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1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments? (Points: 1)

       [pic]standard

       [pic]actual

       [pic]process

       [pic]job order

2. Process costing is used in companies that _______. (Points: 1)

       [pic]engage in road and bridge construction

       [pic]produce sailboats made to customer specifications

       [pic]produce bricks for sale to the public

       [pic]construct houses according to customer plans

3. A producer of ____ would not use a process costing system. (Points: 1)

       [pic]gasoline

       [pic]potato chips

       [pic]blank videotapes

       [pic]stained glass windows

4. Equivalent units of production are equal to the _______. (Points: 1)

       [pic]units completed by a production department in the period

       [pic]number of units worked on during the period by a production department

       [pic]number of whole units that could have been completed if all work of the period had been used to produce whole units

       [pic]identifiable units existing at the end of the period in a production department

5. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP? (Points: 1)

       [pic]only current period cost

       [pic]current period cost plus the cost of beginning inventory

       [pic]current period cost less the cost of beginning inventory

       [pic]current period cost plus the cost of ending inventory

6. The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units _______. (Points: 1)

       [pic]started and completed during the period

       [pic]residing in beginning Work in Process Inventory

       [pic]residing in ending Work in Process Inventory

       [pic]uncompleted in Work in Process Inventory

7. In a FIFO process costing system, which of the following are assumed to be completed first in the current period? (Points: 1)

       [pic]units started this period

       [pic]units started last period

       [pic]units transferred out

       [pic]units still in process

8. The primary difference between the FIFO and weighted average methods of process costing is _______. (Points: 1)

       [pic]in the treatment of beginning Work in Process Inventory

       [pic]in the treatment of current period production costs

       [pic]in the treatment of spoiled units

       [pic]none of the above

9. In a cost of production report using process costing, transferred-in costs are similar to the ______. (Points: 1)

       [pic]cost of material added at the beginning of production

       [pic]conversion cost added during the period

       [pic]cost transferred out to the next department

       [pic]cost included in beginning inventory

10. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a _______. (Points: 1)

       [pic]debit Work in Process Inventory #2, credit Finished Goods Inventory

       [pic]debit Finished Goods Inventory, credit Work in Process Inventory #1

       [pic]debit Finished Goods Inventory, credit Work in Process Inventory #2

       [pic]debit Cost of Goods Sold, credit Work in Process Inventory #2

11. Transferred-in cost represents the cost from _______. (Points: 1)

       [pic]the last department only

       [pic]the last production cycle

       [pic]all prior departments

       [pic]the current period only

12. A hybrid costing system combines characteristics of _______. (Points: 1)

       [pic]job order and standard costing systems

       [pic]job order and process costing systems

       [pic]process and standard costing systems

       [pic]job order and normal costing systems

13. When standard costs are used in process costing, _______. (Points: 1)

       [pic]variances can be measured during the production period

       [pic]total costs rather than current production and current costs are used

       [pic]process costing calculations are made simpler

       [pic]the weighted average method of calculating EUPs makes computing transferred-out costs easier

14. The cost of abnormal continuous losses is _______. (Points: 1)

       [pic]considered a product cost

       [pic]absorbed by all units in ending inventory and transferred out on an equivalent unit basis

       [pic]written off as a loss on an equivalent unit basis

       [pic]absorbed by all units past the inspection point

15. Normal spoilage units resulting from a continuous process _______. (Points: 1)

       [pic]are extended to the EUP schedule

       [pic]result in a higher unit cost for the good units produced

       [pic]result in a loss being incurred

       [pic]cause estimated overhead to increase

16. 

|16.  Listed below are the steps to assign costs to ending inventory using the weighted average method process costing method. |

|A.    Assign the costs to the inventory accounts |

|B.    Calculate the physical units accounted for |

|C.    Calculate the physical units to account for |

|D.    Calculate the equivalent units of production |

|E.     Calculate the total costs to account for |

|F.     Calculate the cost per equivalent units |

(Points: 1)

       [pic]abcdef

       [pic]cebafd

       [pic]bcdefa       

       [pic]fabdce

17. Units started and completed during the period equals (Points: 1)

       [pic]units started plus beginning inventory

       [pic]units started minus beginning inventory

       [pic]units completed plus beginning inventory

       [pic]units completed minus beginning inventory

18. In process costing systems, unit costs are found by dividing total costs incurred by (Points: 1)

       [pic]ending work in process

       [pic]beginning work in process

       [pic]equivalent units of production

       [pic]units transferred to finished goods

19. Equivalent units of production using the weighted average method of costing are found using which of the following formulas: (Points: 1)

       [pic]units completed and transferred + units in ending WIP inventory

       [pic]beginning WIP physical units + units started and completed + (ending WIP x percent complete)

       [pic]beginning WIP in physical units + units started and completed

       [pic](beginning WIP physical units x percent complete) + units started and completed + (ending WIP x percent complete)

20. Total costs to account for is: (Points: 1)

       [pic]the number of units finished during the period

       [pic]equal to the dollar value offending work in process inventory

       [pic]is the sum of the beginning WIP balance plus all current product costs

       [pic]is the sum of the beginning WIP balance plus the ending WIP balance

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