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PROCESS COST ACCOUNTING mcq homework

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Question;38. A process cost accounting;system is most appropriate when;a. a variety of different;products are produced, each one requiring different types of materials, labor;and overhead.;b. the focus of attention is;on a particular job or order.;c. similar products are;mass-produced.;d. individual products are;custom made to the specification of customers.;39. A characteristic of;products that are mass-produced in a continuous fashion is that;a. the products are identical;or very similar in nature.;b. they are grouped in;batches.;c. they are produced at the;time an order is received.;d. their costs are accumulated;on job cost sheets.;40. A process cost system would;be used for all of the following products except;a. chemicals.;b. computer chips.;c. motion pictures.;d. soft drinks.;41. In a process cost system;a. a Work in Process account;is maintained for each product.;b. a materials requisition;must identify the job on which the materials will be used.;c. a Work in Process account;is maintained for each process.;d. one Work in Process account;is maintained for all the processes, similar to a job order cost system.;42. Differences between a job;order cost system and a process cost system include all of the following except;the;a. documents used to track;costs.;b. point at which costs are;totaled.;c. unit cost computations.;d. flow of costs.;43. Which of these best;reflects a distinguishing factor between a job order cost system and a process;cost system?;a. The detail at which costs;are calculated;b. The time period each covers;c. The number of work in;process accounts;d. The manufacturing cost;elements included;44. Which of the following is a;true statement about process cost systems?;a. In process cost systems;costs are accumulated but not assigned.;b. A process cost system has;one work in process account for each process.;c. In process cost systems;costs are summarized on job cost sheets.;d. Unit costs are not computed;in process cost systems.;45. Which of the following is;correct regarding cost systems?;Job Order;Process;a. Work in process account;several;one;for each process;b. Work in process account;one;one;c. Work in process account;one;one for each process;d. Work in process account;several;one;46. In a process cost system;unit costs are determined using a;a. numerator of costs of each;job.;b. denominator of units;produced during the period.;c. denominator of units;produced for the job.;d. denominator of units;produced for the day.;47. In process cost accounting;manufacturing costs are summarized on a;a. job order cost sheet.;b. process order cost sheet.;c. production cost report.;d. manufacturing cost sheet.;48. Which of the following;manufacturing cost elements occurs in a process cost system?;a. Direct materials;b. Direct labor;c. Manufacturing overhead;d. All of these;49. In a process cost system;product costs are summarized;a. on job cost sheets.;b. on production cost reports.;c. after each unit is;produced.;d. when the products are sold.;50. When manufacturing overhead;costs are assigned to production in a process cost system, they are debited to;a. the Finished Goods;Inventory account.;b. Cost of Goods Sold.;c. a Manufacturing Overhead;account.;d. the Work in Process;account.;51. A product requires;processing in two departments, Department A and then Department B, before it is;completed. Costs transferred out of Department A will be transferred to;a. Finished Goods Inventory.;b. Cost of Goods Sold.;c. Work in Process?Department;B.;d. Manufacturing Overhead.;52. Which of the following;would not appear as a debit in the Work in Process account of a second;department in a two stage production process?;a. Materials used;b. Overhead applied;c. Labor assigned;d. Cost of products;transferred out;53. Materials requisitions are;a. not used in process;costing.;b. generally used more;frequently in process costing than job order costing.;c. generally used less;frequently in process costing than job order costing.;d. used more frequently by;latter stage production departments.;54. A primary driver of;overhead costs in continuous manufacturing operations is;a. direct labor dollars.;b. direct labor hours.;c. machine hours.;d. machine maintenance;dollars.;55. Price Manufacturing assigns;overhead based on machine hours. Department A logs 1,200 machine hours and;Department B shows 2,000 machine hours for the period. If the overhead rate is;$5 per machine hour, the entry to assign overhead will show a;a. debit to Manufacturing;Overhead for $16,000.;b. credit to Work in;Process?Department B for $10,000.;c. debit to Work in Process;for $10,000.;d. credit to Manufacturing;Overhead for $16,000.;56. Barnes and Miller;Manufacturing is trying to determine the equivalent units for conversion costs;with 3,000 units of ending work in process at 80% completion and 14,000;physical units. There are no beginning units in the department. Conversion;costs occur evenly throughout the entire production period. What are the;equivalent units for conversion costs for the current period?;a. 17,000;b. 16,800;c. 2,400;d. 13,400;57. 