Question 1

A standard cost is a budgeted cost per unit.

Accepted Answer

A) True 
 B)False

Question 2

In both job and process costing, the journal entry to record completed goods is.

Accepted Answer

A)  debit work in process and credit manufacturing overhead. 
B)  credit finished goods inventory and debit cost of goods sold. 
C)  debit finished goods inventory and credit work in process. 
D)  debit work in process inventory and credit finished goods inventory. 
A)  debit work in process and credit manufacturing overhead. 
B)  credit finished goods inventory and debit cost of goods sold. 
C)  debit finished goods inventory and credit work in process. 
D)  debit work in process inventory and credit finished goods inventory.

Question 3

Which of the following represents a correct sequence in preparing a departmental production report?

Accepted Answer

A)  Analysis of physical flow of units, computation of unit costs, calculation of equivalent units and analysis of total costs 
B)  Analysis of physical flow of units, calculation of equivalent units, computation of unit costs and analysis of total costs 
C)  Analysis of total costs, calculation of equivalent units, computation of unit costs and analysis of physical flow of units 
D)  Analysis of total costs, analysis of physical flow of units, computation of unit costs and calculation of equivalent units 
A)  Analysis of physical flow of units, computation of unit costs, calculation of equivalent units and analysis of total costs 
B)  Analysis of physical flow of units, calculation of equivalent units, computation of unit costs and analysis of total costs 
C)  Analysis of total costs, calculation of equivalent units, computation of unit costs and analysis of physical flow of units 
D)  Analysis of total costs, analysis of physical flow of units, computation of unit costs and calculation of equivalent units

Question 4

South River Chemicals Pty Ltd manufactures a product called Zybek. Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout the process. The following data pertain to the month of May.  
Using the FIFO method of process costing, calculate the equivalent units of direct materials and conversion activity for the month of May.

Accepted Answer

A)  DM 75 000; CC 69 400 
B)  DM 75 000; CC 60 400 
C)  DM 60 000; CC 60 400 
D)  DM 68 000; CC 69 400 
A)  DM 75 000; CC 69 400 
B)  DM 75 000; CC 60 400 
C)  DM 60 000; CC 60 400 
D)  DM 68 000; CC 69 400

Question 5

Heara Ltd manufactures metal sheets and uses the weighted average method process costing. On 1 May the Rolling Department had 2000 units work in progress, which were 20 per cent completed as to conversion costs. During May 10 000 units were completed and transferred out. The remaining work in progress on 30 May was 50 per cent complete in terms of conversion rate. If the equivalent unit is 12 000 units, what is the 30 May work in progress?

Accepted Answer

A)  4000 units 
B)  2000 units 
C)  8000 units 
D)  5000 units 
A)  4000 units 
B)  2000 units 
C)  8000 units 
D)  5000 units

Question 6

If the FIFO method is used, the cost of beginning work in process should be included in:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 7

Latta Coffee Ltd has two main processes: roasting and packaging. Roasted coffee beans are transferred to the packaging department before the final product is shipped to customers. The following information for the month of April for the Roasting department is available: total cost of goods completed and transferred from Roasting department to Packaging department is $25 000; ending work in progress in April is $1000; number of equivalent units of conversion is 5000 units.
Which of the following journal entries is appropriate at the end of April?

Accepted Answer

A)  Debit Packaging Department $26 000, Credit Roasting Department $26 000 
B)  Debit Packaging Department $25 000, Credit Roasting Department $25 000 
C)  Debit Roasting Department $26 000, Credit Packaging Department $26 000 
D)  Debit Roasting Department $25 000, Credit Packaging Department $25 000 
A)  Debit Packaging Department $26 000, Credit Roasting Department $26 000 
B)  Debit Packaging Department $25 000, Credit Roasting Department $25 000 
C)  Debit Roasting Department $26 000, Credit Packaging Department $26 000 
D)  Debit Roasting Department $25 000, Credit Packaging Department $25 000

A standard cost is a budgeted cost per unit.

In both job and process costing, the journal entry to record completed goods is.

Which of the following represents a correct sequence in preparing a departmental production report?

If the FIFO method is used, the cost of beginning work in process should be included in:

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 5: Process Costing and Operation Costing

A standard cost is a budgeted cost per unit.

In both job and process costing, the journal entry to record completed goods is.

Which of the following represents a correct sequence in preparing a departmental production report?

If the FIFO method is used, the cost of beginning work in process should be included in:

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters