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Multiple Choice Quiz
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1
Under process-costing systems, how are costs accumulated?
A)By product
B)By job
C)By department
D)By time period
E)None of the above
2
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 Work in Process, Production Department A
B)A credit to Transferred-Out Costs, Production Department A
C)A debit to Finished Goods Inventory—Production Department A
D)A credit to Work-in-Process Inventory—Production Department A
E)None of the above
3
Willow Company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

Consider the following information taken from Willow's production report:
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Calculate the weighted-average equivalent units of activity for conversion costs:
A)90,000 units
B)100,000 units
C)78,000 units
D)96,000 units
E)None of the above
4
Marble Company accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

Consider the following information taken from Marble's production report for the month of October:
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It was determined that as of the end of October, the equivalent units of conversion activity were (space needed) two thousand units fewer than the equivalent units of direct materials. Determine the percentage of completion of the 10,000 units in ending WIP as to conversion costs.
A)100% complete
B)80% complete
C)70% complete
D)60% complete
E)None of the above
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
E)None of the above
6
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 started during the period. There are 2,000 units in process at the end of the accounting period, which are 20% complete with respect to conversion costs, and 100% complete 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
E)11,500
7
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 started during the period. There are 2,000 units in process at the end of the accounting period, which are 20% complete with respect to conversion costs, and 100% complete 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
E)9,900
8
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
E)Balance Sheet
9
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 the cost per equivalent unit
E)None of the above
10
Consider the following incomplete data:
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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
E)180,000 and 165,000, respectively
11
Portsmouth Storage Company manufactures cardboard boxes. The following table summarizes their Cutting department activity for the month of August.
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What is the total cost of Portsmouth's work in process inventory on 8/31?
A)$503,950
B)$462,360
C)$42,282
D)$36,200
E)None of the above
12
Portsmouth Storage Company manufactures cardboard boxes. The following table summarizes their Cutting department activity for the month of August.
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Continue with the Portsmouth Storage Company fact pattern. Assume that completed units are transferred from the Cutting department to the Finishing department. Which of the following would be included in the entry to transfer the completed units out of the Cutting department and in to the Finishing department?
A)Work in Process-Cutting (debit) $462,360
B)Work in Process-Finishing (debit) $555,750
C)Finished Goods (debit) $503,950
D)Cost of Goods Sold (debit) $503,950
E)None of the above
13
Consider the following:
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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
E)$240,000
14
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
E)Finished Goods Inventory
15
Consider the following:
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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 for each of the three types of conversion activity 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)$7.54 and $4.54, respectively
E)$5.74 and $3.74, respectively





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