CH 03

CHAPTER 3
PROCESS COSTING
TRUE-FALSE STATEMENTS
1. Process cost accounting focuses on the process involved in mass-producing products that
are very similar in nature.
Ans: T, LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
'#A: $ost #anagement
*. Process cost systems are used to apply costs to a specific +o,, such as the manufacturing
of a speciali-ed machine.
Ans: ), LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
.. A company that produces motion pictures /ould li0ely use a process cost system.
Ans: ), LO: 1, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
1. 'n a process cost system, costs are trac0ed through a series of connected manufacturing
processes or departments, rather than ,y individual +o,s.
Ans: T, LO: *, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
2. 'n a process cost system, total costs are determined at the end of a month or year.
Ans: T, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
3. %eparate /or0 in process accounts are maintained for each production department or
manufacturing process in a process cost system.
Ans: T, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
'#A: )%A
4. 'n a process cost system, materials, la,or and overhead are only added in the first
production department.
Ans: ), LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
5. The assignment of the three manufacturing cost elements to 6or0 in Process in a process
cost system is the same as in a +o, order cost system.
Ans: ), LO: 1, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
7. )e/er materials re8uisitions are generally re8uired in a process cost system than in a +o,
order cost system.
19. 'n a process cost system, la,or costs incurred may ,e captured on time tic0ets.
Test Bank for Manageria A!!o"nting# Si$t% E&ition
11. A primary driver of overhead costs in continuous manufacturing operations is machine
time used.
1*. "8uivalent units of production are used to determine the cost per unit of completed
products.
Ans: T, LO: 2, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
1.. "8uivalent units of production measure the /or0 done during a period, e:pressed in fully
completed units.
11. "8uivalent units of production is the sum of units completed and transferred out plus
e8uivalent units of ,eginning /or0 in process.
12. The /eighted-average method of computing e8uivalent units is the most /idely used
method in practice.
13. There are no units in process at the ,eginning of the period, 1,299 units in process at the
end of the period that are 19; complete, and 12,999 units transferred out during the
period. Based on this information, there /ere 11,199 e8uivalent units of production during
the period.
Ans: ), LO: 2, Bloom: AP, !ifficulty: "asy, #in: *, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
14. The first step performed in preparing a production cost report is computing the e8uivalent
units of production.
Ans: ), LO: 3, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
15. "8uivalent units of production must ,e calculated ,efore the unit production costs can ,e
computed.
Ans: T, LO: 3, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
17. The physical units in a department are another name for the e8uivalent units of
production.
<eporting
*9. =nit material cost is computed ,y ta0ing total material costs charged to the department for
the period and dividing ,y the physical units in the process during the period.
*1. 6hen e8uivalent units of production are different for materials and conversion costs, unit
costs are computed for materials, conversion, and total manufacturing.
Ans: T, LO: 3, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
3 - '
Process $osting
**. The total manufacturing cost per unit is used in costing the units completed and
transferred during the period.
*.. A production cost report is an internal document for management that sho/s production
8uantity and cost data for a particular +o,.
<eporting
*1. Production cost reports provide a ,asis for evaluating the productivity of a department.
Ans: T, LO: 4, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
*2. $ompanies often use a com,ination of a process cost and a +o, order cost system, called
operations costing.
a
*3. The )')O method is easier to understand and use than the /eighted-average method.
Ans: ), LO: 5, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: Leverage Technology, A'$PA P$:
&one, '#A: $ost #anagement
a
*4. The )')O method is conceptually superior to the /eighted-average method.
Ans: T, LO: 5, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: Leverage Technology, A'$PA P$:
a
*5. 6hen comparing the )')O /ith the /eighted-average method, the )')O method provides
current cost information.
a
*7. There are no units in ending /or0 in process at the end of the period under the )')O
method.
a
.9. $ompanies using the /eighted-average method do not complete units left over from the
previous accounting periods, they start ne/ units.
.1. 'n continuous process manufacturing, generally once the production ,egins, it continues
until the finished product emerges.
.*. One similarity of process cost accounting /ith +o, order cost accounting is that ,oth
determine total manufacturing costs after each +o,.
Ans: ), LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: Leverage Technology, A'$PA P$:
... The flo/ of costs in a process costing system re8uires that materials ,e added in one
department, la,or added in another department and manufacturing overhead in a third
department.
Ans: ), LO: ., Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
3 - 3
.1. 6hen finished goods are sold, the entry to record the cost of goods sold is a de,it to
)inished >oods 'nventory and a credit to $ost of >oods %old.
'#A: )%A
.2. 6hen there is no ,eginning /or0 in process and materials are entered at the ,eginning of
the process, e8uivalent units of materials are the same as the units started into
production.
.3. 'n order to compute the physical unit flo/, a company must first compute unit production
costs.
<eporting
.4. =nder the )')O method, it is assumed that the ,eginning /or0 in process is completed
,efore ne/ /or0 is started.
Ans: T, LO: 5, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
MULTIPLE CHOICE (UESTIONS
.5. A process cost accounting system is most appropriate /hen
a. a variety of different products are produced, each one re8uiring different types of
materials, la,or, and overhead.
,. the focus of attention is on a particular +o, or order.
c. similar products are mass-produced.
d. individual products are custom made to the specification of customers.
Ans: $, LO: 1, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
'#A: Business Applications
.7. A characteristic of products that are mass-produced in a continuous fashion is that
a. the products are identical or very similar in nature.
