exam 1 chp 3 multiple choice

Question 1

• 46. Under the FIFO method, what are the equivalent units of production for materials?
      a. 32,050
      b. 26,950
      c. 22,450
      d. 17,950

Answer 1

b

Question 2

• 47. The Wrapping Department’s output during the period consists of 10,000 units completed and transferred out, and 600 units in ending work in process that were 75% complete as to materials and conversion costs. Beginning inventory was 800 units that were 30% complete as to materials and conversion costs. Under the FIFO method, what are the equivalent units of production for materials?
      a. 10,690
      b. 11,010
      c. 10,450
      d. 10,210

Answer 2

d

Question 3

• 49. How much are equivalent units for materials if the FIFO method is used?
      a. 23,000
      b. 19,000
      c. 15,000
      d. 11,000

Answer 3

d

Question 4

52. Halston Company has no beginning work in process; 5,000 units are transferred out and 1,000 units in ending work in process are 25% finished as to conversion costs and fully complete as to materials cost. If materials added and beginning work in process materials cost totals $18,000, how much is the materials cost per unit if the weighted average method is used?
    a. $3.00
    b. $3.43
    c. $3.13
    d. There is not enough information provided.

Answer 4

a

Question 5

53. What is a production cost report used for?
    a. It is an external report provided to shareholders.
    b. It shows costs charged to a department and costs accounted for.
    c. It shows equivalent units of production but not physical units.
    d. It shows the basis on which overhead is allocated.

Answer 5

b

Question 6

57. Which of the following items is not a characteristic of a process cost system?
    a. Once production begins, it continues until the finished product emerges.
    b. The products produced are heterogeneous in nature.
    c. The focus is on continually producing similar products.
    d. When the finished product emerges, all units have exactly the same amount of materials, labour, and overhead.

Answer 6

b

Question 7

64. Which of the following is correct concerning the number of work in process accounts used by job order and process cost systems?
    a. Job Order = several; Process Cost = one
    b. Job Order = one control account for each job; Process Cost = one for each process
    c. Job Order = one control account; Process Cost = one for each process
    d. Job Order = none; Process Cost = several

Answer 7

c

Question 8

65. What are physical units?
    a. The actual units to be accounted for during a period.
    b. The pro-rata portion of units completed during the period.
    c. Units in process at the end of the period.
    d. The total units completed and transferred out during the period.

Answer 8

a

Question 9

73. Which one of the following is used most frequently to allocate overhead costs in continuous manufacturing operations?
    a. Direct labour dollars
    b. Direct labour hours
    c. Machine hours
    d. Machine maintenance dollars

Answer 9

c

Question 10

89. Snapps, Inc. uses a process cost system with a weighted average method. What amount will always be the same as the number of units to be accounted for in a department?
    a. Number of units started or transferred into the department
    b. Number of equivalent units for conversion costs
    c. Ending inventory plus the units started or transferred into the department
    d. Units in the beginning inventory plus the units started or transferred into the department

Answer 10

d

Question 11

90. Which statement is true?
    a. Total units accounted for = beginning work in process – units transferred out
    b. Beginning work in process + ending work in process = total units accounted for
    c. Total units accounted for = units in ending work in process + units transferred out
    d. Ending work in process – equivalent units = Total units accounted for

Answer 11

c

Question 12

101. 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

Answer 12

a

Question 13

112. David Katz’ 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 if the weighted average method is used?
     a. $37,800
     b. $64,800
     c. $56,700
     d. $81,000

Answer 13

b

Question 14

127. Reed Manufacturing has recently tried to improve its analysis for their manufacturing process. Units started into production equalled 2,300 and ending work in process equalled 900 units. Reed had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the material cost per unit if ending work in process was 15% complete and total material costs equalled $11,500 if the weighted average method is used, rounded to the nearest cent?
     a. $5.00
     b. $8.21
     c. $23.96
     d. $33.33

Answer 14

a

Question 15

128. In order to arrive at equivalent units, what adjustments are made to physical units?
     a. The percent the units are complete
     b. The cost incurred during the year
     c. An arbitrary factor
     d. Manufacturing overhead

Answer 15

a

Question 16

132. Madison Industries has equivalent units of 2,000 for materials and for conversion costs. Total manufacturing costs are $200,000. Total material costs are $150,000. How much is the conversion cost per unit?
     a. $10.00
     b. $25.00
     c. $100.00
     d. $20.00

Answer 16

b

Question 17

133. Equivalent units for materials total 9,000. There were 7,000 completed and transferred out. Equivalent units for conversion costs equal 8,000. How much are the physical units for conversion costs if ending work in process is 25% complete?
     a. 3,750
     b. 11,000
     c. 8,000
     d. 1,750

Answer 17

b

Question 18

134. If equivalent units are 6,000 for conversion costs and units transferred out equals 4,000, what stage of completion should the ending work in process be for the 8,000 units remaining?
     a. 75%
     b. 25%
     c. 10%
     d. 20%

Answer 18

b

Question 19

139. A major difference between process costing and job order costing is.
     a. Costs are calculated at each step in a job order system while only calculated at the end of a process costing system
     b. Costing of material components is more sensitive in a process costing system.
     c. Job order costing is focused on each specific job while process costing focuses on departmental activity.
     d. Process costing uses only one work-in-progress account while job order costing uses many work-in-progress accounts.

Answer 19

c

Question 20

143. A major difference between process costing and job order costing is:
     a. Costs are easy to trace to specific jobs in a job order system but impossible to trace to products in a process costing system.
     b. Costing of material components is more sensitive to materials purchased in a process costing system.
     c. Process costing has fewer overall purchase requisitions than in a job order costing system.
     d. Controls over material acquisitions is generally not as stringent in a process costing system.

Answer 20

c

Question 21

145. The Dolly Company began the period with no units in process and in finished goods inventory. During the period they began 96,000 units and completed 80,000 units. If equivalent units for the period totaled 90,000 then the units in process were what percent complete? (rounded)
     a. 62.5%
     b. 83.3%
     c. 88.9%
     d. 75%

Answer 21

a

Question 22

146. Under the weighted average process cost method, we ignore:
     a. When costs are actually incurred.
     b. Whether costs are material costs or conversion costs.
     c. Equivalent units of production.
     d. Factory labour costs.

Answer 22

a

Question 23

148. The Winston Company began the period with no units in process and 80,000 units in finished goods inventory. During the period they sold 280,000 units and also had the following at the end of the period:
     Finished goods (units) 40,000
     Work-in-process (50% conversion complete) 12,000
     Equivalent units for the period totalled:
     a. 314,000.
     b. 280,000.
     c. 240,000.
     d. 246,000.
      

Answer 23

d