Question 1

The total units to be accounted for is computed by adding

Accepted Answer

The total units to be accounted for include both units started into production and beginning units in process. Therefore, we add these two to arrive at the total units to be accounted for. The other options are not correct because they either do not include all the relevant units or add in units that are not necessary to the calculation.

Question 2

In computing equivalent units, ___________ is not part of the equivalent units of production formula.

Accepted Answer

The answer of In computing equivalent units, ___________ is not...

Question 3

The total costs accounted for in a production cost report equal the

Accepted Answer

The total costs accounted for in a production cost report include the cost of units completed and transferred out plus the cost of ending work in process. This is because the cost of ending work in process is still part of the production process and needs to be accounted for in the total costs. The cost of beginning work in process is not included in the total costs, as it was already accounted for in a previous production cost report.

Question 4

In the Camria Company, materials are entered at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, the number of equivalent units as to materials costs will be

Accepted Answer

Since materials are added at the beginning of the process, all units started would have received materials, making the equivalent units for materials costs the same as the units started.

Question 5

In Saint-Simon, Inc., the Assembly Department started 60,000 units and completed 70,000 units. If beginning work in process was 30,000 units, how many units are in ending work in process?

Accepted Answer

To calculate the ending work in process, we need to use the following formula:

Ending Work in Process = Beginning Work in Process + Units Started - Units Completed

Plugging in the numbers given in the question:

Ending Work in Process = 30,000 + 60,000 - 70,000

Ending Work in Process = 20,000

Therefore, the ending work in process is 20,000 units.

Question 6

For the Assembly Department, unit materials cost is $6 and unit conversion cost is $9. If there are 10,000 units in ending work in process 75% complete as to conversion costs, the costs to be assigned to the inventory are

Accepted Answer

The total cost assigned to the inventory is calculated by adding the full materials cost for all units (since materials are usually added at the beginning of the process) and the conversion costs only for the percentage of completion. For 10,000 units, the materials cost is $6/unit, totaling $60,000. The conversion cost is $9/unit, but since the units are only 75% complete, the conversion cost is 75% of $9/unit * 10,000 units = $67,500. Adding both gives $60,000 + $67,500 = $127,500.

Question 7

In a production cost report, which one of the following sections is not shown under Costs?

Accepted Answer

"Units accounted for" is not a section shown under Costs in a production cost report. Instead, it relates to the quantity of units being tracked through the production process, not the costs associated with them.

Question 8

The basic similarities between job order cost and process cost systems include all of the following except the

Accepted Answer

The answer of The basic similarities between job order cost...

Question 9

Total physical units to be accounted for are equal to the units

Accepted Answer

The total physical units to be accounted for include all units that were started or transferred into production PLUS the units that were already in beginning work in process at the beginning of the period. D is incorrect because it only accounts for units that have been completed and transferred out, leaving out any units still in process. A and C are incorrect because they do not take into account the units already in beginning work in process.

Quiz 15: Process Costing