,. they are grouped in ,atches.
c. they are produced at the time an order is received.
d. their costs are accumulated on +o, cost sheets.
Ans: A, LO: 1, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
19. A process cost system /ould ,e used for all of the follo/ing products except
a. chemicals.
,. computer chips.
c. motion pictures.
d. soft drin0s.
Ans: $, LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
11. 'n a process cost system,
a. a 6or0 in Process account is maintained for each product.
,. a materials re8uisition must identify the +o, on /hich the materials /ill ,e used.
c. a 6or0 in Process account is maintained for each process.
d. one 6or0 in Process account is maintained for all the processes, similar to a +o, order
cost system.
3 - )
Process $osting
Ans: $, LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
1*. !ifferences ,et/een a +o, order cost system and a process cost system include all of the
follo/ing except the
a. documents used to trac0 costs.
,. point at /hich costs are totaled.
c. unit cost computations.
d. flo/ of costs.
Ans: !, LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
Business Applications
1.. 6hich of these ,est reflects a distinguishing factor ,et/een a +o, order cost system and a
process cost system?
a. The detail at /hich costs are calculated.
,. The time period each covers.
c. The num,er of /or0 in process accounts.
d. The manufacturing cost elements included.
Ans: $, LO: *, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
Business Applications
11. 6hich of the follo/ing is a true statement a,out process cost systems?
a. 'n process cost systems, costs are accumulated ,ut not assigned.
,. A process cost system has one /or0 in process account for each process.
c. 'n process cost systems, costs are summari-ed on +o, cost sheets.
d. =nit costs are not computed in process cost systems.
Ans: B, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
12. 6hich of the follo/ing is correct regarding cost systems?
@o, Order Process
a. 6or0 in process account several one for each process
,. 6or0 in process account one one
c. 6or0 in process account one one for each process
d. 6or0 in process account several one
Ans: $, LO: *, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
13. 'n a process cost system, unit costs are determined using a
a. numerator of costs of each +o,.
,. denominator of units produced during the period.
c. denominator of units produced for the +o,.
d. denominator of units produced for the day.
'#A: Business "conomics
3 - *
14. 'n process cost accounting, manufacturing costs are summari-ed on a
a. +o, order cost sheet.
,. process order cost sheet.
c. production cost report.
d. manufacturing cost sheet.
Ans: $, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
15. 6hich of the follo/ing manufacturing cost elements occurs in a process cost system?
a. !irect materials.
,. !irect la,or.
c. #anufacturing overhead.
d. All of these.
Ans: !, LO: *, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
'#A: Business "conomics
17. 'n a process cost system, product costs are summari-ed:
a. on +o, cost sheets.
,. on production cost reports.
c. after each unit is produced.
d. /hen the products are sold.
Ans: B, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
29. 6hen manufacturing overhead costs are assigned to production in a process cost system,
they are de,ited to
a. the )inished >oods 'nventory account.
,. $ost of >oods %old.
c. a #anufacturing Overhead account.
d. a 6or0 in Process account.
Ans: !, LO: 1, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
'#A: )%A
21. A product re8uires processing in t/o departments, the Ba0ing !epartment and then the
Pac0aging !epartment, ,efore it is completed. $osts transferred out of the Ba0ing
!epartment /ill ,e transferred to:
a. )inished >oods 'nventory.
,. $ost of >oods %old.
c. 6or0 in ProcessAPac0aging !epartment.
d. #anufacturing Overhead.
'#A: )%A
2*. 6hich of the follo/ing /ould not appear as a de,it in the 6or0 in Process account of a
second department in a t/o stage production process?
a. #aterials used.
,. Overhead applied.
c. La,or assigned.
d. $ost of products transferred out.
'#A: )%A
3 - +
Process $osting
2.. #aterials re8uisitions are:
a. not used in process costing.
,. generally used more fre8uently in process costing than +o, order costing.
c. generally used less fre8uently in process costing than +o, order costing.
d. used more fre8uently ,y latter stage production departments.
21. A primary driver of overhead costs in continuous manufacturing operations is:
a. direct la,or dollars.
,. direct la,or hours.
c. machine hours.
d. machine maintenance dollars.
22. Price $ompany assigns overhead ,ased on machine hours. The #illing !epartment logs
1,599 machine hours and $utting !epartment sho/s .,999 machine hours for the period. 'f
the overhead rate is B2 per machine hour, the entry to assign overhead /ill sho/ a
a. de,it to #anufacturing Overhead for B*1,999.
,. credit to 6or0 in ProcessA$utting !epartment for B12,999.
c. de,it to 6or0 in Process for B12,999.
d. credit to #anufacturing Overhead for B*1,999.
Ans: !, LO: 1, Bloom: $, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
Pro,lem %olving, '#A: )%A
23. Barnes and #iller #anufacturing is trying to determine the e8uivalent units for conversion
costs /ith 19,999 units of ending /or0 in process at 59; completion and *5,999 physical
units. There are no ,eginning units in the department. $onversion costs occur evenly
throughout the entire production period. 6hat are the e8uivalent units for conversion costs
for the current period?
a. .5,999.
,. .3,999.
c. 5,999.
d. *3,999.
Ans: !, LO: 2, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
24. 12,999 units in a process that are 49; complete are referred to as:
a. 12,999 e8uivalent units of production.
,. 1,299 e8uivalent units of production.
c. 19,299 e8uivalent units of production.
d. 1,299 e8uivalent units of production.
