Question 1

Which of the following characteristics does not usually apply to process operations?

Accepted Answer

A)  Each unit of product is separately identifiable. 
B)  Partially completed products are transferred between processes. 
C)  Each process is a separate department. 
D)  A separate Work in Process Inventory is used for each process. 
E)  Costs are computed using equivalent units. 
A)  Each unit of product is separately identifiable. 
B)  Partially completed products are transferred between processes. 
C)  Each process is a separate department. 
D)  A separate Work in Process Inventory is used for each process. 
E)  Costs are computed using equivalent units.

Question 2

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs).
  Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs).
  If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units for direct materials and conversion respectively for May.

Accepted Answer

A)  225,000 materials; 195,000 conversion. 
B)  275,000 materials; 215,000 conversion. 
C)  150,000 materials; 150,000 conversion. 
D)  195,000 materials; 225,000 conversion. 
E)  195,000 materials; 195,000 conversion. 
A)  225,000 materials; 195,000 conversion. 
B)  275,000 materials; 215,000 conversion. 
C)  150,000 materials; 150,000 conversion. 
D)  195,000 materials; 225,000 conversion. 
E)  195,000 materials; 195,000 conversion.

Question 3

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

Accepted Answer

A)  758,000 
B)  800,000 
C)  620,000 
D)  746,000 
E)  884,000 
A)  758,000 
B)  800,000 
C)  620,000 
D)  746,000 
E)  884,000

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 uses a process costing system and the weighted average method for inventory costs. The following information is available regarding direct labor for the current year:
Ending Work in Process 5,300 units, 50% complete
Units completed and transferred to finished goods 28,700 units
Direct labor costs during the year $199,300
Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

Accepted Answer

The answer of A company uses a process costing system...

Question 6

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Calculate the cost per equivalent unit of materials.

Accepted Answer

A)  $2.00 
B)  $2.05 
C)  $1.74 
D)  $2.36 
E)  $2.61 
A)  $2.00 
B)  $2.05 
C)  $1.74 
D)  $2.36 
E)  $2.61

Question 7

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 8

Which of the following characteristics does not apply to job order cost accounting?

Accepted Answer

A)  Aims to compute the cost per unit of product. 
B)  Identifiable units of production. 
C)  Equivalent units of production. 
D)  Use of job cost sheets. 
E)  Use of a single Work in Process Inventory account. 
A)  Aims to compute the cost per unit of product. 
B)  Identifiable units of production. 
C)  Equivalent units of production. 
D)  Use of job cost sheets. 
E)  Use of a single Work in Process Inventory account.

Question 9

Wang Company provides the following data for the current year:
Estimated Factory Overhead $7,800
Factory Overhead Incurred $11,400
Factory Overhead Applied ?
Estimated Direct Labor Cost $12,000
Direct Labor Cost Incurred $11,800
Required:
a. Calculate the predetermined overhead allocation rate based on direct labor.
b. Determine the amount of overhead applied to production.
c. Prepare the journal entry to apply factory overhead to Work in Process.

Accepted Answer

(a) $7,800/$12,000 = 65% of Di

Question 10

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Accepted Answer

The answer of The second step in accounting for production...

Question 11

Which of the following products is least likely to be produced in a process operation?

Accepted Answer

A)  Smartphones 
B)  Slacks for casual wear 
C)  Baseball caps 
D)  Calculators 
E)  Custom cabinets 
A)  Smartphones 
B)  Slacks for casual wear 
C)  Baseball caps 
D)  Calculators 
E)  Custom cabinets

Question 12

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

Accepted Answer

A)  Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. 
B)  Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. 
C)  Debit Cost of Goods Sold $444,000; credit Sales $444,000. 
D)  Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. 
E)  Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000. 
A)  Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. 
B)  Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. 
C)  Debit Cost of Goods Sold $444,000; credit Sales $444,000. 
D)  Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. 
E)  Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Question 13

The following is an account for a production department, showing its costs for one month:   Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?

Accepted Answer

A)  $12,150. 
B)  $2,160. 
C)  $7,560. 
D)  $54,000. 
E)  $37,260. 
A)  $12,150. 
B)  $2,160. 
C)  $7,560. 
D)  $54,000. 
E)  $37,260.

Question 14

What are the four steps in accounting for production activity in a period?

Accepted Answer

Accounting for a department's activity f

Question 15

In process costing, indirect materials are clearly linked with a specific production process or department.

Accepted Answer

A) True 
 B)False

Question 16

Process costing is applied to operations with customized products.

Accepted Answer

A) True 
 B)False

Question 17

Hybrid systems contain features of both process and job order operations.

Accepted Answer

A) True 
 B)False

Question 18

A ________ contains features of both process and job order costing systems.

Accepted Answer

hybrid cos

Question 19

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Calculate the cost per equivalent unit of conversion.

Accepted Answer

A)  $4.60 
B)  $4.50 
C)  $4.16 
D)  $4.98 
E)  $5.45 
A)  $4.60 
B)  $4.50 
C)  $4.16 
D)  $4.98 
E)  $5.45

Question 20

A production department is an organizational unit that has the responsibility for the complete processing of one particular product.

Accepted Answer

A) True 
 B)False

Which of the following characteristics does not usually apply to process operations?

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

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

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

Which of the following characteristics does not apply to job order cost accounting?

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Which of the following products is least likely to be produced in a process operation?

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

What are the four steps in accounting for production activity in a period?

In process costing, indirect materials are clearly linked with a specific production process or department.

Process costing is applied to operations with customized products.

Hybrid systems contain features of both process and job order operations.

A ________ contains features of both process and job order costing systems.

A production department is an organizational unit that has the responsibility for the complete processing of one particular product.

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 Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

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Exam 3: Process Costing and Analysis

Which of the following characteristics does not usually apply to process operations?

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

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

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

Which of the following characteristics does not apply to job order cost accounting?

The second step in accounting for production activity in a period, after determining the physical flow of units, is to compute ________.

Which of the following products is least likely to be produced in a process operation?

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

What are the four steps in accounting for production activity in a period?

In process costing, indirect materials are clearly linked with a specific production process or department.

Process costing is applied to operations with customized products.

Hybrid systems contain features of both process and job order operations.

A ________ contains features of both process and job order costing systems.

A production department is an organizational unit that has the responsibility for the complete processing of one particular product.

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 Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

Filters