Question 1

When the final production department completes goods, the cost of the completed goods are transferred to ________.

Accepted Answer

The answer of When the final production department completes goods,...

Question 2

Refer to the following information about the Finishing Department in the Davidson Factory for the month of June. Davidson Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
Physical units…………………………………………... 5,000 units
% complete for materials………………………………. 70%
% complete for labor and overhead……………………. 25%
Materials cost from May……………………………….. $7,350
Labor and overhead cost from May……………………. $3,125
Product started and completed:
Physical units…………………………………………… 40,000 units
Ending Work in Process inventory:
Physical units………………………………………….... 4,000 units
% complete for materials………………………………. 40%
% complete for labor and overhead……………………. 10%
Manufacturing costs for June:
Materials………………………………………………… $96,975
Labor and overhead……………………………………... $79,470
Compute equivalent units for direct materials, direct labor and overhead for June.

Accepted Answer

The answer of Refer to the following information about the...

Question 3

A process cost summary shows the cost of a particular job manufactured in the reporting period.

Accepted Answer

A) True 
 B)False

Question 4

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

Accepted Answer

A)  Physical cost per equivalent unit 
B)  Overhead cost per equivalent unit 
C)  Combined cost per equivalent unit 
D)  Conversion cost per equivalent unit 
E)  Finished cost per equivalent unit 
A)  Physical cost per equivalent unit 
B)  Overhead cost per equivalent unit 
C)  Combined cost per equivalent unit 
D)  Conversion cost per equivalent unit 
E)  Finished cost per equivalent unit

Question 5

During July, the production department of a process operations system completed and transferred to finished goods 10,000 units that were in process at the beginning of July and 76,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 15,000 additional units were in process in the production department and were 100% complete with respect to materials and 25% complete with respect to labor. The beginning inventory included labor cost of $52,100 and the production department incurred direct labor cost of $450,750 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Accepted Answer

A)  $1.72. 
B)  $5.60. 
C)  $0.84. 
D)  $5.02. 
E)  $5.85. 
A)  $1.72. 
B)  $5.60. 
C)  $0.84. 
D)  $5.02. 
E)  $5.85.

Question 6

In process costing, direct labor includes only the labor that is applied directly to individual units of product.

Accepted Answer

A) True 
 B)False

Question 7

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:

Accepted Answer

A)  $13,000. 
B)  $56,000. 
C)  $59,000. 
D)  $110,000. 
E)  $165,000. 
A)  $13,000. 
B)  $56,000. 
C)  $59,000. 
D)  $110,000. 
E)  $165,000.

Question 8

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota Factory uses the FIFO method of inventory costing.
   The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00. Compute the cost that should be assigned to the beginning units that were completed and transferred during August.

Accepted Answer

The answer of Refer to the following information about the...

Question 9

Materials and labor costs that are clearly associated with a specific process or department are known as ________. Those costs that are not clearly associated with a specific process or department are called ________.

Accepted Answer

direct costs; indire

Question 10

If a department that applies process costing starts the reporting period with 40,000 physical units that were 80% complete with respect to direct materials and 50% complete with respect to direct labor, it must add 8,000 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

Accepted Answer

A) True 
 B)False

Question 11

In process costing, all indirect materials are charged directly to Work in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 12

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 equivalent units of materials.

Accepted Answer

A)  165,000 
B)  144,000 
C)  140,000 
D)  130,250 
E)  110,000 
A)  165,000 
B)  144,000 
C)  140,000 
D)  130,250 
E)  110,000

Question 13

Manufacturers that utilize process operations produce large quantities of identical products.

Accepted Answer

A) True 
 B)False

Question 14

The process cost summary presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending Work in Process inventory.

Accepted Answer

A) True 
 B)False

Question 15

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.   The total conversion costs transferred out of the Canning Department equals:

Accepted Answer

A)  $243,040. 
B)  $242,800. 
C)  $183,100. 
D)  $176,150. 
E)  $196,000. 
A)  $243,040. 
B)  $242,800. 
C)  $183,100. 
D)  $176,150. 
E)  $196,000.

Question 16

Bagger, Inc. uses a process costing system. The following operating and cost data occurred during October:
October 1, Inventory: 30,000 units
100% complete for materials
($60,000) and 50% complete
for direct labor ($7,500) and
overhead ($15,000)
October 31, Inventory: 20,000 units
100% complete for materials
and 30% complete for
direct labor and overhead
Units started during Oct.: 40,000 units
October production costs: Direct materials…………………… $110,100
Direct labor………………………… 28,900
Overhead…………………………… 57,800
Materials are added at the beginning of the process. Direct labor and overhead are incurred evenly throughout the process. Prepare the October process cost summary assuming the weighted average method of inventory costing.

Accepted Answer

BAGGER, INC.
Process Cost Summary
For Mo

Question 17

A process cost summary usually does not include the number of equivalent units of production for the period.

Accepted Answer

A) True 
 B)False

Question 18

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

Accepted Answer

A) True 
 B)False

Question 19

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, the equivalent units of direct labor in beginning Work in Process are 20,000.

Accepted Answer

A) True 
 B)False

Question 20

In a process costing system, factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate.

Accepted Answer

A) True 
 B)False

When the final production department completes goods, the cost of the completed goods are transferred to ________.

A process cost summary shows the cost of a particular job manufactured in the reporting period.

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

In process costing, direct labor includes only the labor that is applied directly to individual units of product.

Materials and labor costs that are clearly associated with a specific process or department are known as . Those costs that are not clearly associated with a specific process or department are called .

In process costing, all indirect materials are charged directly to Work in Process Inventory.

Manufacturers that utilize process operations produce large quantities of identical products.

The process cost summary presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending Work in Process inventory.

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. The total conversion costs transferred out of the Canning Department equals:

A process cost summary usually does not include the number of equivalent units of production for the period.

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, the equivalent units of direct labor in beginning Work in Process are 20,000.

In a process costing system, factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate.

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

Exam 3: Process Costing and Analysis

When the final production department completes goods, the cost of the completed goods are transferred to ________.

A process cost summary shows the cost of a particular job manufactured in the reporting period.

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

In process costing, direct labor includes only the labor that is applied directly to individual units of product.

Materials and labor costs that are clearly associated with a specific process or department are known as ________. Those costs that are not clearly associated with a specific process or department are called ________.

In process costing, all indirect materials are charged directly to Work in Process Inventory.

Manufacturers that utilize process operations produce large quantities of identical products.

The process cost summary presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending Work in Process inventory.

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. The total conversion costs transferred out of the Canning Department equals:

A process cost summary usually does not include the number of equivalent units of production for the period.

Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, the equivalent units of direct labor in beginning Work in Process are 20,000.

In a process costing system, factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate.

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

Materials and labor costs that are clearly associated with a specific process or department are known as . Those costs that are not clearly associated with a specific process or department are called .