Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?

Accepted Answer

A)  75%. 
B)  25%. 
C)  10%. 
D)  20%.

Question 3

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

Accepted Answer

A)  the Finished Goods Inventory account. 
B)  Cost of Goods Sold. 
C)  a Manufacturing Overhead account. 
D)  a Work in Process account.

Question 4

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 5

In a process cost system, materials, labor and overhead are only added in the first production department.

Accepted Answer

A) True 
 B)False

Question 6

Under the FIFO method, it is assumed that the beginning work in process is completed before new work is started.

Accepted Answer

A) True 
 B)False

Question 7

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 40,000 units and had 5,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Accepted Answer

A)  $8,000. 
B)  $25,000. 
C)  $28,000. 
D)  $40,000.

Question 8

The Cutting Department's output during the period consists of 22,000 units completed and transferred out, and 4,000 units in ending work in process that were 25% complete as to materials and conversion costs. Beginning inventory was 2,000 units that were 25% complete as to materials and conversion costs. Under the FIFO method, what are the equivalent units of production for materials?

Accepted Answer

A)  24,300 
B)  22,500 
C)  25,300 
D)  24,000

Question 9

In a process cost system, labor costs incurred may be captured on time tickets.

Accepted Answer

A) True 
 B)False

Question 10

Mayer Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18,000 and ending work in process equaled 1,200 units. Mayer had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $72,000?

Accepted Answer

A)  $4.00. 
B)  $4.21. 
C)  $16.00. 
D)  $3.75.

Question 11

If 150,000 units are started into production there was no beginning work in process, and 50,000 units are in process at the end of the period, how many units were completed and transferred out?

Accepted Answer

A)  150,000. 
B)  50,000. 
C)  100,000. 
D)  200,000.

Question 12

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 13

A process with 1,600 units of beginning work in process, completed and transferred out 25,000 units during a period. There were 10,000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

Accepted Answer

A)  29,000 equivalent units. 
B)  35,000 equivalent units. 
C)  27,000 equivalent units. 
D)  33,000 equivalent units.

Question 14

A company that produces motion pictures would likely use a process cost system.

Accepted Answer

A) True 
 B)False

Question 15

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.

Question 16

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.

Question 17

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Accepted Answer

A) True 
 B)False

Question 18

In Saint-Simon, Inc., the Assembly Department started 60,000 units and completed 70,000 units. If beginning work in process was 30,000 units, how many units are in ending work in process?

Accepted Answer

A)  0. 
B)  10,000. 
C)  20,000. 
D)  40,000.

Question 19

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 90,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

Accepted Answer

A)  90,000 equivalent units. 
B)  104,000 equivalent units. 
C)  100,000 equivalent units. 
D)  110,000 equivalent units.

Question 20

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

Accepted Answer

A) True 
 B)False

Exam 3: Process Costing

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

If equivalent units are 15,000 for conversion costs and units transferred out equals 10,000, what stage of completion should the ending work in process be for the 20,000 units remaining?

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

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

In a process cost system, materials, labor and overhead are only added in the first production department.

Under the FIFO method, it is assumed that the beginning work in process is completed before new work is started.

In a process cost system, labor costs incurred may be captured on time tickets.

If 150,000 units are started into production there was no beginning work in process, and 50,000 units are in process at the end of the period, how many units were completed and transferred out?

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

A company that produces motion pictures would likely use a process cost system.

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

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

In Saint-Simon, Inc., the Assembly Department started 60,000 units and completed 70,000 units. If beginning work in process was 30,000 units, how many units are in ending work in process?

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.