Process Costing MCQs

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Fact Pattern: Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning...






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Fact Pattern: Superb Hancock Company uses a process costing system in which all materials are added at Fact Pattern: n costs are added evenly...






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Superb Hancock Company uses a process costing system in which all materials are added at the beginning of the first process. Conversion costs are adde...






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Fact Pattern: Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning...






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Which of the following industries would be most likely to use a process costing system?






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Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?






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Process costing is used in companies that






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A producer of ____ would not use a process costing system.






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A process costing system is used by a company that






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Which is the best cost accumulation procedure to use for continuous mass production of like units?






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Equivalent units of production are equal to the






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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 f...






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The weighted average method is thought by some accountants to be inferior to the FIFO method because it






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The first step in determining the cost per EUP per cost component under the weighted average method is to






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The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units






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EUP calculations for standard process costing are the same as






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In a FIFO process costing system, which of the following are assumed to be completed first in the current period?






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To compute equivalent units of production using the FIFO method of process costing, work for the current period must be stated in units






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The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when






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The primary difference between the FIFO and weighted average methods of process costing is






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Material is added at the beginning of a process in a process costing system. The beginning Work in Process Inventory for the process was 30 percent co...






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In a cost of production report using process costing, transferred-in costs are similar to the






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In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a






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Transferred-in cost represents the cost from






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Which of the following is(are) the same between the weighted average and FIFO methods of calculating EUPs? Units to EUP ... Total cost to account f...






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Process costing techniques should be used in assigning costs to products






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Averaging the total cost of completed beginning work-in-process inventory and units started and completed over all units transferred out is known as






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A process costing system






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A hybrid costing system combines characteristics of






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When standard costs are used in process costing,






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Which of the following is subtracted from weighted average EUP to derive FIFO EUP?






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The cost of abnormal continuous losses is






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When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered






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A continuous loss






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Which of the following would be considered a discrete loss in a production process?






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The method of neglect handles spoilage that is






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The cost of normal discrete losses is






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Normal spoilage units resulting from a continuous process






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Which of the following accounts is credited when abnormal spoilage is written off in an actual cost system?






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Which of the following statements is false? The cost of rework on defective units, if






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If normal spoilage is detected at an inspection point within the process (rather than at the end), the cost of that spoilage should be






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Which of the following is not a question that needs to be answered with regard to quality control?






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The addition of material in a successor department that causes an increase in volume is called






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A process cost system is employed in those situations where:






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Ben Company had 4,000 units in its work-in-process (WIP) on January 1. Each unit was 50% complete in respect to conversion costs. During the first qu...






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Ben Company operates a production facility that has three departments. The following information is in respect to the second production department fo...






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Hoeppner Corp. uses process costing to allocate costs. In the Pressing Department all of the materials are added at the very beginning of the process...






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A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, which are then tra...






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A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, which are then tra...






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A company that manufactures baseballs begins operations on January 1. Finished baseballs are inspected and defective ones are pulled out. Defective b...






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Nance Co. began operations in January 2005 and uses the FIFO Process Costing method in its accounting system. After reviewing the first quarter resul...






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At the end of the first month of operations, Larkin had 2,000 units in ending WIP that were 25% complete as to conversion costs. All materials are ad...






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A company employs a process cost system using the FIFO method. The product passes through both Department 1 and Department 2 in order to be completed...






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The following data pertain to a company’s cracking-department operations in December. .tg {border-collapse:collapse;border-spacing:0;} .tg td{b...






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A manufacturing firm has a normal spoilage rate of 4% of the units inspected; anything over this rate is considered abnormal spoilage. Final inspecti...






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Assume 5,500 units were worked on during a period when a total of 5,000 good units were completed. Normal spoilage consisted of 300 units; abnormal s...






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Which of the following is not a feature of a process production system?






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Which of the following is most likely to use a process cost accounting system?






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Which of the following is not true regarding job order cost accounting and process cost accounting systems?






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Which of the following shows the raw materials issued to a department during a period and substitutes for materials requisitions?






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On May 1, the production department had 6,000 units 50% complete as to labor and overhead; materials are added at the beginning of the process. During...






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The beginning goods in process were 3,000 units, which were 40% complete as to labour and overhead. During the accounting period, 15,000 units were co...






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In the process cost accounting system presented in the chapter, the flow of goods in process inventories is assumed to be:






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The total costs to process the beginning 5,000 units in process was $20,000. Thirty thousand units were started and completed. There were no ending un...






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Direct materials cost $8 per unit, direct labour is $6 per unit, and overhead is applied at 150% of direct labour cost. The 5,000 units of beginning g...






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Direct materials cost $8 per unit, direct labour is $6 per unit, and overhead is applied at 150% of direct labour cost. The 5,000 units of beginning g...






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Beginning inventory of goods in process was 3,000 units that were 40% complete as to labour and overhead. Fifteen thousand units were added to product...






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On a process cost summary, the total costs to be accounted for and the total costs accounted for are






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The section of the process cost summary in which the details for the calculation of the unit processing costs for materials, labour, and overhead are ...






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Which of the following manufactured products would not use process costing?






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Process costing should be used to assign costs to products when:






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Which one of the following statements is true?






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Conversion costs:






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An example of a business which would have no beginning or ending inventory but could use process costing to compute unit costs would be:






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Which of the following statement(s) concerning conversion costs is correct?






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The purpose of the equivalent-unit computation is:






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In a process-costing system, the calculation of equivalent units is used for:






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When a bakery transfers goods from the Baking Department to the Decorating Department, the accounting entry is:






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Costing systems that are used for the costing of like or similar units of products in mass production are called:






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Which of the following types of entities would be most likely to use a process costing system?






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Costs in a process costing system are accumulated:






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Which of the following is an example of an industry in which operation costing would be used?






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A processing pattern in which, after a certain point, some units may go through different processing departments than others is referred to as:






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The purpose of the quantity schedule on a production report is:






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Which of the following characteristics applies to process costing, but does not apply to job order costing?






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Bronx, Inc.’s beginning work-in-process inventory consisted of 12,000 units, 100% complete as to materials cost and 40% complete as to conversion co...






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In a process cost system, the application of manufacturing overhead usually would be recorded as a debit to:






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Oxnard, Inc. uses a process costing system. For March, the month just completed, the opening work in process inventory consisted of 60,000 units which...






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Oxnard, Inc. uses a process costing system. For March, the month just completed, the opening work in process inventory consisted of 60,000 units which...