7,000 units in a process;that are 70% complete are referred to as;a. 7,000 equivalent units of;production.;b. 2,100 equivalent units of;production.;c. 4,900 equivalent units of;production.;d. 2,100 unequivalent units of;production.;58. A process with no beginning;work in process, completed and transferred out 45,000 units during a period and;had 30,000 units in the ending work in process inventory that were 30%;complete. The equivalent units of production for the period were;a. 45,000 equivalent units.;b. 75,000 equivalent units.;c. 54,000 equivalent units.;d. 22,500 equivalent units.;Use the following;information for questions 59?60.;A department adds raw;materials to a process at the beginning of the process and incurs conversion;costs uniformly throughout the process. For the month of January, there were no;units in the beginning work in process inventory, 80,000 units were started;into production in January, and there were 20,000 units that were 40% complete;in the ending work in process inventory at the end of January.;59. What were the equivalent;units of production for materials for the month of January?;a. 88,000 equivalent units;b. 72,000 equivalent units;c. 60,000 equivalent units;d. 80,000 equivalent units;60. What were the equivalent;units of production for conversion costs for the month of January?;a. 60,000 equivalent units;b. 72,000 equivalent units;c. 68,000 equivalent units;d. 80,000 equivalent units;61. Equivalent units are;calculated by;a. multiplying the percentage;of work done by the equivalent units of output.;b. dividing physical units by;the percentage of work done.;c. multiplying the percentage;of work done by the physical units.;d. dividing equivalent units;by the percentage of work done.;62. Minor Company had the;following department data;Physical;Units;Work in process, July 1;16,000;Completed;and transferred out;72,000;Work in process, July 31;24,000;Materials are added at the;beginning of the process. What is the total number of equivalent units for;materials in July?;a. 72,000;b. 80,000;c. 112,000;d. 96,000;Work in process, beginning Completed;and transferred out Work in process, ending;Process Cost Accounting 21 - 11;63. Corsi Company had the;following department data;Physical;Units-0-;70,000;7,000;Materials are added at the;beginning of the process. What is the total number of equivalent units for materials;during the period?;a. 70,000;b. 7,000;c. 77,000;d. 63,000;64. Gantner Company had the;following department information about physical units and percentage of;completion;Physical Units;Work in process, May 1;(60%);36,000;Completed;and transferred out;90,000;Work in process, May 31;(40%);30,000;If materials are added at;the beginning of the production process, what is the total number of equivalent;units for materials during May?;a. 126,000;b. 120,000;c. 116,400;d. 102,000;65. It is necessary to;calculate equivalent units of production in a department because;a. a physical count of units;is impossible.;b. some units worked on in the;department are not fully complete.;c. the physical units in the;department are always 100% complete.;d. at times a department may;use a job order cost system and then switch to a process cost system.;Use the following;information for questions 66?68.;In the month of June, a;department had 10,000 units in beginning work in process that were 70%;complete. During June, 40,000 units were transferred into production from;another department. At the end of June there were 5,000 units in ending work in;process that were 40% complete. Materials are added at the beginning of the;process, while conversion costs are incurred uniformly throughout the process.;66. How many units were;transferred out of the process in June?;a. 40,000 units;b. 35,000 units;c. 45,000 units;d. 50,000 units;67. The equivalent units of;production for materials for June were;a. 45,000 equivalent units.;b. 50,000 equivalent units.;c. 52,000 equivalent units.;d. 40,000 equivalent units.;68. The equivalent units of;production for conversion costs for June were;a. 40,000 equivalent