ACC 1820 - Managerial Accounting - Chapter 5 Book questions

To report ending inventory, partially completed units are translated into units.

equivalent

Equivalent units of production under the weighted-average method equals Blank______. Multiple choice question. units transferred out units transferred out minus equivalent units in ending work in process equivalent units in ending work in process plus units transferred out equivalent units in ending work in process

equivalent units in ending work in process plus units transferred out

The two most commonly used methods for determining unit product costs are _________-__________ costing and ______ costing.

Blank 1: job Blank 2: order Blank 3: process

Select all that apply Methods to calculate departmental unit costs include Blank______. Multiple select question. specific identification LIFO FIFO weighted-average

FIFO weighted-average

When many different jobs or products are worked on each period, the most likely costing system used is Blank______. Multiple choice question. job-order process quality ABC

Job-Order

True or False Question The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing.

True

True or false: Process costing is used when a company produces a continuous flow of units that are homogeneous.

True

In a processing department, all units of output are _______ .

Uniform

The entry to record the sale of finished goods to customers is a debit to Blank______. Multiple choice question. Work in process and a credit to Finished goods Cost of goods sold and a credit to Finished goods Work in process and a credit to Cost of goods sold Finished goods and a credit to Cost of goods sold

Cost of goods sold and a credit to Finished goods

Once production is completed in all processing departments, production costs are transferred to Blank______. Multiple choice question. manufacturing overhead finished goods work in process cost of goods sold

Finished Goods

Each department has a separate Work in Process account when using Blank______ costing. Multiple choice question. job-order process both process and job-order

Process

Work is performed on products, and materials, labor, or overhead costs are added to products in a(n)________ department.

Processing

When a customer's order is filled and units are sold, there is a Blank______ to Finished Goods and a Blank______ to Cost of Goods Sold. Multiple choice question. debit, credit credit, debit debit, debit credit, credit

credit, debit

Prior costs are blended with current period costs when using the Blank______ method(s). Multiple choice question. first in first out (FIFO) weighted-average weighted-average and FIFO

weighted-average

Number of partially completed units x Percentage completion of those units with respect to the processing in the department = __________units.

equivalent

The journal entry to record labor cost in the first department is (debit/credit) Wages payable and (debit/credit) Work in process-Department #1.

1. Credit 2. Debit

Units in ____________work in process inventory + units started or transferred in = Units in_________ work in process inventory + units completed and transferred out.

1.Beginning 2.Ending

The correct journal entry to apply manufacturing costs to processing Department #1 is (debit/credit) Manufacturing overhead and (debit/credit) Work in process-Department #1.

1.Credit 2.Debit

The journal entry to record the transfer of completed units to finished goods is ____________Finished Goods and _____________Work in Process.

1.Debit 2.Credit

To calculate cost per equivalent unit using the weighted-average method, add the cost of ______work in process inventory to costs added during the period and divide by equivalent units of production.

Beginning

The formula for the cost per equivalent unit using the weighted-average method is Blank______.

(Cost of beginning work in process inventory + Cost added during the period) ÷ Equivalent units of production

The journal entry to record the transfer of partially completed products from processing Department #1 to processing Department #2 is to debit Work in Process Department Blank______. #2 and credit Work in Process-Department #1 #1 and credit Finished goods #2 and credit Finished goods #1 and credit Work in process - Department #2

#2 and credit Work in Process-Department #1

Direct labor plus manufacturing overhead equals _________ cost.

Conversion

The two common methods for determining unit product costs are Blank______ costing. Multiple choice question. process and variable traditional and activity-based job-order and process job-order and activity-based

Job-Order and process

The journal entry to record direct labor costs in processing Department #1 is debit Blank______, Multiple choice question. Salaries and wages payable and credit Work in process-Department #1 Labor costs and credit Work in process-Department #1 Work in process-Department #1 and credit Salaries and wages payable Work in process-Department #1 and credit Manufacturing overhead

Work in process-Department #1 and credit Salaries and wages payable

When using process costing, materials, labor and overhead may be added in Blank______ processing department. Multiple choice question. only the last any only the first

any

Select all that apply Similarities between job-order costing and process costing include the Blank______. Multiple select question. basic purpose to assign and compute product costs way in which unit costs are calculated flow of costs through the manufacturing accounts manufacturing accounts used

basic purpose to assign and compute product costs flow of costs through the manufacturing accounts manufacturing accounts used

When computing the equivalent units of production under the weighted-average method, the fact that the units in the ______ were partially complete with respect to materials and conversion is ignored. Multiple choice question. ending finished goods inventory beginning work in process inventory ending work in process inventory beginning finished goods inventory

beginning work in process inventory

Costs per equivalent unit are used to value Blank______. Multiple choice question. both ending inventory and units transferred to the next department only units transferred to the next department only units that are transferred to cost of goods sold only units in ending inventory

both ending inventory and units transferred to the next department

Select all that apply Similarities between job-order costing and process costing include the Blank______. Multiple select question. way in which unit costs are calculated flow of costs through the manufacturing accounts basic purpose to assign and compute product costs manufacturing accounts used

flow of costs through the manufacturing accounts basic purpose to assign and compute product costs manufacturing accounts used

