cost accounting

Prior department costs are included in department product cost calculations for ______. performance evaluation only neither inventory valuation or performance evaluation inventory valuation only both inventory valuation and performance evaluation

inventory valuation only

When compared to job costing, the cost of record-keeping is (higher/lower) ------ when using process costing.

lower

The final step in the costing process is to ______. = 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 compute the costs per equivalent unit

measure the physical flow of resources

Dept. 1 started the month with no work in process. During the month, 10,000 units were started and 8,000 units were completed and transferred to Dept. 2. The ending work in process units in Dept. 1 are 100% complete as to materials and 70% complete as to conversion costs. Equivalent units of production for Dept. 1 using weighted-average costing equals ______.

10,000 units for materials and 9,400 units for conversion costs Reason: The materials are 100% complete as to both the transferred units and the work in process. The conversion costs are 100% complete as to the transferred units (8,000) + 70% complete as to the ending inventory (2,000 x 70% = 1,400).

Assigning costs to ending work-in-process and goods transferred out is the ______ step in the five-step process. second final fourth third first

FINAL

When compared to job costing, process costing provides (more/less) information and detail.

LESS

The inventory method that combines the costs and equivalent units of a period with the costs and equivalent units in beginning inventory is called ______ process costing

Weighted - average

Dept. A's beginning work in process conversion costs were $6,675. During the month, total conversion cost were $32,700. Total equivalent units total 10,000 for materials and 7,500 for conversion costs. The cost per equivalent unit for conversion costs using the weighted-average method equals ______. Multiple choice question. $5.25 $3.94 $4.36 $3.27

$5.25 Reason: ($6,675 + $32,700)/7,500 = $5.25

Dept. 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 Dept. ZT. The ending work in process units in Dept. XY are 100% complete as to materials and 40% complete as to conversion costs. Equivalent units of production for Dept. XY using weighted-average costing equals ______.

13,000 units for materials and 10,600 units for conversion costs Reason: The materials are 100% complete as to both the transferred units and the ending work in process. The conversion costs are 100% complete as to the transferred units (9,000) + 40% complete as to the ending inventory (4,000 x 40% = 1,600).

Dept. 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 units using weighted-average inventory costing is $-------

21 or 21.00

Dept. B-5 had a beginning work-in-process inventory of 400 units. During the period just ended the department started 3,500 units. If Dept. B-5 has 600 units in ending inventory, then the number of units transferred out equals

3300

A company has three barrels of product in ending work in process. One barrel is 10% complete, a second barrel is 30% complete and the third barrel is 80% complete. Given this information, on average, ending work-in-process inventory is------ % completed

40

Dept. 1 has an ending work-in-process inventory of 500 units. During the period just ended the department started 5,000 units and transferred 5,100 units to Dept. 2. Given this information, Dept. 1's beginning inventory for the period was

600

Sections 1 and 2 of the production cost report relate to managing the ______ units. Multiple choice question. physical flow of cost of the

A

Sections 3, 4 and 5 of the production cost report relate to managing the ______ units. . cost of the physical flow of

A

The inventory method that separates the costs of current work and work in beginning inventory is called ______ process costing. first-in, first-out (FIFO) last-in, first-out (LIFO) weighted-average

A

Prior department costs are ______. also called transferred-in costs conceptually equivalent to prior period costs conceptually equivalent to raw materials costs

A, C

Direct labor is sometimes treated as part of manufacturing overhead because it is: required to be treated as a conversion cost under operations costing a small portion of total product cost too difficult to trace to the cost directly to production

B

Equivalent units must be computed to properly value ______. finished goods inventory work in process inventory cost of goods sold ending inventory

B

Prior department costs are ______. generally excluded when assigning costs to units for inventory valuation purposes often excluded when comparing actual department costs with budgeted costs generally excluded for performance evaluation purposes

B,C

The key difference between operation costing and job and process costing is that for each work order or batch passing through a particular operation ______. direct materials are the same and conversion costs are different direct labor is different and manufacturing overhead is the same direct materials are different but conversion costs are the same direct labor is the same and manufacturing overhead is different

C

In many companies ----------is such as small portion of the total product costs that accountants classify it as part of manufacturing overhead

direct labor

The key difference between operations costing and job order and process costing is ______ are different. conversion costs direct labor and conversion costs direct materials direct materials and direct labor

direct material

The number of physical units multiplied by the estimated percentage that an "average" unit of inventory is completed is the definition of

equivalent unit

Operation costing is best suited for manufacturing goods that ______.

have some common and some individual characteristics

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

measure the physical flow of resources

A hybrid of job and process costing is called

operation costing

Transferred-in costs are also called e costs

prior department

Managers can use the Blank 1Blank 1 production ,------------- report to help determine whether inventory levels or costs are too high or the number of units produced is too low.

production cost

Sections 3, 4, and 5 of the------------ report provide information about costs.

production cost

The five steps for assigning costs to goods transferred out and to ending work in process are included on the

production cost