Ans: $, LO: 2, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$:
Pro,lem %olving, '#A: <eporting
25. A process /ith no ,eginning /or0 in process, completed and transferred out 72,999 units
during a period and had 29,999 units in the ending /or0 in process inventory that /ere
.9; complete. The e8uivalent units of production for the period /ere:
a. 72,999 e8uivalent units.
,. 112,999 e8uivalent units.
c. 119,999 e8uivalent units.
d. 14,299 e8uivalent units.
Ans: $, LO: 2, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
Pro,lem %olving, '#A: Business "conomics
3 - ,
27. A department adds ra/ materials to a process at the ,eginning of the process and incurs
conversion costs uniformly throughout the process. )or the month of @anuary, there /ere
no units in the ,eginning /or0 in process inventoryC 59,999 units /ere started into
production in @anuaryC and there /ere *9,999 units that /ere 19; complete in the ending
/or0 in process inventory at the end of @anuary. 6hat /ere the e8uivalent units of
production for materials for the month of @anuary?
,. 4*,999 e8uivalent units.
Ans: !, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$:
39. A department adds ra/ materials to a process at the ,eginning of the process and incurs
conversion costs uniformly throughout the process. )or the month of @anuary, there /ere
no units in the ,eginning /or0 in process inventoryC 59,999 units /ere started into
production in @anuaryC and there /ere *9,999 units that /ere 19; complete in the ending
/or0 in process inventory at the end of @anuary. 6hat /ere the e8uivalent units of
production for conversion costs for the month of @anuary?
Ans: $, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$:
31. "8uivalent units are calculated ,y
a. multiplying the percentage of /or0 done ,y the e8uivalent units of output.
,. dividing physical units ,y the percentage of /or0 done.
c. multiplying the percentage of /or0 done ,y the physical units.
d. dividing e8uivalent units ,y the percentage of /or0 done.
3*. #inor $ompany had the follo/ing department data:
Physical =nits
6or0 in process, @uly 1 .9,999
$ompleted and transferred out 1.2,999
6or0 in process, @uly .1 12,999
#aterials are added at the ,eginning of the process. 6hat is the total num,er of
e8uivalent units for materials in @uly?
a. 1.2,999.
,. 129,999.
c. *19,999.
d. 159,999.
3 - -
Process $osting
3.. $orsi $ompany had the follo/ing department data:
Physical =nits
6or0 in process, ,eginning -9-
$ompleted and transferred out 49,999
6or0 in process, ending 4,999
e8uivalent units for materials during the period?
a. 49,999.
,. 4,999.
c. 44,999.
d. 3.,999.
31. >antner $ompany had the follo/ing department information a,out physical units and
percentage of completion:
Physical =nits
6or0 in process, #ay 1 D39;E 39,999
6or0 in process, #ay .1 D19;E 29,999
'f materials are added at the ,eginning of the production process, /hat is the total num,er
of e8uivalent units for materials during #ay?
a. *19,999.
,. *99,999.
c. 171,999.
d. 149,999.
Ans: B, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$:
32. 't is necessary to calculate e8uivalent units of production in a department ,ecause
a. a physical count of units is impossi,le.
,. some units /or0ed on in the department are not fully complete.
c. the physical units in the department are al/ays 199; complete.
d. at times a department may use a +o, order cost system and then s/itch to a process
cost system.
Ans: B, LO: 2, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
33. 'n the month of @une, a department had *9,999 units in ,eginning /or0 in process that
/ere 49; complete. !uring @une, 59,999 units /ere transferred into production from
another department. At the end of @une there /ere 19,999 units in ending /or0 in process
that /ere 19; complete. #aterials are added at the ,eginning of the process, /hile
conversion costs are incurred uniformly throughout the process. Fo/ many units /ere
transferred out of the process in @une?
a. 59,999 units.
,. 49,999 units.
c. 79,999 units.
d. 199,999 units.
Ans: $, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
Pro,lem %olving, '#A: $ost #anagement
3 - .
conversion costs are incurred uniformly throughout the process. The e8uivalent units of
production for materials for @une /ere
conversion costs are incurred uniformly throughout the process. The e8uivalent units of
production for conversion costs for @une /ere
Ans: B, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
37. A process /ith no ,eginning /or0 in process, completed and transferred out *5,999 units
during a period and had 11,999 units in the ending /or0 in process that /ere 29;
complete. Fo/ much is e8uivalent units of production for the period for conversion costs?
a. .2,999 e8uivalent units.
d. *1,999 e8uivalent units.
Ans: A, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
49. A process /ith 1,399 units of ,eginning /or0 in process, completed and transferred out
*9,999 units during a period. There /ere 19,999 units in the ending /or0 in process that
/ere 29; complete as to conversion costs. #aterials are added 59; at the ,eginning of
the process and *9; /hen the units are 79; complete. Fo/ much is e8uivalent units of
production for the period for material costs?
a. *1,999 e8uivalent units.
,. .9,999 e8uivalent units.
c. **,999 e8uivalent units.
d. *5,999 e8uivalent units.
Ans: !, LO: 2, Bloom: AP, !ifficulty: #edium, #in: ., AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
3 - /0
Process $osting
41. Fan0er $ompany had the follo/ing department data on physical units:
6or0 in process, ,eginning .,999
$ompleted and transferred out 1*,999
6or0 in process, ending *,199
e8uivalent units for materials during the period?
a. 1*,399.
,. *,199.
c. 11,199.
d. 7,999.
