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WorksheetsChapter M3 - Process Costing
Total questions: 18
Worksheet time: 10mins
A company making identical items through a series of uniform processes uses what costing system?
Weighted average
Job order
Process
First-in, first-out
Who is most likely to use process costing?
Accounting firm
Soda company
Law firm
Construction company
Which is true of process costing?
Overhead is assigned only to the last process
Costs are accumulated in each production department
it tracks and assigns both period and product costs
It uses only one Work-in-Process Inventory account
Under process costing, the costs incurred in each department are reported in:
Cost of Goods Sold account
Finished Goods Inventory account
Job cost sheet
Production cost report
What's an equivalent unit?
A partially completed unit to be sold as is
Substitute of units that are partially completed
Different types of units with the same selling price
Partly-completed units expressed in terms of fully-completed units
There are 1,000 units in process at the end of the period. They are 40% complete with respect to conversation. Direct materials are added at the end of the process. How many EUP for conversion costs?
0
400
600
1,000
There are 1,000 units in process at the end of the period. They are 40% complete with respect to conversation. Direct materials are added at the end of the process. How many EUP for direct materials?
0
400
600
1,000
What are conversion costs?
Direct labor + manufacturing overhead
Cost to convert finished goods to sales
Cost for direct and indirect materials
Direct material + direct labor + manufacturing overhead
200 units were completed this period; 50 units are still in process that are 30% complete. How many total equivalent units were produced?
110
200
215
250
What report shows equivalent units of production, costs, and assignment of costs for a department?
Equivalent units report
Job costing report
Production cost report
TPS report
In a production cost report, total units to account for consists of:
Units in process at beginning of period
+ units started during period
Units in process at beginning of period
+ units in process at end of period
Units completed & transferred out
+ total units produced
Units in process at end of period
+ units started during period
Under process costing, the # of units to account for MUST ________ the # of units accounted for
Be greater than
Equal
Be less than
Be double
Costs that were incurred in a previous department that are brought into this department as part of a product's cost are
Transferred-in costs
Transferred-out costs
Costs to account for
Costs accounted for
The equivalent units of production for transferred-in costs must always be 100% because:
They are not utilized for production in the subsequent department
They are finished goods
They were 100% done with that department before they left it
They are 100% done for the whole process
Beginning inventory: 200 units
300 units transferred in
150 units transferred out
How many units to account for?
500
300
350
200
Beginning inventory: 200 units
300 units transferred in
150 units transferred out
How many units in ending inventory?
500
300
350
200
If we overallocated manufacturing overhead, what's the adjusting entry?
Debit Manufacturing Overhead
Credit Cost of Goods Sold
Debit Cost of Goods Sold
Credit Manufacturing Overhead
Debit Manufacturing Overhead
Credit work-in-process accounts
Debit work-in-process accounts
Credit Manufacturing Overhead
We pay $1,000 for the factory's utilities bill. We will credit cash in the journal entry; what account will we debit?
Utilities Expense
Manufacturing Overhead
Cost of Goods Sold
Factory Period Expenses
