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AC420 Unit 5 Quiz MCQs

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Question;AC420 Unit 5 Quiz1. Which of the following is true concerning process costing in a multi-department setting? (Points: 1)Successor departments may only add additional direct labor or overhead, no additional raw materials are added in a successor department.Successor departments must change the unit of measure to reflect the work done in that department.In a multidepartment processing facility, goods are generally transferred from a successor (downstream) department to a predecessor (upstream) department.When goods are transferred from one department to another, costs are also transferred.;2. Total costs to account for is: (Points: 1)the number of units finished during the periodequal to the dollar value offending work in process inventoryis the sum of the beginning WIP balance plus all current product costsis the sum of the beginning WIP balance plus the ending WIP balance;3. Z Company employs a process costing system for its manufacturing operations.All direct materials are added at the beginning of the process and conversion costsare added proportionately. The production quantity schedule for April is reproduced below:Using the weighted average method, the equivalent units for conversion costs for April are: (Points: 1)6,000 units.5,000 units.4,400 units.3,800 units.;4. Which of the following statements is true concerning accounting for the cost of lost units? (Points: 1)An abnormal continuous loss is written off as a loss on an EUP basis and assigned as a period cost.An abnormal discrete loss is absorbed by all units and assigned as a product cost.A normal continuous loss occurs at the inspection point or the end of the process and is assigned as a period cost.A normal discrete loss occurs throughout the process and is assigned as a period cost.;5. Which costing system treats units in beginning work-in-process as though they were started and completed during the current period? (Points: 1)The FIFO method of process costing.The weighted-average method of process costing.The LIFO method of process costing.Both FIFO and weighted average.6. L Company uses a process cost system to account for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule forJune is reproduced below:Using the FIFO method, the equivalent units for direct materials for June are:(Points: 1)116,000 units.100,000 units.85,600 units.76,000 units.;7. Green Company started 9,000 units in February. The company transferred out 7,000 finished units and ended the period with 3,500 units that were 40 percent complete as to both material and conversion costs. Beginning Work in Process Inventory units were _______. (Points: 1)5006001,5002,000;8. Z Company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule for April is reproduced below:Using the weighted average method, the 4,000 units completed during April will be transferred out at an EUP unit cost of: (Points: 1)$188.69.$225.65.$257.31.$283.04.;9. Equivalent units of production using the weighted average method of costing are found using which of the following formulas: (Points: 1)units completed and transferred + units in ending WIP inventorybeginning WIP physical units + units started and completed + (ending WIP x percent complete)beginning WIP in physical units + units started and completed(beginning WIP physical units x percent complete) + units started and completed + (ending WIP x percent complete);10. Which of the following would least likely use a process costing system? (Points: 1)Manufacturer of custom furnitureManufacturer of soft drinksManufacturer of gasolineManufacturer of paper;11. Which cost accumulation procedure is most applicable in continuous massproduction manufacturing environments? (Points: 1)standardactualprocessjob order;12. Long Company transferred 5,500 units to Finished Goods Inventory during September. On September 1, the company had 300 units on hand (40 percent complete as to both material and conversion costs). On June 30, the company had 800 units (10 percent complete as to material and 20 percent complete as to conversion costs). The number of units started and completed during September was ______. (Points: 1)5,2005,3805,5006,300;13. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP? (Points: 1)only current period costcurrent period cost plus the cost of beginning inventorycurrent period cost less the cost of beginning inventorycurrent period cost plus the cost of ending inventory;14. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a _______. (Points: 1)debit Work in Process Inventory #2, credit Finished Goods Inventorydebit Finished Goods Inventory, credit Work in Process Inventory #1debit Finished Goods Inventory, credit Work in Process Inventory #2debit Cost of Goods Sold, credit Work in Process Inventory #2;15. L Company uses a process cost system to account for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule for June is reproduced below:Using the FIFO method, the direct materials cost per equivalent unit for units started and completed during June is: (Points: 1)$6.16.$6.00.$5.23.$4.68

 

Paper#43856 | Written in 18-Jul-2015

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