4*.%uper-Tech 'ndustries had the follo/ing department information a,out physical units and
Physical =nits
6or0 in process, @une 1 D42;E 5,999
6or0 in process, @une .9 D29;E 1*,999
'f materials are added at the ,eginning of the production process, /hat is the total num,er
of e8uivalent units for materials during @une?
a. 12,999.
,. .9,999.
c. .*,999.
d. *1,999.
4.. >loria $ompany had no ,eginning /or0 in process. !uring the period, 1*,999 units /ere
completed, and there /ere 1,*99 units of ending /or0 in process. Fo/ many units /ere
started into production?
a. 1.,*99.
,. 1*,999.
c. 19,599.
d. 1,*99.
Ans: A, LO: 2, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
41. $ohen $ompany is trying to determine the e8uivalent units for conversion costs /ith
2,999 units of ending /or0 in process at 59; completion and .2,999 units that are 199;
complete as to materials. There are no ,eginning units in the department. #aterials are
added at the ,eginning of the process, and conversion costs occur evenly throughout the
entire production period. 6hat is the e8uivalent units of production for conversion costs
for the current period?
a. 19,999.
,. .7,999.
c. 1,999.
d. .1,999.
3 - //
42. 'f ,eginning /or0 in process is 1,999 units, ending /or0 in process is *,999 units, and the
units accounted for e8uals 1*,999 units, /hat must units started into production ,e?
a. 13,999.
,. 11,999.
c. 5,999.
d. 19,999.
43. The #olding !epartment of ennett $ompany has the follo/ing production data:
,eginning /or0 in process *2,999 units D39; completeE, started into production 1*2,999
units, completed and transferred out 199,999 units, and ending /or0 in process 29,999
units D19; completeE. Assuming materials are entered at the ,eginning of the process,
e8uivalent units for materials are:
a. 129,999.
,. .42,999.
c. 199,999.
d. 142,999.
44. The #olding !epartment of ennett $ompany has the follo/ing production data:
,eginning /or0 in process *2,999 units D39; completeE, started into production 1*2,999
units D19; completeE. Assuming conversion costs are incurred uniformly during the
process, the e8uivalent units for conversion costs are:
a. 129,999.
,. 192,999.
c. 1*9,999.
d. 199,999.
45. The #olding !epartment of Bos/ell $ompany has the follo/ing production data:
,eginning /or0 process 19,999 units D39; completeE, started into production 359,999
units D19; completeE. Assuming materials are entered at the ,eginning of the process,
e8uivalent units for materials are:
a. 4*9,999.
,. 399,999.
c. 319,999.
d. 439,999.
47. The #olding !epartment of Bos/ell $ompany has the follo/ing production data:
,eginning /or0 process 19,999 units D39; completeE, started into production 359,999
units D19; completeE. Assuming conversion costs are incurred uniformly during the
process, the e8uivalent units for conversion costs are:
a. 4*9,999.
,. 439,999.
c. 34*,999.
d. 399,999.
3 - /'
Process $osting
59. $ra/ford $ompany has the follo/ing e8uivalent units for @uly: materials *9,999 and
conversion costs 15,999. Production cost data are:
#aterials $onversion
6or0 in process, @uly 1 B .,*99 B 1,299
$osts added in @uly *2,*99 *1,999
The unit production costs for @uly are:
#aterials $onversion $osts
a. B1.*3 B1.*2
,. 1.1* 1.14
c. 1.*3 1.14
d. 1.1* 1.*2
Ans: !, LO: 3, Bloom: AP, !ifficulty: #edium, #in: 2, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
51. 'n #oyer $ompany, the $utting !epartment had ,eginning /or0 in process of 3,999 units,
transferred out 13,999 units, and had an ending /or0 in process of .,999 units. Fo/ many
units /ere started ,y #oyer during the month?
a. 19,999.
,. 1.,999.
c. 13,999.
d. 17,999.
5*. 'n the %haping !epartment of <ollins $ompany the unit materials cost is B2.99 and the
unit conversions cost is B..99. The department transferred out *9,999 units and had *,299
units in ending /or0 in process *9; complete. 'f all materials are added at the ,eginning
of the process, the total cost to ,e assigned to the ending /or0 in process is
a. 1,999.
,. 1*,299.
c. 11,999.
d. *9,999.
5.. Folton $ompany has the follo/ing e8uivalent units for @uly: materials *9,999 and
conversion 15,999. Production cost data are:
#aterials $onversion
6or0 in process, @uly 1 B 1,599 B *,*29
$osts added in @uly .4,599 .1,299
The unit production costs for @uly are:
a. B1.57 B1.55
,. *.1. 1.42
c. 1.57 1.42
d. *.1. 1.55
3 - /3
51. 'n apler $ompany, the $utting !epartment had ,eginning /or0 in process of 5,999 units,
transferred out *9,999 units, and had an ending /or0 in process of 1,999 units. Fo/ many
units /ere started ,y apler during the month?
a. 1*,999.
,. 13,999.
c. *9,999.
d. *1,999.
52. 'n the %haping !epartment of @en0ins $ompany the unit materials cost is B*.29 and the
unit conversion cost is B1.29. The department transferred out 5,999 units and had *,999
units in ending /or0 in process *9; complete. 'f all materials are added at the ,eginning
of the process, the total cost to ,e assigned to the ending /or0 in process is
a. B1,399.
,. B2,999.
c. B2,399.
d. B5,999.
