ACC Ch.4

(FIFO) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: a. Does not consider the degree of completion of beg wip inventory when computing equivalent units of production b. Considers end wip inventory to be fully complete c. will always yield a higher cost per equivalent unit d. all of these

A

All of the following statements are correct when referring to process costing except: a. Process costing would be appropriate for a jeweler who makes custom jewelry to order b. A process costing system has the same basic purposes as a job-order costing system c. Units produced are indistinguishable from each other d. Costs are accumulated by department

A

(FIFO) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down into parts: a.Completed during the period and units in end inventory b. Completed from beg inventory, started and completed during the month, and units in end inventory c. Started during the period and units transferred out during the period d. Processed during the period and units completed during the period

B

(FIFO) Under which of the following condition will the FIFO method of process costing result in the same amount of cost being transferred to the ext department as the weighted-average method? a. When beg and end inventories are each 50% complete b. when there is no beg inventories c. When there is no end inventories d. When units in beg inventories are all completed and transferred at the same time

B

Which of the following are needed to compute equivalent units for conversion costs under the weighted-average method of process costing? a. yes to both % completion of beg and end wip b. no % completion of beg wip, but yes to % completion of end wip c. Yes to % completion of beg wip, but no to % completion of end wip d. No to both % completion of beg and end wip

B

In a process costing, a separate work in process account is kept for each: a. individual order b. Equivalent unit c. processing department d. Cost category (materials, conversion cost)

C

Which of the following statement relates to job-order costing and process costing are true? a. Under both costing methods, manufacturing overhead costs are included in the computation of unit product costs b. Under both costing methods, the journal entry to record the completion of production will involve crediting a work in process account c. Under both costing methods, the journal entry to record the cost of goods sold will involve crediting the finished goods account d. All are true

D

T or F (FIFO) The equivalent units of production for a department using the FIFO process costing method is = to the number of units completed plus the equivalent units in the end inventory

F

T or F In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighing the number of units produced by their market values

F

T or F Process costing is employed in industries that produce basically homogenous products such as bricks, flour, or cement but would not be appropriate for assembly-type operations such as those that manufacture computers

F

T or F Process costing is used where many different products are produced each period to customer specifications

F

T or F Under a weighted-average process costing system when all materials are added at the beginning of the production process, the equivalent units for materials is equal to the units completed and transferred out

F

T or F Under the weighted-average method, the equivalent units used to compute the unit costs of the ending inventories relate only to work done the current period

F

T or F (FIFO) The equivalent units of production will be the same under the weighted-average and the FIFO method if there is no beginning work in process inventory

T

T or F In a process costing system, direct labor cost combined with manufacturing overhead cost is known as conversion cost

T

T or F In a process costing system, the cost of one processing department become part of the costs to the next processing department

T

T or F In a process costing system, units transferred to the next department are presumed to be 100% complete with respect to the work performed by the transferring department

T

T or F In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs

T

T or F The units in beginning work in process inventory plus the units started into production must = the units transferred out of the department plus the units in end wip inventory

T

Which of the following are needed to compute the cost per equivalent unit for materials under the weighted-average method of process costing? a. yes to both materials cost assigned to beg wip last period and materials added to production during the current period b. No to materials assigned to beg wip last period, but yes to materials added to production during current period c. Yes to materials assigned to beg wip last period, but no to materials added to production during current period d. No to both materials cost assigned to beg wip last period and materials added to production during the current period

a

For which of the following would it be best to use an operation costing system? a. home remodeling b. automobile production c. cement used for roadways d. trash bags used for yard waste

b

Malcom Company uses weighted-average process costing system. All materials at Malcom are added at the beg of the production process. the equivalent units for materials at Malcom would be the sum of: a. Units in end wip and units started b. units in beg wip and units started c. units in end wip and units start/complete d. units in beg wip and units start/complete

b

The completion of goods is recorded as a decrease in the work in process inventory account when using a. Job-order costing, but not process costing b. Job-order costing and process costing c. not job-order costing, but process costing d. no job-order costing nor process costing

b

In the computation of costs per equivalent unit, the weighted-average method of process costing considers: a. cost incurred during current period only b. cost incurred during the current period plus cost of end wip inventory c. cost incurred during the current period plus cost of beg wip in process inventory d. cost incurred during the current period less cost of beg wip inventory

c

What are the three steps to find the units completed and transferred out of the department?

1. # beg wip 2. EU # beg complete WIP 3. 100% complete during month