Question 1

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Accepted Answer

A) Production department. 
B) Service department. 
C)  Primary department. 
D) Responsibility department. 
E) Control department. 
A) Production department. 
B) Service department. 
C)  Primary department. 
D) Responsibility department. 
E) Control department.

Question 2

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:

Accepted Answer

A) General cost accounting system. 
B) Process cost accounting system. 
C) Job order cost accounting system. 
D) Manufacturing cost accounting system. 
E) Goods in process accounting system. 
A) General cost accounting system. 
B) Process cost accounting system. 
C) Job order cost accounting system. 
D) Manufacturing cost accounting system. 
E) Goods in process accounting system.

Question 3

Match between columns
                        Premises: Process manufacturing system.
Process cost accounting system.
Job order cost accounting system.
Materials consumption report.
Hybrid manufacturing system.
Equivalent units of production.
Process cost summary.

Accepted Answer

The Answer of A manufacturing system that contains features of is...

Question 4

Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 5

A company's January 1 goods in process inventory contained 30,000 units that were one-fourth complete with respect to direct labor.The beginning inventory was completed this year and another 120,000 units were started.Of those started, 80,000 were finished and the remaining 40,000 were left one-fifth complete.Using FIFO, calculate the equivalent units of production for the year.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 6

In process cost accounting, materials are always classified as indirect if they are not physically incorporated into the final product.

Accepted Answer

A) True 
 B)False

Question 7

A unique feature of process costing systems is the use of a single Goods in Process Inventory control account.

Accepted Answer

A) True 
 B)False

Question 8

Refer to the following information about the Painting Department in the Richardson Factory for the month of June:
 
-If FIFO has been used, how many equivalent units of materials were added to all units processed during June? How many equivalent units of labor and overhead were added to all units processed during June?

Accepted Answer

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Question 9

What total cost should be assigned to the units that were in process at the end of August?

Accepted Answer

The answer of What total cost should be assigned to...

Question 10

A hybrid costing system would be most appropriate when:

Accepted Answer

A) A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs. 
B) Large quantities of identical products are being produced. 
C) The volume of production is low and costs are high. 
D) There is no standardization of units of production. 
E) The volume of production is low and standardized products are produced. 
A) A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs. 
B) Large quantities of identical products are being produced. 
C) The volume of production is low and costs are high. 
D) There is no standardization of units of production. 
E) The volume of production is low and standardized products are produced.

Question 11

In process cost accounting, the classification of materials as direct or indirect depends on whether they are clearly linked with a specific process.

Accepted Answer

A) True 
 B)False

Question 12

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles _____________________ with the _____________________.

Accepted Answer

costs to a

Question 13

Which of the following is not one of the four steps in accounting for production activity in a period?

Accepted Answer

A) Determine over- or underapplied overhead. 
B) Analyze the physical flow of units. 
C) Analyze equivalent units. 
D) Determine cost per equivalent unit. 
E) Prepare a cost reconciliation. 
A) Determine over- or underapplied overhead. 
B) Analyze the physical flow of units. 
C) Analyze equivalent units. 
D) Determine cost per equivalent unit. 
E) Prepare a cost reconciliation.

Question 14

In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

Accepted Answer

A) True 
 B)False

Question 15

Prepare the required general journal entry to record the following transactions for the Flaherty Company.
(a.)Incurred $95,000 of factory labor cost which is paid in cash.
(b.)Used $42,000 of direct labor in the grinding department, and $36,000 of direct labor in the sifting department.
(c.)Used $17,000 of indirect labor.

Accepted Answer

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Question 16

In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.

Accepted Answer

A) True 
 B)False

Question 17

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

Accepted Answer

A) True 
 B)False

Question 18

The weighted-average method of process costing computes the cost per equivalent unit based solely on the current period's EUPs and costs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following pair of journal entries correctly records the current month's activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?

Accepted Answer

The answer of Which of the following pair of journal...

Question 20

If Department J uses $40,000 of direct materials and Department K uses $70,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:

Accepted Answer

A) True 
 B)False

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:

Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

In process cost accounting, materials are always classified as indirect if they are not physically incorporated into the final product.

A unique feature of process costing systems is the use of a single Goods in Process Inventory control account.

What total cost should be assigned to the units that were in process at the end of August?

A hybrid costing system would be most appropriate when:

In process cost accounting, the classification of materials as direct or indirect depends on whether they are clearly linked with a specific process.

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles _ with the _.

Which of the following is not one of the four steps in accounting for production activity in a period?

In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

The weighted-average method of process costing computes the cost per equivalent unit based solely on the current period's EUPs and costs.

Which of the following pair of journal entries correctly records the current month's activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?

If Department J uses $40,000 of direct materials and Department K uses $70,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 3: Process Costing and Analysis

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:

Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

In process cost accounting, materials are always classified as indirect if they are not physically incorporated into the final product.

A unique feature of process costing systems is the use of a single Goods in Process Inventory control account.

What total cost should be assigned to the units that were in process at the end of August?

A hybrid costing system would be most appropriate when:

In process cost accounting, the classification of materials as direct or indirect depends on whether they are clearly linked with a specific process.

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles _____________________ with the _____________________.

Which of the following is not one of the four steps in accounting for production activity in a period?

In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.

The last step in the four-step accounting procedure for process costing is the calculation of equivalent units of production.

The weighted-average method of process costing computes the cost per equivalent unit based solely on the current period's EUPs and costs.

Which of the following pair of journal entries correctly records the current month's activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?

If Department J uses $40,000 of direct materials and Department K uses $70,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

The fourth step in accounting for production activity in a period is to prepare a cost reconciliation, which reconciles _ with the _.