Question 1

Crystal Clean Manufacturing reported the following information:
 
Required:
Compute the total cost of ending work-in-process inventory.

Accepted Answer

A) $15,000 
B) $25,000 
C) $28,000 
D) $33,000 
E) $38,000 
A) $15,000 
B) $25,000 
C) $28,000 
D) $33,000 
E) $38,000 D

Question 2

Under the incremental method,the primary party receives the highest allocation of common costs.

Accepted Answer

A) True 
 B)False  True

Question 3

Managerial accountants estimate the degree of completion easier for direct material costs compared to conversion costs because the quantity of direct materials needed for a complete unit and quantity of direct materials in partially completed units are measured more accurately.

Accepted Answer

A) True 
 B)False  True

Question 4

________ costs are all manufacturing costs other than direct material costs,including manufacturing labor,energy,and plant depreciation.

Accepted Answer

A) Joint 
B) Hybrid 
C) Equivalent 
D) Conversion 
E) Weighted average 
A) Joint 
B) Hybrid 
C) Equivalent 
D) Conversion 
E) Weighted average

Question 5

The costs of a production process that yields multiple products simultaneously are:

Accepted Answer

A) zero costs. 
B) joint costs. 
C) single costs. 
D) common costs. 
E) separable costs. 
A) zero costs. 
B) joint costs. 
C) single costs. 
D) common costs. 
E) separable costs.

Question 6

Paul's Service,Inc.is a service organization that produces a homogenous product,but has no incomplete units when each accounting period ends.In this organization,the process-costing system has no beginning or ending work-in-process inventory.Write a short essay and discuss some of the characteristics of the process-costing system that the manger considers at this organization.How does the manager compute the average unit costs when no inventories are present?

Accepted Answer

The service company is a typical example

Question 7

Which of the following is not correct about equivalent units?

Accepted Answer

A) A total measure of completed work. 
B) Compares work completed in each category. 
C) Combines quantity of each input in units completed units of output. 
D) Combines quantity of each input in incomplete units of output. 
E) Fails to convert the quantity of input into the amount of completed output units. 
A) A total measure of completed work. 
B) Compares work completed in each category. 
C) Combines quantity of each input in units completed units of output. 
D) Combines quantity of each input in incomplete units of output. 
E) Fails to convert the quantity of input into the amount of completed output units.

Question 8

All costs incurred beyond the splitoff point that are assignable to each specific product identified at the splitoff point are:

Accepted Answer

A) zero costs. 
B) joint costs. 
C) single costs. 
D) common costs. 
E) separable costs. 
A) zero costs. 
B) joint costs. 
C) single costs. 
D) common costs. 
E) separable costs.

Question 9

List and compare the two distinct systems that managerial accountants use to compute product costs.Include an example of a product that is typical in each system.

Accepted Answer

The two distinct systems that managers u

Question 10

The owner of Sammy's Uniform Shoppe hired a new accounting manager to oversee the accounting operations at the firm.The new accounting manager discussed the recession with the owner and the owner asked the new accounting manager if it mattered to use the weighted average method or the last-in,first-out method of accounting in periods of economic downturn.What should the new accounting manager say to the owner?

Accepted Answer

In the FIFO method,when there are period

Question 11

Marcy's Manicure Shop has budgeted conversion costs in Operation 1 of solar nails in 2013 of $100,000;and,30,000 budgeted product units in 2013.Compute the Operation 1 budgeted conversion-cost for 2013.

Accepted Answer

A) $1.97. 
B) $3.03. 
C) $3.13. 
D) $3.33. 
E) $3.53. 
A) $1.97. 
B) $3.03. 
C) $3.13. 
D) $3.33. 
E) $3.53.

Question 12

The manager at Marilyn's Sewing Service reported $75,000 total conversion cost and 41,500 total conversion cost in equivalent units.Compute the conversion cost per equivalent unit.

Accepted Answer

A) $1.50 
B) $1.60 
C) $1.70 
D) $1.80 
E) $1.90 
A) $1.50 
B) $1.60 
C) $1.70 
D) $1.80 
E) $1.90

Question 13

In T-account entries,costs can be added throughout the fiscal year in the Conversion Costs ________ account;and,the Conversion Control ________ account.

Accepted Answer

A) costing;control 
B) control;process 
C) allocated;process 
D) control;allocated 
E) process;control 
A) costing;control 
B) control;process 
C) allocated;process 
D) control;allocated 
E) process;control

Question 14

Ms.Davidson is the project manager at a local warehouse.She is responsible for the supervision and development of staff and she also prepares and maintains the reports.Recently,she became friends with a coworker,Betty,who is a staff manager that she oversees the business operations division.She discovered that Betty was reporting higher rates of completion on several projects and she overstated the estimations on operating income in her department to inflate profits and make the department look better.What should the project manager,Ms.Davidson,do about this issue?

Accepted Answer

Ms.Davidson should confront Betty about

Question 15

The manager at Greenies Floral Shoppe estimated that the 50 units in ending inventory were 60% complete for conversion costs.All conversion costs represented in the 60% were used to make fully completed units.
Required:
Compute the number of units completed at the end of the month.

Accepted Answer

A) 10 completed units of output. 
B) 20 completed units of output. 
C) 30 completed units of output. 
D) 40 completed units of output. 
E) 50 completed units of output. 
A) 10 completed units of output. 
B) 20 completed units of output. 
C) 30 completed units of output. 
D) 40 completed units of output. 
E) 50 completed units of output.

Question 16

The weighted-average cost is the total of all costs entering the work-in process account divided by total equivalent units of work done to date.