In process costing, manufacturing overhead costs are ______. Multiple choice question. applied based on actual costs incurred in each department not assigned to work in process only assigned to the first work in process department generally applied using a predetermined overhead rate

generally applied using a predetermined overhead rate

In process costing, manufacturing overhead costs are ______. Multiple choice question. only assigned to the first work in process department generally applied using a predetermined overhead rate not assigned to work in process applied based on actual costs incurred in each department

generally applied using a predetermined overhead rate

Select all that apply Differences between job-order and process costing include that process costing Blank______. Multiple select question. is used for indistinguishable products accumulates costs by department computes unit costs by job assigns costs to specific customer orders

is used for indistinguishable products accumulates costs by department

Job-order costing is used for Blank______. Multiple choice question. specialized products with no unique production requirements many different products with unique production requirements similar products with unique production requirements similar products with no unique production requirements

many different products with unique production requirements

Equivalent units of production equals the number of units transferred to the next department (or finished goods) plus equivalent units in ending work in process under Blank______ costing. Multiple choice question. both weighted-average and FIFO only FIFO only weighted-average

only weighted-average

Select all that apply Industries/products more suitable for process costing than job-order costing include: Multiple select question. paper towels. shipbuilding. sunscreen. flour.

paper towels. sunscreen. flour.

The weighted-average method includes costs for Blank______. Multiple choice question. prior and current periods future periods only current and future periods prior periods only

prior and current periods

When unit costs are transferred from Department A to Department B, Department B will treat the costs as ______. Multiple choice question. production work in process a unit transferred in

transferred in

The equivalent units completed are valued the same as units Blank______ for purposes of determining the cost per unit. Multiple choice question. transferred in transferred out partially completed in work in process

transferred out

The journal entry to record material cost in the second department includes a (debit/credit) to Work in Process-Department #2.

Debit

The journal entry to record the transfer of completed units to the finished goods warehouse is to debit Blank______. Multiple choice question. Finished goods and credit Work in process Cost of goods sold and credit Work in process Finished goods and credit Cost of goods sold Work in process and credit Cost of goods sold

Finished goods and credit Work in process

The journal entry to apply overhead cost to processing Department #1 is to debit Blank______. Multiple choice question. Manufacturing overhead and credit Work in process-Department #1 Work in process-Department #1 and credit Manufacturing overhead Salaries and wages payable and credit Manufacturing overhead Manufacturing overhead and credit Finished goods

Work in process-Department #1 and credit Manufacturing overhead

A processing department is an organization unit Blank______. Multiple choice question. where materials and labor are combined to be processed where work is performed on a product and overhead is added to complete the units where work is performed on a product, and materials, labor or overhead are added that processes units into the finished goods

where work is performed on a product, and materials, labor or overhead are added

Costs transferred in from Department A to Department B Blank______.

will always be 100% complete with respect to Department A

Recording the transfer of partially completed products from one processing department to another, requires a journal entry that affects the Blank______ account of both processing departments. Multiple choice question. raw materials finished goods manufacturing overhead work in process

work in process

When using process costing, materials, labor and overhead may be added in Blank______ processing department. Multiple choice question. any only the last only the first

Any

The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing. True false

False

When production is completed in the last processing department, units are transferred to the _______ ________ account.

Finished Goods

Which of the following equations is correct? Multiple choice question. Units in beginning WIP + units started or transferred in = Units in ending WIP + units completed and transferred out Units in ending WIP + units started or transferred in = Units in beginning WIP + units completed and transferred out Units in beginning WIP + units started or transferred in = Units completed and transferred out - units in ending WIP

Units in beginning WIP + units started or transferred in = Units in ending WIP + units completed and transferred out

The journal entry to record direct materials costs in processing Department #1 is debit Blank______. Multiple choice question. Work in Process-Department #1 and credit Raw Materials Work in Process-Department 1 and credit Accounts Payable Work in Process-Department #1 and credit Manufacturing Overhead Raw Materials and credit Work in Process-Department #1

Work in Process-Department #1 and credit Raw Materials

Conversion costs are Blank______. Multiple choice question. raw materials, direct labor, and manufacturing overhead direct labor plus raw materials raw materials plus manufacturing overhead direct labor plus manufacturing overhead

direct labor plus manufacturing overhead

The activity in a processing department is performed Blank______. Multiple choice question. uniformly on all units to differentiate units of product in small batches specifically to each unit

uniformly on all units

T/F The equivalent units of production computed under the weighted-average method takes into account the percentage completed of the beginning inventory.

False

Which of the following is a key difference between process and job-order costing? Multiple choice question. Process costing accumulates costs by order, and job-order costing accumulates costs by department. Job-order costing systems compute unit costs by department, and process costing systems compute unit costs by job. Job-order costing is used for indistinguishable products, and process costing is used for different jobs that have unique production requirements. Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.

Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.

When using process costing, a separate Blank______ account is maintained for each processing department. Multiple choice question. finished goods raw materials cost of goods sold work in process

Work in Process