Chapter 8

Which of the following are true? Multiple select question. - Process costing does not maintain a record of the cost of each unit produced. - Process costing generally has lower recordkeeping costs than job costing. - Job costing does not maintain a record of the cost of each unit produced. - Process costing provides more detailed information than job costing.

1 & 2

Which of the following are true of process costing? Multiple select question. - FIFO costing keeps the costs and the work separate and, in effect, computes separate unit costs for the two periods. - Weighted-average costing keeps the costs and the work separate and, in effect, computes separate unit costs for the two periods. - FIFO costing adds the costs together first and then divides this total cost by the total work for the two periods. - Weighted-average costing adds the costs together first and then divides this total cost by the total work for the two periods.

1 & 4

Which of the following are included in Section 5 of the production cost report when using FIFO costing? Multiple select question. - Costs of units started and completed in the current period. - Costs to complete beginning inventory. - Costs estimated to complete units in the subsequent period. - Costs of ending work-in-process inventory.

1, 2, & 4

Place the following steps for assigning costs to units of product using process costing in order.

1. record the physical flow of resources. 2. compute the equivalent units of production. 3. identify the total costs to be accounted for. 4. compute costs per equivalent unit. 5. assign costs to batches of work.

Department XY started the month with 1,000 units in work in process that were 100% complete as to materials and 70% complete as to conversion costs. During the month, 12,000 units were started, and 9,000 units were completed and transferred to Department ZT. The ending work in process units in Department XY are 100% complete as to materials and 40% complete as to conversion costs. Equivalent units of production for Department XY using FIFO costing equals

12,000 units for materials and 9,900 units for conversion costs

Department A's beginning work in process for materials cost totaled $15,000. Current material costs for the month equal $90,000, and there are 5,000 equivalent units. Material cost per equivalent unit using FIFO costing is $

18

Process costing assumes that Blank______. Multiple select question. - all units are unique - all units are homogeneous - units rarely follow the same path through the production processes - all units follow the same path through the production processes

2 & 4

The production cost report Blank______. Multiple select question. - is a complex financial statement used for external reporting - summarizes production revenue for a period - includes the five steps for assigning costs to goods transferred out and to ending work-in-process inventory - summarizes the production and cost results for a period

3 & 4

Department A's beginning work in process conversion costs were $6,675. During the month, total conversion costs were $32,700. Total equivalent units were 10,000 for materials and 7,500 for conversion costs. The cost per equivalent unit for conversion costs using the FIFO method equals

4.36

Which of the following sections of the production cost report focus on managing the physical flow of units? Multiple select question. - Section 5 - Section 3 - Section 2 - Section 4 - Section 1

Sections 1 & 2

The final step in the costing process is to Blank______. Multiple choice question. compute the costs per equivalent unit assign product costs to batches of work identify the product costs for which to account compute the equivalent units of production measure the physical flow of resources

assign product costs to batches of work

Step 3 in process costing is to identify the total costs to be accounted for. Which of the following describes that step?

Total costs to be accounted for = Costs in beginning WIP inventory + Costs incurred this period

Process costing can Blank______. Multiple choice question. be adapted to reflect production flows that are not totally homogeneous be used in place of job order costing for unique production only be used when all units are homogeneous and follow the same path through the production process

be adapted to reflect production flows that are not totally homogeneous

In many companies, Blank______ is(are) a small portion of the total product cost and, therefore, classified as part of manufacturing overhead. Multiple choice question. direct material direct labor direct material and direct labor

direct labor

A standardized method or technique of making a product that is repeatedly performed is called a(n) Blank______. Multiple choice question. department operation job process

operation

Which of the following sections of the production cost report focus on managing costs? Multiple select question. - Section 4 - Section 3 - Section 1 - Section 2 - Section 5

sections 3, 4, & 5