Question 1

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 both the cost of units completed and transferred out, as well as the cost of ending work in process. Therefore, option C is the correct answer. Options A and D are incorrect as they do not take into account the cost of ending work in process. Option B is also incorrect as it only considers the cost of units started into production, rather than completed and transferred out.

Question 2

The total units to be accounted for is computed by adding

Accepted Answer

The total units to be accounted for should include both the beginning units in process and the units started into production. Adding these two values will give the total number of units that should be accounted for in the process. The other options either do not include all the necessary units, or include units that have already been accounted for (such as units transferred out in option A).

Question 3

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

Accepted Answer

Beginning work in process is already partially processed and therefore is included in the equivalent units calculation.

Question 4

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 to be assigned to the inventory can be calculated using the formula:

Total cost = (Unit materials cost + Unit conversion cost) x Equivalent units of production

Equivalent units of production will be calculated by multiplying the number of units in ending work in process by the percentage of completion of conversion costs.

Equivalent units of production = 10,000 x 75% = 7,500 units

Total cost = ($6 + $9) x 7,500 = $112,500

Therefore, the correct answer is B) $127,500.

Question 5

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. It relates to the quantity of units rather than the financial aspects of production costs.

Question 6

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 7

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

Accepted Answer

Total physical units to be accounted for include units that were in beginning work in process as well as units that were started (or transferred) into production. Therefore, option B, which adds the units in beginning work in process to the units started (or transferred) into production, is the correct choice. Option A only includes units started (or transferred) into production and option C subtracts the beginning work in process units. Option D only includes completed and transferred out units, which is not the complete picture of total physical units to be accounted for.

Question 8

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 find the units in ending work in process, we need to use the formula:

Units in ending work in process = Beginning work in process + Units started - Units completed

Substituting the given values, we get:

Units in ending work in process = 30,000 + 60,000 - 70,000 
Units in ending work in process = 20,000

Therefore, the correct answer is choice C, 20,000 units.

Quiz 3: Process Costing