1.

Which cost accumulation procedure is most applicable in continuous mass-production

manufacturing environments? (Points: 1)
standard
actual
process
job order

2. Process costing is used in companies that _______. (Points: 1)

engage in road and bridge construction
produce sailboats made to customer specifications
produce bricks for sale to the public
construct houses according to customer plans

3. A producer of ____ would not use a process costing system. (Points: 1)

gasoline
potato chips
blank videotapes
stained glass windows

4. Equivalent units of production are equal to the _______. (Points: 1)

units completed by a production department in the period
number of units worked on during the period by a production department
number of whole units that could have been completed if all work of the period had
been used to produce whole units
identifiable units existing at the end of the period in a production department
5. In a process costing system using the weighted average method, cost per equivalent unit for a
given cost component is found by dividing which of the following by EUP? (Points: 1)
only current period cost
current period cost plus the cost of beginning inventory
current period cost less the cost of beginning inventory
current period cost plus the cost of ending inventory

6. The difference between EUP calculated using FIFO and EUP calculated using weighted
average is the equivalent units _______. (Points: 1)
started and completed during the period
residing in beginning Work in Process Inventory
residing in ending Work in Process Inventory
uncompleted in Work in Process Inventory

7. In a FIFO process costing system, which of the following are assumed to be completed first in
the current period? (Points: 1)
units started this period
units started last period
units transferred out
units still in process

8. The primary difference between the FIFO and weighted average methods of process costing is
_______. (Points: 1)
in the treatment of beginning Work in Process Inventory
in the treatment of current period production costs
in the treatment of spoiled units
none of the above
9. In a cost of production report using process costing, transferred-in costs are similar to the
______. (Points: 1)
cost of material added at the beginning of production
conversion cost added during the period
cost transferred out to the next department
cost included in beginning inventory

10. In a process costing system, the journal entry to record the transfer of goods from
Department #2 to Finished Goods Inventory is a _______. (Points: 1)
debit Work in Process Inventory #2, credit Finished Goods Inventory
debit Finished Goods Inventory, credit Work in Process Inventory #1
debit Finished Goods Inventory, credit Work in Process Inventory #2
debit Cost of Goods Sold, credit Work in Process Inventory #2

11. Transferred-in cost represents the cost from _______. (Points: 1)

the last department only
the last production cycle
all prior departments
the current period only

12. A hybrid costing system combines characteristics of _______. (Points: 1)

job order and standard costing systems
job order and process costing systems
process and standard costing systems
job order and normal costing systems
13. When standard costs are used in process costing, _______. (Points: 1)
variances can be measured during the production period
total costs rather than current production and current costs are used
process costing calculations are made simpler
the weighted average method of calculating EUPs makes computing transferred-out
costs easier

14. The cost of abnormal continuous losses is _______. (Points: 1)

considered a product cost
absorbed by all units in ending inventory and transferred out on an equivalent unit basis
written off as a loss on an equivalent unit basis
absorbed by all units past the inspection point

15. Normal spoilage units resulting from a continuous process _______. (Points: 1)
are extended to the EUP schedule
result in a higher unit cost for the good units produced
result in a loss being incurred
cause estimated overhead to increase
16.
16. Listed below are the steps to assign costs to ending inventory using the
weighted average method process costing method.
A. Assign the costs to the inventory accounts
B. Calculate the physical units accounted for
C. Calculate the physical units to account for
D. Calculate the equivalent units of production
E. Calculate the total costs to account for
F. Calculate the cost per equivalent units
(Points: 1)
abcdef
cebafd
bcdefa
fabdce

17. Units started and completed during the period equals (Points: 1)
units started plus beginning inventory
units started minus beginning inventory
units completed plus beginning inventory
units completed minus beginning inventory

18. In process costing systems, unit costs are found by dividing total costs incurred by (Points: 1)
ending work in process
beginning work in process
equivalent units of production
units transferred to finished goods

19. Equivalent units of production using the weighted average method of costing are found using
which of the following formulas: (Points: 1)
units completed and transferred + units in ending WIP inventory
 beginning WIP physical units + units started and completed + (ending WIP x percent
complete)
beginning WIP in physical units + units started and completed
(beginning WIP physical units x percent complete) + units started and completed +
(ending WIP x percent complete)

20. Total costs to account for is: (Points: 1)

the number of units finished during the period
equal to the dollar value offending work in process inventory
is the sum of the beginning WIP balance plus all current product costs
is the sum of the beginning WIP balance plus the ending WIP balance