Question 1

Figure 6-1.The following information is available for Department Z for the month of July:
 Materials are added at the beginning of the process. (Round unit costs to two decimal places.) 
-Refer to Figure 6-1. Department Z's cost of goods transferred out using the FIFO method would be

Accepted Answer

A)   $40,250.
B)   $45,540.
C)   $44,500.
D)   $45,775.E) B) and C)
F) A) and D)

Question 2

Which of the following best describes sequential processing?

Accepted Answer

A)   Units must pass through one process before they can be worked on in the next processes.
B)   Several sequences of production are applied to a product in the department.
C)   Only one process can be applied to a product in each department.
D)   Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.E) All of the above
F) B) and D)

Question 3

The presence of beginning and ending work-in-process inventories leads to much of the complication surrounding process costing.

Accepted Answer

A) True 
 B)False

Question 4

Information concerning Department A of Ali Company for the month of June is as follows:  All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two decimal places)  per equivalent unit for materials is:

Accepted Answer

A)   $0.74.
B)   $0.90.
C)   $0.77.
D)   $0.78.E) A) and B)
F) All of the above

Question 5

Describe how process costing for services differs from process costing for manufactured goods.

Accepted Answer

Service firms generally do not...

Question 6

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

Accepted Answer

A) True 
 B)False

Question 7

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department is

Accepted Answer

A)   equal to the equivalent units plus the materials added.
B)   equal to the equivalent units of that department.
C)   equal to the materials added plus conversion costs.
D)   equal to the units transferred out from the prior department.E) All of the above
F) A) and C)

Question 8

The following amounts were selected from the production report of Chandon Corporation:  Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been

Accepted Answer

A)   $89,100.
B)   $84,000.
C)   $81,300.
D)   $72,900.E) A) and D)
F) B) and C)

Question 9

Barr Inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for June follows:
 During June, 80,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during June:
  At June 30, 12,000 units that were 10% complete remained in the mixing department.
Use the weighted average method and round unit costs to two decimal places.
Required:

Accepted Answer

The answer of Barr Inc., manufactures a product that passes...

Question 10

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Accepted Answer

The answer of The _______________________ is the document that summarizes...

Question 11

If changes occur in the prices of the manufacturing inputs from one period to the next, then the weighted average method produces a more accurate unit cost than does the FIFO method.

Accepted Answer

A) True 
 B)False

Question 12

_________________ works well whenever relatively homogeneous products pass through a series of processes and receives similar amounts of manufacturing costs.

Accepted Answer

The answer of _________________ works well whenever relatively homogeneous products...

Question 13

Nonuniform manufacturing inputs affect

Accepted Answer

A)   the calculation of equivalent units, unit cost, and valuation of ending work in process.
B)   only the calculation of equivalent units, and valuation of ending work in process.
C)   only the valuation of ending work in process.
D)   only the manufacturing outputs.E) All of the above
F) A) and B)

Question 14

The bottling department had the following data for the month of January:
  Required:
A. What is the output in equivalent units for January?
B. What is the unit manufacturing cost for January?
C. Calculate the cost of goods transferred out for January.
D. Calculate the value of January's EWIP

Accepted Answer

A.

B.
Unit cost = $13,464/7,...

Question 15

In process costing, the cost of units finished in the last department will be transferred from work in process to

Accepted Answer

A)   cost of goods sold.
B)   completed processes.
C)   finished goods.
D)   sales.E) A) and C)
F) B) and C)

Question 16

Figure 6-8.Department A had the following data for October:
 
-Refer to Figure 6-8.

Accepted Answer

The answer of Figure 6-8.Department A had the following data...

Question 17

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following companies would be least likely to use a process costing system?

Accepted Answer

A)   an oil refinery
B)   a home-builder
C)   a fertilizer company
D)   a chemical companyE) A) and B)
F) A) and C)

Question 19

Process costing would be most appropriate for which of the following?

Accepted Answer

A)   soft drink bottler
B)   custom home builder
C)   caterer
D)   photocopy shopE) All of the above
F) None of the above

Question 20

What types of costs are normally found in a process accounting system?

Accepted Answer

A)   materials, labor and overhead
B)   materials and labor
C)   labor and overhead
D)   overhead, selling and administrativeE) A) and D)
F) B) and C)

Exam 6: Process Costing

Which of the following companies would be least likely to use a process costing system?