53. $inder $ompany had the follo/ing department information for the month:
Total materials costs B 59,999
"8uivalent units of materials 19,999
Total conversion costs B1*9,999
"8uivalent units of conversion costs *9,999
Fo/ much is the total manufacturing cost per unit?
a. B11.99.
,. B3.33.
c. B3.99.
d. B5.99.
54. #aterials costs of B299,999 and conversion costs of B2.2,299 /ere charged to a
processing department in the month of %eptem,er. #aterials are added at the ,eginning
of the process, /hile conversion costs are incurred uniformly throughout the process.
There /ere no units in ,eginning /or0 in process, 199,999 units /ere started into
production in %eptem,er, and there /ere 5,999 units in ending /or0 in process that /ere
19; complete at the end of %eptem,er.
6hat /as the total amount of manufacturing costs assigned to those units that /ere
completed and transferred out of the process in %eptem,er?
a. B139,999.
,. B744,299.
c. B1,9.2,299.
d. B1,93.,999.
3 - /)
Process $osting
55. #aterials costs of B299,999 and conversion costs of B2.2,299 /ere charged to a
There /ere no units in ,eginning /or0 in process, 199,999 units /ere started into
6hat /as the total amount of manufacturing costs assigned to the 5,999 units in the
ending /or0 in process?
a. B19,999.
,. B15,999.
c. B.1,999.
d. B25,999.
57. $harley $ompanyGs Assem,ly !epartment has materials cost at B. per unit and
conversion cost at B3 per unit. There are *9,999 units in ending /or0 in process, all of
/hich are 49; complete as to conversion costs and 199; complete as to materials. Fo/
much are total costs to ,e assigned to inventory?
a. B51,999.
,. B111,999.
c. B1*3,999.
d. B159,999.
79. Byrd $ompany decided to analy-e certain costs for @une of the current year. =nits started
into production e8ualed 11,999 and ending /or0 in process e8ualed *,999 units. 6ith no
,eginning /or0 in process inventory, ho/ much is the conversion cost per unit if ending
/or0 in process /as *2; complete and total conversion costs e8ualed B.2,999?
a. B*.17.
,. B5.42.
c. B*.59.
d. B1.19.
71. Long $ompany has recently tried to improve its analysis for its manufacturing process.
=nits started into production e8ualed 3,999 and ending /or0 in process e8ualed 199
units. Long had no ,eginning /or0 in process inventory. $onversion costs are applied
e8ually throughout production, and materials are applied at the ,eginning of the process.
Fo/ much is the materials cost per unit if ending /or0 in process /as *2; complete and
total materials costs e8ualed B*1,999?
a. B1.99.
,. B1.*1.
c. B12.99.
d. B..42.
3 - /*
7*. $onversion cost per unit e8uals B4.99. Total materials costs are B39,999. "8uivalent units
are *9,999. Fo/ much is the total manufacturing cost per unit?
a. B19.99.
,. B4.99.
c. B1.99.
d. B..99.
7.. Physical units are 19,999. Total conversion costs are B*.4,999. There are 1,999 units in
ending inventory /hich are 29; complete as to conversion costs. Fo/ much are
conversion costs per unit?
a. B3.99.
,. B2.7*.
c. B11.53.
d. B2.45.
71. #adison 'ndustries has e8uivalent units of 1,999 for materials and for conversion costs.
Total manufacturing costs are B139,999. Total materials costs are B1*9,999. Fo/ much is
the conversion cost per unit?
a. B1.99.
,. B19.99.
c. B19.99.
d. B5.99.
72. "8uivalent units for materials total .9,999. There /ere *1,999 units completed and
transferred out. "8uivalent units for conversion costs e8ual *4,999. Fo/ much are the
physical units for conversion costs if ending /or0 in process is 29; complete?
a. *4,999.
,. .9,999.
c. 3,999.
d. *1,999.
73. 'f e8uivalent units are 1*,999 for conversion costs and units transferred out e8uals 5,999,
/hat stage of completion should the ending /or0 in process ,e for the 13,999 units
remaining?
a. 42;.
,. *2;.
c. 19;.
d. *9;.
Ans: B, LO: 3, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
3 - /+
Process $osting
74. 'n the month of April, a department had 299 units in the ,eginning /or0 in process
inventory that /ere 39; complete. These units had B19,999 of materials costs and
B.9,999 of conversion costs. #aterials are added at the ,eginning of the process and
conversion costs are added uniformly throughout the process. !uring April, 19,999 units
/ere completed and transferred to the finished goods inventory and there /ere *,999
units that /ere *2; complete in the ending /or0 in process inventory on April .9. !uring
April, manufacturing costs charged to the department /ere: #aterials B7*9,999C
$onversion costs B1,9*9,999.
The cost assigned to the units transferred to finished goods during April /as
a. B1,599,999.
,. B1,519,999.
c. B1,559,999.
d. B1,479,999.
75. 'n the month of April, a department had 299 units in the ,eginning /or0 in process
inventory that /ere 39; complete. These units had B19,999 of materials costs and
B.9,999 of conversion costs. #aterials are added at the ,eginning of the process and
conversion costs are added uniformly throughout the process. !uring April, 19,999 units
/ere completed and transferred to the finished goods inventory and there /ere *,999
units that /ere *2; complete in the ending /or0 in process inventory on April .9. !uring
April, manufacturing costs charged to the department /ere: #aterials B7*9,999C
$onversion costs B1,9*9,999.
