Question 1

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Chocolate bar manufacturer

Accepted Answer

Process costing is best suited for industries that produce identical or similar products through a continuous production process, such as chocolate bars. This system calculates the average cost per unit of each product batch. Job-order costing is more suitable for industries that manufacture products that are customized or unique for each order.

Question 2

Match each following terms with their correct description from the items listed below.
-It combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

Accepted Answer

The weighted average costing method combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

Question 3

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Computation of unit costs

Accepted Answer

Step 3 in preparing a Production Report involves the computation of unit costs.

Question 4

Match each following terms with their correct description from the items listed below.
-The costs transferred from a prior process to a subsequent process

Accepted Answer

Transferred-in costs are the costs associated with units started in a prior process that are transferred to a later process. The other options are not related to transferred-in costs.

Question 5

Match each following terms with their correct description from the items listed below.
-Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period

Accepted Answer

The FIFO (First-In, First-Out) costing method separates the work and costs of the equivalent units in beginning inventory from the work and costs of the equivalent units produced during the current period, ensuring that the costs associated with the earliest items are accounted for first.

Question 6

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Paint manufacturer

Accepted Answer

Paint manufacturers typically produce large quantities of homogeneous products in a continuous process, making process costing the most appropriate costing system.

Question 7

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Calculation of equivalent units

Accepted Answer

The answer of Match the order of the five steps...

Question 8

Match each following terms with their correct description from the items listed below.
-It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Accepted Answer

Process costing is a costing method used to determine the total cost of producing a product or service by assigning costs to each step of the production process. It is an appropriate method for relatively homogeneous products that pass through a series of processes and receive similar amounts of manufacturing costs.

Question 9

Match each following terms with their correct description from the items listed below.
-Partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

Accepted Answer

Parallel processing is the process in which partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

Answer: B
 Sequential processing is the process in which units must be completed in one process before being transferred to the next process.

Answer: C
 Process costing is a method of costing in which the costs are accumulated for each process or department of the production process.

Answer: D
 Weighted average costing method is a method of process costing in which the cost per unit is based on the average cost of the units produced during a period.

Question 10

Match each following terms with their correct description from the items listed below.
-Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration

Accepted Answer

Equivalent units of production are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

Answer: B
 Transferred-in costs refer to the costs of the partially completed units that are transferred from one department to another within a manufacturing process.

Answer: C
 FIFO costing method stands for First-In-First-Out, which means the costs of the oldest units are assigned to the first units sold or transferred.

Answer: D
 A production report is a document that summarizes the manufacturing activity performed during a given period, including information on the number of units produced, the cost of production, and the materials and labor used.

Question 11

Match each following terms with their correct description from the items listed below.
-The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

Accepted Answer

The production report summarizes the manufacturing activity that takes place in a process department for a given period of time.

Question 12

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Physical flow analysis

Accepted Answer

Physical flow analysis is the first step in preparing a production report as it involves tracking the movement of materials through the production process.

Question 13

Select the most appropriate costing system for each of the following industries
* Each costing system may be used more than once.
-Manufacturer of custom kayaks

Accepted Answer

Since the manufacturer of custom kayaks produces unique, custom orders for individual customers, job-order costing would be the most appropriate choice. Each kayak produced would be considered a separate job with its own specific material and labor costs, making job-order costing the ideal costing system for this industry.

Question 14

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Valuation of inventories

Accepted Answer

The answer of Match the order of the five steps...

Question 15

Match the order of the five steps involved in creating the department production report with the descriptions below.
-Cost reconciliation

Accepted Answer

Cost reconciliation is the final step in preparing a production report, where costs are reconciled with the costs accounted for.

Question 16

Match each following terms with their correct description from the items listed below.
-Units must pass through one process before they can be worked on in later processes.

Accepted Answer

Sequential processing involves passing units through one process before they can be worked on in later processes. This allows for greater control and monitoring of the production process, ensuring a high quality final product. Parallel processing, on the other hand, involves multiple processes happening at the same time, and is typically used when throughput is the main concern. Process costing is a method of allocating costs to products based on the specific processes used to create them. The weighted average costing method is a way to calculate the average cost of inventory items based on the total cost of goods available for sale and the total number of units available for sale.

Quiz 6: Process Costing

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Chocolate bar manufacturer

Match each following terms with their correct description from the items listed below. -It combines beginning inventory costs and work done with current-period costs and work to calculate this period's unit cost.

Match the order of the five steps involved in creating the department production report with the descriptions below. -Computation of unit costs

Match each following terms with their correct description from the items listed below. -The costs transferred from a prior process to a subsequent process

Match each following terms with their correct description from the items listed below. -Separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Paint manufacturer

Match the order of the five steps involved in creating the department production report with the descriptions below. -Calculation of equivalent units

Match each following terms with their correct description from the items listed below. -It works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs.

Match each following terms with their correct description from the items listed below. -Partially completed units can be worked on simultaneously in different processes then brought together in a final process for completion.

Match each following terms with their correct description from the items listed below. -Complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration

Match each following terms with their correct description from the items listed below. -The document that summarizes the manufacturing activity that takes place in a process department for a given period of time

Match the order of the five steps involved in creating the department production report with the descriptions below. -Physical flow analysis

Select the most appropriate costing system for each of the following industries * Each costing system may be used more than once. -Manufacturer of custom kayaks

Match the order of the five steps involved in creating the department production report with the descriptions below. -Valuation of inventories

Match the order of the five steps involved in creating the department production report with the descriptions below. -Cost reconciliation

Match each following terms with their correct description from the items listed below. -Units must pass through one process before they can be worked on in later processes.