Question 1

Which of the following is not a characteristic of a process cost system?

Accepted Answer

A)  Manufacturing costs are grouped by departments. 
B)  The system may use several Work-in-Process accounts. 
C)  The system measures costs for each completed job. 
D)  The system allocates costs between completed and partially completed units within a department. 
A)  Manufacturing costs are grouped by departments. 
B)  The system may use several Work-in-Process accounts. 
C)  The system measures costs for each completed job. 
D)  The system allocates costs between completed and partially completed units within a department.

Question 2

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

Accepted Answer

A)  3 
B)  4 
C)  1 
D)  2 
A)  3 
B)  4 
C)  1 
D)  2

Question 3

Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost per unit rounded to four decimal places in computations)

Accepted Answer

A)  $227,270 
B)  $225,060 
C)  $236,905 
D)  $228,200 
A)  $227,270 
B)  $225,060 
C)  $236,905 
D)  $228,200

Question 4

Match between columns
                        Premises: equivalent units
direct labor and factory overhead
cost of production report
transferred-in costs
process costing
direct labor and direct materials
job costing
FIFO method

Accepted Answer

The Answer of Conversion costs and Prime costs and Costs is...

Question 5

Just-in-time operations attempt to significantly reduce

Accepted Answer

A)  profits. 
B)  inventory needed to produce products. 
C)  inspection time and moving time. 
D)  processing time. 
A)  profits. 
B)  inventory needed to produce products. 
C)  inspection time and moving time. 
D)  processing time.

Question 6

The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from the Purifying Department, plus additional $6,400 from the materials storeroom. The conversion cost for the period in the Bottling Department is $8,750 ($3,750 factory applied and $5,000 direct labor.) The total costs transferred to finished goods for the period was $31,980. The Bottling Department had a beginning inventory of $1,860.

Accepted Answer

The answer of The cost of materials transferred into the...

Question 7

Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO and rounds average cost per unit to two decimal places):   Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?

Accepted Answer

A)  $90,000 
B)  $283,140 
C)  $199,500 
D)  $16,438 
A)  $90,000 
B)  $283,140 
C)  $199,500 
D)  $16,438

Question 8

In a just-in-time system, processing functions are combined into work centers, sometimes called departments.

Accepted Answer

A) True 
 B)False

Question 9

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

Accepted Answer

A) True 
 B)False

Question 10

When a firm adopts a just-in-time operating environment,

Accepted Answer

A)  new, more efficient machinery and equipment must be purchased and installed in the original layout. 
B)  machinery and equipment are moved into small autonomous production lines called manufacturing cells. 
C)  new machinery and equipment must be purchased from franchised JIT dealers. 
D)  employees are retrained on different equipment but the plant layout generally stays unchanged. 
A)  new, more efficient machinery and equipment must be purchased and installed in the original layout. 
B)  machinery and equipment are moved into small autonomous production lines called manufacturing cells. 
C)  new machinery and equipment must be purchased from franchised JIT dealers. 
D)  employees are retrained on different equipment but the plant layout generally stays unchanged.

Question 11

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was:

Accepted Answer

A)  15,650 
B)  18,000 
C)  17,250 
D)  17,700 
A)  15,650 
B)  18,000 
C)  17,250 
D)  17,700

Question 12

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

Accepted Answer

A)  Advertising costs 
B)  Raw lumber (direct materials) 
C)  Machine operator's wages (direct labor) 
D)  Sales salaries 
A)  Advertising costs 
B)  Raw lumber (direct materials) 
C)  Machine operator's wages (direct labor) 
D)  Sales salaries

Question 13

Which of the following entities would probably use a process costing system?

Accepted Answer

A)  A custom boat builder 
B)  A custom furniture manufacturer 
C)  A one of a kind jewelry creator 
D)  An oil refinery. 
A)  A custom boat builder 
B)  A custom furniture manufacturer 
C)  A one of a kind jewelry creator 
D)  An oil refinery.

Question 14

The Bottling Department of Mountain Springs Water Company had 4,000 liters in beginning work in process inventory (40% complete). During the period, 66,000 liters were completed. The ending work in process inventory was 3,000 liters (70% complete). What are the equivalent units for conversion costs, using the FIFO method?

Accepted Answer

The answer of The Bottling Department of Mountain Springs Water...

Question 15

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

Accepted Answer

A) True 
 B)False

Question 16

The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.

Accepted Answer

The beginning work in process

Question 17

Carmelita Inc., has the following information available:   At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the period 4,500 units were started and completed. Ending inventory contained 340 units that were 30 percent complete as to conversion costs and 100 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method.)
The cost of completing a unit during the current period was

Accepted Answer

A)  $36.19 
B)  $34.88 
C)  $35.95 
D)  $35.89 
A)  $36.19 
B)  $34.88 
C)  $35.95 
D)  $35.89

Question 18

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:   All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is:

Accepted Answer

A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25 
A)  $2.48 
B)  $2.75 
C)  $2.50 
D)  $5.25

Question 19

Describe the flow of materials in a process cost accounting system.

Accepted Answer

When raw materials are purchased they ar

Question 20

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total equivalent units for direct materials and conversion are 60,500 and 63,300 respectively. Determine the direct materials and conversion cost per equivalent unit.

Accepted Answer

Round s to

Which of the following is not a characteristic of a process cost system?

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost per unit rounded to four decimal places in computations)

Just-in-time operations attempt to significantly reduce

In a just-in-time system, processing functions are combined into work centers, sometimes called departments.

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

When a firm adopts a just-in-time operating environment,

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

Which of the following entities would probably use a process costing system?

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.

Describe the flow of materials in a process cost accounting system.

Job Order Costing

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters

Exam 3: Process Cost Systems

Which of the following is not a characteristic of a process cost system?

If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use?

Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost per unit rounded to four decimal places in computations)

Just-in-time operations attempt to significantly reduce

In a just-in-time system, processing functions are combined into work centers, sometimes called departments.

In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.

When a firm adopts a just-in-time operating environment,

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

Which of the following entities would probably use a process costing system?

The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production.

The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.

Describe the flow of materials in a process cost accounting system.

Job Order Costing

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters