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Cost Accounting: Process Costing

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.

Under this method there is an assumed flow of manufacturing operations and as such it is considered that those units which are first placed in process are presumed to be the first ones completed and those that are first completed are the ones transferred out.

a)

Weighted Average Method

b)

Average Cost Method

c)

FIFO Method

d)

Process Costing

2.

Under is method, there is NO assumed flow of manufacturing operations.

a)

Average Cost Method

b)

FIFO Method

c)

Process Costing

d)

Weighted Average Method

3.

It is a method of costing used mainly in manufacturing where units are continuously mass-produced through one or more processes.

a)

Job Costing

b)

Direct Costing

c)

Process Costing

d)

Throughput Costing

4.

Under this method, the introduction of the elements of cost to production varies at any age of the process, hence, there should be as many computations of equivalent as the elements of cost that are unevenly applied.

a)

Uneven Application

b)

Direct Costing

c)

Even Application

d)

Job Costing

5.

Under this method, it is considered that at any stage during the process of production, the introduction of the three elements of cost are equal with one another.

a)

Even Application

b)

Job Costing

c)

Uneven Application

d)

Direct Costing

6.

What is the Step 2 in the "Cost of Production Report"?

a)

Account for all costs

b)

The Quality Schedule

c)

Determine the costs to be accounted for (cost charged to the department)

d)

Calculate Equivalent Units and unit costs

7.

What is the Step 4 in the "Cost of Production Report"?

a)

Determine the costs to be accounted for (cost charged to the department)

b)

The Quality Schedule

c)

Account for all costs

d)

Calculate Equivalent Units and unit costs

8.

An abnormal gain in a process occurs in which of the following situations?

a)

When actual losses are less than the normal level

b)

When the process output is greater than planned

c)

When costs are reduced through increased machine speed

d)

When actual losses are greater than the normal loss level

9.

The physical flow of units into and out of departments is shown on the:

a)

Qualities Schedule

b)

Cost of account for schedule

c)

Equivalent production schedule

d)

Cost of accounted for schedule

10.

An equivalent unit of material or conversion cost is equal to:

a)

50% of material or conversion cost of a unit to finished goods inventory (assuming a linear production pattern)

b)

A unit of work-in-process inventory

c)

The amount of material or conversion cost necessary to start a unit of production into workthe -in-process inventory

d)

The amount of material conversion cost necessary to complete one unit of production

11.

Process costing is used when identical units are produced through an ongoing series of uniform steps

a)

TRUE

b)

FALSE

12.

In process costing, the same equivalent units figure is always used for both materials and conversion costs.

a)

FALSE

b)

TRUE

13.

In order to use process costing, the output of a processing department must be homogeneous.

a)

FALSE

b)

TRUE

14.

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications

a)

TRUE

b)

FALSE

15.

When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weighted-average method.

a)

FALSE

b)

TRUE