units.;b. 47,000 equivalent units.;c. 45,000 equivalent units.;d. 50,000 equivalent units.;69. A process with no beginning;work in process, completed and transferred out 10,000 units during a period and;had 5,000 units in the ending work in process that were 50% complete. How much;is equivalent units of production for the period for conversion costs?;a. 12,500 equivalent units;b. 15,000 equivalent units;c. 17,500 equivalent units;d. 7,500 equivalent units;70. A process with 800 units of;beginning work in process, completed and transferred out 10,000 units during a;period. There were 5,000 units in the ending work in process that were 50%;complete as to conversion costs. Materials are added 80% at the beginning of;the process and 20% when the units are 90% complete. How much is equivalent;units of production for the period for material costs?;a. 12,000 equivalent units;b. 15,000 equivalent units;c. 11,000 equivalent units;d. 14,000 equivalent units;71. Hanker Company had the;following department data on physical units;Work in process;beginning;1,000;Completed and transferred;out;4,000;Work in process, ending;800;Materials are added at the;beginning of the process. What is the total number of equivalent units for materials;during the period?;a. 4,200;b. 800;c. 4,800;d. 3,000;72. Super-Tech Industries had;the following department information about physical units and percentage of;completion;Physical Units;Work;in process, June 1 (75%);2,000;Completed and transferred;out;4,500;Work in process, June 30;(50%);3,000;If materials are added at;the beginning of the production process, what is the total number of equivalent;units for materials during June?;a. 3,750;b. 7,500;c. 8,000;d. 6,000;Process Cost;Accounting 21 - 13;73. Gloria Company had no;beginning work in process. During the period, 5,000 units were completed, and;there were 500 units of ending work in process. How many units were started;into production?;a. 5,500;b. 5,000;c. 4,500;d. 500;74. Cohen Manufacturing is trying;to determine the equivalent units for conversion costs with 2,000 units of;ending work in process at 80% completion and 14,000 physical units that are;100% complete as to materials. There are no beginning units in the department.;Materials are added at the beginning of the process, and conversion costs occur;evenly throughout the entire production period. What is the equivalent units;for conversion costs for the current period?;a. 16,000;b. 15,600;c. 1,600;d. 13,600;75. If beginning work in;process is 2,000 units, ending work in process is 1,000 units, and the units;accounted for equals 5,000 units, what must units started into production be?;a. 7,000;b. 6,000;c. 3,000;d. 4,000;76. Cinder Company had the;following department information for the month;Total materials costs;$;80,000;Equivalent units of;materials;10,000;Total conversion costs;$;120,000;Equivalent units of;conversion costs;20,000;How much is the total manufacturing;cost per unit?;a. $14.00;b. $6.67;c. $6.00;d. $8.00;Use the following;information for questions 77?78.;Materials costs of $200,000;and conversion costs of $214,200 were charged to a processing department in the;month of September. Materials are added at the beginning of the process, while;conversion costs are incurred uniformly throughout the process. There were no;units in beginning work in process, 100,000 units were started into production;in September, and there were 8,000 units in ending work in process that were;40% complete at the end of September.;77. What was the total amount;of manufacturing costs assigned to those units that were completed and;transferred out of the process in September?;a. $184,000;b. $391,000;c. $414,200;d. $425,200;78. What was the total amount;of manufacturing costs assigned to the 8,000 units in the ending work in;process?;a. $16,000;b. $7,200;c. $13,600;d. $23,200;79. Charley Company?s Assembly;Department has materials cost at $3 per unit and conversion cost at $6 per;unit. There are 9,000 units in ending work in process, all of which are 70%;complete as to conversion costs. How much are total costs to be assigned to;inventory?;a. $37,800;b. $64,800;c. $56,700;d. $81,000;80. Byrd Manufacturing decided;to analyze certain costs for June of the current year. Units started into;production equaled 14,000 and ending work in process equaled 2,000 units. With;no beginning work in process inventory, how much is the conversion cost per unit;if ending work in process was 25% complete and total conversion costs equaled;$50,000?;a. $3.13;b. $12.50;c. $4.00;d. $2.00

 

Paper#41822 | Written in 18-Jul-2015

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