Chapter 4

Question 1

Can a service company use a process cost System?

Answer 1

Yes

Question 2

Answer 2

Question 3

Answer 3

Question 4

Companies often use a combination of a process cost and a job-order cost system, called …

Answer 4

Operations costing

Question 5

Answer 5

Question 6

Answer 6

Question 7

Answer 7

Question 8

Answer 8

Question 9

What are Physical units?

Answer 9

Physical units are the actual units to be accounted for during a period, regardless of any work performed.

Question 10

total units to be accounted for.

Answer 10

add the units started (or transferred) into production during the period to the units in process at the beginning of the period

Question 11

Total units accounted for

Calculate the Physical Unit Flow (Step 1)(pic attached)

Answer 11

The sum of the units transferred out during the period plus the units in process at the end of the period.

Question 12

Calculate the Equivalent Units of Production (Step 2)

Answer 12

Question 13

Answer 13

Question 14

Answer 14

Question 15

Prepare a Cost Reconciliation Schedule (Step 4)

Answer 15

Question 16

Preparing the Production Cost Report

There are … steps in preparing a production cost report:

Answer 16

Preparing the Production Cost Report

There are four steps in preparing a production cost report:

1. Prepare a physical unit schedule.
2. Calculate the equivalent units.
3. Calculate the unit costs.
4. Prepare a cost reconciliation schedule.