Question 1

The journal entry that assigns raw materials costs in a process costing system includes

Accepted Answer

A) Debit to raw materials 
B) Credit to raw materials 
C) Debit to Accounts Payable 
D) Credit to Work in Process 
A) Debit to raw materials 
B) Credit to raw materials 
C) Debit to Accounts Payable 
D) Credit to Work in Process B

Question 2

Which is not a similarity between job order costing and process costing?

Accepted Answer

A) Methods of assigned costs 
B) Tracking of direct materials, direct labor and manufacturing overhead 
C) Accumulating journal entries 
D) Flow of costs 
A) Methods of assigned costs 
B) Tracking of direct materials, direct labor and manufacturing overhead 
C) Accumulating journal entries 
D) Flow of costs A

Question 3

Which of the following is not relevant to a process costing system?

Accepted Answer

A) Heterogeneous products 
B) Recitative production 
C) High production volume 
D) Low production flexibility 
A) Heterogeneous products 
B) Recitative production 
C) High production volume 
D) Low production flexibility A

Question 4

In order to compute equivalent units of production using the Weighted Average method of process costing, the following equation should be used:

Accepted Answer

A) Equivalent units of beginning work in process + units completed and transferred out 
B) Equivalent units of beginning work in process + equivalent units of ending work in process 
C) Units completed and transferred out + equivalent units of ending work in process 
D) Units completed and transferred out + equivalent units of beginning work in process 
A) Equivalent units of beginning work in process + units completed and transferred out 
B) Equivalent units of beginning work in process + equivalent units of ending work in process 
C) Units completed and transferred out + equivalent units of ending work in process 
D) Units completed and transferred out + equivalent units of beginning work in process

Question 5

in a process costing system, manufacturing overhead is assigned to work in process by

Accepted Answer

A) Department based on actual overhead costs incurred 
B) Department based on predetermined overhead rates 
C) Job based on actual overhead costs incurred 
D) Job based on predetermined overhead rates 
A) Department based on actual overhead costs incurred 
B) Department based on predetermined overhead rates 
C) Job based on actual overhead costs incurred 
D) Job based on predetermined overhead rates

Question 6

Which of the following is not correct about process costing and job order costing?

Accepted Answer

A) Both the system classify materials as direct material and or indirect materials. 
B) Both the system classify labor ans direct labor and or indirect labor 
C) Direct materials under job order costing might be indirect under process costing and vice versa. 
D) Both the systems assigns costs by process. 
A) Both the system classify materials as direct material and or indirect materials. 
B) Both the system classify labor ans direct labor and or indirect labor 
C) Direct materials under job order costing might be indirect under process costing and vice versa. 
D) Both the systems assigns costs by process.

Question 7

A production cost report

Accepted Answer

A) Used to record the costs chargeable to a specific job 
B) Shows only cost data for a production department 
C) Provides a basis for evaluating the productivity of a department 
D) Combines process cost and job order costing systems costs 
A) Used to record the costs chargeable to a specific job 
B) Shows only cost data for a production department 
C) Provides a basis for evaluating the productivity of a department 
D) Combines process cost and job order costing systems costs

Question 8

In a process costing system, the manufacturing overhead (or factory OH) is usually applied using

Accepted Answer

A) Predetermined overhead rate 
B) An actual overhead rate 
C) A conversion overhead rate 
D) An indirect labor rate 
A) Predetermined overhead rate 
B) An actual overhead rate 
C) A conversion overhead rate 
D) An indirect labor rate

Question 9

The normal or standard loss in processing department is generally considered

Accepted Answer

A) An avoidable loss 
B) Un avoidable loss 
C) An additional loss 
D) A basic loss 
A) An avoidable loss 
B) Un avoidable loss 
C) An additional loss 
D) A basic loss

Question 10

In process costing system, the materials can be added in

Accepted Answer

A) First department only 
B) Last department only 
C) First and last department only 
D) Any department 
A) First department only 
B) Last department only 
C) First and last department only 
D) Any department

Question 11

Materials labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for

Accepted Answer

A) A job order costing system 
B) An activity based costing system 
C) A process costing system 
D) A variable costing system 
A) A job order costing system 
B) An activity based costing system 
C) A process costing system 
D) A variable costing system

Question 12

Which of the following system applies when standard goods are produced under a series of inter connected operations?

Accepted Answer

A) Job order costing 
B) Process costing 
C) Standard costing 
D) All of the above 
A) Job order costing 
B) Process costing 
C) Standard costing 
D) All of the above

Question 13

The process costing system is best suited for

Accepted Answer

A) Industries where different types of products are manufactured 
B) Industries where homogenous products are manufactured on continuous basis 
C) Service industry only 
D) All of the above 
A) Industries where different types of products are manufactured 
B) Industries where homogenous products are manufactured on continuous basis 
C) Service industry only 
D) All of the above

Question 14

Where the normal loss in a department is identified at the end of process, its cost is :-

Accepted Answer

A) Ignored 
B) Charged to work in progress ending inventory only 
C) Charged to units completed and transferred out only 
D) Charged to work in process ending inventory as well as to units completed and transferred out 
A) Ignored 
B) Charged to work in progress ending inventory only 
C) Charged to units completed and transferred out only 
D) Charged to work in process ending inventory as well as to units completed and transferred out

Question 15

While preparing the cost of production report of a processing department, use per unit cost from producing department needs to be adjusted when the

Accepted Answer

A) Normal loss is identified during the process. 
B) Normal loss is identified at the end of the process 
C) Abnormal loss is identified during the process 
D) Abnormal loss is identified at the end of the process. 
A) Normal loss is identified during the process. 
B) Normal loss is identified at the end of the process 
C) Abnormal loss is identified during the process 
D) Abnormal loss is identified at the end of the process.

