Multiple Choice, Question 38
A process cost accounting system is most appropriate when
a variety of different products are produced, each one requiring different types of materials, labor, and overhead.
the focus of attention is on a particular job or order.
similar products are mass-produced.
individual products are custom made to the specification of customers.
Multiple Choice, Question 42
Differences between a job order cost system and a process cost system include all of the following except the
unit cost computations.
point at which costs are totaled.
documents used to track costs.
flow of costs.
Multiple Choice, Question 48
Which of the following manufacturing cost elements occurs in a process cost system?
Direct materials
Direct labor
Manufacturing overhead
All of these
Multiple Choice, Question 54
A primary driver of overhead costs in continuous manufacturing operations is
direct labor dollars.
machine hours.
machine maintenance dollars.
direct labor hours.
Multiple Choice, Question 61
Equivalent units are calculated by
dividing physical units by the percentage of work done.
multiplying the percentage of work done by the equivalent units of output.
multiplying the percentage of work done by the physical units.
dividing equivalent units by the percentage of work done.
Multiple Choice, Question 101
Total units to be accounted for less units in beginning work in process equals
equivalent units.
total units accounted for.
units transferred out.
units started into production.
Multiple Choice, Question 115
A production cost report
is prepared for each product.
will not identify a specific department if more than one department is involved in the production process.
will show quantity and cost data for a production department.
is prepared from a job cost sheet.
Multiple Choice, Question 51
A product requires processing in two departments, Department A and then Department B, before it is completed. Costs transferred out of Department A will be transferred to
Manufacturing Overhead.
Finished Goods Inventory.
Cost of Goods Sold.
Work in Process—Department B.
Multiple Choice, Question 69
A process with no beginning work in process, completed and transferred out 10,000 units during a period and had 5,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?
12,500 equivalent units
15,000 equivalent units
17,500 equivalent units
7,500 equivalent units
Multiple Choice, Question 83
Physical units are 40,000. Total conversion costs are $197,500. There are 1,000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?
$9.88
$4.82
$4.93
$5.00
Multiple Choice, Question 91
Which of the following is not a necessary step in preparing a production cost report?
Compute the physical unit flow.
Compute the equivalent units of production.
Prepare the job order cost sheet.
Prepare a cost reconciliation schedule.
Multiple Choice, Question 109
Maisley Manufacturing decided to analyze certain costs for June of the current year. Units started into production equaled 28,000 and ending work in process equaled 4,000. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $50,000?
$2.00
$1.00
$1.57
$6.25
Multiple Choice, Question 44
Which of the following is a true statement about process cost systems?
Unit costs are not computed in process cost systems.
In process cost systems, costs are summarized on job cost sheets.
In process cost systems, costs are accumulated but not assigned.
A process cost system has one work in process account for each process.
Multiple Choice, Question 94
The total units accounted for equals units in
ending work in process + units transferred out.
ending work in process – units started into production.
beginning work in process + ending work in process.
beginning work in process – units transferred out.
Multiple Choice, Question 104
Conversion cost per unit equals $6.00. Total materials costs equal $60,000. Equivalent units for materials are 20,000. How much is the total manufacturing cost per unit?
$9.00
$6.00
$3.00
$12.00
