BASIC COST CONCEPT REVIEW PART 12

Which of the following manufacturers would likely not use a process cost accounting system?

• A producer of chemicals

• a paint manufacturer

• a producer of petroleum products

• a builder of customized yachts

in process costing, separate work in process a separate work in process account is kept for each

• equivalent unit

• individual order

• processing department

• product cost category

Which of the following is not a characteristic of a process cost system?

• The system emphasizes time period rather than the time it takes to complete the job

• the system may use several work-in-process inventory accounts

• the system accumulates cost per job

• product cost are grouped by department rather than by jobs

the four steps necessary to determine the cost of goods completed and the ending inventory valuation in the process cost system are

1. 1. allocate costs to transferred and partially completed units.

2. 2. Determine the units to be assigned costs

3. 3. Determine the cost per equivalent unit

4. 4. Calculate equivalent units of production

• 2,4,3,1

• 4,2,3,1

• 2,3,4,1

• 1,3,2,4

it is usually necessary to calculate equivalent unit production for

• materials

• conversion cost

• material and conversion cost

• material, conversion costs, and overhead

The main difference between the FIFO and weighted average methods of process costing is

• in the treatment of beginning work-in-process inventory

• in the treatment of current period production costs

• in the treatment of lost units

• in the treatment of ending work-in-process inventory

Which of the following is not relevant in determining weighted average unit cost in process costing?

• cost of beginning inventory

• equivalent unit production in beginning inventory

• equivalent unit production in ending inventory

• units completed

the numerator of weighted-average unit cost calculations is

• current period cost

• cost of beginning inventory

• current period cost plus cost of beginning inventory

• cost of good sold

the numerator of FIFO unit cost calculations is

• current period cost

• cost of beginning inventory

• current period cost plus cost of beginning inventory

• cost of good sold

The numerator in computing the unit cost using the weighted average method is

• current-period cost

• current period cost plus beginning inventory cost

• beginning inventory cost

• none of the choices