AKUNTANSI BIAYA - SESI 1

A process costing system is most appropriate when __________.

• the focus of attention is on a particular job or order.

• similar products are mass-produced.

• individual products are custom made to the specification of customers.

Which of the following are components of conversion costs?

• Indirect materials and manufacturing overhead

• Direct labour and manufacturing overhead

• Direct labour and indirect labour

Product costs comprise:

• direct materials, direct labour and manufacturing overhead.

• direct materials and manufacturing overhead.

• direct labour and manufacturing overhead.

Which of the following is a characteristic of process costing?

• Costs are traced to products rather than to production processes.

• It is employed by companies that use standardized processes.

• It can only be used for manufacturing firms and not used for service firms.

Which qualities that materials must have to be classified as direct materials?

• They must be introduced into the process in both work in process inventories and finished goods inventories.

• They must be an integral part of the finished product but can be an insignificant portion of the total product cost.

• They must be an integral part of the finished product and a significant portion of the total product cost.

Equivalent unit calculations are necessary to allocate manufacturing costs between __________.

• cost of goods manufactured and ending work in process

• beginning work in process and units completed

• cost of goods manufactured and beginning work in process

Using the First-In-First-Out method in process costing, the work in progress at the end of the process will come from which units?

• Beginning units in process and units started in the process.

• Units started in the process.

• Units started and units completed.

An equivalent unit is calculated by _____________.

• dividing the number of physical units by their percentage of completion

• multiplying the number of physical units by their percentage of completion

• dividing the number of physical units into direct materials and conversion costs

Explain briefly why it is necessary to calculate equivalent units of production in a department.

• A physical count of units is impossible.

• Some of the units worked in the department are not fully completed.

• The physical units in the department are always 100% complete.

Which of the following is NOT the features of process costing?

• The final output is made up of identical and homogeneous units

• The output of one process will become the input of the next process.

• There is no uniformity in the flow of production.