Question 1

The cost of production summary for Maha Industries follows:   What is the journal entry to record the distribution of labor to production?

Accepted Answer

A) Finished goods 4,000 Payroll 4,000
​ 
B) Work in process 4,000 Overhead 4,000
​ 
C) Work in process 4,000 Payroll 4,000
​ 
D) Payroll 4,000 Accrued payroll 4,000 
A) Finished goods 4,000 Payroll 4,000
​ 
B) Work in process 4,000 Overhead 4,000
​ 
C) Work in process 4,000 Payroll 4,000
​ 
D) Payroll 4,000 Accrued payroll 4,000 C

Question 2

The records of Andrews Company reflect the following data: Work in process,beginning of the month - 4,500 units;1 / 3 completed at a cost of $2,400 for materials,$825 for labor,and $3,000 for overhead.
Production costs for the month - materials - $20,695;labor - $13,050;overhead - $41,500
Units completed and transferred to finished goods - 35,000
Work in process,end of month - 3,000 units;3 / 4 completed
Compute the equivalent units of production.

Accepted Answer

A) 32,750 
B) 37,250 
C) 38,000 
D) 36,500 
A) 32,750 
B) 37,250 
C) 38,000 
D) 36,500 B

Question 3

The production report for Marck Company included the following information for August:   How many units were in process at the beginning of the month?

Accepted Answer

A) 1,700 
B) 1,000 
C) 4,700 
D) 5,700 
A) 1,700 
B) 1,000 
C) 4,700 
D) 5,700 C

Question 4

Which of the following is not included in departmental product costs?

Accepted Answer

A) Costs identifiable with the department. 
B) Costs added by prior production departments carried to the department. 
C) Cost of sales and administrative departments that have been allocated to the production department. 
D) Costs of factory service departments that have been allocated to the production department. 
A) Costs identifiable with the department. 
B) Costs added by prior production departments carried to the department. 
C) Cost of sales and administrative departments that have been allocated to the production department. 
D) Costs of factory service departments that have been allocated to the production department.

Question 5

If there is no beginning work in process inventory and the ending work in process inventory is 90 percent complete,the number of equivalent units would be:

Accepted Answer

A) The same as the units placed in process. 
B) The same as the units completed. 
C) Less than the units placed in process. 
D) Less than the units completed. 
A) The same as the units placed in process. 
B) The same as the units completed. 
C) Less than the units placed in process. 
D) Less than the units completed.

Question 6

Brown Company incurred costs of $20,000 for material,$10,000 for labor,and $16,000 for factory overhead.There was no beginning or ending work in process.5,000 units were completed and transferred out.The unit cost for material is: ​

Accepted Answer

A) $4.00 
B) $2.00 
C) $9.20 
D) $3.20 
A) $4.00 
B) $2.00 
C) $9.20 
D) $3.20

Question 7

A cost object in a process cost system is usually a:

Accepted Answer

A) Department. 
B) Job. 
C) Specific product. 
D) Employee. 
A) Department. 
B) Job. 
C) Specific product. 
D) Employee.

Question 8

Bear Printing prints one brochure in two departments on a continuous basis and uses the average cost method of process cost accounting.The following information was reported for the month of April,20--:   In addition,the cost of production summary for the Binding Department follows:   Prepare the journal entries to record production.

Accepted Answer

The answer of Bear Printing prints one brochure in two...

Question 9

The Joan Company uses the process cost system and average cost method.The following production data are for the month of July,20--.     (a)Prepare a cost of production summary for the month.
(b)Prepare the journal entries to record production for the month

Accepted Answer

(a) @#IMG-DLM& (b) @#IMG-DLM& Note to instructor:

Question 10

The records of Jordan Company reflect the following data:
Work in process,beginning of the month - 4,500 units;30% completed at a cost of $16,700 for materials,$7,600 for labor,and $10,400 for overhead.
Production costs for the month - materials - $54,300 labor;- $25,400;overhead - $34,600
Units completed and transferred to finished goods - 18,000
Work in process,end of month - 5,000 units;40% completed
Calculate the unit cost for the month for materials,labor and factory overhead.