The cost assigned to the units in the ending /or0 in process inventory on April .9 /as
a. B*19,999.
,. B*19,999.
c. B139,999.
d. B*79,999.
77. Hi,,a $ompany enters materials at the ,eginning of the process. 'n @anuary, there /as no
,eginning /or0 in process, ,ut there /ere *99 units in the ending /or0 in process
inventory. The num,er of units completed e8uals the num,er of
a. units started.
,. units started less *99.
c. units started plus *99.
d. e8uivalent units.
199. 'f there are no units in process at the ,eginning of the period, then
a. the company must ,e using a +o, order cost system.
,. only one computation of e8uivalent units of production /ill ,e necessary.
c. the units started into production /ill e8ual the num,er of units transferred out.
d. the units to ,e accounted for /ill e8ual the units transferred out and the units in
process at the end of the period.
3 - /,
191. 6hich of the follo/ing is not a necessary step in preparing a production cost report?
a. $ompute the e8uivalent units of production.
,. $ompute the physical unit flo/.
c. Prepare the +o, order cost sheet.
d. Prepare a cost reconciliation schedule.
Ans: $, LO: 3, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
19*. Fonrad $ompanyIs Assem,ly !epartment has materials cost at B1 per unit and
conversion cost at B5 per unit. There are *9,999 units in ending /or0 in process, all of
/hich are 49; complete as to conversion costs. Fo/ much are total costs to ,e assigned
to inventory?
a. B11*,999.
,. B17*,999.
c. B135,599.
d. B*19,999.
19.. 'n a process cost system, units to ,e accounted for in a department are e8ual to the
a. num,er of units started or transferred into the department.
,. num,er of units transferred out of the department.
c. units in the ,eginning inventory plus the units started or transferred into the department.
d. ending inventory plus the units started or transferred into the department.
191. The total units accounted for e8uals units in
a. ,eginning /or0 in process J units transferred out.
,. ,eginning /or0 in process K ending /or0 in process.
c. ending /or0 in process K units transferred out.
d. ending /or0 in process J units started into production.
Ans: $, LO: 3, Bloom: AP, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
192. The %licing !epartment production process sho/s:
=nits
Beginning 6or0 in Process 19,999
"nding 6or0 in Process 29,999
Total units to ,e accounted for 139,999
Fo/ many units /ere started into production in !epartment 1?
a. 149,999.
,. 119,999.
c. 139,999.
d. 129,999.
3 - /-
Process $osting
193. !epartment 1 of a t/o department production process sho/s:
=nits
Beginning 6or0 in Process 19,999
Total units to ,e accounted for 139,999
Fo/ many units /ere transferred out to !epartment *?
a. 29,999.
,. 119,999.
c. 139,999.
d. 129,999.
194. The Assem,ly !epartment sho/s the follo/ing information:
=nits
Beginning 6or0 in Process *9,999
=nits Transferred Out .1,999
Fo/ many total units are to ,e accounted for ,y the Assem,ly !epartment?
a. 51,999.
,. 29,999.
c. 49,999.
d. 31,999.
195. The last department in a production process sho/s the follo/ing information at the end of
the period:
=nits
Beginning 6or0 in Process *2,999
%tarted into Production *99,999
Fo/ many units have ,een transferred out to finished goods during the period?
a. *99,999.
,. **2,999.
c. *29,999.
d. 142,999.
197. A process ,egan the month /ith .,999 units in the ,eginning /or0 in process inventory
and ended the month /ith *,999 units in the ending /or0 in process. 'f 12,999 units /ere
completed and transferred out of the process during the month, ho/ many units /ere
started into production during the month?
a. 11,999.
,. 13,999.
c. 12,999.
d. 1.,999.
3 - /.
119. 'f 1*9,999 units are started into production there /as no ,eginning /or0 in process, and
19,999 units are in process at the end of the period, ho/ many units /ere completed and
transferred out?
a. 1*9,999.
,. 19,999.
c. 59,999.
d. 139,999.
111. Total units to ,e accounted for less units in ,eginning /or0 in process e8uals
a. total units accounted for.
,. units transferred out.
c. units started into production.
d. e8uivalent units.
11*. 'f 1*9,999 units are transferred out of a department, there /as no ,eginning /or0 in
process, and there are *9,999 units still in process at the end of a period, the num,er of
units that /ere started into production during the period is
a. 119,999.
,. 1*9,999.
c. 199,999.
d. *9,999.
11.. A department adds materials at the ,eginning of the process and incurs conversion costs
uniformly throughout the process. )or the month of @uly, there /as no ,eginning /or0 in
processC 19,999 units /ere completed and transferred outC and there /ere *9,999 units in
the ending /or0 in process that /ere 19; complete. !uring @uly, B73,999 materials costs
and B51,999 conversion costs /ere charged to the department.
The unit production costs for materials and conversion costs for @uly /as
a. B1.39 B1.19
,. B1.39 B1.42
c. B*.99 B1.19
d. B*.19 B*.1.
111. $onversion cost per unit e8uals B3. Total materials cost e8ual B59,999. "8uivalent units
for materials are 19,999. Fo/ much is the total manufacturing cost per unit?
a. B11.
,. B3.
c. B1*.
d. B5.
Ans: A, LO: 3, Bloom: AP, !ifficulty: #edium, #in: *, AA$%B: Analytic, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$:
3 - '0
Process $osting
112. The follo/ing department data are availa,le:
Total materials costs B*19,999
Total conversion costs B1.2,999
"8uivalent units of conversion costs .9,999
6hat is the total manufacturing cost per unit?
a. B1.99.
