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1
Which of the following would NOT use process costing?
A)Chemical company
B)Oil refining company
C)Builder of new homes
D)Automobile company
E)Food processing company
2
__________ are the number of the same or similar complete units that could have been produced given the amount of work actually performed on both complete and partially complete units.
A)Units sold
B)Equivalent units
C)Units produced
D)Physical units transferred in.
E)Physical units transferred out
3
__________ is the sum of direct labor and factory overhead costs.
A)Prime costs
B)Conversion costs
C)Work in Process
D)Manufacturing overhead
4
__________ summarizes the physical units and equivalent units of a department, the costs incurred during the period, and the costs assigned to both units completed and ending work in process inventories.
A)An income statement
B)A cost of goods manufactured statement
C)A production cost report
D)A physical units chart
5
Which of the following is the last step of process costing?
A)Assign total manufacturing costs to units completed and ending WIP.
B)Compute cost per equivalent unit for each manufacturing cost element.
C)Determine total cost for each manufacturing cost element.
D)Calculate equivalent units for each manufacturing cost element.
E)Analyze the physical flow of production units.
6
Mather Company had the following information for the month of June:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q6_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Prior department costs are added at the start of production. Materials are added at the end of the process.

The equivalent units for materials under the weighted-average method are calculated to be:

A)72,000
B)61,200
C)60,000
D)57,600
E)54,000
7
Mather Company had the following information for the month of June:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q7_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Prior department costs are added at the start of production. Materials are added at the end of the process.

The equivalent units for conversion costs under the weighted-average method are calculated to be:

A)72,000
B)61,200
C)60,000
D)57,600
E)54,000
8
Mather Company had the following information for the month of June:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q8_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (15.0K)</a>

Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Prior department costs are added at the start of production. Materials are added at the end of the process.

The equivalent units for transferred-in costs under the weighted-average method are calculated to be:

A)72,000
B)61,200
C)60,000
D)57,600
E)54,000
9
A reason why the weighted-average method might be preferred to the FIFO process costing method is:
A)more accurate.
B)can account for spoilage
C)is simpler and easier to use.
D)because it is accepted by Generally Accepted Accounting Principles (GAAP).
10
The percentage of completion of the ending work-in-process inventory should be considered in the computation of the equivalent units for which of the following methods of process costing?

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A)a
B)b
C)c
D)d
E)e
11
Jefferson Company has a process cost system. All materials are introduced at the beginning of the process in Department X. The following information is available for the month of November:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q11_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (23.0K)</a>

What are the equivalent units for material costs during the month of November if the company uses the FIFO method?
A)14,400
B)12,300
C)12,000
D)11,400
E)11,100
12
Jefferson Company has a process cost system. All materials are introduced at the beginning of the process in Department X. The following information is available for the month of November:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q12_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (23.0K)</a>

What are the equivalent units for conversion costs during the month of November if the company uses the FIFO method?
A)14,400
B)12,300
C)12,000
D)11,400
E)11,100
13
Miller Company had the following information for the Assembly Department:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966303/ch06_q13_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (11.0K)</a>

Which of the following would be correct when recording the materials added to production?
A)Debit Work-in-Process Inventory for $44,000.
B)Credit Materials Inventory for $36,000.
C)Debit Materials Inventory for $36,000.
D)Credit Work-in-Process Inventory for $44,000.
E)Credit Accounts Payable for $36,000.
14
__________ is a simplified approach to determining product cost that is used when there is little or no work-in-process inventory.
A)Actual costing
B)Normal costing
C)Standard costing
D)Backflush costing
15
__________ is spoilage that occurs under efficient operating conditions and is consider part of product costs.
A)Normal spoilage
B)Abnormal spoilage
C)Backflush spoilage
D)Tentative spoilage





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