Question 1

A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 2

The cost object in a process costing system is the specific job.

Accepted Answer

A) True 
 B)False

Question 3

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. 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 conversion. Compute the number of physical units transferred to finished goods.

Accepted Answer

A)   110,000.
B)   135,000.
C)   105,000.
D)   165,000.
E)   144,000.F) A) and C)
G) None of the above

Question 4

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

Accepted Answer

A)   Factory Overhead and Work in Process Inventory.
B)   Work in Process Inventory and Finished Goods Inventory.
C)   Finished Goods Inventory and Work in Process Inventory.
D)   Work in Process Inventory and Factory Overhead.
E)   Cost of Goods Sold and Finished Goods Inventory.F) All of the above
G) B) and C)

Question 5

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.  If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs?

Accepted Answer

A)   Work in Process-Labeling $183,100; Work in Process-Canning $183,100.
B)   Work in Process-Labeling $196,000; Work in Process-Canning $196,000.
C)   Finished Goods-Labeling $183,100; Finished Goods-Canning $183,100.
D)   Work in Process-Labeling $196,000; Finished Goods-Canning $196,000.
E)   Finished Goods $242,800; Work in Process $242,800.F) B) and E)
G) A) and B)

Question 6

An ________is the number of units that could have been started and completed given the costs incurred during the period.

Accepted Answer

The answer of An ________is the number of units that...

Question 7

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.
Calculate the equivalent units of materials.

Accepted Answer

A)   250,000
B)   317,000
C)   294,000
D)   333,000
E)   342,000F) B) and C)
G) A) and D)

Question 8

After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,

Accepted Answer

A)   there will never be underapplied overhead.
B)   there will never be overapplied overhead.
C)   there will always be underapplied overhead.
D)   there will always be overapplied overhead.
E)   there may be over or underapplied overhead.F) D) and E)
G) A) and B)

Question 9

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

Accepted Answer

A)   Physical cost per equivalent unit
B)   Overhead cost per equivalent unit
C)   Combined cost per equivalent unit
D)   Conversion cost per equivalent unit
E)   Finished cost per equivalent unitF) B) and E)
G) All of the above

Question 10

The following data is available for Donaldson Corp. for the current year:
Beginning inventory of Work in Process 12,000 units, 60% completed
Ending inventory of Work in Process 18,000 units, 30% completed
Units completed and transferred to
finished goods during the year 144,000 units
Calculate the equivalent units of production for the year using the weighted average method.

Accepted Answer

Physical % of Work E...

Question 11

Bagger, Inc. uses a process costing system. The following operating and cost data occurred during October:
  Materials are added at the beginning of the process. Direct labor and overhead are incurred evenly throughout the process. Prepare the October process cost summary assuming the weighted average method of inventory costing.

Accepted Answer

The answer of Bagger, Inc. uses a process costing system....

Question 12

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota 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 all units that were completed and transferred during August.

Accepted Answer

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

Question 13

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 FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units.
C)   The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.
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.F) A) and B)
G) B) and D)

Question 14

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Calculate the cost per equivalent unit of materials.

Accepted Answer

A)   $2.00
B)   $2.05
C)   $1.74
D)   $2.36
E)   $2.61F) A) and E)
G) B) and C)

Question 15

Companies that use a series of repetitive manufacturing processes to produce standardized products should use a process costing system.

Accepted Answer

A) True 
 B)False

Question 16

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...

Question 17

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Accepted Answer

The answer of The second step in accounting for production...

Question 18

Since the process cost summary describes the activities of a production department for a specified reporting period, it does not present information about any costs incurred in prior periods.

Accepted Answer

A) True 
 B)False

Question 19

In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Work in Process Inventory account for that department.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following products is least likely to be produced in a process operations system?

Accepted Answer

A)   Compact disks
B)   Slacks for casual wear
C)   Baseball hats
D)   Calculators
E)   Custom cabinetsF) C) and D)
G) B) and E)

Exam 3: Process Costing and Analysis

Correct Answer
verified

In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Work in Process Inventory account for that department.

Correct Answer
verified

Correct Answer
verified

Companies that use a series of repetitive manufacturing processes to produce standardized products should use a process costing system.

Correct Answer
verified

Which of the following products is least likely to be produced in a process operations system?

Correct Answer
verified

Correct Answer
verified

The cost object in a process costing system is the specific job.

Correct Answer
verified

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Correct Answer
verified

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs?

Correct Answer
verified

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

Correct Answer
verified

A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Physical % of Work E...
View Answer

Correct Answer
verified

An ________is the number of units that could have been started and completed given the costs incurred during the period.

Correct Answer
verified

Correct Answer
verified

Which of the following statements is most accurate?

Correct Answer
verified

After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,

Correct Answer
verified

Since the process cost summary describes the activities of a production department for a specified reporting period, it does not present information about any costs incurred in prior periods.

Correct Answer
verified

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

Correct Answer
verified

Exam 3: Process Costing and Analysis

Correct AnswerverifiedShow Answer

In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Work in Process Inventory account for that department.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Companies that use a series of repetitive manufacturing processes to produce standardized products should use a process costing system.

Correct AnswerverifiedShow Answer

Which of the following products is least likely to be produced in a process operations system?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost object in a process costing system is the specific job.

Correct AnswerverifiedShow Answer

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Correct AnswerverifiedShow Answer

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs?

Correct AnswerverifiedShow Answer

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

Correct AnswerverifiedShow Answer

A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPhysical % of Work E...View AnswerShow Answer

Correct AnswerverifiedShow Answer

An ________is the number of units that could have been started and completed given the costs incurred during the period.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate?

Correct AnswerverifiedShow Answer

After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,

Correct AnswerverifiedShow Answer

Since the process cost summary describes the activities of a production department for a specified reporting period, it does not present information about any costs incurred in prior periods.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Physical % of Work E...
View Answer

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