Accepted Answer

A) True 
 B)False

Question 17

The managerial accountant at Cheryl's Chocolate Factory changed the job-costing system to a process-costing system.Write a short essay and explain how the managerial accountant will make T-account entries.How are the T-account entries different in the process-costing system compared to the job-costing system?

Accepted Answer

The T-account entries that managerial ac

Question 18

In process-costing systems,all product units in any work order are assumed to consume identical amounts of conversion costs of a particular operation.

Accepted Answer

A) True 
 B)False

Question 19

In regards to budgeted-conversion costs,if some units have not been completed,managerial accountants compute the conversion-cost rate by:

Accepted Answer

A) adding budgeted conversion costs to the equivalent units of conversion costs. 
B) subtracting budgeted conversion costs from the equivalent units of conversion costs. 
C) multiplying budgeted conversion costs from the equivalent units of conversion costs. 
D) dividing budgeted conversion costs by the equivalent units of conversion costs. 
E) subtracting the budgeted conversion units by the equivalent units of conversion costs. 
A) adding budgeted conversion costs to the equivalent units of conversion costs. 
B) subtracting budgeted conversion costs from the equivalent units of conversion costs. 
C) multiplying budgeted conversion costs from the equivalent units of conversion costs. 
D) dividing budgeted conversion costs by the equivalent units of conversion costs. 
E) subtracting the budgeted conversion units by the equivalent units of conversion costs.

Question 20

Equivalent-unit and cost-per-equivalent-unit calculations under the weighted-average process-costing method ________ unit costs in beginning inventory with units and costs of work done in the current period.

Accepted Answer

A) detracts 
B) merges 
C) divides 
D) multiplies 
E) subtracts 
A) detracts 
B) merges 
C) divides 
D) multiplies 
E) subtracts

Crystal Clean Manufacturing reported the following information: Required: Compute the total cost of ending work-in-process inventory.

Under the incremental method,the primary party receives the highest allocation of common costs.

Managerial accountants estimate the degree of completion easier for direct material costs compared to conversion costs because the quantity of direct materials needed for a complete unit and quantity of direct materials in partially completed units are measured more accurately.

________ costs are all manufacturing costs other than direct material costs,including manufacturing labor,energy,and plant depreciation.

The costs of a production process that yields multiple products simultaneously are:

Which of the following is not correct about equivalent units?

All costs incurred beyond the splitoff point that are assignable to each specific product identified at the splitoff point are:

List and compare the two distinct systems that managerial accountants use to compute product costs.Include an example of a product that is typical in each system.

Marcy's Manicure Shop has budgeted conversion costs in Operation 1 of solar nails in 2013 of $100,000;and,30,000 budgeted product units in 2013.Compute the Operation 1 budgeted conversion-cost for 2013.

The manager at Marilyn's Sewing Service reported $75,000 total conversion cost and 41,500 total conversion cost in equivalent units.Compute the conversion cost per equivalent unit.

In T-account entries,costs can be added throughout the fiscal year in the Conversion Costs account;and,the Conversion Control account.

The manager at Greenies Floral Shoppe estimated that the 50 units in ending inventory were 60% complete for conversion costs.All conversion costs represented in the 60% were used to make fully completed units. Required: Compute the number of units completed at the end of the month.

The weighted-average cost is the total of all costs entering the work-in process account divided by total equivalent units of work done to date.

In process-costing systems,all product units in any work order are assumed to consume identical amounts of conversion costs of a particular operation.

In regards to budgeted-conversion costs,if some units have not been completed,managerial accountants compute the conversion-cost rate by:

Equivalent-unit and cost-per-equivalent-unit calculations under the weighted-average process-costing method ________ unit costs in beginning inventory with units and costs of work done in the current period.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 5: Process Costing and Cost Allocation

Crystal Clean Manufacturing reported the following information: Required: Compute the total cost of ending work-in-process inventory.

Under the incremental method,the primary party receives the highest allocation of common costs.

Managerial accountants estimate the degree of completion easier for direct material costs compared to conversion costs because the quantity of direct materials needed for a complete unit and quantity of direct materials in partially completed units are measured more accurately.

________ costs are all manufacturing costs other than direct material costs,including manufacturing labor,energy,and plant depreciation.

The costs of a production process that yields multiple products simultaneously are:

Which of the following is not correct about equivalent units?

All costs incurred beyond the splitoff point that are assignable to each specific product identified at the splitoff point are:

List and compare the two distinct systems that managerial accountants use to compute product costs.Include an example of a product that is typical in each system.

Marcy's Manicure Shop has budgeted conversion costs in Operation 1 of solar nails in 2013 of $100,000;and,30,000 budgeted product units in 2013.Compute the Operation 1 budgeted conversion-cost for 2013.

The manager at Marilyn's Sewing Service reported $75,000 total conversion cost and 41,500 total conversion cost in equivalent units.Compute the conversion cost per equivalent unit.

In T-account entries,costs can be added throughout the fiscal year in the Conversion Costs ________ account;and,the Conversion Control ________ account.

The manager at Greenies Floral Shoppe estimated that the 50 units in ending inventory were 60% complete for conversion costs.All conversion costs represented in the 60% were used to make fully completed units. Required: Compute the number of units completed at the end of the month.

The weighted-average cost is the total of all costs entering the work-in process account divided by total equivalent units of work done to date.

In process-costing systems,all product units in any work order are assumed to consume identical amounts of conversion costs of a particular operation.

In regards to budgeted-conversion costs,if some units have not been completed,managerial accountants compute the conversion-cost rate by:

Equivalent-unit and cost-per-equivalent-unit calculations under the weighted-average process-costing method ________ unit costs in beginning inventory with units and costs of work done in the current period.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

In T-account entries,costs can be added throughout the fiscal year in the Conversion Costs account;and,the Conversion Control account.