,. B1.29.
c. B5.29.
d. B3.*2.
113. Byers $ompany had the follo/ing department information for the month:
Total materials costs B15,999
Total conversion costs B59,999
"8uivalent units of conversion costs 19,999
6hat is the total manufacturing cost per unit?
a. B5.2..
,. B5.99.
c. B7.39.
d. B14.39.
114. Physical units accounted for are 139,999. Total conversion costs are B*43,299. There are
1,999 units in ending inventory /hich are 29; complete as to conversion costs. Fo/
much is the conversion cost per unit?
a. B1.42.
,. B1.4..
c. B1.41.
d. B1.37.
115. A department had the follo/ing information for the month:
Total materials costs B*19,999
$onversion cost per unit B..99
Total manufacturing cost per unit B2.99
6hat are the e8uivalent units of production for materials?
a. 192,999.
,. 49,999.
c. 1*,999.
d. $annot ,e determined
3 - '/
117. #aisley $ompany decided to analy-e certain costs for @une of the current year. =nits
started into production e8ualed *5,999 and ending /or0 in process e8ualed 1,999. 6ith
no ,eginning /or0 in process inventory, ho/ much is the conversion cost per unit if
ending /or0 in process /as *2; complete and total conversion costs e8ualed B192,999?
a. B...9.
,. B..42.
c. B1.*9.
d. B*.19.
1*9. #aterials costs of B599,999 and conversion costs of B1,9*9,999 /ere charged to a
There /ere no units in ,eginning /or0 in process, *9,999 units /ere started into
6hat /as the total amount of manufacturing costs assigned to those units that /ere
completed and transferred out of the process in %eptem,er?
a. B1,299,999.
,. B*,999,999.
c. B1,393,299.
d. B1,.32,999.
1*1. #aterials costs of B599,999 and conversion costs of B1,9*9,999 /ere charged to a
There /ere no units in ,eginning /or0 in process, *9,999 units /ere started into
6hat /as the total amount of manufacturing costs assigned to the 2,999 units in the
ending /or0 in process?
a. B122,999.
,. B299,999.
c. B.*9,999.
d. B*99,999.
1**. #ayer $ompany has recently tried to improve its analysis for its manufacturing process.
=nits started into production e8ualed 15,999 and ending /or0 in process e8ualed 1,*99
units. #ayer had no ,eginning /or0 in process inventory. $onversion costs are applied
e8ually throughout production, and materials are applied at the ,eginning of the process.
Fo/ much is the materials cost per unit if ending /or0 in process /as *2; complete and
total materials costs e8ualed B79,999?
a. B2.99.
,. B2.*4.
c. B*9.99.
d. B1.37.
3 - ''
Process $osting
1*.. #adison 'ndustries has e8uivalent units of 5,999 for materials and for conversion costs.
Total manufacturing costs are B139,999. Total materials costs are B1*9,999. Fo/ much is
the conversion cost per unit?
a. B12.
,. B2.
c. B*9.
d. B1.
1*1. 'n a process cost system, a production cost report is prepared
a. only for the first processing department.
,. for all departments in the aggregate.
c. for each processing department.
d. only for the last processing department.
<eporting
1*2. A production cost report
a. is prepared for each product.
,. is prepared from a +o, cost sheet.
c. /ill sho/ 8uantity and cost data for a production department.
d. /ill not identify a specific department if more than one department is involved in the
production process.
<eporting
1*3. 'n the production cost report, the total
a. physical units accounted for e8uals the costs accounted for.
,. physical units accounted for e8uals the units to ,e accounted for.
c. costs charged e8uals the units to ,e accounted for.
d. costs accounted for e8uals the costs of the units started into production.
Ans: B, LO: 4, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
a
1*4. The $utting !epartmentGs output during the period consists of 15,999 units completed and
transferred out, and 1,999 units in ending /or0 in process that /ere *2; complete as to
materials and conversion costs. Beginning inventory /as *,999 units that /ere *2;
complete as to materials and conversion costs. =nder the )')O method, /hat are the
e8uivalent units of production for materials?
a. *9,.99
,. 15,299
c. *1,.99
d. *9,999
3 - '3
a
1*5. The 6rapping !epartmentGs output during the period consists of 14,999 units completed
and transferred out, and 799 units in ending /or0 in process that /ere 42; complete as
to materials and conversion costs. Beginning inventory /as 1,*99 units that /ere .9;
complete as to materials and conversion costs. =nder the )')O method, /hat are the
e8uivalent units of production for materials?
a. 15,9.2
,. 15,212
c. 14,342
d. 14,.12
a
1*7. $hicotti $ompany has 3,999 units in ,eginning /or0 in process, .9; complete as to conversion
costs, 39,999 units transferred out to finished goods, and *,999 units in ending /or0 in process
*9; complete as to conversion costs. The ,eginning and ending inventory is fully complete as
to materials costs. Fo/ much are e8uivalent units for conversion costs if the )')O method
is used?
a. 39,199
,. 31,399
c. 23,999
d. 25,399
a
1.9. $hicotti $ompany has 3,999 units in ,eginning /or0 in process, .9; complete as to conversion
costs, 39,999 units transferred out to finished goods, and *,999 units in ending /or0 in process
*9; complete as to conversion costs. The ,eginning and ending inventory is fully complete as
to materials costs. Fo/ much are e8uivalent units for materials if the )')O method is used?
