Question 1

Hybrid costing systems can only be applied to agricultural products.

Accepted Answer

A) True 
 B)False

Question 2

A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

Accepted Answer

A) True 
 B)False

Question 3

A company uses a process cost accounting system.The following information is available regarding direct labor for the current year:
  (a)Calculate the equivalent units of production for direct labor for the year using FIFO.
(b)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 cost accounting...

Question 4

An equivalent unit of production is an estimate of efforts that is used to calculate the ______________ of each production component.

Accepted Answer

The answer of An equivalent unit of production is an...

Question 5

The following journal entry would be made to record the transfer of completed goods from Shoving to the finished goods inventory for this period:

Accepted Answer

A) True 
 B)False

Question 6

Compare and contrast the FIFO and weighted-average methods of process costing.

Accepted Answer

The answer of Compare and contrast the FIFO and weighted-average...

Question 7

The following data are available for Osman Corp.for the current year:
  Using FIFO, calculate the equivalent units of production for the year.

Accepted Answer

The answer of The following data are available for Osman...

Question 8

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

Accepted Answer

A) Each unit of product is separately identifiable. 
B) Partially completed products are transferred between processes. 
C) Different managers are responsible for different processes. 
D) The output of all processes except the final process is an input to the next process. 
E) In a multistep process, there will be multiple Goods in Process accounts.

Question 9

The FIFO method of process costing computes equivalent units of production in a slightly different manner than the computation used in the weighted-average method of process costing.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the following incomplete table of cost information:

-What was the cost of goods transferred out of the Grating Department and into the Bagging Department?

Accepted Answer

The answer of Refer to the following incomplete table of...

Question 11

At the beginning of the recent period, there were 900 units of product in a department, one-third completed.These units were finished and an additional 5,000 units were started and completed during the period.800 units were still in process at the end of the period, one-fourth completed.Using the FIFO valuation method, the equivalent units produced by the department were:

Accepted Answer

A) 6,700 units. 
B) 5,900 units. 
C) 5,800 units. 
D) 6,100 units. 
E) 8,500 units.

Question 12

If the predetermined overhead allocation rate is 225% of direct labor cost and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

Accepted Answer

A) True 
 B)False

Question 13

The process cost summary is an important managerial accounting report produced by a process cost accounting system.

Accepted Answer

A) True 
 B)False

Question 14

Process manufacturing, also called process operations or process production, is the ___________ production of products in a _____________________ flow of steps.

Accepted Answer

The answer of Process manufacturing, also called process operations or...

Question 15

Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost.The entry to apply overhead to these production departments is:

Accepted Answer

The answer of Hou Company applies factory overhead to its...

Question 16

To compute an equivalent unit of production, one must be able to reasonably estimate:

Accepted Answer

A) The percentage of completion. 
B) Units completed. 
C) Units started and completed. 
D) Direct labor cost. 
E) Materials cost.

Question 17

If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

Accepted Answer

A) True 
 B)False

Question 18

The purchase of raw materials on account in a process costing system is recorded with a:

Accepted Answer

A) Debit to Purchases and credit to Cash. 
B) Debit to Purchases and a credit to Accounts Payable. 
C) Debit to Raw Materials Inventory and a credit to Accounts Payable. 
D) Debit to Accounts Payable and a credit to Raw Materials Inventory. 
E) Debit to Goods in Process Inventory and a credit to Accounts Payable

Question 19

A company's beginning work in process inventory consisted of 20,000 units that were one-fifth complete with respect to direct labor.These beginning units were completed and another 90,000 units were started during the current period.Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period.Using FIFO, the equivalent units of production were:

Accepted Answer

A) 60,000 
B) 74,000 
C) 76,000 
D) 86,000 
E) 90,000

Question 20

If a department that applies process costing starts the reporting period with 50,000 physical units that were 25% complete with respect to direct materials and 40% complete with respect to direct labor, it must add 12,500 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

Accepted Answer

A) True 
 B)False

Exam 3: Process Costing and Analysis

Hybrid costing systems can only be applied to agricultural products.

A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

An equivalent unit of production is an estimate of efforts that is used to calculate the ______________ of each production component.

The following journal entry would be made to record the transfer of completed goods from Shoving to the finished goods inventory for this period:

Compare and contrast the FIFO and weighted-average methods of process costing.

The following data are available for Osman Corp.for the current year: Using FIFO, calculate the equivalent units of production for the year.

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

The FIFO method of process costing computes equivalent units of production in a slightly different manner than the computation used in the weighted-average method of process costing.

Refer to the following incomplete table of cost information: -What was the cost of goods transferred out of the Grating Department and into the Bagging Department?

If the predetermined overhead allocation rate is 225% of direct labor cost and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:

The process cost summary is an important managerial accounting report produced by a process cost accounting system.

Process manufacturing, also called process operations or process production, is the _ production of products in a ___________ flow of steps.

To compute an equivalent unit of production, one must be able to reasonably estimate:

If Department T uses $89,000 of direct labor and Department V uses $11,000 of direct labor, the following journal entry would be recorded by the process cost accounting system:

The purchase of raw materials on account in a process costing system is recorded with a: