Question 1

In the Carter Company, there are 15,000 units in beginning work in process, 30,000 units started into production, and 7,000 units in ending work in process 60% completed.How many physical units are to be accounted for?

Accepted Answer

The physical units to be accounted for include both the units in beginning work in process and the units started into production. Therefore, 15,000 (beginning work in process) + 30,000 (started into production) = 45,000 units.

Question 2

In process manufacturing, units are mass produced in a continuous fashion.

Accepted Answer

Process manufacturing involves the continuous production of uniform products, typically in large quantities.

Question 3

The cost reconciliation schedule shows that total costs accounted for equal the total costs to be accounted for.

Accepted Answer

The cost reconciliation schedule is designed to ensure that all costs are properly accounted for and that there are no unexplained or missing costs. The schedule compares the total costs accounted for with the total costs to be accounted for, and if they match, the schedule is considered balanced. Therefore, the answer is True.

Question 4

Which of the following statements is true?

Accepted Answer

Both job order cost and process cost systems track direct materials, direct labour, and manufacturing overhead.

Question 5

A production cost report is an internal document for management that shows production quantity and cost data for a particular production department.

Accepted Answer

A production cost report is indeed an internal document for management that displays production quantity and cost data for a specific production department.

Question 6

Hace, Inc.began March with 650 units in beginning work in process, 11,400 units started into production, and 500 units in ending work in process that are 30% completed.How many physical units are to be accounted for?

Accepted Answer

To find out how many physical units are to be accounted for, we need to add the beginning work in process to the units started into production and then subtract the ending work in process:

650 units (beginning work in process) + 11,400 units (started into production) - 500 units (ending work in process) = 12,050 units.

Therefore the correct answer is B, 12,050.

Question 7

When goods are completed, the entry to record the transfer of the goods out of the last department includes a debit to Cost of Goods Sold.

Accepted Answer

The answer of When goods are completed, the entry to...

Question 8

When is a process cost accounting system most appropriate?

Accepted Answer

A process cost accounting system is most appropriate when mass-produced products are manufactured that are very similar in nature. This system allows for tracking the cost of each process involved in the production of the product.

Question 9

Operations costing involves a combination of a process cost and a job order cost system.

Accepted Answer

Operations costing typically involves a hybrid approach that combines elements of both process costing and job order costing systems. This enables organizations to account for the costs of producing a variety of different products or services in a streamlined and efficient manner, while also taking into consideration the unique attributes of each individual product or service being produced.

Question 10

The flow of costs in a process costing system requires that materials, labour, and overhead be added in equal amounts in each process or department involved to complete the product.

Accepted Answer

The answer of The flow of costs in a process...

Question 11

When material costs and conversion costs do not occur in the same process at the same time, the weighted average method cannot be used effectively.

Accepted Answer

The weighted average method can still be used effectively even if material costs and conversion costs occur at different times, as it averages out costs over the units produced, regardless of timing differences.

Question 12

One similarity of process cost accounting with job order cost accounting is that both determine manufacturing costs.

Accepted Answer

Both process cost accounting and job order cost accounting are used to determine manufacturing costs. While job order cost accounting tracks costs for individual, unique products or batches, process cost accounting tracks costs for a continuous production flow.

Question 13

Which of the following items is not a characteristic of a process cost system?

Accepted Answer

A process cost system focuses on producing similar products continually, with production being a continuous flow until the finished product emerges. The finished product can have variations in weight, size, and quality. However, all units have the same amount of materials, labour, and overhead; therefore, option D is also a characteristic of a process cost system. Option B refers to a job cost system where products are unique and often customized to customer specifications.

Question 14

Companies often use a combination of a process cost and a job order cost system, called job process costing.

Accepted Answer

The answer of Companies often use a combination of a...

Question 15

Which of the following statements about the work in process account is true?

Accepted Answer

Job order cost systems use only one work in process account that represents the accumulated costs of all unfinished jobs, whereas process cost systems use several work in process accounts to represent the costs of each production department or process.

Question 16

Conversion cost is another name for manufacturing overhead.

Accepted Answer

The answer of Conversion cost is another name for manufacturing...

Question 17

Zargus Company began the month of June with 1,650 units in beginning work in process, 11,400 units started into production, and 500 units in ending work in process that are 30% completed.How many units were transferred out during June?

Accepted Answer

Units started into production + Beginning work in process - Ending work in process = Units transferred out11,400 + 1,650 - 500 = 12,550

Question 18

Beginning work in process is added to units completed and transferred out to determine equivalent units of production under the weighted-average method.

Accepted Answer

Under the weighted-average method, equivalent units of production are calculated by adding units completed and transferred out to the ending work in process, not the beginning work in process.

Question 19

In order to calculate the physical unit flow, a company must first calculate the equivalent units of production.

Accepted Answer

The answer of In order to calculate the physical unit...

Question 20

Which of the following is a characteristic of products that are mass-produced in a continuous fashion?

Accepted Answer

Mass-produced products are made in a continuous fashion, meaning they are created all in one process, without breaks or stopping to produce a batch. This results in products being identical or very similar in nature.

Quiz 4: Process Costing