成本管理会计练习chap06

Chapter 6

1. Process costing accumulates costs by processing departments rather than by jobs.

2. In parallel processing, each unit must pass through one process before they can be worked on in later processes.

3. The same equivalent units figure is used for both materials and conversion costs in process costing.

4. The output of process costing are homogeneous products.

5. When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method.

6. Equivalent production expresses all activity of the period in terms of partially completed units.

7. When units pass through more than one process, the units transferred from Department 1 equals the units completed in Department 2.

8. When units pass through more than one process, and the units transferred are transferred from Department 1 to 2, the entry to record this transfer involves a debit to Work in Process.

9. Department 3, the last processing department, receives goods produced in previous departments. The costs transferred into Department 3 are treated as materials costs added at the end of the process.

10. The FIFO method is more useful for cost control when the costs of manufacturing inputs fluctuate from period to period.

11. Process costing would be most appropriate for which of the following?

a. oil refining

b. custom furniture

c. t-shirt printing

d. food catering

12. The cost of production report: a. provides information about the physical units processed by the department

b. provides information about the manufacturing costs incurred by the department

c. both a and c

d. none of the above

13. Which method considers the percentage of completion of ending work-in-process inventory?

a. weighted average

b. FIFO

c. both weighted average and FIFO

d. percentage of completion is not calculated for ending work-in-process inventory

14. The cost of units finished at the last department will flow from work in process to:

a. cost of goods sold

b. finished goods

c. work in process

d. sales

15. Assuming the balance in beginning work-in-process inventory was zero and the ending working process inventory is 25% complete with respect to conversion costs. The number of equivalent units of production with respect to conversion costs under the weighted average method would be: a. less than the units started in the period

b. less than the units completed

c. the same as the units started

d. the same as the units completed

16. The Lockhart Company uses the weighted average method. The beginning work in process consists of 10,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 100,000. The ending work in process consists of 15,000 units (100% complete as to materials and 20% complete as to conversion costs). The equivalent units of production for conversion costs was:

a. 150,000

b. 110,000

c. 103,000

d. 108,000

17. The Lockhart Company uses the weighted average method. The beginning work in process consists of 10,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 100,000. The ending work in process consists of 15,000 units (100% complete as to materials and 20% complete as to conversion costs). The units started during the period was:

a. 95,000

b. 100,000

c. 105,000

d. 115,000

18. Dino Manufacturers uses the weighted average method in its costing system. The following information

19. Dino Manufacturers uses the weighted average method in its costing system. The following information

20. Garcia Company uses the weighted average method in its costing system. For the month of May in the Assembly Department, the equivalent units for conversion costs amounted to 35,000. There were 5,000 units in beginning work-in-process that were 50% complete. During the month, 33,000 units were started and 31,400 were completed and transferred. The ending work in process:

a. consist of 3,600 units

b. consist of 6,600 units

c. consist of 5,000 units

d. consist of 7,000 units