Professional Documents
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Student: ___________________________________________________________________________
6. A true process costing system could make use of each of the following except:
A. Predetermined factory overhead rates.
B. Individual jobs.
C. Cost centers.
D. General ledger control accounts.
7. All of the following could be included in the cost of a product located in the final production department of a
multi-step process except:
A. The costs of materials, labor and overhead identifiable with that department.
B. Marketing and distribution costs.
C. The costs of service departments that have been allocated to production departments.
D. The costs of prior production departments.
8. Brown Company incurred cost of $17,000 for material, $13,000 for labor, and $16,000 for factory
overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred
out. The unit cost for material is:
A. $3.40
B. $2.60
C. $9.20
D. $3.20
9. Daniel LLC incurred cost of $43,000 for material, $26,000 for labor, and $23,000 for factory
overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred
out. The cost per unit is:
A. $8.60
B. $5.20
C. $18.40
D. $4.60
10. Which of the following is not included in departmental product costs?
A. Costs identifiable with the department.
B. Costs added by prior production departments carried to the department.
C. Cost of sales and administrative departments that have been allocated to the production department.
D. Costs of factory service departments that have been allocated to the production department.
11. The primary task of process costing is to allocate total cost between:
A. units finished during the period and units still in process at the end of the period.
B. materials and conversion costs.
C. units in process at the beginning of the period and units started during the period.
D. units started during the period and units finished during the period.
12. Using the average cost method of process costing, the computation of manufacturing cost per equivalent
unit considers:
A. Current costs only.
B. Current costs plus cost of beginning work in process inventory.
C. Current costs plus cost of ending work in process inventory.
D. Current costs less cost of beginning work in process inventory.
13. The number of whole units that could have been completed during a period, using the production costs
incurred during that period is called:
A. Standard production.
B. Equivalent production.
C. Total units.
D. Manufactured units.
17. The production report for Phillips Industries, which had no beginning inventory at the beginning of the
month, included the following information for September:
If the equivalent units for September’s production were 77,400, how many units were in process at the end of the month, and how complete were
they?
A. 9,000; 30%
B. 9,000; 60%
C. 3,000; 90%
D. 6,000; 90%
18. If there is no beginning work in process inventory and the ending work in process inventory is 90 percent
complete, the number of equivalent units would be:
A. The same as the units placed in process.
B. The same as the units completed.
C. Less than the units placed in process.
D. Less than the units completed.
19. An error was made in the computation of the stage of completion of the current year's ending work in
process inventory. The error resulted in assigning a lower stage of completion to each component of the
inventory than actually was the case. What is the resultant effect of this error upon:
Maha Industries
Cost of Production Summary
For the Month Ended May 31, 20--
Cost of production for month:
Materials $ 8,000
Labor 4,000
Factory overhead 3,000
Total costs to be accounted for $15,000
Unit output for month:
Finished and transferred to Finished goods
during month 3,500
Equivalent units of work in process, end of
month (2,000 units, 25% completed) 500
Total equivalent production 4,000
Unit cost for month:
Materials ($8,000 / 4,000) $2.00
Labor ($4,000 / 4,000) 1.00
Factory overhead ($3,000 / 4,000) .75
Total $3.75
Inventory costs:
Cost of goods finished and transferred to
Finished goods during month: (3,500 ´ $3.75) $13,125
Cost of work in process, end of month:
Materials (2,000 ´ .25 ´ $2.00) $1,000
Labor (2,000 ´ .25 ´ $1.00) 500
Factory overhead (1,000 ´ .25 ´ $.75) 375 1,875
Total production costs accounted for $15,000