a. 39,199
,. 3*,999
c. 23,999
d. 35,999
a
1.1. %chiller $ompany has unit costs of B. for materials and B7 for conversion costs. There are
2,399 units in ending /or0 in process /hich are *2; complete as to conversion costs,
and fully complete as to materials cost. Fo/ much is the total cost assigned to the ending
/or0 in process inventory if the )')O method is used?
a. *7,199
,. 34,*99
c. 13,599
d. 1*,399
a
1.*. %olis $ompany uses the )')O method to compute e8uivalent units. 't has 1,999 units in
,eginning /or0 in process, *9; complete as to conversion costs and 29; complete as to
materials costs, 22,999 units started, and 3,999 units in ending /or0 in process, .9;
complete as to conversion costs, and 59; complete as to materials cost. Fo/ much are
the e8uivalent units for materials under the )')O method?
a. 22,599
,. 22,999
c. 24,599
d. 27,999
3 - ')
Process $osting
a
1... %pecial $ompany had the follo/ing department information a,out physical units and
Physical =nits
6or0 in process, #ay 1 D39;E .3,999
6or0 in process, #ay .1 D29;E .9,999
#aterials are added at the ,eginning of the production process. $onversion costs are
added e8ually throughout production. 6hat is the total num,er of e8uivalent units during
#ay for conversion costs if the )')O method is used?
a. 1.1,999
,. 59,999
c. 25,199
d. 197,199
a
1.1. Fan0er $ompany had the follo/ing department data on physical units:
6or0 in process, ,eginning *,299
6or0 in process, ending *,999
e8uivalent units for materials if the )')O method is used?
a. 11,299
,. 1.,299
c. 13,999
d. 11,299
1.2. A process cost system /ould ,e used ,y all of the follo/ing except aDnE
a. chemical company.
,. advertising company.
c. oil company.
d. computer chip company.
Ans: B, LO: 1, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
1.3. 6hich of the follo/ing is considered a difference ,et/een a +o, order cost and a process
cost system?
a. The manufacturing cost elements.
,. !ocuments used to trac0 costs.
c. The accumulation of the costs of materials, la,or, and overhead.
d. The flo/ of costs.
1.4. The ,asic similarities ,et/een +o, order cost and process cost systems include all of the
follo/ing except the
a. manufacturing cost elements.
,. flo/ of costs.
c. point at /hich costs are totaled.
d. accumulation of the costs of materials, la,or, and overhead.
Ans: $, LO: *, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
3 - '*
1.5 "8uivalent units of production are a measure of
a. units completed and transferred out.
,. units transferred out.
c. units in ending /or0 in process.
d. the /or0 done in a period e:pressed in fully completed units.
Ans: !, LO: 2, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
1.7. Total physical units to ,e accounted for are e8ual to the units
a. started Dor transferredE into production.
,. started Dor transferredE into production plus the units in ,eginning /or0 in process.
c. started Dor transferredE into production less the units in ,eginning /or0 in process.
d. completed and transferred out.
119. 'n computing e8uivalent units, LLLLLLLLLLL is not part of the e8uivalent units of
production formula.
a. units transferred out
,. ,eginning /or0 in process
c. ending /or0 in process
d. &one of these is correct.
111. 'n %aint-%imon, 'nc., the Assem,ly !epartment started .9,999 units and completed
.2,999 units. 'f ,eginning /or0 in process /as 12,999 units, ho/ many units are in ending
/or0 in process?
a. 9.
,. 2,999.
c. 19,999.
d. *9,999.
11*. The total units to ,e accounted for is computed ,y adding
a. ,eginning units in process to units transferred out.
,. ending units in process to units started into production.
c. ,eginning units in process to units started into production.
d. ending units in process to total units accounted for.
11.. 'n the $amria $ompany, materials are entered at the ,eginning of the process. 'f there is
no ,eginning /or0 in process, ,ut there is an ending /or0 in process inventory, the
num,er of e8uivalent units as to materials costs /ill ,e
a. the same as the units started.
,. the same as the units completed.
c. less than the units started.
d. less than the units completed.
Ans: A, LO: 3, Bloom: $, !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: #easurement, A'$PA P$: &one,
3 - '+
Process $osting
111. )or the Assem,ly !epartment, unit materials cost is B5 and unit conversion cost is B1*. 'f
there are 19,999 units in ending /or0 in process 42; complete as to conversion costs,
the costs to ,e assigned to the inventory are
a. B*99,999.
,. B149,999.
c. B129,999.
d. B159,999.
112. The total costs accounted for in a production cost report e8ual the
a. cost of units completed and transferred out only.
,. cost of units started into production.
c. cost of units completed and transferred out plus the cost of ending /or0 in process.
d. cost of ,eginning /or0 in process plus the cost of units completed and transferred out.
<eporting
113. 'n a production cost report, /hich one of the follo/ing sections is not sho/n under $osts?
a. =nit costs.
,. $osts to ,e accounted for.
c. $osts during the period.
d. =nits accounted for.
Ans: !, LO: 4, Bloom: , !ifficulty: "asy, #in: 1, AA$%B: &one, A'$PA BB: 'ndustry(%ector Perspective, A'$PA )&: <eporting, A'$PA P$: &one, '#A:
<eporting
3 - ',

CH 03

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

CH 03

Hochgeladen von

Copyright:

Verfügbare Formate

CHAPTER 3

Das könnte Ihnen auch gefallen