PRICE: $10.99
These are True False and MC questions, they are long so i removed all the choices out.
1. Process cost systems use job order cost cards to accumulate cost data.
2. Process manufacturers typically use large machines to process a continuous flow of raw materials into a finished state.
3. Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals.
4. The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.
5. Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.
6. If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of production, the conversion cost per equivalent unit was $8.00
7. Custom-made goods would be accounted for using a process costing system.
8. Direct materials, direct labor, and factory overhead are assigned to each manufacturing process in a process costing system.
9. All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.
10. A process cost accounting system records all actual factory overhead costs directly in the Work in Process account.
11. For which of the following businesses would a process cost system be appropriate?
12. Which of the following is not characteristic of a process cost system?
13. If Department H had 500 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 600 units were 30% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories?
14. Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:
15. Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the units "started and completed" during the period (round unit cost calculations to four decimal places)?
16. The two categories of cost comprising conversion costs are:
17. Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.
The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was:
18. A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a:
19. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs from Department 1 into Department 2 during the period is:
20. Which of the following is not a use of the cost of production report?
21. The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:
All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.
The materials cost per equivalent unit (to the nearest cent) for April is:
22. Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost per unit rounded to four decimal places in computations)
23. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July’s activities:
Using the FIFO method, the number of units started and completed in July was
24. Just-in-time operations attempt to significantly reduce
25. Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO and rounds average cost per unit to two decimal places):
Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period?
26. In the manufacture of 10,000 units of a product, direct materials cost incurred was $145,800, direct labor cost incurred was $82,000, and applied factory overhead was $45,500. What is the total conversion cost?
27. In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?
28. The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is:
29. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?
30. Which of the following is NOT a way in which process and job order cost systems are similar?