Accepted Answer

The answer of The records of Jordan Company reflect the...

Question 11

Process costing techniques should be used in assigning costs to products:

Accepted Answer

A) If the product is manufactured on the basis of each order received. 
B) In all manufacturing situations. 
C) When production is only partially completed during the accounting period. 
D) If the product is composed of mass-produced homogeneous units. 
A) If the product is manufactured on the basis of each order received. 
B) In all manufacturing situations. 
C) When production is only partially completed during the accounting period. 
D) If the product is composed of mass-produced homogeneous units.

Question 12

Gordon Products manufactures one product in two departments on a continuous basis and uses the average cost method of process cost accounting.The following information was reported for the month of May,20--:

Accepted Answer

(a) @#IMG-DLM& (b) @#IMG-DLM&

Question 13

Which of the following characteristics applies to process costing?

Accepted Answer

A) Differentiated products are provided on a special order basis. 
B) Cost are accumulated by department. 
C) Cost are accumulated by jobs. 
D) Direct labor workers must keep detailed records as to the jobs on which they worked. 
A) Differentiated products are provided on a special order basis. 
B) Cost are accumulated by department. 
C) Cost are accumulated by jobs. 
D) Direct labor workers must keep detailed records as to the jobs on which they worked.

Question 14

The cost of production summary for Maha Industries follows:   What is the journal entry to record factory overhead applied to production?

Accepted Answer

A) Work in process 3,000 Factory overhead 3,000
​ 
B) Factory overhead 3,000 Various accounts 3,000
​ 
C) Work-in-process 375 Factory overhead 375
​ 
D) Factory overhead 375 Work in process 375 
A) Work in process 3,000 Factory overhead 3,000
​ 
B) Factory overhead 3,000 Various accounts 3,000
​ 
C) Work-in-process 375 Factory overhead 375
​ 
D) Factory overhead 375 Work in process 375

Question 15

The Binding Department is the second stage of News Printing's production cycle.On May 1,the beginning work in process contained 30,000 units that were 60 percent complete.During May,170,000 units were transferred in from the first stage of Pine's production cycle and 160,000 units were completed and transferred to Finished Goods.On May 31,the ending work in process contained 40,000 units that were 25 percent complete.Using the average cost method,the equivalent units of the Assembly Department are:

Accepted Answer

A) 170,000 54,000 50,000 
B) 200,000 160,000 160,000 
C) 200,000 170,000 170,000 
D) 240,000 200,000 200,000 
A) 170,000 54,000 50,000 
B) 200,000 160,000 160,000 
C) 200,000 170,000 170,000 
D) 240,000 200,000 200,000

Question 16

What are transferred-in costs as used in a process cost accounting system?

Accepted Answer

A) Labor that is transferred from another department within the same plant instead of hiring temporary workers from the outside 
B) Costs that have been incurred in a prior department on units that have been moved into a subsequent department 
C) Supervisory salaries that are transferred from an overhead cost center to a production cost center 
D) Ending work in process inventory of a previous process that will be used in a succeeding process 
A) Labor that is transferred from another department within the same plant instead of hiring temporary workers from the outside 
B) Costs that have been incurred in a prior department on units that have been moved into a subsequent department 
C) Supervisory salaries that are transferred from an overhead cost center to a production cost center 
D) Ending work in process inventory of a previous process that will be used in a succeeding process

Question 17

The cost of an equivalent unit is equal to:

Accepted Answer

A) A unit of work in process inventory. 
B) The amount of cost necessary to start a unit of production into work in process. 
C) The cost necessary to complete one unit of production. 
D) A unit of work in process inventory 
A) A unit of work in process inventory. 
B) The amount of cost necessary to start a unit of production into work in process. 
C) The cost necessary to complete one unit of production. 
D) A unit of work in process inventory

Question 18

Information for the month of January concerning Department A,the first stage of Cando Corporation's production cycle,follows:   The ending work in process is 50 percent complete.How would the total costs accounted for be distributed using the average cost method?

Accepted Answer

A) $105,000 $12,600 
B) $ 67,200 $14,400 
C) $ 67,200 $50,400 
D) $105,000 $14,400 
A) $105,000 $12,600 
B) $ 67,200 $14,400 
C) $ 67,200 $50,400 
D) $105,000 $14,400

Question 19

All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

Accepted Answer

A) The costs of materials,labor and overhead identifiable with that department. 
B) Logistics (product fulfilment)costs. 
C) The costs of service departments that have been allocated to production departments. 
D) The costs of prior production departments. 
A) The costs of materials,labor and overhead identifiable with that department. 
B) Logistics (product fulfilment)costs. 
C) The costs of service departments that have been allocated to production departments. 
D) The costs of prior production departments.

Question 20

Asia,Inc. ,manufactures one product in two departments on a continuous basis and uses the average cost method of process cost accounting.The following information was reported for the month of August,20--:
Production Report
Cutting
Department
Assembly
Department
In process,beginning of month
1,100
600
Finished and transferred during month
8,000
8,000
Work in process,end of month
1,500
600
Stage of completion
50%
40%
Prepare a cost of production summary for each department for the month.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Note to instructor: Difficul

The cost of production summary for Maha Industries follows: What is the journal entry to record the distribution of labor to production?

The production report for Marck Company included the following information for August: How many units were in process at the beginning of the month?

Which of the following is not included in departmental product costs?

If there is no beginning work in process inventory and the ending work in process inventory is 90 percent complete,the number of equivalent units would be:

Brown Company incurred costs of $20,000 for material,$10,000 for labor,and $16,000 for factory overhead.There was no beginning or ending work in process.5,000 units were completed and transferred out.The unit cost for material is:

A cost object in a process cost system is usually a:

The Joan Company uses the process cost system and average cost method.The following production data are for the month of July,20--. (a)Prepare a cost of production summary for the month. (b)Prepare the journal entries to record production for the month

Process costing techniques should be used in assigning costs to products:

Gordon Products manufactures one product in two departments on a continuous basis and uses the average cost method of process cost accounting.The following information was reported for the month of May,20--:

Which of the following characteristics applies to process costing?

The cost of production summary for Maha Industries follows: What is the journal entry to record factory overhead applied to production?

What are transferred-in costs as used in a process cost accounting system?

The cost of an equivalent unit is equal to:

Information for the month of January concerning Department A,the first stage of Cando Corporation's production cycle,follows: The ending work in process is 50 percent complete.How would the total costs accounted for be distributed using the average cost method?

All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

Introduction to Cost Accounting

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting--Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting--Materials, labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

Filters

Exam 5: Process Cost Accounting--General Procedures

The cost of production summary for Maha Industries follows: What is the journal entry to record the distribution of labor to production?

The production report for Marck Company included the following information for August: How many units were in process at the beginning of the month?

Which of the following is not included in departmental product costs?

If there is no beginning work in process inventory and the ending work in process inventory is 90 percent complete,the number of equivalent units would be:

Brown Company incurred costs of $20,000 for material,$10,000 for labor,and $16,000 for factory overhead.There was no beginning or ending work in process.5,000 units were completed and transferred out.The unit cost for material is: ​

A cost object in a process cost system is usually a:

The Joan Company uses the process cost system and average cost method.The following production data are for the month of July,20--. (a)Prepare a cost of production summary for the month. (b)Prepare the journal entries to record production for the month

Process costing techniques should be used in assigning costs to products:

Gordon Products manufactures one product in two departments on a continuous basis and uses the average cost method of process cost accounting.The following information was reported for the month of May,20--:

Which of the following characteristics applies to process costing?

The cost of production summary for Maha Industries follows: What is the journal entry to record factory overhead applied to production?

What are transferred-in costs as used in a process cost accounting system?

The cost of an equivalent unit is equal to:

Information for the month of January concerning Department A,the first stage of Cando Corporation's production cycle,follows: The ending work in process is 50 percent complete.How would the total costs accounted for be distributed using the average cost method?

All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

Introduction to Cost Accounting

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting--Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting--Materials, labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

Filters

Brown Company incurred costs of $20,000 for material,$10,000 for labor,and $16,000 for factory overhead.There was no beginning or ending work in process.5,000 units were completed and transferred out.The unit cost for material is: