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True or False
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1
Process costing is used in a repetitive production environment.
A)True
B)False
2
One of the major differences between job-order costing and process costing is the flow of costs through the manufacturing accounts.
A)True
B)False
3
In a two process-costing situation, when the work-in-process is moved out of the first department, the cost of the transferred work-in-process to the next department is the transferred-in costs of that department.
A)True
B)False
4
In a two process-costing situation, the completed work of the last production department is transferred to the Finished-Goods Inventory account.
A)True
B)False
5
A major difference between job-order costing and process costing is in the accumulation of manufacturing costs.
A)True
B)False
6
A predetermined overhead rate is used in job-order costing, but not in process costing.
A)True
B)False
7
An ending inventory of 1,000 partially completed units that are 60% complete with respect to conversion activity is equal to 600 equivalent units.
A)True
B)False
8
If each of 2,000 units is 75% complete as to labor and overhead, the equivalent units of conversion activity are 1,500.
A)True
B)False
9
The term equivalent unit is applied only to conversion (labor and manufacturing overhead) activity.
A)True
B)False
10
Under process costing, costs are assigned to equivalent units rather than physical units.
A)True
B)False
11
If the beginning work in process of 3,000 units is 70% complete as to conversion costs and 100% complete as to materials, the ending work in process is composed of 4,000 units, and 25,000 units were transferred to the next department, then 26,000 units were received from the previous department.
A)True
B)False
12
The weighted-average method of process costing is more widely used than the FIFO method of process costing.
A)True
B)False
13
In job-order costing, the job-cost report shows the costs assigned to each job, and in process costing, the departmental production report shows the cost assigned to each unit of product.
A)True
B)False
14
An Analysis of Physical Flow of Units will disclose total units to account for and total units accounted for.
A)True
B)False
15
The key factor of the weighted-average methodis that there is no distinction made as to whether the activity occurred in the current accounting period or the preceding accounting period.
A)True
B)False
16
Under the weighted-average method of determining equivalent units of activity and unit costs, any work performed or costs expended in the previous accounting period on the beginning work-in-process units are treated as work and costs of the current time period.
A)True
B)False
17
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The weighted-average equivalent units of activity for conversion costs are 96,000.
A)True
B)False
18
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The weighted-average equivalentunits of activity for material costs are 100,000.
A)True
B)False
19
The first section of a production report shows the total number of units to account for and the total number of units accounted for.
A)True
B)False
20
The second section of a production report shows the total costs to account for and the total costs accounted for.
A)True
B)False
21
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The total cost assigned to the ending work in process is $12,000.
A)True
B)False
22
Only normal costing can be used with a process-costing system.
A)True
B)False
23
While using the combination of direct labor and manufacturing costs as conversion costs for determining the cost of work-in-process in a process-costing situation is quite common, it is possible that direct labor and manufacturing overhead may have to have separate equivalent units and separate equivalent unit costs.
A)True
B)False
24
A cannery that produces 3 grades of canned peaches and 4 grades of canned apples is most likely to use a hybrid product-costing system known as operation costing.
A)True
B)False
25
Under operation costing, the journal entry to record the factory payroll for the accounting period would include a credit to the Wages Payable account and a debit to the Applied Conversion Costs account.
A)True
B)False
26
Overapplied or underapplied conversion costs are closed to the Work-in-Process account when using the hybrid product costing system of operation costing.
A)True
B)False
27
Under operation costing, except where units do not use a particular conversion activity, the unit cost for conversion costs will be identical for all units produced, regardless of their direct material cost or their differences in the grade of direct material.
A)True
B)False





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