Correct Answer
verified

Describe how process costing for services differs from process costing for manufactured goods.

Correct Answer
verified
Service firms generally do not...
View Answer

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Correct Answer
verified

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

Correct Answer
verified

Figure 6-8.Department A had the following data for October: -Refer to Figure 6-8.

Correct Answer
verified

Which of the following best describes sequential processing?

Correct Answer
verified

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department is

Correct Answer
verified

If changes occur in the prices of the manufacturing inputs from one period to the next, then the weighted average method produces a more accurate unit cost than does the FIFO method.

Correct Answer
verified

The bottling department had the following data for the month of January: Required: A. What is the output in equivalent units for January? B. What is the unit manufacturing cost for January? C. Calculate the cost of goods transferred out for January. D. Calculate the value of January's EWIP

Correct Answer
verified
A.
B.
Unit cost = $13,464/7,...
View Answer

Nonuniform manufacturing inputs affect

Correct Answer
verified

Process costing would be most appropriate for which of the following?

Correct Answer
verified

What types of costs are normally found in a process accounting system?

Correct Answer
verified

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

Correct Answer
verified

Correct Answer
verified

Information concerning Department A of Ali Company for the month of June is as follows: All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two decimal places) per equivalent unit for materials is:

Correct Answer
verified

Figure 6-1.The following information is available for Department Z for the month of July: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Figure 6-1. Department Z's cost of goods transferred out using the FIFO method would be

Correct Answer
verified

_________________ works well whenever relatively homogeneous products pass through a series of processes and receives similar amounts of manufacturing costs.

Correct Answer
verified

The presence of beginning and ending work-in-process inventories leads to much of the complication surrounding process costing.

Correct Answer
verified

The following amounts were selected from the production report of Chandon Corporation: Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been

Correct Answer
verified

In process costing, the cost of units finished in the last department will be transferred from work in process to

Correct Answer
verified

Exam 6: Process Costing

Which of the following companies would be least likely to use a process costing system?

Correct AnswerverifiedShow Answer

Describe how process costing for services differs from process costing for manufactured goods.

Correct AnswerverifiedService firms generally do not...View AnswerShow Answer

The _______________________ is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time.

Correct AnswerverifiedShow Answer

The cost information section of the production report has two major subdivisions: (1) costs to account for and (2) costs accounted for.

Correct AnswerverifiedShow Answer

Figure 6-8.Department A had the following data for October: -Refer to Figure 6-8.

Correct AnswerverifiedShow Answer

Which of the following best describes sequential processing?

Correct AnswerverifiedShow Answer

Assuming that there is a one-to-one relationship between the output measures, the units started in a subsequent department is

Correct AnswerverifiedShow Answer

If changes occur in the prices of the manufacturing inputs from one period to the next, then the weighted average method produces a more accurate unit cost than does the FIFO method.

Correct AnswerverifiedShow Answer

The bottling department had the following data for the month of January: Required: A. What is the output in equivalent units for January? B. What is the unit manufacturing cost for January? C. Calculate the cost of goods transferred out for January. D. Calculate the value of January's EWIP

Correct AnswerverifiedA. B.Unit cost = $13,464/7,...View AnswerShow Answer

Nonuniform manufacturing inputs affect

Correct AnswerverifiedShow Answer

Process costing would be most appropriate for which of the following?

Correct AnswerverifiedShow Answer

What types of costs are normally found in a process accounting system?

Correct AnswerverifiedShow Answer

Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Information concerning Department A of Ali Company for the month of June is as follows: All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two decimal places) per equivalent unit for materials is:

Correct AnswerverifiedShow Answer

Figure 6-1.The following information is available for Department Z for the month of July: Materials are added at the beginning of the process. (Round unit costs to two decimal places.) -Refer to Figure 6-1. Department Z's cost of goods transferred out using the FIFO method would be

Correct AnswerverifiedShow Answer

_________________ works well whenever relatively homogeneous products pass through a series of processes and receives similar amounts of manufacturing costs.

Correct AnswerverifiedShow Answer

The presence of beginning and ending work-in-process inventories leads to much of the complication surrounding process costing.

Correct AnswerverifiedShow Answer

The following amounts were selected from the production report of Chandon Corporation: Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been

Correct AnswerverifiedShow Answer

In process costing, the cost of units finished in the last department will be transferred from work in process to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Service firms generally do not...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
A.
B.
Unit cost = $13,464/7,...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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