1. Which of the following businesses is most likely to use process costing?

Ans. Chemical Plant

2. What types of costs are normally found in a process accounting system?

Ans. materials, labor and overhead

3. Process costing is used to account for

Ans. large numbers of identical products that are produced in a continuous manufacturing
environment.

4. A transfer from department A to department B for further work would require a debit to
which account to record
Ans. Cost of good sold

5. The cost of units in the last or final department will be transferred from work in process
to
Ans. Finished goods

6. Estimating the degree of completion of ending work in process requires:

Ans. judgement and ethical behavior

7. Corruption, Inc. overstated the percentage of work completed with respect to the
conversion cost on the ending tip inventory What is the effect of this overstatement on
conversion-cost equivalent units physical units manufactured, respectively?
Ans. overstated on equivalent units
none of physical units

8. In calculating unit cost in a process costing system, "conversion cost" is defined as the
sum of:
Ans.  Direct labor and factory overhead costs

9. The material cost per equivalent unit using the weighted average method is calculated
as
Ans.  total material costs to account for/equivalent units for materials

10. The percentage of completion of the beginning work-in-process inventory should be

considered in the computation of the equivalent units for which of the following methods of
process costing?
Ans. FIFO = Yes Weighted-Average = No

11. From the industries listed below, which one is most likely to use process costing in
accounting for production costs?
Ans. Steel Mill

12. Using weighted average method of process costing and with respect to conversion cost
the percentage of completion for the current period
Ans. - BWIP - YES; EWIP - YES
13. In the computation of the manufacturing cost per equivalent unit, the weighted-average
method of process costing considers:
Ans. current costs plus cost of beginning Work-in-Process Inventory.

14. Process costing would be most appropriate for which of the following?
Ans. soft drink bottler

15. Firms should use a process costing system when they produce products that:
Ans. Pass through a series of manufacturing departments.

16. As a product occurs, materials, direct labor and applied factory overhead
Ans. -

17. The number of completed units that could have been produced given the total amount
of productive effort expended for the period under consideration are the:
Ans. equivalent units of output.

18. When computing equivalent units of production, the method that combines partially
completed units in beginning inventory with current period production is
Ans. the weighted average method

19. When products and their costs are moved from one process to the next process, these
costs are referred to as
Ans. transferred-in costs.

20. In process costing, unit product cost is calculated by dividing process cost in each
department by the equivalent units produced:
Ans. During the period

21. The sum of the beginning inventory units and the number of units started during the
period determines the:
Ans. Units to account for

22. The first step in determining process costs is:

Ans. Analyzing physical flow of production units.

23. The sum of the units transferred out and the units in the ending work in process
inventory determines
Ans. -

24. The weighted-average method of process costing makes no distinction between the
cost incurred prior to the current period and the cost incurred in:
Ans. The current period.

25.Equivalent units expresses all activity of the period in terms of

Ans. fully completed units

26. When should process costing techniques should be used in assigning costs to
products:
Ans. If the product is composed of mass-produced homogeneous units.
27. Companies that use a process-cost accounting system would:
Ans. establish a separate Work-in-Process Inventory account for each manufacturing
department

28. The advantage of the weighted-average method is its:

Ans. Simplicity

29. Process cost systems are used in all of the following industries except:
Ans. Home building

30. In a production cost report using process costing, transferred-in costs are similar to the
Ans. cost of material added at the beginning of production.

31. Which of the following data are needed to calculate total equivalent units under the
weighted-average method?
Ans. Units completed during the period, work-to-date on ending work in process.

32. The major difference between weighted average and FIFO process costing method is
the handling of the partially completed
Ans. Beginning work-in-process inventory

33. The journal entry to record the application of factory overhead to work in process would
include a credit to
Ans. Factory Overhead

34. What system would a manufacturer of unique special orders or batch processes most
likely use to accumulate costs?
Ans. Job-order costing

35. Which statement best describes the concept of equivalent units of production?
Ans. Equivalent units are a measure of a period's output.

36. The final step in determining process costs is

Ans. Assigning cost to completed and uncompleted production

37. A newly hired accountant identified the following procedures.1. calculate the equivalent
units….
Ans. 2,1,4,3

38. When materials are added at the end of production process, materials in the ending
work in process are assigned with
Ans. 0% EUP

39. The material cost per equivalent unit using the first in , first out method is calculated as
Ans. Total material costs / number of partially completed units for materials
40. DU30 Corporation uses a weighted-average process costing system. The company
has two processing departments. Production starts in the Assembly Department and is
completed in the Finishing Department. The units completed and transferred out of the
Assembly department during April will become the:
Ans. units started in production in Finishing for April.

41. Under the weighted average method, once weighted average equivalent units are
calculated then the first-in, first-out equivalent units can be obtained by subtracting out:
Ans.the prior-period output found in beginning work in process.

42. Cost to account for does not include

Ans. Prior department’s transferred in costs

43. Which of the following does not appear in the production report?
Ans. retail value of the units produced

44. In process costing, costs are accounted for by

Ans. Process

45. Which of the following characteristics applies to process costing, but does not apply to
job order costing?
Ans. the use of equivalent units of production

46. A production report is divided into two sections

Ans. unit information section and a cost information section

47. A transfer from department A to Department B for further work would require a credit to
which account to record this transfer
Ans. Work in process inventory - Department A

48. Which of the following statements about a process costing system is incorrect?
Ans.  materials costs can be traced to units of products

49. The costing method that merges prior period work and costs with current period work
and costs called
Ans.Weighted average method

50. The costing method that excludes prior period work and costs in computing current
period unit work and costs is
Ans. FIFO Method

51. Which of the following is true of a production report prepared under a process-costing
system?
Ans. It provides information about the physical units processed in a department.

52. The appropriate cost accounting system to use when inventory items are produced on
an assembly line is
Ans. process costing
53. Equivalent-unit calculations are necessary to allocate manufacturing costs between:
Ans. units completed and ending work in process.

54. Obito corporation uses weighted average process costing system. It has two
materials…..
Ans. When processing on BWIP is more than 50% complete…..