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WorksheetsAkbi, K-nya kuis
Total questions: 6
Worksheet time: 4mins
Which of the following best defines the difference between job order costing and process costing?
A) Job order costing is used for mass production of identical products, while process costing is used for unique, customized products.
B) Job order costing tracks costs for each individual job or batch, while process costing accumulates costs by department or process over a period of time.
C) Job order costing applies only to manufacturing companies, while process costing applies only to service industries.
D) Job order costing involves tracking direct materials and labor only, while process costing tracks overhead exclusively.
What are equivalent units in process costing?
a) Fully completed units only.
b) Units in beginning WIP inventory.
c) Partially completed units converted into a measure of completed work.
d) The number of units transferred out during the period
What does the FIFO method assume about the flow of costs in a process costing system?
a) Costs are assigned based on the average cost of all units.
b) Costs are assigned to the oldest units first.
c) Costs are assigned randomly to units.
d) Costs are assigned to the newest units first.
What is the main difference between the FIFO and Weighted Average methods in process costing?
a) FIFO does not consider beginning inventory, while Weighted Average does.
b) FIFO separates beginning WIP costs, while Weighted Average combines them with current costs.
c) FIFO is only used for materials costs, while Weighted Average is for conversion costs.
d) FIFO uses physical units, while Weighted Average uses equivalent units.
In the FIFO method, how are beginning WIP inventory costs treated?
a) They are combined with current period costs.
b) They are ignored completely.
c) They are treated separately and completed first.
d) They are split equally between completed and ending WIP units.
Beg. WIP = 225
Started = 275
End. WIP = 100
Started and Completed = ?
275
175
400
225