Question 16

In process costing the abnormal loss occurred in a production department is

Accepted Answer

A) Charged to finished goods 
B) Charged to unfinished goods 
C) Charged to factory overhead 
D) Ignored 
A) Charged to finished goods 
B) Charged to unfinished goods 
C) Charged to factory overhead 
D) Ignored

Question 17

A loss in processing departments which can be avoided under normal and efficient working conditions is generally known as

Accepted Answer

A) Normal loss 
B) Extra loss 
C) Abnormal loss 
D) Department loss 
A) Normal loss 
B) Extra loss 
C) Abnormal loss 
D) Department loss

Question 18

In process costing system, the predetermined overhead rate is computed.

Accepted Answer

A) Only once and used for all the processing department 
B) Separately for each processing department 
C) Only for the first processing department where units are started 
D) Only for the last department where units are completed and transferred to finished goods area. 
A) Only once and used for all the processing department 
B) Separately for each processing department 
C) Only for the first processing department where units are started 
D) Only for the last department where units are completed and transferred to finished goods area.

Question 19

Which of the following business is likely to adopt a process costing system?

Accepted Answer

A) Plan manufactures 
B) Construction companies 
C) Sugar refining 
D) Printing press 
A) Plan manufactures 
B) Construction companies 
C) Sugar refining 
D) Printing press

Question 20

The direct material costing Rs. 4000 has been used in mixing department. The correct journal entry would be

Accepted Answer

A) Direct materials Dr. and work in process-mixing department CR 
B) Work-in -process-mixing department Dr and Direct materials Cr 
C) Finished goods DR and Direct materials Cr 
D) Mixing department Dr and Direct material Cr 
A) Direct materials Dr. and work in process-mixing department CR 
B) Work-in -process-mixing department Dr and Direct materials Cr 
C) Finished goods DR and Direct materials Cr 
D) Mixing department Dr and Direct material Cr

The journal entry that assigns raw materials costs in a process costing system includes

Which is not a similarity between job order costing and process costing?

Which of the following is not relevant to a process costing system?

In order to compute equivalent units of production using the Weighted Average method of process costing, the following equation should be used:

in a process costing system, manufacturing overhead is assigned to work in process by

Which of the following is not correct about process costing and job order costing?

A production cost report

In a process costing system, the manufacturing overhead (or factory OH) is usually applied using

The normal or standard loss in processing department is generally considered

In process costing system, the materials can be added in

Materials labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for

Which of the following system applies when standard goods are produced under a series of inter connected operations?

The process costing system is best suited for

Where the normal loss in a department is identified at the end of process, its cost is :-

While preparing the cost of production report of a processing department, use per unit cost from producing department needs to be adjusted when the

In process costing the abnormal loss occurred in a production department is

A loss in processing departments which can be avoided under normal and efficient working conditions is generally known as

In process costing system, the predetermined overhead rate is computed.

Which of the following business is likely to adopt a process costing system?

The direct material costing Rs. 4000 has been used in mixing department. The correct journal entry would be

Marginal Costing, Contribution, and Activity-Based Costing Techniques

Inventory, Productivity, Principles, and Costing Methodologies

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Exam 2: Process Costing: Methods and Applications

The journal entry that assigns raw materials costs in a process costing system includes

Which is not a similarity between job order costing and process costing?

Which of the following is not relevant to a process costing system?

In order to compute equivalent units of production using the Weighted Average method of process costing, the following equation should be used:

in a process costing system, manufacturing overhead is assigned to work in process by

Which of the following is not correct about process costing and job order costing?

A production cost report

In a process costing system, the manufacturing overhead (or factory OH) is usually applied using

The normal or standard loss in processing department is generally considered

In process costing system, the materials can be added in

Materials labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for

Which of the following system applies when standard goods are produced under a series of inter connected operations?

The process costing system is best suited for

Where the normal loss in a department is identified at the end of process, its cost is :-

While preparing the cost of production report of a processing department, use per unit cost from producing department needs to be adjusted when the

In process costing the abnormal loss occurred in a production department is

A loss in processing departments which can be avoided under normal and efficient working conditions is generally known as

In process costing system, the predetermined overhead rate is computed.

Which of the following business is likely to adopt a process costing system?

The direct material costing Rs. 4000 has been used in mixing department. The correct journal entry would be

Marginal Costing, Contribution, and Activity-Based Costing Techniques

Inventory, Productivity, Principles, and Costing Methodologies

Filters