Question 1

Activity -based costing plays a more significant role in job costing as compared to process costing as companies using process costing have homogeneous products.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

Accepted Answer

A)  Work in Process-Assembly 
Wages Payable Control 
B)  Accounts Payable Control 
Work in Process-Assembly 
C)  Work in Process-Assembly 
Accounts Payable Control 
D)  Accounts Payable Control
 Cash 
A)  Work in Process-Assembly 
Wages Payable Control 
B)  Accounts Payable Control 
Work in Process-Assembly 
C)  Work in Process-Assembly 
Accounts Payable Control 
D)  Accounts Payable Control
 Cash

Question 3

What is the unit cost per equivalent unit of the beginning inventory in the Finishing Department?

Accepted Answer

A)  $200 
B)  $400 
C)  $800 
D)  $1,000 
A)  $200 
B)  $400 
C)  $800 
D)  $1,000

Question 4

Which of the following is an assumption under FIFO process-costing method?

Accepted Answer

A)  It assumes some of the higher-cost units are placed in ending work in process. 
B)  It assumes that all the lower-cost units from the previous period in beginning work in process are the first to be completed and transferred out of the process. 
C)  It assumes that unit inputs costs are constant and do not fluctuate in the short run. 
D)  It assumes that the ending work in process consists of only the lower-cost current-period units. 
A)  It assumes some of the higher-cost units are placed in ending work in process. 
B)  It assumes that all the lower-cost units from the previous period in beginning work in process are the first to be completed and transferred out of the process. 
C)  It assumes that unit inputs costs are constant and do not fluctuate in the short run. 
D)  It assumes that the ending work in process consists of only the lower-cost current-period units.

Question 5

Lexington Company produces baseball bats and cricket paddles.It has two departments that process all products.During July,the beginning work in process in the cutting department was half completed as to conversion,and complete as to direct materials.The beginning inventory included $40,000 for materials and $60,000 for conversion costs.Ending work-in-process inventory in the cutting department was 40% complete.Direct materials are added at the beginning of the process.
Beginning work in process in the finishing department was 80% complete as to conversion.Direct materials for finishing the units are added near the end of the process.Beginning inventories included $24,000 for transferred-in costs and $28,000 for conversion costs.Ending inventory was 30% complete.Additional information about the two departments follows:
 $$\begin{array} { | l | r | r | } 
\hline &  { \text { Cutting } } &{ \text { Finishing } } \
\hline \text { Beginning work-in-process units } & 20,000 & 24,000 \
\hline \text { Units started this period } & 60,000 & \
\hline \text { Units transferred this period } & 64,000 & 68,000 \
\hline \text { Ending work-in-process units } & & 20,000 \
\hline & & \
\hline \text { Material costs added } & \$ 48,000 & \$ 34,000 \
\hline \text { Conversion costs } & 28,000 & 68,500 \
\hline \text { Transferred-out cost } & 128,000 & \
\hline
\end{array}$$ 
Required:
Prepare a production cost worksheet,using FIFO for the finishing department.

Accepted Answer

Production Cost Worksheet
 Finishing Dep

Question 6

Answer the following questions using the information below:
Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2015 for the Assembly department.
 $\begin{array}{ll}
\text { Work in process, beginning inventory } & 300 \text { units } \
\text { Conversion costs ( } 30 \% \text { complete) } & \
\text { Units started during April } & 800 \text { units } \
\text { Work in process, ending inventory: } & 100 \text { units }\\text { Conversion costs ( } 50 \% \text { complete) }\\\text { The cost details for the month of March are as follows: }\\text { Work in process, beginuing inventory: }\
\text { Direct materials } & \$ 345,000 \
\text { Conversion costs } & \$ 360,000 \
\text { Direct materials costs added during April } & \$ 700,000 \
\text { Conversion costs added during April } & \$ 1,120,000
\end{array}$
-What is the direct materials cost per equivalent unit during March?

Accepted Answer

A)  $995 
B)  $950 
C)  $636 
D)  $313 
A)  $995 
B)  $950 
C)  $636 
D)  $313

Question 7

In a process-costing system average unit costs are calculated ________.

Accepted Answer

A)  by dividing total costs in a given accounting period by total units produced in that period 
B)  by multiplying total costs in a given accounting period by total units produced in that period 
C)  by dividing total costs in a given accounting period by units started in that period 
D)  by multiplying total costs in a given accounting period by units started in that period 
A)  by dividing total costs in a given accounting period by total units produced in that period 
B)  by multiplying total costs in a given accounting period by total units produced in that period 
C)  by dividing total costs in a given accounting period by units started in that period 
D)  by multiplying total costs in a given accounting period by units started in that period

Question 8

Which of the following entries is correct to record depreciation expense of Assembly Department?

Accepted Answer

A) $\text { Work in Process - Assembly }$
finished goods 
B) Work in Process - Assembly
Accumulated Depreciation 
C) Finished Goods
Work in Process - Assembly 
D) Accumulated Depreciation
Work in Process - Assembly 
A) $\text { Work in Process - Assembly }$
finished goods 
B) Work in Process - Assembly
Accumulated Depreciation 
C) Finished Goods
Work in Process - Assembly 
D) Accumulated Depreciation
Work in Process - Assembly

Question 9

The journal entry for transfer from Department B to finished goods is:
Work in Process-Department B
Finished Goods Control

Accepted Answer

A) True 
 B)False

Activity -based costing plays a more significant role in job costing as compared to process costing as companies using process costing have homogeneous products.

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

What is the unit cost per equivalent unit of the beginning inventory in the Finishing Department?

Which of the following is an assumption under FIFO process-costing method?

In a process-costing system average unit costs are calculated ________.

Which of the following entries is correct to record depreciation expense of Assembly Department?

The journal entry for transfer from Department B to finished goods is: Work in Process-Department B Finished Goods Control

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

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

Exam 17: Process Costing

Activity -based costing plays a more significant role in job costing as compared to process costing as companies using process costing have homogeneous products.

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

What is the unit cost per equivalent unit of the beginning inventory in the Finishing Department?

Which of the following is an assumption under FIFO process-costing method?

In a process-costing system average unit costs are calculated ________.

Which of the following entries is correct to record depreciation expense of Assembly Department?

The journal entry for transfer from Department B to finished goods is: Work in Process-Department B Finished Goods Control

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

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters