Question 1

The part of the Cost Schedule showing the total and unit cost of each element and the cumulative cost total is the

Accepted Answer

A) costs to be accounted for. 
B) costs accounted for. 
C) total costs transferred out. 
D) total work in process.

Question 2

The units transferred in from a prior department are included in the quantity to be accounted for on the cost of production report for the receiving department.

Accepted Answer

A) True 
 B)False

Question 3

A process cost accounting system may be viewed as a monthly----------- system.

Accepted Answer

The answer of A process cost accounting system may be...

Question 4

Match between columns
                        Premises:   All departmental manufacturing costs divided by the production for the period
  All manufacturing costs not classified as direct materials or direct labor
  Costs of units transferred out plus the cost of the ending work in process units
  Units begun but not yet completed
  Estimated number of units that could have been started and completed with the same effort and costs incurred in the department during the same time period
  Cumulative cost total
  The units completed but not yet sold
  Summarizes total costs to be accounted for and total costs accounted for
  The total of the number of units sold times the average cost for each
 Summarizes total units to be accounted for and total units accounted for

Accepted Answer

The Answer of unit cost and work in process and is...

Question 5

Materials issued to production are recorded by----------- the departmental work in process accounts.

Accepted Answer

The answer of Materials issued to production are recorded by-----------...

Question 6

During one month, 2,800 units of a product were completed and 900 units were 25 percent complete and still in process. The equivalent production for the month is

Accepted Answer

A) 2,800 units. 
B) 3,025 units. 
C) 3,700 units. 
D) 3,475 units.

Question 7

At the beginning of the current period, there were 200 units of product in a department, 40% completed; during the period 3,600 units were started and 3,200 units were completed and transferred out and 400 units were still in process at the end of the period, 80% completed. The equivalent production units for the current period are

Accepted Answer

A) 3,200 units. 
B) 3,600 units. 
C) 3,920 units. 
D) 3,520 units.

Question 8

A firm had 800 units in its work in process inventory at the beginning of a month. Of these units, 45 percent were complete with respect to labor, materials, and overhead. The firm transferred 5,700 units to the finished goods inventory during the month. It had 480 units which were 40 percent complete at the end of the month. Equivalent production for the month was

Accepted Answer

A) 5,892 units. 
B) 5,700 units. 
C) 6,020 units. 
D) 5,380 units.

Question 9

A firm had no work in process at the beginning of a month. It transferred 4,000 units to finished goods during the month, and 500 units were still in process at the end of the month. Equivalent production for the month was 4,400 units. At what stage of completion were the unfinished units at the end of the month?

Accepted Answer

A) 67 percent 
B) 75 percent 
C) 20 percent 
D) 80 percent

Question 10

If 1,100 units were completed and transferred to the next department and ending work in process inventory consisted of 720 units that were 35 percent complete, the total equivalent units of production for the period is----------- .

Accepted Answer

The answer of If 1,100 units were completed and transferred...

Question 11

In a process cost accounting system, product costs are collected by department and transferred to the next department as units are completed. Assigning costs between transferred out units and units that remain in process is based on equivalent unit calculations.

Accepted Answer

A) True 
 B)False

Question 12

Use the following information for the questions.
The Vinh Corporation has two producing departments. Cost data from the firm's records for the month of Janua 2016 is given below. There were no beginning inventories.
 
-Prepare a cost of production report for the Fabricating Department.

Accepted Answer

The answer of Use the following information for the questions.
The...

Question 13

The----------- summarizes all costs charged to each department as well as the costs transferred out and to the cost assigned to goods still in process.

Accepted Answer

The answer of The----------- summarizes all costs charged to each...

Question 14

Equivalent units of production are determined for materials and labor but not for manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 15

The data about costs, quantities, and equivalent units of production is assembled in a----------- .

Accepted Answer

The answer of The data about costs, quantities, and equivalent...

Question 16

Under the average cost method, the beginning inventory amount for each cost element is added to the amount of that cost element incurred during the current period.

Accepted Answer

A) True 
 B)False

Question 17

Costs of----------- departments are allocated as manufacturing overhead of the production departments that benefit.

Accepted Answer

The answer of Costs of----------- departments are allocated as manufacturing...

Question 18

When finished goods are sold, the entry to record the cost of goods sold includes

Accepted Answer

A) a debit to Finished Goods Inventory and a credit to Cost of Goods Sold. 
B) a debit to Cost of Goods Sold and a credit to Finished Goods Inventory. 
C) a debit to Cost of Goods Sold and a credit to Sales. 
D) a debit to Finished Goods Inventory and a credit to Sales.

Question 19

In the manufacturing overhead subsidiary ledger, a departmental cost sheet is set up for each production department and each service department.

Accepted Answer

A) True 
 B)False

Question 20

The Finishing department began the period with 3,350 units of a product. During the month, Assembly completed and transferred-out 6,400 units to Finishing. Ending in process quantities and percentage completion for Assembly and Finishing are as follows: 400 units 35 percent complete and 560 units 20 percent complete, respectively. The equivalent production for Assembly and Finishing for the month is:

Accepted Answer

A) 6,400 assembly and 3,350 finishing units. 
B) 6,540 assembly and 9,302 finishing units. 
C) 6,400 assembly and 9,750 finishing units. 
D) 6,800 assembly and 10,310 finishing units.

Exam 28: Process Cost Accounting

The part of the Cost Schedule showing the total and unit cost of each element and the cumulative cost total is the

The units transferred in from a prior department are included in the quantity to be accounted for on the cost of production report for the receiving department.

A process cost accounting system may be viewed as a monthly----------- system.

Match the following definitions to the term that they relate to.

Materials issued to production are recorded by----------- the departmental work in process accounts.

During one month, 2,800 units of a product were completed and 900 units were 25 percent complete and still in process. The equivalent production for the month is

If 1,100 units were completed and transferred to the next department and ending work in process inventory consisted of 720 units that were 35 percent complete, the total equivalent units of production for the period is----------- .

In a process cost accounting system, product costs are collected by department and transferred to the next department as units are completed. Assigning costs between transferred out units and units that remain in process is based on equivalent unit calculations.

Use the following information for the questions. The Vinh Corporation has two producing departments. Cost data from the firm's records for the month of Janua 2016 is given below. There were no beginning inventories. -Prepare a cost of production report for the Fabricating Department.

The----------- summarizes all costs charged to each department as well as the costs transferred out and to the cost assigned to goods still in process.

Equivalent units of production are determined for materials and labor but not for manufacturing overhead.

The data about costs, quantities, and equivalent units of production is assembled in a----------- .

Under the average cost method, the beginning inventory amount for each cost element is added to the amount of that cost element incurred during the current period.

Costs of----------- departments are allocated as manufacturing overhead of the production departments that benefit.

When finished goods are sold, the entry to record the cost of goods sold includes

In the manufacturing overhead subsidiary ledger, a departmental cost sheet is set up for each production department and each service department.