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| 1 | |
What is a production environment called where large numbers of identical or very similar products are manufactured in a continuous flow? |
| | A) | Repetitive production environment |
| | B) | Batch production environment |
| | C) | Job-order costing environment |
| | D) | Process-costing system |
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| 2 | |
Under process-costing systems, how are costs accumulated? |
| | A) | By product |
| | B) | By job |
| | C) | By department |
| | D) | By time period |
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| 3 | |
When Production Department A transfers units to Production Department B for further processing the journal entry will include which of the following? |
| | A) | A debit to Transferred-In Costs, Production Department B |
| | B) | A credit to Transferred-Out Costs, Production Department A |
| | C) | A debit to Work-in-Process Inventory—Production Department B |
| | D) | A credit to Work-in-Process Inventory—Production Department B |
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| 4 | |
When $45,000 of goods are completed in Production Department D and transferred to the finished-goods warehouse where completed products are stored, awaiting sale, the journal entry will include which of the following? |
| | A) | A debit to Work-in-Process Inventory—Production Department D |
| | B) | A debit to Finished-Goods Inventory |
| | C) | A debit to Cost of Goods Sold |
| | D) | A credit to Finished-Goods Inventory |
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| 5 | |
Which accounts are affected when finished goods are sold? |
| | A) | Cost of Goods Sold and Work-in-Process Inventory |
| | B) | Cost of Goods Sold and Finished Goods Inventory |
| | C) | Finished Goods Inventory and Work-in-Process Inventory |
| | D) | Manufacturing Overhead and Work-in-Process Inventory |
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| 6 | |
Under process-costing systems, the value of the output of one department moved to a subsequent department is called which of the following? |
| | A) | The transferred-in cost for the subsequent department |
| | B) | The equivalent unit cost of the previous department |
| | C) | Ending work in process of the previous department. |
| | D) | Beginning work-in-process |
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| 7 | |
Which of the following is correct when 10,000 ending units of work-in-process are 30% completed as to conversion costs? |
| | A) | Thirty percent of the units are completed |
| | B) | The average units are 30% completed |
| | C) | The average unit has been completed to 70% of its final stage |
| | D) | The average unit did not receive all of its materials |
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| 8 | |
Which of the following are included in conversion costs? |
| | A) | Direct material and direct labor |
| | B) | Direct labor and manufacturing overhead |
| | C) | Direct material and manufacturing overhead |
| | D) | Equivalent units of activity |
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| 9 | |
The beginning work-in-process inventory consists of 1,500 units that are 30% complete with respect to conversion costs and 100% complete with respect to direct material costs. Ten thousand units were transferred in from a previous department. There are 2,000 units in process at the end of the accounting period. They are 20% complete with respect to conversion costs and 100% with respect to direct material costs. Using the weighted-average method of process costing, calculate the equivalent units of conversion. |
| | A) | 13,500 |
| | B) | 9,900 |
| | C) | 10,450 |
| | D) | 12,450 |
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| 10 | |
The beginning work-in-process inventory consists of 1,500 units that are 30% complete with respect to conversion costs and 100% complete with respect to direct material costs. Ten thousand units were transferred in from a previous department. There are 2,000 units in process at the end of the accounting period. They are 20% complete with respect to conversion costs and 100% with respect to direct material costs. Under the weighted-average method of process costing, what are the equivalent units of direct materials? |
| | A) | 13,500 |
| | B) | 12,000 |
| | C) | 10,450 |
| | D) | 11,500 |
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| 11 | |
What is the key document in a typical process-costing system called? |
| | A) | Job-cost Record or Job-cost Sheet |
| | B) | Schedule of Cost of Goods Manufactured |
| | C) | Departmental Production Report |
| | D) | Income Statement |
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| 12 | |
When using the weighted-average method of process costing, how are the beginning work-in-process units and costs treated? |
| | A) | As units and costs of the current period |
| | B) | As units and costs of the subsequent period |
| | C) | As units and costs of a previous period |
| | D) | Ignored in the calculation of equivalent units of activity |
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| 13 | |
The 5,000 units of beginning work-in-process are 30% complete as to conversion; 20,000 units were transferred in from a previous department, and 2,000 units, which are 60% complete as to conversion, makeup the ending work-in-process inventory. What are the equivalent units with respect to conversion costs for the accounting period, under the weighted average method of process costing? |
| | A) | 27,000 |
| | B) | 23,000 |
| | C) | 24,200 |
| | D) | 24,700 |
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| 14 | |
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What are the unit values of A and B, respectively? |
| | A) | 165,000 and 15,000, respectively |
| | B) | 120,000 and 105,000 respectively |
| | C) | 165,000 and 20,000 respectively |
| | D) | 150,000 and 165,000, respectively |
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| 15 | |
The beginning work-in-process had assigned product costs of $12,000. Direct materials, direct labor, and applied manufacturing overhead for the current period are $34,000, $45,000, and $45,000, respectively. The weighted-average equivalent units are 120,000. What is the weighted-average unit cost with respect to conversion costs? |
| | A) | Cannot be determined with information provided. |
| | B) | $0 .750 |
| | C) | $1.333 |
| | D) | $1.100 |
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| 16 | |
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All materials are added at the beginning of the process. What is the total cost of the ending work-in-process inventory, if there are 3,000 units in process at a 40% stage of completion at the end of the period? |
| | A) | Cannot be determined from the information provided. |
| | B) | $15,000 |
| | C) | $9,600 |
| | D) | $11,400 |
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| 17 | |
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What is the value of the units transferred out, if there are 5,000 units in ending work-in-process inventory that are 100% complete as to direct materials and 60% complete as to conversion costs? |
| | A) | $402,000 |
| | B) | $420,000 |
| | C) | $380,000 |
| | D) | $358,000 |
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| 18 | |
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The cost of units transferred-out was $324,000. There are 8,000 units in process at the end of the period, 100% complete as to direct materials. What is the percent of completion of the ending work in process with respect to conversion costs? |
| | A) | 100% |
| | B) | 80% |
| | C) | 60% |
| | D) | 50% |
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| 19 | |
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The costs per equivalent unit for material and conversion are $0.80 and $2.00, respectively. The total cost of all work in process during the period was $300,000. What were the equivalent units of direct materials? |
| | A) | 125,000 |
| | B) | 50,000 |
| | C) | 80,000 |
| | D) | 130,000 |
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| 20 | |
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At the end of the accounting period, 2,000 units are in process and are 100% complete as to direct material and 30% as to conversion. What is the value of the ending work in process in the department? |
| | A) | $ 8,280 |
| | B) | $ 6,240 |
| | C) | $ 2,040 |
| | D) | $10,320 |
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| 21 | |
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What is the percentage of completion for direct labor and manufacturing overhead, assuming all materials are entered into production at the beginning of the process? |
| | A) | 80% and 20% |
| | B) | 83.33% and 66.66% |
| | C) | 55.56% and 44.44% |
| | D) | 100$ and 80% |
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| 22 | |
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18,000 units were completed and transferred out of the department. What was the cost of the goods completed and transferred? |
| | A) | $136,000 |
| | B) | $111,960 |
| | C) | $124,400 |
| | D) | $155,500 |
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| 23 | |
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There is no beginning or ending work in process. Using an operation costing system, what is the total per-unit product cost of Product A and Product B, respectively? |
| | A) | $3.00 and $4.25 |
| | B) | $1.25 and $3.00 |
| | C) | $4.25 and $6.00 |
| | D) | $5.00 and $7.00 |
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| 24 | |
When a firm uses operational costing as its product costing system, the transfer of completed work to the finished goods inventory would require a journal entry in which a debit is made to which of the following accounts? |
| | A) | Applied Conversion Costs |
| | B) | Finished-Goods Inventory |
| | C) | Work-in-Process Inventory: Last Production Department |
| | D) | Manufacturing Overhead |
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| 25 | |
Under the operation costing system, the predetermined overhead application rate is based on which of the following? |
| | A) | Budgeted conversion costs |
| | B) | Budgeted manufacturing overhead |
| | C) | Budgeted direct materials cost |
| | D) | Actual conversion costs |
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| 26 | |
Under an operation costing system, when direct labor is recorded at the end of the pay period the journal entry will include a debit to which account? |
| | A) | Manufacturing Overhead |
| | B) | Direct Labor |
| | C) | Work in Process |
| | D) | Applied Conversion Costs |
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| 27 | |
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Actual conversion costs and actual production are the same as the budgeted conversion costs and budgeted production. The firm produced 20,000 Professional baseball bats and 30,000 Amateur baseball bats. The cost driver is the number of units produced. Use an operation costing approach and determine the per-unit cost for each Professional and Amateur bat, respectively. |
| | A) | $6.74 and $1.74, respectively |
| | B) | $4.54 and $4.54, respectively |
| | C) | $4.54 and $3.74, respectively |
| | D) | $5.74 and $3.74, respectively |
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| 28 | |
When there is an underapplied or an overapplied conversion cost, the underapplied or overapplied balance is closed to which account? |
| | A) | Cost of Goods Sold |
| | B) | Sales |
| | C) | Work-in-Process Inventory |
| | D) | Finished-Goods Inventory |
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