)  180,000.
C)  150,000.
D)  30,000.

Question 16

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Accepted Answer

A) True 
 B)False

Question 17

Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine.

Accepted Answer

A) True 
 B)False

Question 18

Total units to be accounted for less units in beginning work in process equals

Accepted Answer

A)  total units accounted for.
B)  units transferred out.
C)  units started into production.
D)  equivalent units.

Question 19

Physical units accounted for are 160,000. Total conversion costs are $387,100. There are 4,000 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit?

Accepted Answer

A)  $2.45.
B)  $2.42.
C)  $2.39.
D)  $2.36.

Question 20

In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $60,000 of materials costs and $45,000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April, 10,000 units were completed and transferred to the finished goods inventory and there were 2,000 units that were 25% complete in the ending work in process inventory on April 30. During April, manufacturing costs charged to the department were: Materials $1,380,000; Conversion costs $1,530,000.
The cost assigned to the units in the ending work in process inventory on April 30 was

Accepted Answer

A)  $360,000.
B)  $315,000.
C)  $240,000.
D)  $435,000.

Exam 15: Process Costing

Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory. The number of units completed equals the number of

In order to compute the physical unit flow, a company must first compute unit production costs.

A process cost system would be used for all of the following products except

The weighted-average method of computing equivalent units is the most widely used method in practice.

Which of the following manufacturing cost elements occurs in a process cost system?

In a process cost system, a production cost report is prepared

It is necessary to calculate equivalent units of production in a department because

Charley Company's Assembly Department has materials cost at $2 per unit and conversion cost at $4 per unit. There are 20,000 units in ending work in process, all of which are 70% complete as to conversion costs and 100% complete as to materials. How much are total costs to be assigned to inventory?

A primary driver of overhead costs in continuous manufacturing operations is:

In a process cost system, unit costs are determined using a

If 180,000 units are transferred out of a department, there was no beginning work in process, and there are 30,000 units still in process at the end of a period, the number of units that were started into production during the period is

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine.

Total units to be accounted for less units in beginning work in process equals

Physical units accounted for are 160,000. Total conversion costs are $387,100. There are 4,000 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit?