Question :
Fill in the Blank Questions
Prize Mustard uses a process costing : 1229521
Fill in the Blank Questions
Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows:
96. The unit cost per gallon of mustard processed by the Mixing Department in May was $__________.
97. The unit cost per case of mustard incurred by the Bottling Department in May was $__________.
98. The total cost of the 10,000 cases transferred to finished goods in May was $__________.
99. Assume that 9,500 cases of mustard were sold in May. The amount charged to cost of goods sold in May $__________.
100. Assume that $9,000 of finished goods were on hand at May 1. Under the LIFO method of inventory valuation, finished goods inventory at May 31 was $___________ if 9,500 cases of mustard were sold in May.
Multiple Choice Questions
101. If Power Products uses process costing which of the following is likely to be true?
A. The production process are high volume.
B. The products use different amounts of direct labor.
C. The products are different amounts of manufacturing overhead.
D. The products are created to customer specifications.
102. Which of the following businesses would most likely use process costing?
A. Law firm.
B. Maker of frozen orange juice.
C. A brewery.
D. An oil refinery.
103. Nut House manufactures and sells jars of peanut butter. All of the company’s output passes through five production processes, which are performed in sequential order. Identify the correct answer assuming that process costing is in use.
A. The processing departments may define “units of output” differently.
B. Costs transferred from one processing department are not charged to the next processing department (or to finished goods).
C. The cost accounting system does not separately measure the per-unit cost of each manufacturing process.
D. Some portion of total manufacturing overhead should be charged to each processing department.
104. Indicate which of the following phrases correctly complete this sentence: “Equivalent units of production.”
A. Is not a measure of the work done during a given accounting period.
B. Do not represent those units completed during the period and transferred out of the Production Department.
C. Are used as the basis for determining per-unit manufacturing costs in a process costing accounting system.
D. Equivalent units are not computed separately for each significant input consumed in the production process.
105. A production cost report contains which of the following parts?
A. Equivalent units for each job.
B. The unit cost to account for.
C. The unit count in a job order system.
D. The overhead costs applied to each completed job.
E. The total costs accounted for.
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