Question 1  

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 425,000 units, completed and transferred out 400,000 units, and ending work in process 50,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:

375,000. 

450,000.      

400,000. 

475,000.

Question 2  

Which of these best reflects a distinguishing factor between a job order cost system and a process cost system?

The detail at which costs are calculated. 

The number of work in process accounts. 

The time period each covers. 

The manufacturing cost elements included

Question 3  

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

a Work in Process account. 

a Manufacturing Overhead account. 

the Finished Goods Inventory account. 

Cost of Goods Sold.

Question 4  

Which of the following manufacturing cost elements occurs in a process cost system?

Manufacturing overhead. 

Direct labor. 

All of these. 

Direct materials.

Question 5  

A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 15,000 units were completed and transferred out of the process during the month, how many units were started into production during the month?

13,000. 

15,000. 

16,000. 

14,000.   

Question 6 

Which of the following is a true statement about process cost systems?

A process cost system has one work in process account for each process. 

In process cost systems, costs are accumulated but not assigned. 

Unit costs are not computed in process cost systems. 

In process cost systems, costs are summarized on job cost sheets.

Question 7  

Which of the following is not a necessary step in preparing a production cost report?

Compute the equivalent units of production. 

Compute the physical unit flow. 

Prepare the job order cost sheet. 

Prepare a cost reconciliation schedule.

Question 8  

Minor Company had the following department data:

                   Physical           Units

Work in process,  July 1     30,000

Completed and transferred out135,000

Work in process, July 3145,000

Materials are added at the beginning of the process. What is the total number of equivalent units for materials in July?

210,000. 

135,000. 

180,000.   

150,000.

Question 9  

Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process?

Materials used. 

Cost of products transferred out. 

Labor assigned. 

Overhead applied.

Question 10  

Differences between a job order cost system and a process cost system include all of the following except the

flow of costs. 

unit cost computations. 

point at which costs are totaled. 

documents used to track costs.

Question 11  

Materials costs of $500,000 and conversion costs of $535,500 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September.

What was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process?

$58,000. 

$34,000. 

$40,000. 

$18,000.

Question 12  

The Assembly Department shows the following information:

                                 Units

Beginning Work in Process   20,000

Ending Work in Process   50,000

Units Transferred Out        31,000

How many total units are to be accounted for by the Assembly Department?

61,000. 

81,000.   

50,000. 

70,000.

Question 13  

In a process cost system, unit costs are determined using a

denominator of units produced for the day. 

numerator of costs of each job. 

denominator of units produced during the period. 

denominator of units produced for the job.

Question 14  

Equivalent units for materials total 30,000. There were 24,000 units completed and transferred out. Equivalent units for conversion costs equal 27,000. How much are the physical units for conversion costs if ending work in process is 50% complete?

30,000. 

6,000. 

27,000.    

24,000.

Question 15  

The total units accounted for equals units in

beginning work in process + ending work in process. 

beginning work in process – units transferred out. 

ending work in process + units transferred out. 

ending work in process – units started into production.