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Cost accounting blocher solution manual chapter6

# Cost accounting blocher solution manual chapter6

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01/20/2014

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1.Firms should use a process costing system when they produce products that:A.Are semi-homogeneous.B.Pass through a series of manufacturing processes.C.Pass through only one department.D.Have small batch sizes.2.In process costing, unit product cost is calculated by dividing process cost in each department by the equivalent units produced:A.Less beginning inventory.B.Plus beginning inventory.C.In the prior period.D.In the following period.E.During the period.3.In calculating unit cost in a process costing system, "conversion cost" is defined as the sum of:A.Direct and indirect material costs.B.Direct and indirect labor costs.C.Direct labor and factory overhead costs.D.Indirect labor and factory overhead costs.E.Indirect material and factory overhead costs.4.The first step in determining process costs is:A.Assigning cost to completed and uncompleted production.B.Computing the cost per equivalent unit.C.Calculating equivalent units of production.D.Analyzing physical flow of production units.E.Determining total cost for each manufacturing element.5.The fifth and final step in determining process costs is:A.Analyzing physical flow of production units.B.Calculating equivalent units of production.C.Determining total cost for each manufacturing element.D.Computing the cost per equivalent unit.E.Assigning cost to completed and uncompleted production.6.The weighted-average method of process costing makes no distinction between the cost incurred prior to the current period and the costincurred in:A.A future period.B.The current period.C.Either a future period or the current period.D.Both a future period and the current period.E.The operational process.7.The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed:A.Beginning direct materials inventory.B.Ending direct materials inventory.C.Beginning work-in-process inventory.D.Ending work-in-process inventory.E.Beginning finished goods inventory.8.The advantage of the weighted-average method is its:A.Complexity.B.Computer-friendly nature.C.Appropriateness regardless of inventory level changes.D.Effectiveness in a cost leadership strategy.E.Simplicity.9.Which of the statements below is not correct?A.Normal spoilage is spoilage that occurs under efficient operating conditions.B.Normal spoilage is controllable in the short term and considered a part of product cost.C.Abnormal spoilage is spoilage in excess of that expected under efficient operating conditions.D.Abnormal spoilage is charged as a loss to operations in the period detected.10.Process cost systems are used in all of the following industries except:A.Chemicals.B.Ship building.C.Oil refining.D.Textiles.

E.Steel.11.Which of the following is not one of the key steps in determining process costs?A.Assigning the total manufacturing costs to the units completed and transferred out and the units of work in process at the end of theperiod.B.Analyzing the physical flow of production units.C.Computing the cost per equivalent unit for each manufacturing cost element.D.Calculating equivalent units of production for all manufacturing cost elements.E.Determining the cost pools and cost objects.12.Which one of the following process costing methods combines both current and prior costs in determining cost per equivalent unit?A.FIFO method.B.LIFO method.C.Specific unit method.D.Weighted-average method.E.Moving-average method.13.Which one of the following process costing methods includes only current costs in the calculations of cost per equivalent unit?A.FIFO method.B.LIFO method.C.Throughput method.D.Weighted-average method.E.Moving-average method.14.The sum of the beginning inventory units and the number of units started during the period determines the:A.Units completed during the period.B.Units to account for.C.Units transferred in during the period.D.Units accounted for.E.Units started during the period.15.The sum of units transferred out and ending inventory units, assuming no spoilage, determines the:A.Units completed during the period.B.Units spoiled.C.Units transferred in during the period.D.Units accounted for.E.Units started during the period.16.The journal entry to record the application of factory overhead would include a credit to:A.Work-in-Process Inventory.B.Accrued Payroll.C.Factory Overhead.D.Materials Inventory.E.Finished Goods Inventory.17.When using the first-in, first-out method of process costing, equivalent units for work done during this period is equal to the number of units:A.In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of unitsstarted and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percentof work done during the period.B.In work-in-process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining inwork-in-process at the end of the period times the percent of work necessary to complete the items.C.Started into process during the period, plus the number of units in work-in-process at the beginning of the period.D.Transferred out during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.18.The percentage of completion of the beginning work-in-process inventory should be considered in the computation of the equivalent unitsfor which of the following methods of process costing?A.AB.BC.CD.D19.In a given process costing system, the equivalent units are computed using the weighted-average method. With respect to conversioncosts, the percentage of completion for the current period only is included in the calculation of the:

A.AB.BC.CD.D20.From the industries listed below, which one is most likely to use process costing in accounting for production costs?A.Printing shop.B.Accounting firm.C.Electrical contractor.D.Steel mill.E.Automobile repair shop.21.Which of the following characteristics applies to process costing but not to job costing?A.Identifiable batches of production.B.Average costs.C.Equivalent units.D.Application of overhead.E.Use of standard costs.22.In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers:A.Current costs only.B.Current costs less cost of ending work-in-process inventory.C.Current costs plus cost of beginning work-in-process inventory.D.Current costs plus cost of ending work-in-process inventory.E.Current costs less cost of beginning work-in-process inventory.23.In a production cost report using process costing, transferred-in costs are similar to:A.Materials costs added at the end of the process.B.Materials costs added at the beginning of the process.C.Conversion costs added during the process.D.Conversion costs transferred to the next process.E.Conversion costs included in beginning inventory.24.In a process costing system, the cost of abnormal spoilage should be:A.Prorated between units transferred out and ending inventory.B.Included in the cost of units transferred out.C.Treated as a loss in the period incurred.D.Ignored in the period incurred.25.Normal spoilage and abnormal spoilage should be classified as:A.AB.BC.CD.DE.E26.In a process costing system, which assumes that normal spoilage occurs at the end of a process, the cost attributable to normal spoilageshould be assigned to:A.Beginning work-in-process inventory.B.Ending work-in-process inventory.C.Cost of goods manufactured and ending work-in-process inventory in the ratio of units worked on during the period to units remaining inwork-in-process inventory.D.Cost of goods manufactured (transferred out).E.A separate loss account in order to highlight production inefficiencies.27.Oregonian Fisheries Inc. processes king salmon for various distributors. Two departments are involved —processing and packaging. Datarelating to tons of king salmon processed in the processing department during June 2010 are provided below:

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