FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Process Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

Process costing often combines direct materials and direct labor into a single category called conversion costs.In process costing,direct labor and manufacturing overhead are often combined into a single category called conversion costs.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Under the weighted average method of process costing,which of the following formulas is used to calculate the cost per equivalent unit?

A) (Ending Inventory + Current Costs) /Physical Units
B) (Beginning Inventory + Current Costs) /Physical Units
C) (Ending Inventory + Current Costs) /Equivalent Units
D) (Beginning Inventory + Current Costs) /Equivalent Units

E) C) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

To calculate cost per equivalent unit in process costing,total manufacturing costs are divided by the total number of equivalent units.Under the weighted average method,what costs are reflected in total manufacturing costs?

Which of the following statements is incorrect regarding the production costing report?

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

Caston Corp uses a FIFO process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,000 units that were 40% completed with respect to conversion costs.10,000 units were started into the process during January.On January 31,the inventory consisted of 500 units.Equivalent units for conversion costs were 10,450.What percentage complete was the ending inventory on January 31 with respect to conversion costs?

Conversion costs consist of direct labor as well as manufacturing overhead.In process costing,direct labor and manufacturing overhead are often combined into a single category called conversion costs.

To determine how much cost should be assigned to ending Work in Process Inventory,

Which of the following companies would most likely use job order costing?

Sanger Corp uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,000 units that were 40% completed.10,000 units were started into the process during January.On January 31,the inventory consisted of 500 units that were 70% completed.What would be the equivalent units for direct materials cost using the FIFO method?

Under process costing,the amount of under- or overapplied conversion cost should be transferred to Work in Process Inventory at the end of the period.Under process costing,the amount of under- or overapplied conversion cost should be transferred to Cost of Goods Sold at the end of the period.

An equivalent unit is calculated by

For a firm that uses process costing,calculating equivalent units makes it possible to fulfill which of the following requirements of GAAP?

The three major categories of product costs in process costing are direct materials,conversion costs,and manufacturing overhead.The three major categories of product costs in process costing are direct materials,direct labor,and manufacturing overhead,or direct labor and manufacturing overhead can be combined into conversion costs.

To determine how much cost should be transferred out of Work in Process Inventory,

Crador Corp uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,300 units.13,000 units were started into the process during January.On January 31,the inventory consisted of 650 units.Equivalent units for conversion costs were 14,105.What percentage complete was the ending inventory with respect to conversion costs on January 31?

To reconcile the total cost of Work in Process Inventory,the costs that were in Work in Process Inventory at the beginning of the period plus any costs that were added during the current period must be accounted for.To reconcile the total cost of Work in Process Inventory,we must account for any costs that were in Work in Process Inventory at the beginning of the period plus any costs that were added during the current period.

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

Which of the following is not a characteristic of process costing?

Togo Co.uses process costing to account for the production of picture frames.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The value of ending inventory using the weighted average method would be closest to: