Chapter 16

Question 1

In process operations where there is a series of repetitive process, each _____ is a separate production department

Answer 1

Process

Question 2

The cost object in a job order system is the ____ and the cost object in a process costing system is the _____

Answer 2

Job

Process

Question 3

Each department in a process costing system will use (1,2 or none) work in process account

Answer 3

One

Question 4

After determining the physical flow of units, the next step in process costing is

Answer 4

Compute equivalent units of production

Question 5

Process operations is defined as a manufacturing process that includes

Answer 5

Series of sequential processes

Large volumes of similar products

Question 6

In a process operation, each process has a separate department which will accumulate costs for each of the following

Answer 6

Overhead
Direct labor
Direct materials

Question 7

Process and job order operations are similar in that both

Answer 7

Are used to determine the cost per unit of product or service

Combine materials, labor, and overhead in producing products

Question 8

In a process costing system which of the following is correct regarding the work in process inventory account

Answer 8

There will be a separate work in process account for each process or department

Question 9

Equivalent units of production refers to the number of units that could have been

Answer 9

Started and completed

Question 10

In process operations costs are accumulated in each process. In the final process costs are transferred to

Answer 10

Finished goods

Question 11

Understanding the cost of partially completed goods allowed the manufacturer to

Answer 11

Measure production activity for the period

Question 12

True or false
Using the weighted average method the computation of eup seperates units into direct materials and conversion

Answer 12

True

Question 13

Managers use the process cost summary for all of the following except

Answer 13

Evaluate company as a whole

Question 14

A process cost report summarizes the following process costing steps

Answer 14

Equivalent units of production

Physical flow of units

Cost per equivalent units of production

Question 15

The journal entry to record the purchase of materials on account in process cost accounting is

Answer 15

Debit raw materials inventory and credit accounts payable

Question 16

Process cost information is prepared for the following reasons

Answer 16

To provide cost information for financial statements

To help factory managers evaluate department managers performance

To help department managers control costs

Question 17

The journal entry to record the purchase of materials on account in process cost accounting is

Answer 17

Increase in assets and increase in liabilities

Question 18

When indirect materials are used in process costing, the effect on the raw materials inventory account is

Answer 18

A decrease

Question 19

The journal entry to record direct labor used in process costing is an

Answer 19

Increase in assets and an increase in liabilities

Question 20

The journal entry to record the use of direct materials in process costing is

Answer 20

Increase in one asset and a decrease in another asset

Question 21

The journal entry to record the use of indirect materials in process costing is to

Answer 21

Debit factory overhead and credit raw materials inventory

Question 22

The part of the process cost report include

Answer 22

Equivalent units of production

Cost assignment and reconciliation

Physical flow of units

Question 23

The journal entry to record the use of indirect labor in process costing is to

Answer 23

Debit factory overhead and credit factory wages payable

Question 24

Common overhead allocation methods for companies with process operations includes _____ hjuts or ____ hours to allocate overhead

Answer 24

Direct labor

Machine hours

Question 25

The journal entry to record the applied factory overhead is to

Answer 25

Debit work in process inventory and credit factory overhead

Question 26

True or false A production department in a process operation has a manager that works for two departments. Since the manager is in a supervisory position, the labor is considered indirect labor and the cost is charged to factory overhead

Answer 26

True

Question 27

The journal entry to apply factory overhead includes

Answer 27

A credit to factory overhead

Question 28

The journal entry to record the factory overhead applied includes

Answer 28

A debit to work in process and a credit to factory overhead

Question 29

The journal entry to record the transfer of completed work in process to finished goods in process costing is an

Answer 29

Decrease in one asset and an increase in another asset

Question 30

The journal entry to record the insurance on the factory equipment is to

Answer 30

Debit factory overhead and credit prepaid insurance

Question 31

The journal entry to record the accrual of factory utilities is it

Answer 31

Debit factory overhead and credit utilities payable

Question 32

A system that contains features of both process and job order operations is called a ______ Costing system

Answer 32

Hybrid costing system

Question 33

The journal entry to record the cost of goods sold in process costing is an

Answer 33

Decrease in an asset and an increase in an expense

Question 34

A focus on customer orientation leads to improved____

Answer 34

Processes